Unpatriotic Persons Pushing for Forex Policy Reversal—CBN

Image

By Modupe Gbadeyanka

Central Bank of Nigeria (CBN) has expressed dismay at campaigns allegedly being sponsored by those it called “self-centred individuals” aimed at discrediting its foreign exchange policies.

The apex bank, in a statement issued by its spokesman, Mr Isaac Okorafor, on Friday, lamented that it has “observed with great concern the continued and unwarranted attack” on its policies by a group of Nigerians.

According to the CBN, the real interests of these people “are anything near altruistic but rather self-serving and unpatriotic.”

The statement noted that the bank finds it curious that certain interests have “remained persistent in their move to misinform the larger public, with the intention of discrediting genuine efforts at managing the economy, thereby creating public distrust and panic within the financial system.”

However, the apex bank maintained that nothing will make it change these policies.

According to the CBN, intelligence reports at its disposal reveal the “involvement of some unpatriotic elements funding the push to have the CBN and the Federal Government reverse its FOREX policy, which is aimed at conserving foreign exchange, stimulating agriculture and manufacturing and also promoting exports.”

“The present economic challenges that we face have been worsened by our past practice of frittering away huge earnings made from oil sales, over the years.

“As we have explained severally, our decisions on FOREX management are prompted by the challenge posed by the level of depletion of the country’s reserves, arising from issues such as a drastic reduction in oil earnings, speculative attacks and round tripping,” the CBN explained.

“It is pertinent to note that pressures on the country’s foreign reserves have persisted due to a huge fall in the monthly foreign earnings, which fell from over $3.2 billion sometime in 2013 to below $500 million per month sometime in 2016, when the demand for the US dollar, particularly by importers, continued to rise considerably.

“In spite of the challenges and the basic economic fact that countries earn dollars from international trade, we have ensured we meet the genuine demand of importers to pay for eligible imports and other transactions within available resources.

“Furthermore, the Bank has continued to ensure that there is liquidity and transparency in the FOREX market.

“For the avoidance of doubt, the Central Bank of Nigeria (CBN) continues to:

  1. Ensure that inflation remains within manageable limits;
  2. Intervene in critical sectors of the economy, through injection of much-needed capital to promote growth and employment;

iii. Promote export-driven industrialisation;

  1. Provide access to credit to farmers and small scale entrepreneurs at single digit rates, to create wealth;
  2. Protect the interest of Bank customers in Nigeria; and above all,
  3. Ensure that the masses of our country’s low income earners are protected from the vagaries of high naira depreciation.

“Despite our positive efforts, some persons and groups have chosen to play to the gallery by focusing on negativity that does the country no good.

“Nevertheless, in line with our mandate and working with the fiscal authorities, we will continue to ensure monetary and price stability as well as maintain external reserves to safeguard the international value of the Naira.

“While leaving our doors open for genuine partnership with all our stakeholders, we will only take economic decisions that will impact positively on the lives of all Nigerians,” the statement said.

The apex bank urged “all concerned to be more patriotic and contribute to the soundness of the Nigerian economy; rather than engage in acts capable of undermining the efforts being made at moving the country out of the current economic situation.”

Share
Related Stories
Image
02-March-2024

Crude Oil Jumps 2% as Traders Sight Possible OPEC+ Cuts

By Adedapo Adesanya Crude oil appreciated by about 2 per cent on Friday as traders awaited a decision from the Organisation of the Petroleum Exporting Countries and allies (OPEC+) on supply agreements for the second quarter. Yesterday, the price of Brent futures went up by $1.64 or 2 per cent to $83.55 per barrel and the US West Texas Intermediate (WTI) futures rose by $1.71 or 2.19 per cent to $79.97 a barrel. For the week, Brent added around 2.4 per cent while WTI gained more than 4.5 per cent. Analysts noted that the expectation that OPEC+ is going to

Image
02-March-2024

Naira Now N1,548.25 at Official Market, N1,560/$1 at Black Market

By Adedapo Adesanya The Naira sustained its gradual recovery against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, March 1, appreciating by 2.94 per cent or N46.86 to sell at N1,548.25/$1, in contrast to the N1,595.11/$1 it was traded on Thursday. Also, in the spot market, the Nigerian currency improved its value against the Pound Sterling during the trading day by N90.13 to close at N1,956.06/£1 versus the previous day’s N2,046.19/£1 and against the Euro, it gained N76.39 to trade at N1,675.25/€1, in contrast to the N1,751.64/€1 it closed a day earlier. The supply of

Image
02-March-2024

CSCS, FrieslandCampina Lift NASD OTC Bourse by 0.31%

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange returned to the positive territory after it gained 0.31 per cent on Friday, March 1, thanks to the duo of Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc. CSCS Plc added 81 Kobo to its value to sell for N19.46 per unit compared with the preceding day’s N18.65 per unit, and FrieslandCampina improved by N1.15 to settle at N71.4o per share, in contrast to Thursday’s closing price of N70.25 per share. However, Aradel Holdings Plc continued its price depreciation yesterday as it shed N6.75 to sell at N2,395.00

Image
01-March-2024

Business Confidence in Nigeria Falls in February Amid Rise in Input Costs

By Modupe Gbadeyanka Business conditions in Nigeria slowed to 51.0 in February 2024 from 54.5 in January 2024, as price pressures intensified in the private sector at an unprecedented pace in over a decade of data collection, the Stanbic IBTC Bank Purchasing Managers’ Index (PMI) has revealed. A statement from the lender disclosed that the improvement in business conditions was the weakest since the recovery in the private sector began last December. It stated that input costs surged higher in the period under consideration as a result of higher fuel prices and exchange rate weakness, which drove up material costs.

More Stories
Image
12-September-2023

Naira Falls to N773.50/$1 at I&E, N932/$1 at Black Market, N941/$1 at P2P

By Adedapo Adesanya It was a weak start for the Nigerian Naira against the US Dollar in the foreign exchange market on Monday, September 11, as forex demand pressure returned amid illiquidity of funds despite recent moves by the Central Bank of Nigeria (CBN). In the Investors and Exporters (I&E) arm of the FX market, the Naira depreciated against the Dollar by 7.1 per cent or N37.88 to sell at N773.50/$1 compared with the preceding session’s N736.62/$1. The weakening of the local currency at the official market was aggravated by a shortage in forex supply as traders were unable to meet

Image
12-April-2017

NNPC Cuts Trade Deficit by 16.19%

By Modupe Gbadeyanka The Nigerian National Petroleum Corporation (NNPC) has recorded N2.75 billion reduction in its trading deficit in January 2017 compared with what was achieved in December 2016, putting the total trading deficit at N14.26 billion. “This represents about 16.19 percent improvement compared to N17.01 billion recorded in December 2016, in spite of the corporation’s challenging situations which limit its aspiration to profitability,” the latest NNPC’s Monthly Financial and Operations Report for January released on Monday in Abuja disclosed. The report further said the combined installed capacity utilization of its refineries located in Port Harcourt, Warri and Kaduna increased

Image
07-March-2019

T-Bills Yield Gain 0.26% on Absence of OMO Sale

By Dipo Olowookere Average treasury bills yields appreciated on Wednesday by 0.26 percent on the back of sustained bearish sentiment at the market, Business Post is reporting. During the midweek trading session, investors embarked on slight selloff on some short tenor bills, but with sustained interests on the longer end of the curve. This pushed the average yields upward to 13.52 percent in the absence of the sale of OMO bills by the Central Bank of Nigeria (CBN). Apart from the 12-month bill which marginally dropped 0.01 percent to settle at 15.12 percent, yields on other tenors appreciated yesterday. The

Image
25-September-2016

Efritin’s ‘Buy Now’ Excites Nigerians

By Modupe Gbadeyanka A new dimension has been brought into the ever growing e-commerce industry in Nigeria with the introduction of ‘Buy Now’ service by Efritin. The company, since its creation three years ago, has made a mark in the classifieds segment of the market, growing in leaps. The launch of ‘Buy Now’ service by Efritin.com has now confirmed the latent potential the industry has to grow bigger and solve more of the problems of Nigerians as it relates to online marketplaces in the coming years. The ‘Buy Now’ service on Efritin is designed such that when a buyer clicks

Image
03-October-2023

Nigeria Targets 22% ICT Contribution to GDP by 2027

By Adedapo Adesanya Nigeria plans to increase the net contribution of the telecommunications sector to the gross domestic product (GDP) by 22 per cent by the end of 2027. This is part of efforts announced by the Minister of Communications, Innovation and Digital Economy, Mr Bosun Tijani, in the ministry’s 31-page Strategic Blueprint document titled Accelerating our Collective Prosperity through Technical Efficiency, seen by Business Post. In the document, the ministry noted that “As telecommunications continues to evolve in line with new technology and associated opportunities, it is critical to revamp our national approach to account for changing imperatives and

Image
05-April-2019

EFCC Arrests Man for Defrauding 89 Investors N388.9m

The Ibadan, Oyo State zonal office of the Economic and Financial Crimes Commission (EFCC) has apprehended one Ayodele Saheed Olaniyi, for defrauding unsuspecting investors in a phoney N343.9 million investment scam. Mr Olaniyi’s arrest followed a petition to the EFCC in February, which was investigated by its operatives. The petition had alleged that Mr Olaniyi duped 89 persons collecting money from them at various times amounting to N343.9 million. Mr Olaniyi was said to have persuaded his victims into investing in a network structure called “Beerbanc Traders’ Network”, in which the participants would pool resources together to establish a beer

Image
03-June-2022

NASD OTC Exchange Sinks Deeper in Danger Zone

By Adedapo Adesanya The bears remained on the floor of the NASD Over-the-Counter (OTC) Securities Exchange for the fourth straight session this week on Thursday with a decline of 0.47 per cent. The woes of the OTC exchange were further compounded by the losses recorded by Niger Delta Exploration and Production (NDEP) and Central Securities Clearing System (CSCS) Plc. NDEP Plc depreciated by N16 or 8.16 per cent to close at N180.00 per share as against the N196.00 per share it traded on Wednesday, while CSCS Plc declined by 36 kobo or 2.20 per cent to close at N16.00 per

Image
29-January-2021

Nigeria Repays $500m Borrowed Via Eurobond in 2011

By Aduragbemi Omiyale The 10-year $500 million debut Eurobond issued by the federal government of Nigeria in 2011 to investors has been repaid. The Eurobond was redeemed by the federal government after it matured on Thursday, January 28, 2021. In 2011, Nigeria approached the international debt market to borrow the sum of $500 million through the sale of Eurobond at an annual interest rate of 6.75 per cent. The final interest payment was made yesterday and the principal sum invested by offshore investors repaid to the bondholders as promised at the point of purchase. In a statement issued by the

Ad
Ad
Recent Stories
Image
02-March-2024

Endosurvivors Foundation Set For Another Endometriosis Awareness

By Adedapo Adesanya EndoSurvivors International Foundation (ESIF), an NGO championing endometriosis awareness in Nigeria, has announced its upcoming events in commemoration of the Global Endometriosis Advocacy Month in March, fondly tagged March4Endo by advocates all over the world.  Endometriosis is a chronic and inflammatory condition that affects approximately 1 in 10 girls and women in Nigeria and on a global scale. This sums up to about 190 million affected girls/women around the world, about the population of Nigeria in 2018.  The World Health Organisation (WHO) recognizes that endometriosis has significant social, public health, and economic implications leading to a decrease

Image
02-March-2024

CSCS, FrieslandCampina Lift NASD OTC Bourse by 0.31%

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange returned to the positive territory after it gained 0.31 per cent on Friday, March 1, thanks to the duo of Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc. CSCS Plc added 81 Kobo to its value to sell for N19.46 per unit compared with the preceding day’s N18.65 per unit, and FrieslandCampina improved by N1.15 to settle at N71.4o per share, in contrast to Thursday’s closing price of N70.25 per share. However, Aradel Holdings Plc continued its price depreciation yesterday as it shed N6.75 to sell at N2,395.00

Image
02-March-2024

Naira Now N1,548.25 at Official Market, N1,560/$1 at Black Market

By Adedapo Adesanya The Naira sustained its gradual recovery against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, March 1, appreciating by 2.94 per cent or N46.86 to sell at N1,548.25/$1, in contrast to the N1,595.11/$1 it was traded on Thursday. Also, in the spot market, the Nigerian currency improved its value against the Pound Sterling during the trading day by N90.13 to close at N1,956.06/£1 versus the previous day’s N2,046.19/£1 and against the Euro, it gained N76.39 to trade at N1,675.25/€1, in contrast to the N1,751.64/€1 it closed a day earlier. The supply of

Image
02-March-2024

Crude Oil Jumps 2% as Traders Sight Possible OPEC+ Cuts

By Adedapo Adesanya Crude oil appreciated by about 2 per cent on Friday as traders awaited a decision from the Organisation of the Petroleum Exporting Countries and allies (OPEC+) on supply agreements for the second quarter. Yesterday, the price of Brent futures went up by $1.64 or 2 per cent to $83.55 per barrel and the US West Texas Intermediate (WTI) futures rose by $1.71 or 2.19 per cent to $79.97 a barrel. For the week, Brent added around 2.4 per cent while WTI gained more than 4.5 per cent. Analysts noted that the expectation that OPEC+ is going to

Image
02-March-2024

NGX Indices Nosedive by 1.23% as Traders Resume Profit-Taking

By Dipo Olowookere The bears made a quick return to the Nigerian Exchange (NGX) Limited after leaving the stage for the bulls for a day as investors reassessed the impact of the hike in the benchmark interest rate by the Central Bank of Nigeria (CBN) on Tuesday on their investments. On Friday, the key performance indicators of the bourse closed lower by 1.23 per cent as a result of renewed selling pressure, especially in the energy and industrial goods sectors. Business Post reports that at the close of transactions on the first trading session of March 2024, the industrial goods

Image
01-March-2024

CBN Revokes Operational Licences of 4,173 BDC Operators [FULL LIST]

By Aduragbemi Omiyale The operational licences of 4,173 Bureaux De Change (BDC) operators have been revoked by the Central Bank of Nigeria (CBN). A statement signed by the acting Director of the Corporate Communications Department of the apex bank, Mrs Hakama Sidi Ali, on Friday disclosed that the action was taken because the affected BDCs did not adhere to regulatory provisions. The central bank said the BDCs did not pay all necessary fees, including licence renewal, within the stipulated period in line with guidelines. It also said they failed to give account of returns in line with the guidelines, and

Image
01-March-2024

BREAKING: Popular Yoruba Comic Actor Sisi Quadri Dies

By Modupe Gbadeyanka A popular Yoruba comic actor, Mr Tolani Quadri Oyebamiji, otherwise known as Sisi Quadri, has died, according to reports. However, the cause of his death is still unclear as of the time of filing this report. There are speculations that he briefly fell ill before his passing, though he was seen publicly some months ago with a fellow comic actor, Sanusi Izihaq, who is well-known as Apa or Apankufor. Sisi Quadri, who died at the age of 44, was recently gaining fresh public attention with his comic act with Apa and others. His demise has hit the

Image
01-March-2024

Transcorp Power to List Shares on Nigerian Exchange March 4

By Dipo Olowookere Another power generating company will join Geregu Power Plc on the Nigerian Exchange (NGX) Limited, Business Post has gathered. The new firm joining the nation’s flagship stock exchange is Transcorp Power Plc, a company owned by businessman and Chairman of UBA Plc, Mr Tony Elumelu. Information reaching this newspaper is that Transcorp Power is listing its shares on the NGX by introduction on Monday, March 4, 2024. The organisation is taking to the stock market about 7,500,000,000 units of its equities at N240.00 each, increasing the total value of the local equity market by N1.8 trillion. Its

Image
01-March-2024

Risevest Suspends Crypto Payment as Clampdown Intensifies

By Adedapo Adesanya Foreign stocks trading and investment firm, Risevest, has voluntarily announced a temporary suspension of cryptocurrency assets in Nigeria until the current wave of clampdown on operations settles. In a notice sent to customers on Friday and seen by Business Post, the platform said users won’t be able to fund their wallets using cryptocurrency as it allowed. The company revealed that it noticed that there has been an uptick in funding and possible gaming of the system, and warned against this. “We’re temporarily suspending crypto funding on Rise for users in Nigeria, pending clarity on the regulatory landscape.

Image
01-March-2024

Foreign Capital Into Nigeria’s Energy Industry Plunges 42.8% to $3.64bn in 2023

By Adedapo Adesanya Foreign capital inflows, which gauges the level of foreign investment into the country, through the Nigerian oil and gas industry in 2023 dropped by 42.8 per cent to $3.64 million from the $6.37 million recorded in 2022. This is contained in the latest data obtained from the Nigeria capital importation report for the fourth quarter of 2023 released recently by the National Bureau of Statistics (NBS). The NBS revealed that total foreign capital inflow into the oil and gas sector in 2023 accounted for 0.09 per cent of total foreign capital inflow into the Nigerian economy in