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Economy

Naira Strengthens at P2P, Black Market, Weakens at I&E

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naira depreciate

By Adedapo Adesanya

The Naira closed mixed on Tuesday as it strengthened against the American Dollar at the Peer-to-Peer (P2P) and the black market arms of the foreign exchange (forex) market but weakened at the Investors and Exporters (I&E) window.

As the market continues on a rebalancing path, the country’s legal tender further appreciated by N1 to settle at N784/$1 in the P2P window, in contrast to the N785/$1 it closed in the preceding session.

Also, in the parallel market, the Nigerian currency gained N7 against the US Dollar during the session to quote at N768/$1 compared with the previous day’s rate of N775/$1.

In the I&E segment, the Naira, however, depreciated against the greenback by 60 Kobo or 0.13 per cent to sell at N445.30/$1, in contrast to Monday’s value of N444.70/$1, according to data obtained from FMDQ Securities Exchange.

The value of the local currency came under pressure as the demand for FX in the official market increased by 44.6 per cent or $33.42 million to $108.32 million from $74.90 million.

Also, the domestic currency depreciated against the Euro at the interbank segment of the forex market on Tuesday by N3.14 to trade at N465.11/€1 compared with the previous day’s N461.97/€1, and against the Pound Sterling, it gained 9 Kobo to close N537.13/£1 compared with Monday’s N537.24/£1.

Meanwhile, the digital currency market turned bullish yesterday as Ethereum (ETH) improved by 5.8 per cent to trade at $1,266.84, and Dogecoin (DOGE) went up by 2.9 per cent to sell at $0.1063.

Further, Ripple (XRP) rose by 2.8 per cent to trade at $0.4021, Bitcoin (BTC) gained 2.5 per cent to finish at $16,850.25, Litecoin (LTC) appreciated by 1.7 per cent to $78.46, Cardano (ADA) grew by 0.9 per cent to $0.3141, the US Dollar Tether (USDT) increased its value by 0.01 per cent to settle at $0.9997.

On the flip side, Solana (SOL) recorded a 1.5 per cent slump to trade at $13.56, Binance Coin (BNB) slid by 0.7 per cent to $297.58, and Binance USD (BUSD) fell by 0.05 per cent to $0.9998.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Economy

Reps Authorise Buhari to Take N1trn CBN Loan for 2022 Supplementary Budget

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2022 supplementary budget

By Aduragbemi Omiyale

President Muhammadu Buhari has been authorised by the House of Representatives to borrow fresh N1 trillion from the Central Bank of Nigeria (CBN).

The lower chamber of the National Assembly approved this new borrowing from the apex bank by the federal government through ways and means on Tuesday.

This was after the Chairman of the House Committees on Finance, Banking and Currency and Aids, Loans and Debts Management, Mr James Faleke, submitted his period yesterday.

The committees looked into the request of Mr Buhari to restructure the N22.7 trillion ways and means advances.

Though the green chamber of the parliament rejected the securitisation of the N22.7 trillion CBN loans, it authorised the CBN to print N1 trillion for the government to fund the 2022 supplementary budget.

In the report, the committees recommended that the government take the N1 trillion CBN loan “based on the observations and the exigencies of the federal government’s current fiscal situation” for the “implementation of the 2022 Supplementary Appropriations Act as passed by the National Assembly.”

It further recommended “further engagements with the executive by the joint committee to allow for thorough and detailed work and submissions on the larger part of the advances, which amounts to N22.7 trillion.”

Recall that in December 2022, Mr Buhari asked the National Assembly to authorise the conversion of the N22.7 trillion and a fresh N1 trillion CBN loans into federal government securities.

“I have approved the securitisation of the Ways and Means balances along the following terms: amount, N23.7 trillion; tenure, 40 years; moratorium on principal repayment, 3 years; pricing interest rate, 9 per cent,” the President had written in a letter to the Senate and the House of Reps.

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Economy

NDEP, Geo-Fluids Lift OTC Bourse by 0.06%

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Niger Delta Petroleum Resources NDEP

By Adedapo Adesanya

The NASD Over-the-counter (OTC) Securities Exchange recorded a 0.06 per cent appreciation on Tuesday, January 31, spurred by higher buying interests.

In the session, the bourse, which admits unlisted securities, saw improvement in the prices of Niger Delta Exploration and Production (NDEP) Plc and Geo Fluids Plc.

NDEP Plc gained N13.00 yesterday to sell at N200.00 per unit versus Monday’s closing price of N187.00 per unit, while Geo-Fluids grew by 6 Kobo to settle at N1.04 per share compared with the previous day’s 98 Kobo per share.

The gains reported by the duo reined in on the N1.07 loss posted by FrieslandCampina Wamco Nigeria Plc, as it closed at N65.00 per unit, in contrast to the preceding session’s N66.07 per unit.

As a result, the market capitalisation of the OTC bourse appreciated yesterday by N520 million to N932.15 billion from N931.63 billion, and the NASD Unlisted Securities Index (NSI) swelled by 0.40 points to 709.39 points from the 708.99 points reported on Monday.

Tuesday’s market data revealed that there was a jump in units of securities exchanged as investors bought 20.4 million units of stocks which is 531.2 per cent higher than the 3.2 million units traded previously.

However, the value of securities traded amounted to N29.5 million, 15.3 per cent lower than the N4.9 million achieved a day earlier, as the number of deals went down by 17.7 per cent to 14 deals from 17 deals.

Geo-Fluids Plc remained the most traded stock by volume on a year-to-date basis for selling 321.2 million units worth N317.2 million, UBN Property Plc stood in second place with 35.7 million units valued at N25.7 million, while FrieslandCampina Wamco Nigeria Plc was in third place with 2.0 million units valued at N133.0 million.

Also, Geo-Fluids Plc was the most traded stock by value on a year-to-date basis with a turnover of 321.2 million units valued at N317.2 million, VFD Group slid to second with 561,810 units sold for N137.0 million, while FrieslandCampina Wamco Group Plc was in third place with 2.0 units valued at N133.0 million.

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Economy

Tinubu Lambasts Buhari Over Fall in Naira Value at Forex Market

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Tinubu Buhari fall in Naira

By Aduragbemi Omiyale

The presidential candidate of the ruling All Progressives Congress (APC) in the February 25, 2023, election, Mr Bola Tinubu, has again criticised President Muhammadu Buhari for weakening the Naira in the foreign exchange (FX) market.

Speaking on Tuesday in Cross River State for his campaign, the former Governor of Lagos State said Mr Buhari’s administration had bastardised the Naira’s value from N200 to a Dollar he met the rate in 2015 to nearly N800/$1 at the moment in the parallel market.

“They (the government of Mr Buhari) moved the exchange rate from N200 to N800 (in the black market).

“If they had repaired it, if they have arrested this, we won’t be where we are today. We will have been greater.

“They don’t know the way, they don’t know how to think, they don’t know how to do [it],” Mr Tinubu, who clinched the party’s ticket for the exercise, said.

This is not the first time the seasoned politician has slammed President Buhari openly.

Recall that a few days before the APC presidential primary in Abuja, he claimed to have helped Mr Buhari chase the opposition Peoples Democratic Party (PDP) from Aso Rock in 2015 after past attempts without success.

He said this in Abeokuta, Ogun State, where he also returned to some days ago to accuse the government of working to frustrate his success at the polls later this month through anti-people policies.

“We will use our PVCs to take over government from them. If they like, let them create a fuel crisis; even if they say there is no fuel, we will trek to vote.

“They are full of mischief, they could say there is no fuel. They have been scheming to create a fuel crisis but forget about it. Relax, I, Asiwaju, have told you that the issue of fuel supply will be permanently addressed,” he said at the campaign rally.

“Whoever wants to eat the honey embedded in a mountain won’t worry about the axe. Is that not so? And if you want to eat palm kernel, you would bring a stone and use it to break it; then the kernel will come out. It’s not easy to…

“Let them increase the price of fuel, let them continue to hoard fuel, only them know where they have hoarded fuel, they hoarded money, they hoarded naira; we will go and vote, and we will win even if they changed the ink on Naira notes. Whatever their plans, it will come to nought,” he said.

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