Economy
Fuel Imports Gulp 30% Forex—Adeosun
By Modupe Gbadeyanka
Minister of Finance, Mrs Kemi Adeosun, has disclosed that 30 percent of the Nigeria’s demand for foreign exchange was for fuel importation.
Mrs Adeosun made this known in Lagos on Friday at the launch of ‘FirstGem’, a product of First Bank of Nigeria Ltd., aimed at empowering women through wealth creation.
According to her, government was working very hard to transform the country from consumption driven to investment driven nation.
The Minister revealed that it was disheartening that Nigeria exports crude oil and imports petroleum.
“We lose a lot of money exporting unprocessed raw materials. We don’t have the power to process and that’s why we need to build infrastructure to export processed products in order to earn more foreign exchange,” she said at the occasion.
The Finance Minister noted that the Federal Government was committed at rebuilding the country’s infrastructure to boost local production for job creation.
“If we have an enabling infrastructure such as power, roads , among others, cost of doing business in Nigeria will reduce drastically,” Mrs Adeosun said.
She said that government would continue to improve the country’s competitiveness through the provision of basic amenities.
The Minister further said that funds borrowed by the government would be tied to capital projects to boost infrastructure development.
She stated that government revenue had reduced due to drop in the price of oil at the global market.
She said, “It is a difficult time but we will get out of it. We will survive and get better. Nigeria is tough but we are very resilient.”
Speaking on the FirstGem product, Mrs Adeosun said that women were very critical to the country’s development.
She said that women needed to be financially independent as they represent 52 per cent of the country’s population, adding that, 70 per cent SMEs operators were women.
The Minister, who commended the bank for introducing the product, noted that FirstGem would help women to show track record of success that would make banks to offer them funds to grow their businesses.
Mrs Adeosun stated that women must learn to save and stick with their budget in order to prepare for tough times, noting that, women must not spend all their monies on consumables.
She said, “Women have to open their eyes, your children are not your pension because it doesn’t work anymore.”
Also speaking, the wife of the Vice President, Mrs Dolapo Osinbajo, who was the special guest of honour, commended the bank for the product aimed at empowering women.
Mrs Osinbajo urged women to take advantage of the product and empower themselves, noting that, recession had opened up a lot of opportunities that were yet to be tapped.
The Chairman, Board of Directors, First Bank of Nigeria Ltd., Mrs Ibukun Awosika, said that the product was introduced to support and make women more financially responsible to be good entrepreneurs.
She added that the given country was going through tough times and women needed to wake up in order to support their families.
She said, “We want to ensure that women stand on their own when the need arises, its time for the women to wake up and must not be a liability.
“We want to use the product to challenge the mind of women to save and have the capacity to stand on their own.”
The FBN Chief Executive Officer, Mr Adesola Adeduntan, said the significant role of women in economic development was not debatable.
Mr Adeduntan said that FirstGem was initiated in order to empower more women to contribute their quota to economic development.
He said, “When women thrive the whole society benefits because there will be sustainable growth.”
NAN
By Aduragbemi Omiyale
A former deputy Governor of the Central Bank of Nigeria (CBN), Mr Kingsley Moghalu, has attributed the failure of the Naira redesign policy of the apex bank to the lack of effective risk management, its use as a political tool and others.
Last October, the central bank Governor, Mr Godwin Emefiele, announced that the designs of the N200, N500, and N1,000 denominations would be changed.
In a special press briefing, he disclosed that the new notes would be introduced into the banking system by December 15, while the old currency notes would cease to be legal tender from January 31, 2023.
However, the deadline was moved forward to February 10, and on March 3, the supreme court extended the deadline to December 31, 2023, meaning the old notes will remain valid by the end of the year.
From February 10 till now, Nigerians have been unable to have access to cash as commercial banks limit what customers can withdraw via their channels. In some cases, customers are limited to N1,000, N2,000, and N5,000 cash withdrawals, forcing them through an untold hardship and making a mess of the Naira redesign and cashless policies of the CBN.
While speaking on the issue, Mr Moghalu blamed his former employers for the failure of the policy, noting that they did not put the system under thorough scrutiny.
“The terrible suffering and economic loss Nigerians have experienced as a result of the faulty IMPLEMENTATION of the Central Bank of Nigeria’s Naira redesign policy, the entry of the judiciary into central banking functions, all show clearly how our institutions— and Nigeria — fail when institutions that are meant to be operationally independent become politicized.
“Currency functions are a core part of any central bank’s mandate. To that extent, I had no problem with the policy, except for two vital issues. First, the 90-deadline, which I warned, was too short to be effectively executed. Second, the timing is so close to the elections.
“But, as later became clear, there was a haphazard and incoherent communication of the PURPOSES of the policy. In one breath, it was said to be to reduce the money supply and help tame inflation (after the bank had created and lent N23 trillion to the federal government illegally because that was way beyond approved limits under the CBN Act of 2007). Next, it was promoted as a national security measure to halt kidnapping, Naira hoarding and sundry crimes. Then, next, it became about free and fair elections to stop vote-buying.
“This last reason became the most important — and controversial — reason as the tempo of the 2023 presidential contest rose to boil point. Expectedly, politicians who felt the policy targeted them complained loudly and wanted the deadline extended, while those who believed it helped their own political agendas hailed the tight and impractical deadline and did not want it moved.
“Nigerians were trapped between the devil and the deep blue sea of a desire to curb the menace of vote-buying and the effective confiscation of their own money by the implementation failure of the policy.
“While increasing digital payments, another purported goal of the policy, was a good one, that thinking failed to consider the reality that the payment infrastructure was still not robust in many rural areas of our country, that cash remains king, and, as I said on an interview with @LadiAAle of @channelstv, we were carrying on as if it has now become a crime to use cash in Nigeria. Most important, as I raised the question in that same interview, what exactly is the mandate of the CBN? Had it now become to end vote buying in elections? Surely, we have anti-corruption institutions vested with such mandates, and to use the CBN for that primary purpose was to politicize the institution.
“But many Nigerians, as usual, did not think deeply about the implications of this line of thinking and action because of their political passions against presumably corrupt politicians.
“Today, whatever may have been the benefits of the Naira redesign policy have been cancelled out by the economic and social gridlock it has created. We are still suffering from it after the almighty presidential election has come and gone.
“There are several lessons here. One such lesson is the importance of effective risk management, which was evidently absent in the conception and execution of the policy.
“I had highlighted this in a previous intervention. But there is the fundamental lesson of whether our institutions in Nigeria have been hijacked and subverted from serving the Nigerian people and our economy to serving personal and political agendas, including a dishonest use of a war against corruption as an attractive shiny object.
“One day, we will count the losses to the Nigerian economy, the legitimacy and effectiveness of a once-prestigious institution, and to the legitimacy of the Nigerian state itself, of the partisan politicization and de-professionalization of the leadership of the CBN.
“Our apex bank, along with the judiciary, is one of the key institutional prisms through which foreign countries and investors abroad and at home assess the functioning or otherwise of the Nigerian state. Turning it into a political football was and is a big mistake, and a strong indicator of state failure,” he wrote via his verified Twitter page.
By Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc and 11 Plc suffered losses on Thursday, causing the NASD Over-the-Counter (OTC) Securities Exchange to deflate by 0.22 per cent.
The duo overturned the gains recorded by FrieslandCampina WAMCO Nigeria Plc and Geo-Fluids Plc.
Data obtained by Business Post showed that CSCS Plc lost 5 Kobo to quote at N14.00 per unit versus the previous day’s N14.05 per unit, while 11 Plc lost N10 to close at N140.00 per unit compared with Wednesday’s value of N150.00 per unit.
On the flip side, FrieslandCampina appreciated by 59 Kobo to finish at N76.00 per share versus the previous closing price of N75.41 per share, as Geo-Fluids Plc gained 14 Kobo to close at N1.64 per share as against the previous day’s N1.50 per share.
At the close of transactions, investors lost N2.11 billion as the value of the OTC stock market closed at N959.06 billion, in contrast to the midweek’s N961.17 billion.
Following the same trend, the NASD Unlisted Securities Index (NSI) decreased at the close of trades by 1.61 points to 729.87 points from 731.48 points.
It was observed that the volume of securities traded in the session went down by 77.2 per cent to 5.2 million from 23.1 million units, the value of stocks expanded by 139.5 per cent to N24.3 million from N10.1 million, while the number of deals increased by 7.7 per cent to 14 deals from 13 deals.
Geo-Fluids Plc remained the most traded stock by volume on a year-to-date basis with 460.3 million units valued at N501.9 million, UBN Property Plc transacted 365.8 units worth N309.5 million, while IGI Plc was in third place with 71.1 million units valued at N5.1 million.
Conversely, VFD Group Plc was the most traded stock by value on a year-to-date basis with 7.3 million units worth N1.7 billion, Geo-Fluids Plc has transacted 460.3 million units valued at N501.9 million to retained second place, while UBN Property Plc was in third place with 365.8 million units worth N309.5 million.
By Adedapo Adesanya
The Nigerian Naira depreciated on the American Dollar at the Peer-2-Peer (P2P), the Investors and Exporters (I&E), and the black market segments of the foreign exchange (FX) market on Thursday, March 24.
In the P2P market, the value of the local currency fell by N2 to sell at N755/$1 compared to the previous trading session’s exchange rate of N753/$1.
Also, in the official FX window, the domestic currency lost 17 Kobo or 0.04 per cent to quote at N461.67/$1 during the session, in contrast to the preceding day’s value of N461.50/$1.
The Naira weakened against the greenback yesterday amid a moderation in the value of forex trades achieved. The turnover stood at $80.03 million, 81.5 per cent or $351.74 million lower than the $431.77 million reported a day earlier.
In the parallel market, the depreciated against the US Dollar on Thursday by N1 to quote at N742/$1 compared with Wednesday’s N741/$1.
In the same vein, in the interbank segment, the Nigerian currency depreciated against the British Pound Sterling by N1.42 to close at N566.08/£1 versus the midweek session’s N564.66/£1.
Similarly, the Naira lost 73 Kobo against the Euro during the trading session to sell at N497.72/€1 compared with the previous day’s rate of N496.99/€1.
Meanwhile, yesterday, the cryptocurrency market shrugged off the US Federal Reserve’s 25-basis point rate hike and ongoing concerns about the banking sector and future monetary policy decisions.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, jumped 2.4 per cent to sell at $28,295.37, as its rival, Ethereum (ETH), went up by 3.6 per cent to quote at $1,812.05.
Litecoin (LTC) grew by 9.0 per cent to $95.58, Dogecoin (DOGE) went up by 2.9 per cent to $0.0768, Solana (SOL) improved by 2.5 per cent to $22.04, Ripple (XRP) recorded a 2.3 per cent appreciation to trade at $0.435, Cardano (ADA) gained 1.5 per cent to settle at $0.3667, and Binance Coin (BNB) added 1.3 per cent to its value to finish at $326.77, while the United States Tether (USDT) and Binance USD (BUSD) remained unchanged at $1.00 each.
