By Dipo Olowookere
The recent decline in the value of Naira at the foreign exchange (FX) market, especially at the unregulated segment, is becoming worrisome to the lower chamber of the National Assembly.
On Tuesday, the matter was tabled before the green arm of the parliament by a member of the House representing Jere Federal Constituency, Borno State, Mr Satomi Ahmed, under a matter of urgent national importance.
In his motion, which was seconded by Mr Idem Unyimen, he argued that if nothing was done to bring the situation under control, the nation may suffer for it.
According to him, if the value of the local currency continues to depreciate against key foreign currencies like the United States Dollar, the British Pound Sterling and the Euro, the nation’s economy may slip into crisis.
He said there’s a need for an urgent intervention to save the Naira that seems to be going into obscurity despite interventions by the Central Bank of Nigeria (CBN) to shore its value against other currencies.
The central bank, in an effort to save the Naira, does regular interventions by boosting FX liquidity in the market through the sale of forex to traders to meet the demands of customers. It also further introduced a promo called Naira 4 Dollar, which allows beneficiaries of diaspora remittances to receive N5 for every $1 sent to them.
The scheme, which was introduced on March 8, 2021, and was supposed to end on May 8, 2021, was later extended indefinitely.
But at the plenary today, after Mr Ahmed moved his motion, another lawmaker, Mr Toby Okechukwu, proposed an amendment to the motion, noting that the situation does not require a legislative summit over the issue as neither Foreign Direct Investments (FDIs) are coming to Nigeria nor the insecurity challenges facing the country abating.
He emphasised that the state of the Naira was a matter of market forces and then suggested that the House should launch an investigation into the circumstances behind the unabating falling value of the Naira.
This amendment to the motion was seconded by Mr Wale Raji and was voted and adopted as amended.
In recent times, the Naira has slumped significantly against the US Dollar at the FX market, forcing the CBN to devalue the domestic currency.
The most recent one was the adjustment of the interbank exchange rate to N410/$1 from N379/$1 as the apex bank adopted the Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) rate as the official exchange rate.
The NAFEX rate is used by investors through the Investors and Exporters (I&E) window and at the close of business today, the Naira was traded at 411.75/$1 in contrast to N411.50/$1 it traded on Monday, indicating that it depreciated by 25 kobo or 0.06 per cent.
But at the black market, the Nigerian currency closed flat against the greenback at N505/$1 on Tuesday
At the moment, Nigeria operates these three exchange rate segments despite calls for a unified exchange rate regime from different quarters, including from the International Monetary Fund (IMF).
NASD, CSCS Lift Unlisted Securities Exchange by 0.07%
By Adedapo Adesanya
The duo of NASD Plc and Central Securities Clearing System (CSCS) Plc tugged the NASD Over-the-Counter (OTC) Securities Exchange to the positive territory on Tuesday, June 28 by 0.07 per cent.
Shares of NASD Plc appreciated by N1.32 or 9.65 per cent to close at N15.00 per unit compared to N13.68 per unit of the previous session as its cousin, CSCS Plc, rose by 2 Kobo to trade at N14.40 per unit as against N14.38 per unit of Monday’s session.
At the end of the day’s trading, the NASD Unlisted Securities Index (NSI) gained 0.56 points to settle at 762.62 points in contrast to the previous day’s 762.06 points, while the market capitalisation increased by N750 million to N1.004 trillion from N1.003 trillion.
However, the volume of shares transacted during the session depreciated by 86.2 per cent to 89,440 units from 647,785 units, the value of transactions went down by 67.7 per cent to N1.8 million from N5.6 million, while the number of deals increased by 37.5 per cent to 11 deals from eight deals.
AG Mortgage Bank Plc finished the trading day as the most traded stock by volume on a year-to-date basis with the sale of 2.3 billion units worth N1.2 billion, CSCS Plc also retained the second spot with the sale of 674.4 million units valued at N14.1 billion, while Food Concepts Plc was in third place for trading 146.5 million units valued at N127.2 million.
CSCS Plc maintained its position as the most active stock by value on a year-to-date basis with a turnover of 674.4 million units valued at N14.1 billion, VFD Group Plc was in second place with 10.9 million units worth N3.2 billion, while FrieslandCampina WAMCO Nigeria Plc retained the third place with the sale of 9.7 million units valued at N1.2 billion.
Panic as Naira Crashes to N621/$1 at P2P, N609/$1 at Black Market
By Adedapo Adesanya
The woes of the Nigerian currency continued on Tuesday at the peer-to-peer (P2P) and the black market sides of the foreign exchange (FX) market as it further depreciated against the United States Dollar but maintained stability against the greenback at the Investors and Exporters (I&E) window at the close of business.
Data obtained by Business Post from the FMDQ Securities Exchange showed that the domestic currency closed flat against the American currency at N421/$1, but it could not replicate this feat at the two other segments, which have become very critical lately due to the inability of forex users to obtain FX from commercial banks for quick usage.
Though the situation was different at the I&E segment yesterday as traders were able to considerably meet the demands of their customers as forex trades worth $206.65 million were carried out compared with the $152.96 million recorded on Monday, indicating a 35.1 per cent or $53.69 million increase.
At the P2P window, the Naira lost N4 or 0.65 per cent against the US currency to trade at N621/$1 compared with the preceding session’s N617/$1 and at the black market, it depreciated by N4 or 0.66 per cent to settle at N609/$1 in contrast to Monday’s value of N605/$1.
In the interbank segment of the market, the value of the domestic currency against the Pound Sterling remained unchanged at N509.82/£1 and it was a similar situation against the Euro as it closed flat at N439.49/€1 yesterday.
Meanwhile, the cryptocurrency market was bearish though the fear of missing out (FOMO) has seen the price of the crisis-hit coin, Terra USTC, return to profitability. The stablecoin has taken the 84th spot among the largest cryptocurrencies in the world, growing by 300 per cent in the past 24 hours to settle at $0.0767.
Solana (SOL) dropped 8.6 per cent yesterday to sell at $35.13, Dogecoin (DOGE) fell by 8.0 per cent to $0.0653, Binance Coin (BNB) dropped 7.2 per cent in value to sell at $218.97, Litecoin (LTC) went down by 6.1 per cent to $52.22, Ethereum (ETH) depleted by 5.7 per cent to $1,129.13, Ripple (XRP) took a 4.6 per cent hit to trade at $0.3325, Cardano (ADA) depreciated by 4.3 per cent to $0.4661, Bitcoin (BTC) dropped 3.5 per cent to $20,119.98 and the US Dollar Tether (USDT) lost 0.05 per cent to quote at $0.9986.
Bears Overwhelm Nigerian Exchange as Index Drops 0.31%
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited succumbed to the bears as it reversed the gains of the previous sessions by losing 0.31 per cent on Tuesday due to renewed profit-taking.
The bears chopped off N86 billion from the market capitalisation of the bourse as it slipped back to the N27 trillion region, closing at N27.928 trillion compared with the previous day’s N28.014 trillion.
The All-Share Index (ASI), which was looking to cross the 52,000 points, went down yesterday by 158.87 points to settle at 51,803.98 points in contrast to the 51,962.85 points it finished on Monday.
The outcome of the key sectors of the market reflected the general mood as the energy index lost 0.47 per cent, the insurance space fell by 0.06 per cent, the industrial goods counter depreciated by 0.03 per cent, while the banking sector went down by 0.02 per cent. The consumer goods counter appreciated during the session by 0.29 per cent due to the good performances of Nigerian Breweries and Okomu Oil.
During the session, investors traded 314.6 million shares valued at N12.9 billion in 4,708 deals compared with the 266.5 million shares worth N2.6 billion traded in 5,050 deals on Monday, representing an increase in the trading volume and value by 18.05 per cent and 393.67 per cent respectively and a 6.77 per cent decline in the number of trades.
Livingtrust Mortgage Bank closed the session as the most active stock yesterday with the sale of 100.0 million shares valued at N120.0 million and was trailed by MTN Nigeria with a turnover of 42.9 million equities worth N9.9 billion.
FBN Holdings transacted 19.8 million shares for N219.1 million, UBA traded 16.1 million stocks for N120.0 million, while Zenith Bank sold 16.1 million equities for N348.9 million.
Business Post reports that investor sentiment was weak on Tuesday as the exchange closed the session with 19 depreciating equities and 10 appreciating stocks.
University Press lost 9.72 per cent to trade at N2.60, NGX Group fell by 6.71 per cent to N22.95, Caverton depreciated by 4.76 per cent to N1.00, Livestock Feeds went down by 3.57 per cent to N1.35, while Fidelity Bank declined by 3.53 per cent to N3.28.
At the close of transactions, Sovereign Trust Insurance gained 8.00 per cent to quote at 27 kobo, Chams grew by 4.17 per cent to 25 kobo, Regency Assurance improved by 3.85 per cent to 27 kobo, Ecobank appreciated by 3.29 per cent to N11.00, while Okomu Oil rose by 3.29 per cent to N216.90.
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