International Money Transfer Operators and banks in the country have halted the payment of dollars to their customers.

Some banks on Friday informed their customers that they would no longer be able to receive dollars from family and friends in the diaspora.

This followed the issuance of revised guidelines for International Money Transfer Operators by the Central Bank of Nigeria on January 31.

Ecobank Nigeria, one of the banks that have started to comply with CBN directive, in a notice to customers on its international money transfer operations, said, “We would like to bring to your attention recent regulatory changes affecting international money transfers into Nigeria through Western Union, MoneyGram, Rapidtransfer, Ria, and other CBN approved IMTOS.

“The circular issued by the Central Bank of Nigeria dated January 31, 2024, stipulates that all in-bound money transfers to Nigeria (via the above mentioned IMTOS) will be paid only in naira through a bank account or in cash at the prevailing rate in the Nigerian Foreign Exchange Market.

“Furthermore, transfers exceeding the naira equivalent of $200 must be credited to the recipient’s bank account. Naira cash payment equivalent for amounts below $200 will require an acceptable means of identification. The acceptable means of identification is any of the following: international passport, Driver’s licence, National identity card and INEC Permanent Voters Card.”

In the revised guidelines, the apex bank restricted IMTOs from outbound transfers and stated that beneficiaries of all inbound money transfers to Nigeria would be paid in naira, either in cash or through a bank account.

It added that funds that are more than $200 would be paid through a bank account.

IMTOs are companies approved by the CBN to facilitate the transfer of funds from individuals or entities residing abroad to recipients in Nigeria and the payment of a corresponding sum to a beneficiary through a clearing network to which the IMTO belongs.

The CBN, in its revised guidelines, said, “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.”

Although the guidelines said that banks and fintech were banned from international money transfer services, the banks could act as agents and most of them are already.

“All banks are prohibited from operating International Money Transfer Services bit can act as agents. Also, financial technology companies are not allowed to obtain approval for IMTO,” part of the revised guidelines said.

The apex bank also asked IMTOs to quote exchange rates for naira payout to beneficiaries based on the prevailing market rates at the nation’s official foreign exchange market.

In a bid to implement the CBN’s directive, one of the approved IMTOs, World Remit, has updated its app for Nigeria with the following instructions: “WorldRemit Nigeria News! We can no longer support transfers in USD; only in naira.

“If you’re about to send money to Nigeria, this is important. The Central Bank of Nigeria has directed that it’s no longer possible for any money transfers to be paid out in USD in Nigeria. So, of course, this includes WorldRemit money transfers.

“But please don’t worry. You can still enjoy the same quick, safe and affordable World Remit service to Nigeria by sending money in naira instead,” it stated.

Another operator, Sebdwave, said, “In compliance with a recent directive from the Central Bank of Nigeria, we regret to inform you that Sendwave, along with all money transfer operators, is no longer able to support USD transfers to Nigeria. We’d encourage you to switch to sending Naira transfers instead.”

Commenting on the CBN move, the President of the Association of Bureau De Change of Nigeria, Aminu Gwadebe, said that the CBN move would discourage the dollarisation of the economy.

He said, “It discourages the already precarious dollarisation of the economy. You know the CBN did not even stop at that. The EFCC has started inviting organisations and institutions that are issuing invoices in USD. We need to discourage currency substitution. If we continue to give the beneficiaries the dollars, we are reinforcing the dollarisation of the economy and we are looking for the dollars.”

He added that diaspora remittances had often been channelled towards meeting personal needs rather than harnessed for development purposes in the country.

“The central bank is trying to secure all streams of income that are coming into the country. If you look at the directive to the NNPCL to remit to the CBN. Don’t forget also that the central bank has made some announcements on how to start injecting liquidity into the economy, especially the retail end of the market.

“All put together, we have started seeing even the naira regaining momentum as it closed at 1,480/ dollar today (Thursday) from N1,505 to the dollar yesterday (Wednesday),” Gwadebe stated.

A financial and economic expert, Rotimi Fakoyejo, called for improved monitoring on the part of the apex bank to ensure the effectiveness of the directive.

“There must be deep oversight monitoring from the CBN on the banks over what comes in and what goes out. The reason is that there is absolutely no reason for dollars or pounds sterling to be spent in Nigeria.

“You should not even see it except when you are travelling. Most times, the banks are the ones who connect a recipient of international money transfer with the person who will change the dollar and that is why the disparity between the official and black market today is widening. If there is no supply to the black market, then definitely, we will have a single rate for the dollar,” he said.

The Managing Director of Cowry Asset Management Limited, Johnson Chukwu, said that the move of the CBN would have minimal effect on the liquidity in the forex market.

He said, “What they want to do is use that to increase liquidity in the official window. But as long as there is no disparity between the official and parallel market rates, people who are remitting money will not be bothered.

“What would have been of concern to them would have been if there was disparity between the rates. Today, I think there is almost no parity between the rates. If you are not going to get any arbitrage by taking dollars to the black market, then you won’t bother.

“I do not think it will have any impact on the FX liquidity, it is the same amount coming in that will come in. As long as there is no disparity between the rates, the unethical behaviour of people using the transfer operations or the unofficial window will not arise.”

Speaking on increasing supply in the market, Chukwu said, “Until we have an increase in supply, every effort we make will amount to moving the ball around.”

A former President of the Chartered Institute of Bankers, Okechukwu Unegbu, in his comment, hailed the move of the apex bank, saying, “I support whatever policy the CBN is taking to address the dollar shortage in the economy. Remember when these monies are sent from abroad, they come as remittances. There is no physical cash coming with it.

“Before now, the CBN had a reserve of dollars that the banks could access and use to pay customers in dollars, but such a thing is no longer available, and the banks do not have dollars to make payments. So, the best thing to do is to use the exchange rate and pay in naira. Dollar is very scarce in the system; you cannot pay people in dollars.”

The Central Bank of Nigeria has removed the spread it placed on foreign exchange transactions barely seven months after it reintroduced the “Willing Buyer and Willing Seller” model.

The decision effectively allows forex transactions at a market-determined rate.

The decision was contained in a circular dated February 8, signed by the CBN Director of Financial Markets, Omolara Omotunde Duke.

The apex bank believes the move would promote a market-based price discovery system.

The circular stated, “A key objective of the ongoing foreign exchange market reforms by the Central Bank of Nigeria to promote a market-based price discovery system.

“Consequently, the Bank hereby discontinues any cap on the spread on interbank foreign exchange transactions and restrictions on the sale of interbank proceeds.

“Authorized Dealers are to continue to conduct their foreign exchange transactions on a “Willing Buyer and Willing Seller” basis. In addition, they are to strictly adhere to high ethical standards in their dealings in the foreign exchange markets. This includes but not limited to adopting appropriate price disclosures and transparency for transactions.

“Please note that all executed transactions are to be recorded immediately on the relevant treasury systems and reported to market authorities as stipulated.”

The CBN had in a circular referenced TED/FEM/PUB/PC/001/006 and issued on August 9,2023, directed an exchange rate cap spread of ±2.5 per cent of NAFEM previous day’s closing rate.

The rate applied to International Money Transfer Operators (IMTOs) and banks.

Former Vice President, Nigeria Football Federation, Shehu Dikko, has given insight into why new Super Eagles first choice goalkeeper and fans favourite, Stanley Nwabali, didn’t feature for the team under former coach Gernot Rohr, PUNCH Sports Extra reports.

Nwabali has established himself as the country’s undisputed first-choice goalkeeper with his impressive performances at the ongoing Africa Cup of Nations in Ivory Coast.

While Nwabali’s rise to stardom has come as a big surprise to many Nigerians, Dikko said the keeper had always been under the watchful eyes of the federation.

“Nwabali has always been on the radar of the national team,” he tweeted.

“I recalled in June 2019 during the NPFL Super Six in Lagos and he was on the books of Enyimba FC, we invited Gernot Rohr to watch him as a potential successor/competitor to Uzoho. Unfortunately, his club GM went to inform him that Rohr was around to check on him, thinking he was helping him. But that made him so jittery being a young keeper just getting into the groove but he has always been a very good keeper as he even made the NPFL Allstar team in 2022 for the Budweiser match with John Terry and Roberto Carlos and the home-based Super Eagles match with Mexico in USA.

“Anyway, God’s time is always the best and he has once again proved the talent available in the domestic game.”

On Wednesday, the 27-year-old saved two penalty kicks from Teboho Mokoena and Evidence Makgopa to help Nigeria claim a 4-2 win over South Africa and progress to the final of the 34th edition of the AFCON.

The Chippa United shot-stopper, who is a strong contender for keeper of the tournament, was named Man of The Match for his impressive display.

Surprisingly, Nwabali has only six appearances for the Eagles and was only invited to the national team a few weeks before the AFCON after Nigeria’s head coach, Jose Peseiro, decided to make him his preferred choice ahead of Francis Uzoho, who has failed to live up to expectations.

In his competitive games so far, he conceded just two goals against Equatorial Guinea and South Africa.

Nwabali will hope to continue with his impressive form when Nigeria take on Ivory Coast in the final of the AFCON on Sunday.

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, on Friday, defended the apex bank by stating that it is already taking measures to contain the naira to dollar exchange rate and other related issues causing untold hardship in the country currently.

According to Cardoso, the decisions already taken will not only stabilize the rates but also reduce the negative impact of high exchange rates on inflation, as the two are interconnected.

Naija News reports that Cardoso stated this during an extensive meeting with the Joint Senate Committee on Finance, Banking, Insurance, and Financial Institutions on Friday, where he revealed that the CBN interventions have resulted in an influx of $1bn into the Nigerian market in recent days.

“We have already begun to see shifts in the positive direction. Indeed, they (CBN measures) have already started yielding early results with significant interest from foreign portfolio investors, which was a concern. That has already begun to supply the much-needed foreign exchange to the economy.

“For example, upward of the past few days, we have had over $1 billion that has come into the market, and this quite frankly has answered the question of if our policies are working,” Cardoso said.

The CBN chief stated that based on the available data, he can confidently say that the market has been positively responding to the policies implemented by the apex bank.

He further emphasized that the measures implemented to enhance the supply of US dollars in the Nigerian economy have the potential to reduce the volatility of the exchange rate and subsequently control inflation.

However, he highlighted the importance of Nigeria as a country moderating its demands for foreign exchange in order to ensure the sustainability of these measures.

While the CBN is diligently working towards restoring credibility to the central bank, he reiterated that the primary factor affecting the exchange rate is the demand for US dollars for both business and personal purposes.

Additionally, the CBN Governor assured that inflation is expected to decrease this year through the implementation of the inflation targeting framework, with a projected moderation of 21.1 per cent.

Naija News recalls that on January 31, the committee summoned the Central Bank Governor to appear before them.

The Senators are urging the CBN to provide clarifications regarding the multitude of economic difficulties that the nation is presently confronting.

Lawmakers Make Demands Known
Speaking earlier at the meeting today, the Senator representing Lagos East Senatorial District in the National Assembly, Senator Mikhail Adetokunbo Abiru, underscored the need for a forensic investigation of past transactions and the issue of compliance of the bank.

Given the current food crisis, which has led to increased poverty and insecurity, lawmakers are sceptical about the CBN’s ability to effectively demonstrate the success of its policies to the Nigerian people.

In the midst of this, Senator Orji Kalu strongly advocates for the government to reconsider the use of the dollar in business transactions, expressing concern over the declining foreign direct investment (FDI) in the country.

He also demands to know the plans of the CBN in reconciling with the NLC and TUC to avert the planned strike, a move he says will severely accentuate hunger and hardship.

The legislators express concerns regarding the proposed importation of food as a means to address food shortage, as they fear it may jeopardize the country’s food security and discourage farmers from further enhancing production.

Senator Adamu Aliero emphasized that there is no valid justification for resorting to importation. Instead, the government should prioritize initiatives such as irrigation and revisit the interventionist approach from the past to enhance the agricultural sector’s impact.

The Governor of the Central Bank of Nigeria assured that inflation is expected to decrease this year through the implementation of the inflation targeting framework, with a projected moderation to 21.1 percent.

Regarding the criticism of the CBN’s policies being ineffective, the Governor said that the market is responding positively to the measures that have been implemented.

Furthermore, he claimed that in order to ensure the long-term viability of the policies, it is imperative for the country to reduce its reliance on foreign currency.

According to his statements, the Central Bank of Nigeria (CBN) is diligently striving to regain trust and credibility in its operations. However, he firmly believes that the primary factor affecting the exchange rate is the persistent demand for US dollars for both commercial and personal purposes.

1-year-old Nigerian athlete, Favour Oghene Tejiri Ashe, has been arrested on multiple counts of theft and fraud.

Ashe, according to WTVM report, was arrested by Auburn Police on Thursday at his Alabama base.

The report stated that Ashe is specifically being charged with four counts of fraudulent use of a debit/credit card and two counts of theft of property third degree.

Auburn Police initially received a theft report on February 4, 2024, when a victim reported that multiple items were stolen from a purse near the 100 block of West Magnolia Avenue.

A credit card was among the items stolen, and the victim discovered several fraudulent charges were made using the stolen card.

Ashe was transported to the Lee County Jail and held on a $9,000 bond, the report indicated.

Ashe is one of the fastest Nigerian sprinters in history, having run 9.99s in the 100 meters at the national championships in 2022. He however holds a personal best of 9.96s he ran at the semi-final of the NCAA Championships last year.

He also represented Nigeria at the 2022 and 2023 World Athletics Championships and the 2022 Commonwealth Games, where he won a bronze medal in the 4 x 100 meters relay.

Ashe is the latest set of US-based Nigerian athletes to be arrested on fraud-related charges in the US, BoldSports reports.

Bold Sports in November 2022, reported how five Nigerian athletes, Toluwani Adebakin, Emmanuel Ineh, reigning African Games 100m champion Raymond Ekevwo, Mercy Abire and Aniekeme Etim were indicted and charged over wire and mail fraud in the US.

Adebakin and Ineh had earlier both been convicted of fraud and faced a possible 10-year jail term after they pleaded guilty to “violations of Title 18, United States Code, Section 1957, for engaging in monetary transactions in property derived from specified unlawful activities, collectively sending tens of thousands of illicitly obtained proceeds to fraudsters in Nigeria as part of a larger mail fraud, wire fraud, and money laundering conspiracy.”

Abire went on to plead guilty to conspiracy to commit money laundering and risked 20 years in jail.

A political economist, Prof. Pat Utomi, has blamed the Central Bank of Nigeria for contributing to the free fall of the naira in the foreign exchange market.

Utomi who spoke while featuring on a Channels TV programme, said that missteps of CBN over the years put the naira it is today.

The Lagos Business School founder lamented that Nigeria had depended on foreign exchange sent home by its people in the diaspora for a long time.

“Diaspora has been a significant part of the economy. They are supporting their people from there because things are not going well for most of their people.

“But you know what, that leads to an inflow of foreign exchange into the country, and that helped us keep things going," he said.

He, however, noted that technology and entrepreneurship have changed the whole thing and made it such that the dollar is not coming to Nigeria.

According to him, the diasporans would now simply use one app and the Nigerian in London or Chicago who wants to solve a problem for their relations here, gives dollars to somebody who is there and the naira goes to the person here.

“Yes, it solves the problem, but the Nigerian economy has not received the input of the dollar. And the Central Bank helped contribute to that by some missteps they made in the last few years.

“So, this is a major reason why the exchange rate is tumbling. Can we fix that? It is possible.

“But it takes people sitting down and people trusting the character of those making decisions,” he said.

The Airline Operators of Nigeria (AON) have expressed concern about the high cost of operation, heightened by the recent increase in the naira-to-dollar exchange rate.

According to AON, people no longer travel for weddings and other events because they would prefer to send money to the event hosts since they cannot afford the outrageous ticket fees.

The professional association of domestic airlines in the country laments that the aviation fuel price hike has now made it challenging for airlines to conduct scheduled maintenance on their aircraft.

The operators highlighted that this situation poses a significant threat to their existence, as grounded aircraft cannot be transported overseas due to the scarcity of foreign exchange.

They have also warned that if this trend continues, there may not be enough operational aircraft for domestic services.

In a statement issued on Friday by its spokesperson, Professor Obiora Okonkwo, AON emphasized the urgent need for government intervention to prevent the potential collapse of many airlines, with the government ultimately being responsible for their demise.

The airlines expressed their concerns regarding the lack of stability in foreign exchange rates and the significant increase in the price of aviation fuel, which now stands at N1,300 per litre.

These factors have greatly impacted their ability to plan effectively and have created a sense of uncertainty and instability in their operations.

Okonkwo, who serves as the Chairman of United Nigeria Airlines, further elaborated on the issue, highlighting that passengers who had purchased tickets in advance for flights in 2023, when aviation fuel was priced at N700 per litre and the exchange rate was N800/$1, are now being airlifted at the current price of N1,300 per litre and an exchange rate of N1400/$1.

As a result, the airlines are facing substantial losses on these tickets, he observed.

“We are making losses on factors that are beyond our control. We are not only faced with the problem of scarcity of dollars; even the aviation ecosystem is feeling the heat. Handling companies have increased the cost of their services, airports have increased their charges and those that service the aircraft have also increased the cost of their services. The monies for these payments are coming from the passengers who are already exhausted financially,” Daily Trust quoted Okonkwo saying.

Okonkwo stated that numerous businesses in Nigeria are experiencing low profitability. As a result, the entrepreneurs who are crucial for passenger travel during both peak and off-peak seasons have ceased their journeys.

Additionally, he mentioned that the number of individuals travelling for tourism and social purposes is insufficient to ensure airlines maintain a satisfactory load factor and sustain their operations during the current low season.

The statement added: “Passenger traffic has shrunk because even those on social engagement like weddings, burials and other ceremonies may not be inclined to spend money on flight tickets; they would rather send credit alerts to those hosting the events who would appreciate such gestures. So, they pay instead of appearing in person.

“Air travel is a catalyst to economic development. There should have been government engagement with airlines at different levels. Airlines do not have special forex allocation, so they buy at the same place traders who trade in Brazilian hair, textiles, and others buy.

“Our passion to remain in this business is being eroded. We are at the point of oxygen supply. Some airlines are going into a coma. Our equipment is diminishing. The minimal revenues we earn to keep the airlines flying, we convert to pay our lessors.

“It is impossible to bring in more aircraft. Aircraft owners have become sceptical because of country risk. A Nigerian airline may meet its terms and all the standard criteria, but the aircraft owners consider country risk above other factors. Country risk supersedes everything, and lessors have their own obligations. So, there is nothing personal. Some airlines deposited money with the Central Bank of Nigeria (CBN) but they cannot provide us the needed dollars.”

Former Nigerian international, Segun Odegbami, has predicted an easy victory for the Super Eagles of Nigeria in their AFCON 2023 final clash against the Elephants of Cote d’Ivoire.

According to Odegbami, the Super Eagles have beaten Ivory Coast before in the group stages and that alone should give the Nigerian team a psychological edge.

He added that the Elephants are not as good as the Eagles and have only been lucky to make it to the finals of the tournament.

Speaking on Friday during an interview with Channels TV, Odegbami however, who maintained the Eagles are going to defeat their opponents hands down on Sunday despite the home support, urged the government to provide encouragement for the supporters team so they can counter the Ivorian fans who are sure to storm the stadium on Sunday.

He said, “We have beaten Ivory Coast before; we defeated them in the group stage, which gives us a psychological edge. Also, the hosts have not played well; they are not one of the top teams; they’ve been lucky. It’s a miracle they’ve gotten to this stage; they haven’t earned or deserved it on the pitch.

“In the final on Sunday, it will be a noise-making, vociferous crowd trying to lift their players against a team that should be prepared for no distractions and focused for 90 minutes.

“The Super Eagles play their game against a team that respects us; on the street, the Ivorians know we are superior; we just need to display it.

“Our players must believe, and I know we shall outplay them. It’s going to be our easiest match; it’s going to be a training session, and Nigeria will defeat them hands down.”

He added that, “We’re going to be up against 60,000 Ivorian fans, and they will overwhelm any kind of support we provide. I urge the government to provide support for our supporters; we need their voice. When we score, you see the players rush to the stands because they know how important they are.”

Northern group, Arewa Initiative for the Defense and Promotion of Democracy (AIDPD), has asked Nigerians not to blame President Bola Tinubu for the current pains and hardship across the country.

The National Chairman of the group, Shehu Abdullahi Ma’aji, stated this in a communique issued to journalists at a media briefing in Abuja on Thursday.

Ma’aji said certain politicians and clerics from the North have been in a hurry to dismiss the Tinubu administration as a failure just a few months into its assumption of office.

He urged politicians from the region to stop condemning the performance of the President but should blame the Muhammadu Buhari government for the economic hardship.

Ma’aji asserted that President Tinubu inherited enormous liabilities from its immediate predecessor, which will take time to fix.

He said: “Arising from our emergency meeting held at the Transcorp Hilton Hotel, Abuja, to review the State of the Nation, we, members of pro-democracy groups from the 19 Northern States and the FCT, make the following observations and resolutions:

“To commend patriotic Northerners and indeed all Nigerians who are cooperating and supporting this government in its bid to provide solutions to the nation’s problems despite the incitement by some unscrupulous politicians who are bent on inciting the masses against the government.

“That the world economy is currently not in the best of shape due to the Russian-Ukrainian and the Israeli-Palestinian wars, etc. We observed that the Nigerian economy is not exempted from this global economic problem.

“The current administration of President Bola Ahmed Tinubu inherited a lot of problems from the past administration of Muhammadu Buhari, which it is currently trying to address. For instance, the Kwara State Governor AbdulRahman AbdulRazaq and chairman of the Nigeria Governors’ Forum (NGF) had just revealed that the crude oil the country will be getting in the next six months had been sold in advance by the immediate past administration.

“That the solutions to the problems cannot be instantly solved but in a gradual pattern.

“That Nigerians should show patriotism by cooperating with this administration in its bid to find solutions to the country’s problems such as inflation, corruption, insecurity – banditry and kidnapping that the country is currently facing.”

Ma’aji further alleged that some disgruntled politicians are plotting to organise phantom protests across the country to smear the image of this administration.

He added: “Those disgruntled politicians who are using some clerics through misinformation to issue statements condemning this administration without any good reason should desist forthwith in the interest of our beloved nation.

“We are not averse to any form of legitimate protest to show grievances to the government’s policy or programme, provided it is done in good faith and under the laws of our beloved country, Nigeria. We frown at the idea of sponsoring people to stage fake protests for the financiers to score cheap political mileage by discrediting the current administration.

“We call on all Northerners and indeed all Nigerians to continue to support the current administration in its bid to bring Prosperity to our nation.

“That we Northerners are not against Mr President and this administration. We will continue to support and pray for this administration to succeed.

“That the current administration is just eight months into office. It needs more time to deal with the problems it inherited. So we, the well-meaning Northerners, are praying and positively collaborating with the current administration for it to succeed.”

The Super Eagles players on Thursday night, February 9, observed a minute silence for the four Nigerians who died during their match against South Africa on Wednesday, February 7.

An APC chieftain, Cairo Ojougboh, an Ivory Coast based Nigerian businessman, a serving NYSC member as well as the Deputy Bursar of Kwara State University (KWASU), Malete, Alhaji Ayuba Abdullahi, all died on Wednesday night, Feb. 7, while watching the semi-finals between Nigeria and South Africa in the ongoing AFCON.

The players gathered and observed a minute silence in honour of the deceased Nigerians and went on to say prayers for the repose of their souls and for God to comfort their families.