Economy
Group Advises CBN to Insert Expiry Dates in New Naira Notes
By Modupe Gbadeyanka
The Central Bank of Nigeria (CBN) has been advised to insert expiry dates in each batch of the redesigned Naira notes to discourage the stockpiling of the banknotes by corrupt politicians and persons with questionable sources of income.
Almost a month ago, the CBN Governor, Mr Godwin Emefiele, announced that the current N200, N500, and N1,000 notes would be phased off by January 31, 2023, with the new series of the denominations introduced into the financial system by December 15, 2022.
The reason for this policy, according to the apex bank chief, was because it was discovered that some persons had kept over 80 per cent of the currencies printed by the lender outside the vaults.
It was stated that kidnappers, politicians, and others had hoarded the notes and to take control of cash in circulation and also curb inflation, it was necessary to abandon the old notes and ensure that its cashless policy was effective.
This action of the central bank has not gone down well with some people, who want the bank to extend the deadline for mopping up the old notes by three months.
Also, President Muhammadu Buhari has been asked to remove Mr Emefiele as the CBN chief over this policy.
But an amalgamation of patriots in Northern Nigeria under the aegis of Coalition of Northern Patriots for National Reorientation objects to the sacking of Mr Emefiele, urging the President to ignore those calling for the banker’s head, including the Concerned Northern Forum (CNF), which gave Mr Buhari seven days to carry out this action, threatening to stage “massive protests across the Northern region and the Federal Capital Territory (FCT).
In a statement issued in Abuja by the spokesman of the coalition, Mr Ali Abacha, the patriots said only groups sponsored by corrupt politicians could kick against the Naira redesign.
It said Nigeria is at a crossroads, both politically and economically. The coalition insisted that it then calls for “drastic steps and a lot of sacrifices to return the country to the path of prosperity for all as against the current regime where the interests of a few individuals are protected.”
The patriots noted that the Naira redesign was long overdue, urging “the CBN to consider inserting expiry date on every batch of the naira notes to ensure that no individual stocks large sums of money in his bed chamber or underground.”
The statement added, “Today, many highly placed individuals, who cannot explain the source of their income, stockpile Naira notes in various denominations in their houses for fear of the anti-graft agencies.
“Some others who are engaged in illicit drug trafficking and kidnapping for ransom have stockpiles of notes in their houses while the economy is starved of urgently needed funds that should be in circulation to help the economy grow.
“For us, any individual or group working to stop the scheduled redesign of banknotes in the country is either ignorant or may be working for corrupt politicians and persons whose sources of income are questionable.
“We, therefore, call on President Muhammadu Buhari to ignore calls for the sack of the CBN Governor and his management team and treat individuals and groups agitating for the stoppage of Naira redesign as enemies of democracy and the prosperity of the country.
“We call on all security agencies to carry out a thorough investigation of persons and groups plotting to truncate the Naira redesign process as the investigation may lead to uncovering criminal syndicates and political thieves behind them.
“We hereby emphasize that northern Nigeria is not in any way against the CBN policy to redesign the N200, N500 and N1,000 banknotes as already approved by President Muhammadu Buhari.
“Nigeria needs to end vote buying, and 2023 is the best time to start the process as tackling vote buying could be one of the many unintended but immeasurable benefits of the Naira redesign besides the long-term economic gains across the country.”
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the south for the fourth consecutive session after it shed 1.18 per cent on Friday, March 13.
The unlisted securities market recorded a loss despite closing without a price decliner, and ending with two price gainers led by Geo Fluids Plc, which gained 1o Kobo to sell at N3.10 per share compared with the previous day’s N3.00 per share. Industrial and General Insurance (IGI) Plc appreciated during the session by 2 Kobo to trade at 54 Kobo per unit versus Thursday’s closing price of 52 Kobo per unit.
When the market closed for the day, the market capitalisation lost N29.83 billion to close at N2.489 trillion compared with the N2.519 trillion it finished a day earlier, and the NASD Unlisted Security Index (NSI) crashed by 49.84 points to 4,160.46 points from 4,210.31 points.
Market activity improved yesterday, as the volume of transactions rose 179.5 per cent to 10.4 million units from 3.7 million units, but the value of trades declined by 68.4 per cent to N29.9 million from N95.0 million, while the number of deals weakened by 11.5 per cent to 46 deals from 52 deals.
Central Securities Clearing Systems (CSCS) Plc remained the most active stock by value on a year-to-date basis with 38.4 million units worth N2.4 billion, Okitipupa Plc followed with 6.4 million units traded at N1.1 billion, and FrieslandCampina Wamco Nigeria Plc transacted 6.3 million units for N584.3 million.
Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.1 billion units valued at N415.6 million, trailed by Geo-Fluids Plc with 130.8 million units valued at N504.5 million, and CSCS Plc with 38.4 million units worth N2.4 billion.
By Adedapo Adesanya
The Naira continued to claw back some gains against the Dollar in the different segments of the foreign exchange (FX) market, as its value was strengthened on Friday.
In the black market, it gained N10 against the United States Dollar yesterday to close at N1,400/$1 compared with the preceding day’s rate of N1,410/$1, and at the GTBank forex counter, it chalked up N6 to close at N1,385/$1, in contrast to the N1,391/$1 it was traded a day earlier.
Similarly, in the Nigerian Autonomous Foreign Exchange Market (NAFEX), it appreciated against the greenback during the session by N5.28 or 0.38 per cent to quote at N1,366.23/$1 versus Thursday’s closing price of N1,371.51/$1.
It also improved its value against the Pound Sterling in the official market on Friday by N21.81 to settle at N1,812.99/£1 compared with the previous day’s N1,834.80/£1, and gained N13.86 against the Euro to sell at N1,568.03/€1 versus N1,581.89/€1.
Pressure eased further on the FX market as the Central Bank of Nigeria (CBN) continued interventionist operations this week, selling Dollars to banks to boost liquidity after a $500 million boost last week.
This was complemented by inflows from foreign investors, exporters and non-bank corporates, among others, while Nigeria’s gross external reserves remained above $50 billion, the highest since 2009.
The Governor of the apex bank, Mr Yemi Cardoso, also eased fears of a Naira devaluation, saying the country’s financial system has been strengthened by reforms.
Regardless, external pressure looms as the US Dollar strengthened globally due to its war with Iran, now ongoing for three weeks.
Meanwhile, the cryptocurrency market was largely down as traders and investors continue to align with current realities.
The market is adapting to the conflict in real time. Early in the war, every headline produced an outsized reaction because nobody could price the tail risk. Now, traders have a framework where strikes happen, oil spikes and bitcoin dips only to recover again.
Cardano (ADA) depreciated by 3.8 per cent to $0.2623, Dogecoin (DOGE) lost 1.7 per cent to finish at $0.0948, Ripple (XRP) slumped 1.5 per cent to $1.39, Solana (SOL) dropped 1.4 per cent to sell for $87.33, Binance Coin (BNB) went down by 1.3 per cent to $653.58, Bitcoin (BTC) declined by 1.1 per cent to $70,670.63, and Ethereum (ETH) decreased by 0.9 per cent to $2,078.78.
However, TRON (TRX) appreciated by 1.7 per cent to $0.2941, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Adedapo Adesanya
The price of the major crude oil grade, Brent crude oil, closed above $100 on Friday for the second consecutive session, as the Iran war heads toward its third week, with oil tanker traffic through the Strait of Hormuz still effectively at a standstill.
It gained 2.67 per cent or $2.68 during the trading day to close at $103.14 per barrel, while the US West Texas Intermediate (WTI) crude oil grade appreciated by 3.11 per cent or $2.98 to settle at $98.71 per barrel.
Brent futures were up about 10 per cent for the week following the 27 per cent rise seen last week, which marked the biggest weekly gain in oil prices since the COVID-19 pandemic in 2020. WTI futures, which saw their best week since 1983 last week, ended the week more than 8 per cent higher.
US President Donald Trump said American forces launched a major bombing raid on Iran’s strategic Kharg Island, targeting military facilities on the key Persian Gulf outpost while warning Iran that its vital oil infrastructure could be destroyed if shipping in the Strait of Hormuz is disrupted.
The terminal accounts for roughly 90 per cent of Iranian crude shipments, loading millions of barrels per day onto tankers bound largely for Asian markets.
The US and Israel’s strikes in the conflict have largely targeted Iranian military and nuclear infrastructure. Oil facilities elsewhere in Iran have been hit, but Kharg’s massive storage tanks, jetties, and pipelines had remained untouched until the latest strike.
Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep fighting in a message delivered via state television.
There have been a number of attacks on foreign ships in or near the Strait, feeding into concerns that a prolonged war could translate to a global economic shock.
Prices are rising despite the US and its allies rolling out some measures to keep a lid on energy costs.
The International Energy Agency (IEA) has agreed to release 400 million stockpiled barrels, the largest such action in history.
The US has issued a 30-day waiver for India to purchase sanctioned oil from Russia. President Donald Trump is considering loosening rules under the Jones Act that require American ships to transport goods between domestic ports, including oil and gas, in an effort to lower costs.
Traders are continuing to monitor developments in the Middle East.
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