The presidential candidate of the Peoples Democratic Party (PDP) in the 2023 election, Atiku Abubakar, has said the economic policies of President Bola Tinubu drawn from his renewed hope agenda was dashing the hopes of Nigerians.

Making the assertion in a post via his official X handle on Sunday, the former vice president decried the country’s worsening economic situation despite Tinubu’s economic decisions.

Atiku stated that Tinubu lacked the ability to tackle the adverse effects of the new subsidy regime on people and businesses, as well as the new foreign exchange policy that allows for a free-floating exchange rate.

The former vice president called on Tinubu and his economic management team to swallow their pride and admit their missteps and failures.

According to Atiku, President Tinubu and the economic team must act fast before the economy sinks deeper into the abyss.

He wrote, “The economy’s performance has, in recent weeks and months, been a subject of intense discourse among Nigerian citizens at home and abroad. Nigerians are gravely concerned, and rightly so, that Tinubu’s poor response to Nigeria’s economic challenges is setting the stage for a prolonged and deeper domestic economic crisis.

“His economic policies, drawn from a so-called renewed hope agenda, are ironically dashing hopes, creating pain and causing despair. The private sector is shrinking by the day as small businesses are emasculated and as Multi-National Companies, confused and weary of the economy, leave Nigeria in droves. The intense cost of living pressures has created more misery for the poor in towns and villages. There is HUNGER IN THE LAND as basic commodities, including BREAD, are becoming out of reach for average Nigerians.

“His 2024 budget is a business-as-usual exercise, bereft of concrete ideas and actions that would support Nigeria’s journey toward economic transformation—consisting mainly of wasteful expenditures to cater to a bloated Federal Government. Budget 2024 will not facilitate growth and cannot empower our citizens to earn a living and live a decent life.

“BAT has shown no capacity to deal with the adverse and disastrous impact of the new subsidy regime on the people and businesses and the new foreign exchange policy, which provides for a free-floating exchange rate. His initiatives are literally uninformed, arbitrary, and chaotic. BAT’s palliatives are too mean, pitiable, and contemptuous of the poor. He seems genuinely lost, bewildered, and overwhelmed.

“To mask their failures, BAT and his political appointees are busy blaming his predecessor in office for bequeathing a ‘dead’ economy. This is a familiar game popularised by former President Buhari while in office. It reinforces what we already know: that BAT came into office unprepared.

“Tinubu and his economic management team must swallow their pride, admit their missteps and failures, and follow those who know the terrain. They must act fast before the economy sinks deeper into the abyss.”

January came with mixed emotions in Akwa Ibom State with the passage of two of its political leaders – Senator Itak Ekarika and a former member of House of Representatives and businessman, Hon. Bassey Etim. They served the country diligently at the National Assembly and contributed immensely to the development of the state in various capacities. I shall devote more space for them in another piece, but for today, I will like to pay attention to another icon, statesman, two-term member of the House of Representatives and former Minister of the federal republic, Chief Nduese Essien, who turned 80 on Saturday, February 2. He was in the House between 1999 and 2007, and on April 6, 2010, President Goodluck Jonathan appointed him minister of the newly created Lands, Housing and Urban Development ministry. As a pioneer minister, Chief Essien not only established the requisite bureaucratic structure and human resources, he also ensured the review of the National Building Code, resolved the lingering crises at the Federal Mortgage Bank and the Federal Housing Authority and completed the ministry’s headquarters building. Chief Essien is a community leader, elder statesman, astute politician and my good friend. I send my best wishes to our newest octogenarian, a man of noble pedigree and good breeding.

Even as a young businessman, Chief Essien was a household name in the 1980s when he founded and managed a chain of bookshops known as, Students Care Bookshop, in Calabar and its environs. It was a favourite shopping place for books and stationeries in those days for undergraduate students. But I only got close to him in 2021 while writing a book on the oil politics of the Obasanjo presidency. In a clear violation of the Constitution, President Obasanjo had refused to pay the Niger Delta States, especially Akwa Ibom State, the 13% oil revenue from derivation. This led to a six-year fight between the federal government on one side and some Akwa Ibom professionals, activists, elders and politicians led by then-governor Victor Attah. I should note that the other Niger Delta States were also deeply involved in the struggle. The book, ‘’Akwa Ibom Heroes: Inside the Struggle for the abrogation of onshore-offshore oil dichotomy’’, published in December 2021, details the various dimensions of this struggle and the 13 persons who played major parts on the side of the Akwa Ibom State government. Chief Nduese Essien is one of them.

I interviewed him (and others) for weeks and got deep insight into the politics and fights that led to the scrapping of the obnoxious dichotomy and the compromises and negotiations that resulted in the creation of NDDC. On his vantage position as the Chairman of the South-South Parliamentary Caucus of the National Assembly, Chief Essien worked with governors, lawmakers, technocrats and others to achieve what has become a major milestone in the history of Akwa Ibom, and till this day, his invaluable contributions continue to inspire succeeding generations of leaders. In addition to leading the caucus, he also served on the House committees for internal affairs and women affairs in his first term, and because of his integrity and self-discipline, he was appointed chairman of the House Committee on Anti-Corruption, National Ethics, and Values upon his reelection in 2003. Additionally, he was elected regional director in charge of West Africa and served as chairman of the Nigerian Chapter of the African Parliamentarians Network against Corruption.

On Sunday, a large crowd of dignitaries, led by Governor Umo Eno, trooped to his hometown to celebrate with him. In speeches after speeches, the dignitaries praised the octogenarian for his patriotism, love for his people and mental acuity. ‘’Chief Nduese Essien is a leader with the courage of his convictions. His intellectual and patriotic contributions have earned him deep respect and admiration across borders’’, said Senator Ekong Sampson, Chairman of the Senate Committee on Solid Minerals, who represents the elder stateman in the upper chamber.

Born on February 2, 1944, in Nta Isip, Ikot Ibiok in Eket Local Government Area of Akwa Ibom State, Chief Essien is one of Nigeria’s most remarkable national lawmakers, political activists and thought leaders. He attended the Qua Iboe Church Primary School, Usung Inyang Eket, before proceeding to the Salvation Army Secondary School, Akai Ubium, all in today’s Akwa Ibom State, for his secondary education. He later moved to St. Augustine’s Grammar School, Nkwere, Orlu, Imo State, where he completed his secondary education before proceeding to the Ahmadu Bello University, Zaria where he earned a B.Sc in Business Administration in 1972.

Soon after he left ABU, Chief Essien was hired by Nigerian Chronicle newspaper, Calabar, then a thriving state-owned newspaper, and was assigned to the commercial division. From the Chronicle, he joined College of Technology, Calabar (now Cross River State University of Technology), as a lecturer. He left in 1979 to start business consultancy which soon diversified into other ventures, including Students Care Bookshop, one of the biggest indigenous bookshops in the then Cross River State.

As a young man, Chief Essien was interested in in the politics of the time which largely focused on military rule, state creation and the return to democracy. He never missed an opportunity to speak up in local and national conversations. He is well-known among his peers, particularly in St. Augustine's Grammar School, Nkwere, and ABU, where he began his activism. In 1979, he was elected Public Relations Officer of the defunct National Party of Nigeria (NPN), Eket chapter.

After his two terms at the National Assembly, Chief Essien returned to live with his people in Eket, supporting grassroots, state and national initiatives at peace and consensus building especially during the peak of militancy in the Niger Delta region. He was appointed to serve on the National Technical Committee on the Niger Delta. It was the committee that created the blueprint for peace, which culminated in the Federal Government’s Amnesty Programme and the creation of the Ministry of Niger Delta Affairs. In 2014, Chief Essien was appointed into the National Reform Conference where he joined eminent Nigerians from all walks of life to produce a report that could have resolved some of our national issues if it had been implemented. It was shortly after the National Conference that he voluntarily retired from active politics. Chief Nduese is my neighbour in Uyo, and I have formed the habit of walking over to see him whenever we are in town. He is an intellectual with a laser-sharp mind who swerves easily from serious sociopolitical discussions to jovial banters, interspersed with loud guttural laughter.

He has been honoured with many chieftaincy titles, including the Attah of Eket, Adaidaha ke Efik Ebrutu, Onwa Na’Etiriora of Amanze Kingdom in Anambra State, among others. I join others to wish Chief Essien good health as we look forward to his climbing up the ninth floor!

Enugu State has maintained considerable level of political stability since the fourth republic. After then Gov. Chimaroke Nnamani vs Chief Jim Nwobodo skirmish that tored the State House of Assembly apart (2000 — 2003) and other unpalatable happenstances that characterized Nnamani's second term (2003 — 2007), Barr. Sullivan Chime succeeded him, holding out olive branch of pacification. From thence, subsequent administrations have maintained a stable polity both in the judicial, legislative and executive arms of government. This millpond calmness subsisted presumably because the State was a running on one-party system. Peter Obi's Labour Party (LP) thwarted this equation, as a result of which current Governor Peter Mbah was not all that "lucky" like his predecessors to inherit a unipolar State legislature.

Until the recent fiats of the state election petition tribunal, Labour Party had more members than the ruling PDP in Enugu State House of Assembly. The stakes were tensed as rivalry of the two parties heightened by the claims that Mbah was sitting on a mandate he allegedly 'stole' from their member — Hon. Chijioke Edoga. As the inauguration of the House drew nearer, and the politics of which party should produce Speaker was raging, hearings began at the various tribunals. Suffice to say that Gov. Mbah was dragged to limit and his temperance stretched at both ends.

If he escaped one, he may not be lucky in the other. However, by a dint of rule of law, in line with the provisions of the House rule, the leadership question was settled seamlessly as the minority held sway. Then every attention was turned to the tribunal, with torrents of evidence and counter evidence accompanied by tumultuous social media frenzy. From tribunal to the Supreme Court, those who had passed vote of no confidence on the judiciary after it quashed Peter Obi's petition, still managed to hip too much hope that Mbah will be sacked, by the "forthrightness" of the self same judiciary.

It then follows that what they hated was more of Mbah's guts than the judiciary. They were ready to cuddle the "corrupt" judiciary in their newfound strange bed fellowship, so long as it can sack Mbah. It was a deja vu of what St. Augustine of Hippo preached to his congregation about those who make selective adherence to Bible teachings. "If you believe what you like in the bible, and reject the ones that don't sit well with your ego or lust, then it's yourself you believed in, not the Bible" said the Doctor of the universal Church. Like the Church of ancient North Africa where Augustine pastored, these Party faithfuls had selective belief on the judiciary in relation to electoral jurisprudence.

No one should blame them. Never in the history of a democratic Nigeria did we witnessed such sociopolitical revolution. It weighed heavily on Enugu, as then Governor Ifeanyi Ugwuanyi (though a member of the G-5 group of PDP) did not buy the idea of result mutilation to rig the election as the leader of the group did in his state. Mbah did not have it easy on the ballot like predecessors. Those who are already angered by PDP's antecedence of "ojebego" electoral slogans took their rebellion to opposition. Despite being a Catholic and Edoga an Anglican, Mbah faced strife during Mass, at Ugwu Di nso Eke Catholic Church. It was a pointer to an impending revolution in the state, seeing that the stigma found home even in the Church. The venerable iconic image of Holy family of Nazareth (Jesus, Mary and Joseph) was replaced by three avatar images in Labour Party logo and shared virally across social media platforms.

It was a potent signal that Enugu politics will witness unprecedented turnaround from the status quo, for as Paschal Blaise said, "Men never do anything so completely and cheerfully as when they do it from religious conviction." 

The shocker came on the first ballot — Presidential and National Assembly polls on February 25 2023, which saw LP sweep majority of the federal legislative seats in the state. However, after a careful postmortem of what transpired, some Bishops of the faith of both Governorship candidates called for caution on how their faithfuls indulge in protest voting.

Archbishop Emmanuel Chukwuma of Enugu Anglican Communion was the first tweet: "Saturday (25th February) a lot of mistakes were made because of wrong emotion. Some who were elected have no experience and cannot legislate. That mistake must be avoided during the Governorship and State Assembly elections on 18th March please. The Church will surely speak!" His Catholic counterpart in Nsukka diocese — Bishop Godfrey Onah through his homilies corroborated similar sentiment, which led to allegations from LP members that he was bribed with N5million by ruling party.

What these Church leaders implied was that best leadership reform happens when people de-emphasize party and adopt best candidates, irrespective of party affiliation. But their message was coming"late" as some wrongly claimed. Of the 17 Local Government Areas in the state, it was only two which results were contested. This showed the influence of the voices from pulpits. Yet Enugu will not remain the same again. Peter Obi's goodwill is contagious, and it trickles down to all candidates of the party whether merited or not.

But it was incredible that amidst all these, Peter Mbah maintained serene decorum. He never appeared swayed by the whirlwind of novel rivalry. While, waging judicial war of alleged electoral malpractice and the crisis of legitimacy and acceptance among Ndi Enugu, Mbah fearlessly went ahead to touch the lion's tail when he decided to implement one of his campaign promises — eradication of the endemic Monday sit-at-home order in Enugu.

As a way of little background, Nnamdi Kanu's inductrination of a faction of native Igbo youths (majority of whom have no social capital) into his Biafra secession struggle has demystified the highly-revered Igbo witt. They take irrational decisions on their hollow approach and dictatorially impose it on the whole tribe. And so, their irreconcilable sit-at-home strategy was deep wound in the flesh of Ndigbo. How could anyone do this to the fledging economy of the region?

It didn't sit well with anyone. It was a dreadful plague. But overtime, Stockholm syndrome began to set in among them, and they started falling in love with the suffering. Stockholm syndrome is a psychological condition in which a hostage emotionally bonds to his or her captor. The term came from a Swedish Norrmalmstorgssyndromet, which was named after the robbery of Kreditbanken at the Norrmalmstorg Square in Stockholm, Sweden in which the bank robbers held bank employees hostage from August 23 — 28, 1973. And when rescuers broke in to free them and arrest the captors, the hostages started defending their captors.

In layman’s understanding, Stockholm syndrome is a psychological response, that occurs when hostages or abuse victims bond with their captors or abusers. This psychological connection develops over the course of the days, weeks, months, or even years of captivity or abuse.

A prototype of that condition was happening to Ndigbo nay Enugu people when Mbah enforced the Monday sit-at-home abolition order in the state. A fraction of the suffering masses covertly rose in defence of the IPOB order.

They have fallen in love with their abusers. People now use Mondays to rest, and works begin on Tuesdays.

Mbah still managed to have his way in the end by consistently preaching the gospel of liberation and enforcement order until Monday is restored to the weekly calendar of the state. If this was not done, his local/foreign investment renewal dream for the state would be a tall order.

He also went on to dare another sacred grail of Enugu politics — public water scheme. Over a half century, government boreholes was not just dry but dilapidated in Enugu. He promised to rehabilitate it in his manifesto. However, private merchants of waters supply in the State also attempted to impose another level of Stockholm syndrome on the people. They tried to gaslight the masses to talk down on the project, in an attempt to perpetuate their capitalist grip of the monopoly water business in the state. In the end, the dream came through, as the honorable commissioner for Information and Communication , Mr AKA Eze Aka announced it and provided details.

It is quite interesting that within eight months, a full book of essay on sociopolitical happenstance can be written of a State that hardly made news over the past two decades of democratic experiment. When tumults arise, people of rare stern personalities usually rise to hold out the stake. From the foregoing, Mbah may be of that stock. If this becomes the case, then Enugu will be better for it.

May daylight spare us!

✍️ Jude Eze.

The Commission of the Economic Community of West African States takes note of the decision that the Senegalese authorities have taken to postpone the presidential elections scheduled to take place on 25 February 2024.

The ECOWAS Commission expresses concern over the circumstances that have led to the postponement of the elections and appeals to the competent authorities to expedite the various processes in order to set a new date for the elections. The Commission further urges the entire political class to prioritize dialogue and collaboration for transparent, inclusive and credible elections.

The ECOWAS Commission salutes President Macky Sall for upholding his earlier decision not to run for another term, and encourages him to continue to defend and protect Senegal's long-standing democratic tradition.

The Commission will remain seized of the situation.

SOUTH Africa goalkeeper Ronwen William has shared the credit for his heroic performance last night with his teammates and the technical crew.

The Mamelodi Sundowns shot stopper was the hero in the AFCON 2023 Africa Cup of Nations quarter-final against Cape Verde in Yamoussoukro last night, becoming the first goalkeeper to save four penalties during a shootout in the history of the tournament.

Williams’ saves helped Bafana Bafana defeat Cape Verde 2-1 in the shootout after full-time and extra-time ended 0-0.

The 32-year-old former SuperSport United goalkeeper was named Man of the Match for his heroics but he insisted the award belonged to the entire team.

“It was tough. They played their part and it was my time to play my part,” Williams said while receiving his prize.

“I am just glad that we are in the next round. This is not mine but it is for the collective.

“The staff, technical team and each player. This journey has been tough but we soldiered on as a team so I will accept this on behalf of each and every player in Bafana Bafana.”

Bafana Bafana take on the Super Eagles in the semi-finals on Wednesday at the Stade de la Paix in Bouake.

The last time South Africa reached the AFCON semi-finals was in 2000 and they also faced Nigeria, who won 2-0 in Lagos as co-hosts.

The Super Eagles also beat Bafana Bafana at the AFCON in 2019.

[EagleOnline]

The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to direct the Attorney General of the Federation and Minister of Justice Lateef Fagbemi (SAN), and appropriate anti-corruption agencies to promptly probe the allegations that $3.4 billion loan obtained from the International Monetary Fund (IMF) is missing, diverted or unaccounted for.

Naija News reports that the 2020 annual audited report published last week by the Auditor-General of the Federation documents damning revelations including that there was no document to show the movement and spending of the IMF loan.

SERAP also urged Tinubu to ensure that anyone suspected to be responsible should face prosecution as appropriate, if there is sufficient admissible evidence.

The group stated that any missing IMF loan should be fully recovered and returned to the public treasury.

In the letter dated 3 February 2024 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said there is a legitimate public interest in ensuring justice and accountability for these serious allegations.

According to SERAP, servicing IMF loan that is allegedly missing, diverted or unaccounted for is double jeopardy for Nigerians.

It pointed out that Nigerians can neither see nor benefit from the projects for which the loan was approved; “yet, they are made to pay both the loan and accrued interests.”

SERAP noted that any failure to investigate these grave allegations, bring suspected perpetrators to justice and recover any missing IMF loan would have serious resource allocation and exacerbate the country’s debt burden.

The letter read in part: “We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest.

“The Auditor-General recommends that the money be fully recovered and remitted to the public treasury and those suspected to be involved ‘sanctioned and handed over to anticorruption agencies’.

“The allegations of corruption in the spending of IMF loan documented by the Auditor-General undermine economic development of the country, trap the majority of Nigerians in poverty and deprive them of opportunities.

“The allegations suggest a grave violation of the public trust, the provisions of the Nigerian Constitution 1999 (as amended), the country’s anticorruption legislation and international anticorruption obligations including under the UN Convention against Corruption.

“According to the 2020 annual audited report by the Auditor-General of the Federation published last week, the US$3.4 billion emergency financial assistance obtained from the International Monetary Fund (IMF) to finance the budget and manage the health crisis stemming from the outbreak of COVID-19 pandemic may have been missing, diverted or unaccounted for.

“According to the Auditor-General, no information or document was provided to justify the movement and spending of Fund.

“The Auditor-General wants the money recovered and remitted to the public treasury and for the evidence of remittance to be forwarded to the Public Accounts Committee of the National Assembly.

“The Auditor-General also recommends that anyone suspected to be involved should be ‘sanctioned and handed over to the EFCC and ICPC for investigation and prosecution, as provided for in paragraph 3112 of the Financial Regulations’.

“According to reports, Nigeria is expected to spread the payment of the IMF loan from 2023 to 2027. The first instalment, due in 2023, is worth $497.17 million. The second instalment, due in 2024, will be worth $1.76 billion. The third instalment, due in 2025, will be worth $865.27 million.

“The final two instalments, due in 2026 and 2027, will each be worth $33.99 million. These instalments will only be interest payments.

“Investigating the allegations and naming and shaming and prosecuting those suspected to be responsible for the missing IMF would serve the public interest and end the impunity of perpetrators.

“Impunity for corruption in the management of loans obtained by Nigeria will continue as long as high-ranking public officials go largely unpunished for their alleged crimes. It is by pursuing these allegations and taking the evidence before the court that the truth will be revealed and justice best served.

“SERAP notes that the consequences of corruption are felt by citizens on a daily basis. Corruption exposes them to additional costs to pay for health, education and administrative services.

“SERAP notes that your government has a sacred duty to ensure that the country’s loans including those obtained from the IMF are transparently and accountably used solely for the purposes for which the loans are obtained, and for the effective development of public goods and services as well as the general public interests.

“This implies providing strong leadership in the efforts to curb public sector corruption, and to refer to appropriate anticorruption agencies any allegations of corruption in which any officials and agencies of government may be involved or complicit.

“Section 13 of the Nigerian Constitution 1999 [as amended] imposes clear responsibility on your government to conform to, observe and apply the provisions of Chapter 2 of the constitution. Section 15(5) imposes the responsibility on your government to ‘abolish all corrupt practices and abuse of power’ in the country.

“Under Section 16(1) of the Constitution, your government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.’

“Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.’

“Similarly, articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on your government to ensure proper management of public affairs and public funds including loans obtained by the country, and to promote sound and transparent administration of public affairs.

“The UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption to which Nigeria is a state party obligate your government to effectively prevent and investigate allegations of corruption and mismanagement of public funds including loans obtained by the country.

“Specifically, article 26 of the UN convention requires your government to ensure ‘effective, proportionate and dissuasive sanctions’ including criminal and non-criminal sanctions, in cases of grand corruption.

“Article 26 complements the more general requirement of article 30, paragraph 1, that sanctions must take into account the gravity of the corruption allegations.”

[NaijaNews]

The Central Bank of Nigeria (CBN) has restricted the operations of international money transfer operators (IMTOs) to only inbound transfers, stopping outbound transfers.

This implies that IMTOs can no longer facilitate money transfers from Nigeria to other countries, according to the revised guidelines for the operations of IMTOs, which were officially released on January 31, 2024.

It is a notable departure from the 2014 guidelines, which permitted the operators to engage in “allowable inbound and outbound international money transfer transactions.”

Stating the permissible activities of the operators, the new document read:

• “The permissible activities of International Money Transfer Operators shall include inbound international money transfer transactions only. The transactions shall be limited to the following activities:
• “The acceptance of monies for the purpose of transmitting them to persons resident in Nigeria.
• “Cross-border personal money transfer services, such as money transfer services towards family maintenance; money transfer services in favour of foreign tourists visiting Nigeria, etc.
• “The money transfer services shall target individual customers and the transactions shall be on “person to person”, “business to person” and “business to business” transfer basis which may be reviewed by the CBN from time to time.”

The CBN’s recent decision to restrict IMTOs to inbound transfers only marks a significant shift in the regulatory landscape for foreign exchange and remittance services in Nigeria.

This move could have multiple implications, including potential impacts on Nigeria’s foreign exchange market dynamics and remittance landscape.

Also, IMTOs are barred from purchasing foreign exchange from the domestic market to fulfil their obligations.

This decision could be seen as an attempt by the CBN to manage foreign exchange reserves and stabilise the local currency by limiting the outflow of foreign currency.

It might also enhance the monitoring of international financial transactions and prevent illicit financial flows.

However, this could also lead to specific challenges for individuals and businesses accustomed to IMTOs for outbound transfers, compelling them to seek alternative channels.

CBN limits FX inflow payments to Naira

It appears that the CBN might have placed a ban on dollar and other foreign currency payouts for international transactions, according to the latest guidelines.

This is unlike the previous guidelines, where there was no clear statement on the currency in which the inflow payments should be made.

The new document read:

• “All inbound money transfers to Nigeria shall be paid to beneficiaries in Naira through a bank account, or cash. Proceeds of IMTO more than the equivalent of $200 shall be paid through an account. Cash payments shall be made upon the provision of a satisfactory/acceptable means of identification.
• “Where the beneficiary does not have an account with the IMTO agent bank, the agent bank shall credit the beneficiary account in another bank.”

This comes about seven months after the central bank introduced the naira payout option for diaspora remittances.

Before that period, the CBN had released a circular in 2021, stressing that it is a breach of its regulations for diaspora remittance payments to be made in naira.

In the new guidelines, the apex bank noted that the exchange rate for the naira payment shall be at the prevailing rate in the Nigerian Foreign Exchange Market. This comes barely a week after the naira crashed to a record low of N1,482.57/$ following strong demand on the official market, also known as NAFEM, exceeding the parallel market rates.

This policy might pose challenges for recipients who prefer or require US dollar payouts for international transactions. They may face difficulties due to the potential disparity between the official exchange rate and the parallel market rates. Moreover, for Nigerians living abroad and sending money home, the impact of this policy on remittance flows could be significant, possibly influencing their choice of remittance channels.

Also, Nairametrics observed that the apex bank removed the option for foreign inflow to be received in mobile money wallets, limiting it to bank accounts, which may lead to an increase in the number of domiciliary accounts in the country.

This comes almost five months after the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed the government’s interest in funds in domiciliary accounts.

More Insights

• There were early reports that the Federal Government and the apex bank were considering converting domiciliary accounts to naira as part of measures to solve the forex crisis and stop the crash of the naira.
• However, the Federal Government and the CBN denied that there are plans to convert $30 billion domiciliary deposits to naira.
• Despite CBN and the Federal Government countering the allegations in the media reports, it appears that Nigerians may not be able to withdraw foreign currency from their domiciliary accounts in line with this new set of guidelines.
• Also, Nairametrics recently reported that the CBN banned banks and financial technology companies (fintechs) from international money transfer services.
• This development coincides with an earlier circular from the CBN aimed at curbing what it perceives as rampant foreign currency speculation and hoarding among Nigerian banks. The nation’s financial watchdog has been growing concerned about these activities, which can significantly distort market dynamics.
• The CBN’s revised guidelines for IMTOs represent a significant policy shift with far-reaching implications for Nigeria’s foreign exchange and remittance sectors. It reflects the bank’s ongoing efforts to regulate the financial landscape, particularly in international money transfers, while balancing economic stability and compliance with international financial standards.
• However, this latest policy may influence how diaspora remittances are received, and cross-border financial commitments are met. On the global stage, this decision could also affect Nigeria’s position in the international remittance market, potentially altering the flow of remittances into the country.

[Nairametrics]

President Geingob, who died of cancer at the age of 82, was reported dead on Sunday by the Namibian government.

In a statement issued on Sunday by his special adviser on media and publicity, Ajuri Ngelale, President Tinubu noted that President Geingob, whom he described as a veteran of the struggle for democracy, died at a time the African continent needs more visionary leaders, who believe in its common destiny.

The statement read: “On behalf of the government and people of Nigeria, President Bola Tinubu extends deep condolences to the government and people of Namibia over the passing of His Excellency, President Hage Geingob.

“President Tinubu mourns the painful loss of this veteran in the struggle for democracy; proponent of good governance, and advocate of economic, social, and political solidarity among African peoples.

“The President notes that this tragedy comes at a time when Africa needs more visionary leaders who believe in the common destiny of the continent, and who can strengthen bonds across borders and spread the tendrils of cooperation across all fields of human endeavour.

“As Namibia mourns, President Tinubu assures the Republic that his thoughts and prayers, and indeed those of Nigerians, are with them.”

[TheNation]