ABCON Raises Alarm Over Forex Supply Shortage from CBN

Image

By Adedapo Adesanya

The Association of Bureau De Change Operators of Nigeria (ABCON) has lamented over the foreign exchange (forex) crisis facing the country, saying that supply from the Central Bank of Nigeria (CBN) has reduced drastically.

The association’s president, Mr Aminu Gwadabe, made this disclosure during a recent interview on Channels Television.

He noted that the forex crisis was as a result of massive speculation, hoarding and panic buying, which have put the local currency under serious pressure.

He complained that about $3 billion was waiting to be wired offshore by investors should the pandemic disappear and economic activities resume fully.

He lamented that a lot of Nigerians have lost confidence in the value of the Naira and are currently in a panic-buying mood.

‘‘Most Nigerians have overnight suddenly become Bureau De Change operators with many exchanging their Naira for Dollars, believing that the Naira could be devalued anytime soon.

“Another troubling aspect is that some SMEs have shut down their businesses and exchanged the proceeds for Dollars and now trading in currency exchange,” he alerted.

He warned that this remained an unhealthy development for the economy because such actions were putting undue pressure on the Naira.

He explained that various financial forecast of the economy predicted that diaspora remittances would be down by 20 percent, adding that investors are checking out while crude oil prices are also at an all-time low.

He said despite the coronavirus pandemic, which has slowed down economic activities, Nigerians were still in need of foreign exchange to pay for their wards schools fees and upkeep abroad while others need same for medical bills.

He said the lack of diaspora inflow into the economy and the suspensions of inbound international flights have all combined to limit the sources of forex for BDC operators.

The ABCON boss warned against the disparity in the country’s exchange rate, saying no country can afford to fold its arms and watch its currency slide into a massive free fall.

He noted that there cannot be a different rate for the same product, saying the way to go remains a unification of the country’s exchange rates in order to move from price volatility to price stability if the economy is to be prevented from total collapse.

‘‘There have been a lot of criticisms against the multiplicity of the country’s exchange rate regime. Government and all those concerned must work to remove all the barriers hindering the attainment of a unified exchange rate figures.

“There are a lot of questions about distortions, transparency and resource allocations. But if all the rates are unified, all these cynicism about the exchange rate will be automatically removed, thereby shutting the doors against rent-seekers who thrive on hoarding and speculative buying of currencies.

Mr Gwadabe also kicked against the activities of rent-seekers in the forex market, saying their continued presence willing bring about serious danger because they are not adding value to the economy.

The ABCON boss charged the government and its regulatory agencies to look at a change in methods, saying forex inflow may not happen anytime soon because every country and investors are hoarding same due to the coronavirus pandemic.

He challenged the government to think outside the box and look towards other sources of foreign exchange inflow, especially the Diaspora remittances.

‘‘This is a creative destruction period. We need to look into our Diaspora remittances. What are the challenges? Why are we not receiving the exact $29 billion Diaspora Remittance into the economy per annum which is far more than the receipt from crude oil per annum.”

Share
Related Stories
Image
25-September-2023

Experts Advise on How to Successfully Close eToro Account in 2023

eToro is like a big global marketplace for people who want to trade. It has been around since 2007 and serves folks in over 140 countries. It’s great for both the pros who know their stuff and newcomers who are just starting out. They even have a practice account for beginners and ways for people to earn without doing much. Sometimes, though, things don’t work out, or people just change their minds. Traders Union has got you covered with a guide on how to close eToro account the right way. Comparing eToro account options eToro offers trading conditions that many

Image
26-September-2023

FrieslandCampina, CSCS Raise Unlisted Securities Market By 0.54%

By Adedapo Adesanya A 0.54 per cent growth was recorded by the NASD Over-the-Counter (OTC) Securities Exchange on Monday, September 25, after the duo of FrieslandCampina WAMCO Nigeria Plc and Central Securities Clearing System (CSCS) Plc witnessed improvements in the share prices. The milk producer gained N1.39 during the session to end at N73.59 per unit compared with last Friday’s value of N72.20 per unit, while the Nigerian depository company grew by 70 Kobo to sell at N18.20 per share versus N17.50 per share. At the close of transactions, the total value of the unlisted securities market jumped by N6.21

Image
26-September-2023

Senate Confirms Cardoso as CBN Governor, Pledges Evidence-Based Policies

By Adedapo Adesanya The new Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, has said he would adopt an evidence-based monetary policy as he assumed office upon confirmation by the Nigerian Senate on Tuesday. He said the new leadership of CBN would “adopt an evidence-based monetary policy and shall not be making decisions based on a whim.” The Godswill Akpabio-led Senate confirmed the nomination of Mr Cardoso’s nomination as well as that of the four Deputy Governors of CBN nominated by President Bola Tinubu. The four deputy governors whose appointments were confirmed by the Senate are Mrs

More Stories
Image
07-April-2022

We Can Meet Demand for Shortlets in Nigeria—Adegboyega

By Adedapo Adesanya The managing director of a top real estate company, Eko Shortlets, Mr Tobi Misan Adegboyega, has said the company has the capacity to meet the demand for shortlets in Nigeria and other countries. The populations of more than half of African nations will double – or more – by 2050, the product of sustained high fertility and improving mortality rates and with this expected growth is the resulting high demand for housing. Mr Adegboyega believes that property owners are better positioned to bring balance to the housing supply chain crisis that will rise following this development. Thus,

Image
17-April-2023

Bolt Food Expands Service to Egbeda, Ogba, Ikotun, Ajah, Others

By Aduragbemi Omiyale Foodies in the Egbeda, Ajah, Sangotedo, Festac, Satellite Town, Ikotun, Ojodu, and Ogba areas of Lagos can now order food in the comfort of their homes and offices via the popular Bolt Food app. Bolt Food is the food delivery arm of a leading mobility platform, Bolt. The business arm of the firm was launched in Lagos in 2021. In a statement obtained by Business Post, Bolt Food said its expansion into the inner cities of Lagos was in fulfilment of its “promise to continue providing easier access to daily essentials.” With this development, residents of these

Image
15-September-2023

Nestle, eTranzact Crack NGX Index by 0.06% as Profit-Taking Returns

By Dipo Olowookere The Nigerian Exchange (NGX) Limited landed in the bears’ zone again on Thursday, a day after it left, following renewed profit-taking in the consumer goods sector. The sector depreciated by 0.28 per cent yesterday due to selling pressure on Nestle Nigeria and Honeywell Flour. Though investors also booked profit in banking shares, it did not affect the performance of the space as it closed higher by 0.68 per cent. The insurance counter appreciated by 0.51 per cent, and the industrial goods index rose by 0.09 per cent, while the energy sector remained flat. The poor outing of

Image
08-January-2021

George Etomi Chairs Nigerian Stock Exchange Claims Review Panel

By Dipo Olowookere Pursuant to the provisions of the Demutualisation of the Nigerian Stock Exchange Act 2018, the exchange has inaugurated its Claims Review Panel. The panel, which was formally set up on December 21, 2020, has a foremost legal practitioner and investor, Mr George Etomi as Chairman. To make his job easier, he also has Mr Seni Adio (SAN), Mr Abatcha Bulama, Mr Paul Anababa (SAN) and Mr Aghatise Erediauwa on the panel. A statement issued by the NSE explained that the team serves as an independent alternative dispute resolution mechanism for the review and determination of claims made

Image
08-June-2021

Stakeholders Discuss Sports Development in North-West

By Dipo Olowookere Stakeholders in the sports industry in the North West region of Nigeria are gathering in Kaduna State for their second quarterly meeting. The meeting commenced on Monday, June 7 at the Ahmadu Bello Stadium Media Centre, Kaduna and will end on Wednesday, June 9, 2021. Top on the agenda is how to develop the sector in the grassroots as well as the performance of the region at the recently-concluded 20th National Sports Festival tagged Edo-2020 as well as the maiden edition of the National Principal Cup at states, zonal and national level. It was gathered that the

Image
29-July-2021

Lafarge Africa Grows Net Sales to N145bn in Six Months

By Dipo Olowookere One of the major cement manufacturers in Nigeria, Lafarge Africa Plc, has continued to show resilience in the face of various challenges caused by COVID-19. On Thursday, the firm released its half-year earnings for 2021 and the results showed that the net sales grew by 20.3 per cent to N145.0 billion from N120.5 billion in the same period of 2020. Business Post reports that the sale of cement accounting for N141.4 billion of the total revenue for the period versus N118.6 billion in H1 2020, while the sale of aggregates and concrete contributing N3.6 billion compared with

Ad
Ad
Recent Stories
Image
27-September-2023

Banking, Energy Stocks Slurp N126bn from Nigerian Exchange

By Dipo Olowookere The bears tightened their grip on the Nigerian Exchange (NGX) Limited on Tuesday, chopping off 0.34 per cent from the local bourse despite assurances from Mr Yemi Cardoso he would endeavour to ensure the Central Bank of Nigeria (CBN) restores its independence. Mr Cardoso was confirmed as the new CBN Governor by the Senate yesterday and he promised to formulate evidence-based monetary policies, a departure from his predecessor, Mr Godwin Emefiele, who was accused of romancing the President and coming up with trial-and-error policies. Business Post reports that investors were more interested in trimming their exposure to

Image
26-September-2023

Senate Confirms Cardoso as CBN Governor, Pledges Evidence-Based Policies

By Adedapo Adesanya The new Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, has said he would adopt an evidence-based monetary policy as he assumed office upon confirmation by the Nigerian Senate on Tuesday. He said the new leadership of CBN would “adopt an evidence-based monetary policy and shall not be making decisions based on a whim.” The Godswill Akpabio-led Senate confirmed the nomination of Mr Cardoso’s nomination as well as that of the four Deputy Governors of CBN nominated by President Bola Tinubu. The four deputy governors whose appointments were confirmed by the Senate are Mrs

Image
26-September-2023

AFC Gets $300m Chinese Loan to Boost Trade Finance

By Adedapo Adesanya  Africa Finance Corporation (AFC) has secured a $300 million loan from the Export-Import Bank of China (CEXIM) to drive increased trade finance and investment across the African continent, fostering economic growth and development. The infrastructure solutions provider on the continent announced the successful signing of the landmark agreement on the sidelines of the Asian Infrastructure Investment Bank (AIIB) Annual meetings in Egypt. The 3-year credit facility is a significant development in AFC’s long-standing relationship with CEXIM. The two institutions have collaborated since 2018, with AFC receiving $400 million in bilateral loans from CEXIM to date. According to

Image
26-September-2023

Fluenta Installs Technology to Reduce Gas Flaring at Dangote Refinery

By Adedapo Adesanya Ultrasonic sensing technology company, Fluenta, has completed work on the Dangote Refinery in Nigeria, Africa’s biggest oil refinery, installing 18 ultrasonic flare gas meters on large pipelines around the plant. This company is using its technology to aid Nigeria’s flare gas reduction efforts and with Dangote Refinery set to begin operations soon, according to its management recently, this could be a step to fix inaccurate measurements of gas flaring. Nigeria currently imports refined petroleum products for its use, even though it is Africa’s biggest oil producer and with Dangote Refinery, the world’s largest single-train refinery capable of

Image
26-September-2023

Smart Recycling Hub Opens in Ibadan

By Aduragbemi Omiyale A smart recycling hub has been unveiled at the Ojoo terminal in Ibadan, the Oyo State capital, courtesy of a waste management consultant, Mottainai Recycling Limited. The facility was opened on Monday at a ceremony attended by the representatives of the state government, the consultant, and the Akinyele Local Government, among others. The Director of Environment of the local council, Mrs Ahmed B.D., said the initiative was aimed to raise awareness among traders, market women, and the general public about climate change, stressing the hazards and consequences of indiscriminate waste disposal, and other undesirable waste management practices.

Image
26-September-2023

Small Business Owners Fret Over Exchange Rate Instability

By Bliss Okperan The exchange rate instability in the country is already giving small business owners sleepless nights and it threatens their investments. This concern was raised recently by the National Vice Chairman of the Nigerian Association of Small-Scale Industrialists, Mr Segun Kuti-George. He emphasised that business owners would have to increase their prices because of the unavoidable consequence of the current exchange rate crisis in Nigeria. According to him, if consumers are unable to meet up with the increase in the cost of goods and services, businesses would be forced to shut down their operations, which would, in turn,

Image
26-September-2023

NGX RegCo’s Code of Conduct for Stockbrokers Takes Effect October 3

By Aduragbemi Omiyale A new Code of Conduct for Approved Persons of Trading License Holders, otherwise known as stockbrokers, has been introduced by the Nigerian Exchange (NGX) Regulation Limited (NGX RegCo). It was disclosed that the ethical guideline was designed to ensure professionals dealing with the trading of shares at NGX Limited follow high standards. Furthermore, it highlights the expected standards and values that Approved Persons must display at all times when conducting their businesses at all times. The idea of the code of conduct for stockbrokers, according to the regulator, is to deepen the market and foster professionalism, integrity,

Image
26-September-2023

Sustainable Development is a Necessity for Every Society in the World

By Professor Maurice Okoli For the majority of African leaders and delegates, it was a momentous achievement, to participate and contribute speeches with diverse themes at the podium during the 78th session of the UN General Assembly (UNGA) in New York. The UNGA traditionally meets in September, the highest global gathering to make several significant decisions on what the organization, consisting of 193 UN members, is generally expected to do. It has wrapped up its 78th annual session with another huge pack of commitments to engage in reshaping a better life for the entire population and Development paradigms in the

Image
26-September-2023

Equinor to Sell 20.2% Stake in Nigeria Oil Field Asset to Chappal

By Adedapo Adesanya A foreign oil company, Equinor ASA, has chosen a little-known Nigerian company, Chappal Energy, as the preferred buyer of its stake in one of the country’s largest deep-water oil fields, Agbami. According to a report by Bloomberg on Monday, the Norwegian energy giant is trying to sell its 20.2 per cent interest in the Agbami field – joining other international producers such as Shell Plc, Exxon Mobil Corporation and Eni SpA in looking to offload assets in Africa’s biggest crude producer, Nigeria. In January, Equinor launched the sale of its stake in an offshore Nigerian oilfield, joining

Image
26-September-2023

400-year-old British Institution Opens $150m School in Lagos

By Adedapo Adesanya A 400-year-old British educational institution, Charterhouse, has commissioned its first African school, currently in progress on a sprawling 70-hectare site located at Ogombo in Lekki, Lagos. The introduction of Charterhouse Lagos marks the convergence of British independent school heritage with cutting-edge educational practices, ushering in a new era of excellence in West African education. Charterhouse Lagos will represent a remarkable educational undertaking in the commercial capital of the country, with the planned $150 million campus expected to be fully delivered in 2028. The school’s development will unfold gradually, with the first intake of primary school students in