Economy
Senator Suggests N100 as Highest Denomination in Circulation
By Aduragbemi Omiyale
The lawmaker representing Taraba Central Senatorial District at the National Assembly, Mr Yusuf Abubakar Yusuf, has said to curb corruption and prevent having a larger percentage of money in circulation in the hands of kidnappers and others, he would want the highest denomination in circulation in Nigeria to be N100, and not N1,000.
The Senator gave this submission at the plenary on Thursday during a debate on the new cashless policy of the Central Bank of Nigeria (CBN), which aims to make the highest cash withdrawal for individuals in a week N100,000 and N500,000 for corporate organisations.
On October 26, 2022, the Governor of the CBN, Mr Godwin Emefiele, informed newsmen that of the N3.2 trillion in circulation, about N2.7 trillion was not in the banks’ vaults, a development that prompted the apex bank to redesign the Naira, especially the N200, N500, and N1,000 denominations.
On November 23, 2022, President Muhammadu Buhari unveiled the new notes, and on December 15, 2022, they were officially introduced into the financial system, with banks giving out the new banknotes at over-the-counter (OTC) and ATMs, with N200 as the highest denomination from the machines from January 9, 2023.
While arguing on the new cash withdrawal limits yesterday, after several persons kicked against it, Mr Yusuf praised the CBN for the policy, saying it would curb corruption.
“When we are talking about cashless, we should be mindful that about N3.3 trillion in circulation, it’s only about a trillion naira that is in the bank. It is a danger to the country.
“Left to me, I would recommend the highest denomination to be N100. I so much support that we should go with the cashless policy in line with the present system that the CBN has adopted,” the lawmaker argued after Mr Uba Sani submitted a report of the Committee on Banking, Insurance and other Financial Institutions on the Implementation of Cashless Policy and the New Withdrawal Limits to the Senate.
Speaking on the report at the plenary presided over by the Deputy Senate President, Mr Ovie Omo-Agege, another Senator, Mr Ajibola Basiru, noted that, “The threshold that had been set is unrealistic to have any robust and meaningful life to our people.
“I am not oblivious to the fact that the committee has come up with recommendations. As a Committee of the Senate, we ought to have been alerted with certain indices to come up with recommendations on what should be the adjustment. I am suggesting that the threshold should be N500,000 for individuals per week.”
For Mr Orji Uzor Kalu, he backed the CBN for the policy but suggested that the limit should be N500,000 per day for individuals and N3 million per day for corporates, noting that this “will cover the fear of anybody.”
In her argument, Mrs Biodun Olujimi stated that, “When this issue came out, everyone that spoke on that day agreed on what the CBN was about to do.
“However, we were sceptical of certain issues contained in the proposal. The details were not clear to any of us. If there had been a consultation, we wouldn’t be where we are today. People would have gotten to know what is required of them and what is required of the CBN.
“The CBN approved POS operators and registered them and took money from them, and now those people can only do so little. It took all our unemployed graduates off the street. This policy will send them back to the streets.
“Why is this happening during an election period? Why is it that it is coming now? There is a need to be flexible in what we are doing now.”
Another contributor to the matter, Mr Adamu Aliero, stated that, “This report gives us an ideal picture of what the country should be but in reality, what is happening is different. The informal sector of the economy is very big, and it is not captured in the banking system.
“More people in the rural areas don’t go to the bank, and there is a need for sensitization and enlightenment in order to make this kind of people embrace the banking system.
“We have 774 Local Governments, and the bank covers only about 60% of these local government areas. It is difficult to really force these people to embrace banking culture. I support the idea of the cashless policy, but we should do it with caution.”
“I don’t think that anybody objects to the fact that a cashless society is what we need. My concern comes as a result of us being punitive.
“We must ensure that our society progresses, and those who make efforts to make an additional living should be encouraged. When you look at the measures CBN has put in their policy, to me, it appears punitive. I think in the global best practice, it doesn’t exist, so we don’t deter people from progressing,” the Senator from Anambra State, Ms Stella Oduah, submitted.
After taking inputs from more lawmakers, the Senate agreed that the central bank should considerably adjust the withdrawal limits in response to public outcry on the policy, with the committee tasked to embark on aggressive oversight of the bank on its commitment to flexible adjustment of the withdrawal limit and periodically report the outcome to the Senate.
By Adedapo Adesanya
President Bola Tinubu has reaffirmed plans to list the entire Nigerian National Petroleum Company (NNPC) Limited on the Nigerian Exchange (NGX) Limited.
The President made this known on Thursday while receiving a delegation of the NGX Group Plc at the State House, Abuja.
The team was led by the NGX Group chairman, Mr Umaru Kwairanga, and its chief executive, Mr Temi Popoola. The President was briefed on the capital market’s growth from about N30 trillion in 2023 to N160 trillion.
According to a statement by the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, President Tinubu said the planned listing of NNPC would form a key part of his administration’s ongoing economic reforms.
He described the move as part of broader reforms aimed at expanding investment opportunities for Nigerians and deepening the country’s capital market.
“One day, not just the arms and legs, the totality of it will be listed on the Nigerian Exchange,” he said.
The President also reaffirmed that his administration’s target of building a $1 trillion economy remained achievable, citing Nigeria’s population and human capital as major advantages.
“I can see the excitement in the room. All I can do is to celebrate you all today. When we took over, it was very challenging. I had to talk to myself and define my background to accept the assets and liabilities of my predecessor. I asked for the job, and I have to do it,” President Tinubu said.
Reflecting on the administration’s monetary reforms, the President praised the Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso’s role in restoring confidence in the financial system.
“My capable partner in one of the thinking and reasoning days was Yemi Cardoso, whom I put at CBN. We were in the negative with monetary policy and the reserve. We had N30 trillion printed, and there were liabilities. I thank you very much, Yemi Cardoso,” he said.
President Tinubu said the performance of the stock market reflected broader improvements in the Nigerian economy.
“If the stock market is doing well, then we are doing well. We can teach this in classrooms to our undergraduates. If they can be in the classroom without the harrowing feeling of how to pay and what to pay, then we can build a nation of success and prosperity. My assurance to you is that I won’t stop reading, thinking and supporting you,” he said.
The President also reiterated his belief in private sector-led investments, recalling his longstanding support for the Dangote Refinery project.
“If we can push the private sector to invest in the economy wisely, then we will grow. It is one reason why I backed Aliko Dangote even before I became President. God bless the soul of Muhammadu Buhari. We discussed how we can support the private sector to go into the refinery business,” he added.
On his part, NGX Group CEO Temi Popoola told the President that the total value of listed equities had increased from nearly N30 trillion when the administration assumed office in 2023 to about N160 trillion, with projections to reach N230 trillion before the end of the year.
“The picture today is that when you took office in 2023, the total value of stocks listed in Nigeria was just shy of N30 trillion. Today, Mr President, that figure is N160 trillion. By the end of this year, with the listings we are seeing in our market, we expect that figure to rise to N230 trillion,” Popoola said.
He added that the Nigerian All-Share Index had risen from 52,000 points to 244,000 points, while the reforms had created an estimated 500,000 to 900,000 new millionaires, attributing the market’s performance to the administration’s reforms and expressing confidence that Nigeria could attain a $1 trillion economy before 2030.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange surged by 2.05 per cent on Thursday, August 6, amid fresh buying interest after a lukewarm preceding session.
The market capitalisation gained N56.21 billion to close at N2,795 trillion compared with the previous session’s N2.739 trillion, while the NASD Security Index (NSI) rose by 93.63 points to end at 4,657.59 points against Wednesday’s 4,563.96 points.
During the trading day, there were five price gainers and two price losers, led by Okitipupa Plc, which depreciated by N28.00 to settle at N252.00 per share compared with the previous day’s N280.00 per share, and Acorn Petroleum Plc, which fell by 5 Kobo to close at N1.25 per unit versus midweek’s N1.30 per unit.
On the flip side, 11 Plc gained N22.5o to sell at N247.50 per share versus N225.00 per share, MRS Oil Plc grew by N12.00 to N132.00 per unit from N120.00 per unit, Central Securities Clearing System (CSCS) Plc added N9.94 to end at N129.74 per share versus N119.00 per share, FrieslandCampina Wamco Nigeria Plc improved by N4.09 to N148.09 per unit from N144.00 per unit, and Industrial and General Insurance (IGI) Plc expanded by 5 Kobo to 55 Kobo per share from 50 Kobo per share.
The volume of securities skyrocketed by 360,690.4 per cent to 2.9 million units from 802 units on Wednesday, the value of securities surged by 47,518.0 per cent to N99.2 million from N208,240, and the number of deals increased by 300 per cent to 62 deals from two deals a day earlier.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units transacted for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units traded for N6.5 billion, and CSCS Plc with 77.0 million units sold for N5.5 billion.
GNI Plc also ended as the most traded stock by on a volume year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units worth N415.7 million.
By Adedapo Adesanya
The Naira further slipped against the United States Dollar by N2.33 or 0.17 per cent to N1,364.88/$1 from N1,362.55/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, August 6.
In the same vein, the domestic currency weakened against the Pound Sterling in the official FX market by 71 Kobo yesterday to trade at N1,838.09/£1, in contrast to Wednesday’s value of N1,837.38/£1, but against the Euro, it gained 45 Kobo to close at N1,574.80/€1 compared with the previous day’s N1,575.25/€1.
At the GTBank FX desk, the Naira improved its value against the US Dollar by N4 on Thursday to quote at N1,369/$1 versus midweek”s rate of N1,373/$1, but at the parallel market, it remained unchanged at N1,400/$1.
The NAFEM interbank FX turnover jumped to $98.804 million on Thursday, up by more than 31 per cent from $75.357 million the previous day.
Similarly, the number of deals at the NFEM interbank increased to 106 from 82, confirming higher US Dollar flows at the official FX market.
Traders expect the Naira to hold steady, buoyed by dollar sales by the Central Bank of Nigeria (CBN), whose presence in the market will help ease demand pressure.
In the cryptocurrency market, major cryptocurrencies were mostly down as the Senate delayed a vote on the Crypto Clarity Act until at least September.
The bill, which would set out which U.S. regulator oversees which digital assets, needs 60 votes to pass, and it is unclear whether it currently has 50. Several Republican senators have said publicly they oppose it, and Democrats want stricter rules preventing President Donald Trump from profiting from crypto while in office.
Ripple (XRP) shrank by 2.5 per cent to $1.02, Solana (SOL) depleted by 1.5 per cent to $72.86, Binance Coin (BNB) fell by 1.4 per cent to $587.41, Dogecoin (DOGE) tumbled by 0.9 per cent to $0.0692, Bitcoin (BTC) decreased by 0.6 per cent to $64,344.69, and Ethereum (ETH) tumbled by 0.3 per cent to $1,902.03.
However, Cardano (ADA) appreciated by 7.7 per cent to $0.2025, and TRON (TRX) rose by 0.3 per cent to $0.3267, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
