By Dipo Olowookere
The exchange of the Nigerian Naira to the United States Dollar at the foreign exchange (FX) market further plunged in the black market on Friday afternoon, crashing to N654/$1.
Some forex traders at the Olugbede Model Market in the Egbeda area of Lagos State informed Business Post the Dollar is bought from sellers at between N648/$1 and N650/$1, while they sell to those who need the hard currency at N654/$1.
“We don’t understand what is happening anymore. The Naira is just losing its value very fast. At the moment, we are even scared to buy the Dollar because we don’t want the situation when the value will appreciate,” one of the traders identified at Alhaji Isa told this reporter.
Another FX trader, Alhaji Yunusa, said if urgent steps are not taken, the Naira may exchange for the Dollar at N1,000 before the end of this year.
“With the way things are going, the Naira may sell for N1,000/$1 this year. It is really scary. We are being careful with the transactions these days because we don’t know what might happen next,” he said.
This newspaper gathered that one of the reasons for the deep fall in the value of the local currency is the fear of the unknown, coupled with the statements credited to the Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, on Tuesday after the Monetary Policy Committee (MPC) meeting in Abuja.
A financial analyst based in Lagos, Mr Bode Adediran, faulted the apex bank chief for threatening Nigerians with arrest if they are caught converting the Naira to the Dollar.
“His statement was bound to cause panic in the system and if you check the trend, the exchange rate of the Naira to the Dollar started to decline from that day. What he has done is to trigger the panic demand for forex as smart investors will speculate for their own gains,” Mr Adediran told Business Post.
On Wednesday, the spokesman of the CBN, Mr Osita Nwanisobi, quickly clarified that the threat was only for politicians planning to mop up FX from the system and not those who need the hard currencies for legitimate businesses.
On Thursday, the domestic currency depreciated by N19 or 3.05 per cent in the parallel market to trade at N642/$1 as against Wednesday’s N623/$1 and in the Peer-to-Peer (P2P) window, it fell by N7 or 1.09 per cent to settle at N653/$1 compared to the previous day’s N646/$1.
As of the time of filing this report, the Naira was trading in the P2P at N665/$1.
Rights And Duties Of The Employer In Nigeria
By Benita Ayo
In recent times, we have witnessed unprecedented changes to the existing principles of the common law relating to the employer. An employer is a person or an individual or an organisation in the government, private, nonprofit or business sector that hires and pays people for their work.
The Chief Statutory Provision regulating employment relationships in Nigeria is the Nigerian Labour Act. Now, contained in the Labour Act is a body of Rights and duties which an employer is both entitled to and owes his employees.
Rights of the Employer
The rights of the employer include;
- Right to hire
- Right to fire
Duties of the Employer
A duty is an obligation owed by one person to another. The employer’s duties to his employees include the following;
- Duty to provide work
- Duty to pay agreed wages
- Duty to take care of Employee’s safety
- Duty to Indemnify the Employee
- Duty to conduct medical exams of employees to ensure that they are fit for work
- Duty to provide a written contract of Employment
Consequences of Failure to perform his Duties
Where an employer fails to perform his duties as required by the Law, the employer becomes liable and can be sued by the employee for remedy.
The appropriate court having jurisdiction over labour-related disputes in Nigeria is the National Industrial Court.
You may contact me via the under-listed channels for further consultations on the following services;
- Employment grievance counselling/settlement Negotiations
- Employment Contract drafting/Review/Advisory
- Legal Representations (Court Appearances)
- Any other Employment related matters
Benita Ayo is a Seasoned Corporate Commercial Counsel with over 9 years post-call experience. She has handled myriads of briefs in Corporate/Commercial, Employment Law as well as Property Transactional Practice
Domestic Bourse Rebounds by 0.23% Amid Low Turnover
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited appreciated by 0.23 per cent on Wednesday after it closed in the red territory in the preceding trading session.
The 0.94 per cent, 0.39 per cent, and 0.04 per cent gains posted by the industrial goods, the banking and the insurance sectors, respectively, supported the growth recorded by the domestic bourse in the midweek session.
They helped to offset the 0.14 per cent loss printed by the consumer goods counter as the energy space closed flat.
At the close of business, the All-Share Index (ASI) was up by 127.29 points to 54,427.05 points from 54,299.76 points, as the market capitalisation grew by N69 billion to N29.645 trillion from N29.576 trillion.
The turnover for yesterday’s trading session was low as investors transacted 151.6 million stocks worth N1.8 billion in 2,974 deals compared with 200.0 million stocks worth N7.6 billion traded in 4,380 deals on Tuesday, indicating a decline in the trading volume, value and the number of deals by 24.20 per cent, 76.32 per cent, and 32.10 per cent apiece.
Universal Insurance ended the day as the most active stock after it traded 20.0 million, followed by Transcorp, which exchanged 18.7 million units, GTCO with 17.0 million units, Sterling Bank with 15.6 million units, and UBA with 7.7 million units.
Business Post reports that investor sentiment was weak yesterday after the stock exchange closed with 23 price losers and 11 price gainers, indicating a negative market breadth.
Tripple Gee gained 9.52 per cent to sell at N1.15, International Energy Insurance rose by 9.40 per cent to N1.28, Japaul grew by 3.45 per cent to 30 Kobo, Axa Mansard increased by 2.50 per cent to N2.05, and Africa Prudential improved by 2.46 per cent to N6.25.
On the flip side, Trans Nationwide Express lost 9.76 per cent to trade at 74 Kobo, Transcorp fell by 7.35 per cent to N1.26, Courteville depreciated by 6.00 per cent to 47 Kobo, Prestige Assurance lost 4.76 per cent to finish at 40 Kobo, and UPDC REIT shrank by 4.41 per cent to N3.25.
How to Start and Grow Your Forex Business
Starting a forex business is just as difficult and time-consuming as starting any other type of business. You need to decide on what you will provide, how you will make money, register your business, and everything in between.
While it can be difficult and take anything from a couple of months to a few years to start, there are some key points you need to figure out as quickly as you can to ensure a smooth start and consistent growth.
The first thing you will need to do is become a master of trading and strategy building. The best way to do this is to start looking at trading as a job. You need to know everything you possibly can about currencies, your chosen trading platform, etc., if you are going to turn this into a business.
Using your own money to trade and test strategies is the best way to figure out your strengths, as well as a way to find out the best product you can provide.
Share Strategies & Knowledge Online
The next thing you need to do is to create an online presence. This can be done with social media, YouTube videos, and a website. The goal is to build a name for yourself as an authority in the forex space.
At this point, you most likely won’t be able to monetize what you are sharing, but the exposure you gain, especially if you are offering something successful and unique, will be invaluable later on.
This can also be a way to see if forex social media can be a business by itself. Considering how big social media is and how much money brands will pay to be featured, being a forex social media influencer can be right up your alley.
Depending on how big or small you want your business to be at the start will decide how much initial capital you need. At the very least, you will probably want a new computer, extra monitors, subscriptions, etc., in the beginning.
Once you have begun doing business and have some clients and work under your belt, that’s when you can begin planning to move into an office space or something similar.
What Will You Offer?
One of the most crucial steps in this process is deciding on what you will be offering. Are you a developer wanting to start a trading platform, do you code trading bots, or are you someone looking to share their knowledge through online courses?
This is a vital step as it will decide how you will market your product, where you will sell it, and who your target audience is.
How Will You Make Money?
Once you have your product, you need to decide how you are going to make money from it. There are a couple of ways to go about this; you can choose to sell your product as a once-purchase, or you can sell it as a subscription.
It is important to note that two things may seem very different, but the way you can sell them is the same. Both courses and a trading bot, for example, can be sold on a monthly subscription basis.
Once you have reached the stage where you are ready to go, you will need to go about registering your business. This will differ depending on where you are; therefore, it is imperative that you do the necessary research.
Even if you are still a small, one-person operation, the sooner you register your business, the sooner you can be entitled to business loans, hire employees, and everything else you will need to expand.
Speaking of employees, once you have grown your client base and the work is flowing in, there will come a time when you won’t be able to do everything yourself. While there is certainly no need to hire a full team, there are ways to receive the extra help you need.
Hiring people on a freelance basis will give you the extra hands you need when you need them, but when business is slower, you aren’t paying out money without that cash coming back into the business. While this isn’t a permanent solution, it is a great strategy for start-up businesses.
Latest News on Business Post
- CNN Chooses Larry Madowo as New Host of African Voices Changemakers February 9, 2023
- Waste Disposal: Oyo Begs Residents Not to Patronise Cart Pushers February 9, 2023
- Wema Bank, Standard Chartered Bank Explore Business Opportunities February 9, 2023
- Flutterwave Obtains New Egypt Payments Licences February 9, 2023
- Rights And Duties Of The Employer In Nigeria February 9, 2023
- Domestic Bourse Rebounds by 0.23% Amid Low Turnover February 9, 2023
- How to Start and Grow Your Forex Business February 9, 2023
- Unlisted Securities Market Shrinks by 0.34% February 9, 2023
- Nigerian Naira Appreciates to N461.17/$1 at I&E, N760/$1 at P2P February 9, 2023
- Oil Extends Rally as Investors’ Worries Ease February 9, 2023