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 territory with a decline of 0.56 per cent on Wednesday, April 2.
This brought down the market capitalisation by N13 billion to N2.417 trillion from N2.430 trillion, and downed the NASD Unlisted Security Index (NSI) by 22.57 points to 4,062.87 points from the previous session’s 4,062.87 points.
It was observed that the NASD exchange ended with three price gainers and three price losers during the trading day.
MRS Oil Plc depreciated by N19.00 to close at N171.00 per unit compared with the previous price of N190.00 per unit, NASD Plc lost N4.14 to trade at N37.36 per share compared with Wednesday’s N41.50 per share, and Central Securities Clearing System (CSCS) Plc gave up N2.00 to sell at N78.00 per unit versus N80.00 per unit.
On the flip side, FrieslandCampina Wamco Nigeria Plc appreciated by 19 Kobo to N93.00 per share from N92.81 per share, Food Concepts Plc expanded by 15 Kobo to N2.87 per unit from N2.72 per unit, and Great Nigeria Insurance (GNI) Plc improved by 2 Kobo to 52 Kobo per share from 50 Kobo per share.
Yesterday, the volume of securities dipped by 91.8 per cent to 260.2 million units from 3.2 billion units, the value of securities went down by 98.1 per cent to N154.2 million from N8.3 billion, while the number of deals soared by 53.3 per cent to 46 deals from 30 deals.
GNI Plc was the most active stock by value on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by CSCS Plc with 56.9 million units valued at N3.9 billion, and Okitipupa Plc with 27.5 million units traded for N1.8 billion.
The most traded stock by volume on a year-to-date basis was also GNI Plc with 3.4 billion units sold for N8.2 billion, trailed by Resourcery Plc with 1.1 billion units exchanged for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units transacted for N1.2 billion.
By Adedapo Adesanya
The Naira dropped N2.09 or 0.15 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, April 2, to trade at N1,380.79/$1 compared with Wednesday’s rate of N1,378.70/$1.
However, it appreciated against the Pound Sterling in the official market by N2.77 to quote at N1,824.86/£1 versus the N1,836.57/£1 it was traded at midweek, and improved its value against the Euro by N10.54 to N1,591.92/€1 from N1,602.46/€1.
Yesterday was the last trading session of the week for the local currency in the spot market, as the market will be closed on Friday and Monday for the Easter Holiday.
At the black market, the Nigerian Naira maintained stability against the greenback yesterday at N1,405/$1, but gained N8 at the GTBank FX counter to settle at N1,388/$1, in contrast to the previous session’s N1,396/$1.
Pressure eased on the domestic currency as strong policy indicators have helped calm the majority of worries within the financial systems. Particularly in the remittance segment, the apex bank has directed all International Money Transfer Operators (IMTOs) to route remittance transactions through designated Naira settlement accounts in banks, a move aimed at boosting transparency and channelling more foreign exchange into the formal market.
This helps take off pressure from the foreign reserves, which have fallen below the $50 billion mark as they are gradually decreasing rather than falling sharply.
Meanwhile, the cryptocurrency market was bullish on Thursday, as macro sentiment shifted against recent optimism after reports that Iran is drafting a protocol with Oman to manage traffic through the Strait of Hormuz, easing concerns about disruptions to a key global oil route.
The remarks came after U.S. President Trump on Wednesday night vowed to hit Iran “extremely hard” in the coming weeks and that the Strait of Hormuz would “open naturally” once the war ends.
Cardano (ADA) chalked up 1.9 per cent to trade at $0.2435, Dogecoin (DOGE) grew by 1.2 per cent to $0.0912, Ethereum (ETH) appreciated by 0.8 per cent to $2,066.37, Bitcoin (BTC) added 0.5 per cent to sell at $67,080.53, Solana (SOL) increased by 0.5 per cent to $79.91, and Ripple (XRP) jumped 0.2 per cent to $1.31.
Conversely, Binance Coin (BNB) dipped 0.7 per cent to $586.90, and TRON (TRX) depreciated by 0.3 per cent to $0.3147, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
By Dipo Olowookere
The local stock market was relatively flat on Friday, as the bears and the bulls shared the spoils of war, though investor sentiment turned bullish compared with the preceding session’s bearish posture.
Data from the Nigerian Exchange (NGX) Limited showed that the All-Share Index (ASI) was marginally down by 4.66 points as it ended at 201,698.89 points versus Wednesday’s 201,703.55 points, and the market capitalisation slightly contracted by N3 billion to N129.806 trillion from N129.809 trillion.
Customs Street was shut on Friday because of the public holidays declared by the federal government today and next Monday.
Business Post reports that John Holt declined by 9.91 per cent to N15.45, Abbey Mortgage Bank shed 9.60 per cent to trade at N8.95, International Energy Insurance slipped by 6.48 per cent to N3.32, Chams shrank by 5.30 per cent to N3.75, and Tantalizers depreciated by 5.18 per cent to N4.03.
On the flip side, Unilever Nigeria improved by 10.00 per cent to N103.40, Fortis Global Insurance gained 9.82 per cent to trade at N1.23, Multiverse appreciated 9.81 per cent to N20.15, Legend Internet advanced by 9.38 per cent to N6.30, and Zichis grew by 9.02 per cent to N14.14.
The market breadth index was positive during the trading session, as there were 35 appreciating stocks and 24 depreciating stocks.
Yesterday, investors traded 560.0 million equities valued at N19.3 billion in 49,676 deals, in contrast to the 815.5 million equities worth N33.3 billion transacted in 52,641 deals in the preceding day, representing a drop in the trading volume, value, and number of deals by 31.33 per cent, 42.04 per cent, and 5.63 per cent, respectively.
Secure Electronic Technology dominated the activity log with 59.7 million shares valued at N61.1 million, Wema Bank exchanged 52.0 million equities worth N1.4 billion, VFD Group transacted 36.0 million stocks for N410.5 million, Access Holdings sold 35.3 million shares valued at N914.8 million, and Chams traded 31.0 million equities worth N115.0 million.
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