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[PRESS STATEMENT] Ekiti APC To President Tinubu: Thank You for Your Presidential, Leadership and Fatherly Role - Segun Dipe
AdminPresident Bola Ahmed Tinubu has been showered with praises by the All Progressives Congress, APC, in Ekiti State, regarding the proactive role he played during the search and rescue of the kidnapped school children in the state recently.
In a release issued by the party spokesperson, Segun Dipe, on behalf of the State Chairman, Barrister Paul Ayodele Omotoso, APC described Tinubu as a "constant and consistent President who does not just revel in being regarded as a president, but has soaked himself in the challenges and responsibilities of being one, even in times of serious crises."
"We are thanking Mr. President from the bottom of our heart for playing the role of a true father when it mattered most to our dear state, as noted by the governor, Mr. Biodun Abayomi Oyebanji, BAO."
Earlier, Governor Oyebanji was full of appreciation to the President for his unwavering support that led to the timely release of the kidnapped pupils of Apostolic Faith Nursery and Primary School, Eporo, Ekiti.
According to the governor, President Tinubu gave specific directives that put the search and rescue mission on top gear and indeed, the president did not rest until the pupils were found, rescued and brought back alive.
"To be the president of Nigeria, the leader of our great party and the father to all Nigerian children at this crucial time when the nation is battling insecurity is a gift from God that we will not take lightly."
"We have come to identify in our president some strong qualities, such as empathy, courage, strategic thinking, problem solving, and decisiveness. He has showed the entire world that he is prepared to make decisions, particularly when under pressure.
"We are grateful, we are delighted, we do not regret your choice as our president and we will continue to bask under your love, guidance and protection as our true leader," APC assured.
The party also seized the opportunity to thank those who actively involved themselves in the search and rescue for the haplessly kidnapped school children, and most importantly, God for dousing the tensed situation.
Regarding our hard-working people's governor, we say: "BAO maa ba ise re lo, ise re nte wa lorun..."
Signed:
Segun Dipe
Publicity Secretary,
All Progressives Congress, APC,
Ekiti State.
Oyo State governor, Seyi Makinde, on Friday, signed into law the Oyo State Electricity Regulatory Commission Bill 2024.
The governor, who performed the signing ceremony at the Conference Room of the Governor’s Office, Secretariat, Agodi, Ibadan, said the signing was to give the state opportunity to develop its own roadmap to sustainable electricity.
The governor stated that with the decentralisation of electricity generation, transmission and distribution, it has become obvious that Nigerians can access dividends of democracy if federalism is practised as it should be and more powers are devolved to the states.
Makinde said: “As promised earlier in the week, we are signing the Oyo State Electricity Regulatory Commission Bill 2024 into law today. This law will enable Oyo State generate, transmit and distribute electricity within the State.
“Amendments of the constitution like these is what we mean when we advocate for fiscal federalism.
“In years to come as we work towards energy sufficiency, our people can hold state governments accountable on the issue of electricity supply.”
Presenting the bill, the deputy Speaker, Oyo State House of Assembly, Honourable Mohammed Fadeyi, said this is the first time that the state would come up with an independent electricity project.
Present at the signing of the bill were members of the executive, legislature and judiciary.
The Corporate Affairs Commission (CAC) in Abuja unveiled the registration of two million businesses as part of efforts to curb rising unemployment and achieve the 50 million job creation target for Nigerian youths.
The Registrar-General and CEO of the CAC, Hussaini Ishaq Magaji SAN, at a ground-breaking ceremony in Abuja, said the registration was part of efforts to simplify the burden for young Nigerians who want to contribute meaningfully to the Nigerian economy.
“The registration of the new business was part of the CAC’s contribution to the realisation of the present administration’s economic revival plan in collaboration with moniepoint to develop the MSMEs sector, in line with the current administration target of 50 million jobs,” he said.
He said the president has youth employment as priority and the first step is to ensure that those willing to engage in different ventures donot encounter hurdles because when they start their enterprises, they will also be employers of labour.
Moniepoint Executive DirectorBabatunde Olofin stated their readiness to actualize the project in line with the present administration’s economic revival agenda, adding that the financial services provider has recognized that crimes and other vices can only be reduced if youths are meaningfully engaged.
In her brief remarks, the Minister of Industry, Trade, and Investment, Dr. Doris Nkiruka Uzoka-Anite, described the event as a landmark achievement through the use of information technology to catalyse the economy.
[NaijaNews]
Socio-Economic Rights and Accountability Project (SERAP) has threatened to take legal action against the federal government over plans to regulate social media.
Naija News reported earlier that President Bola Tinubu declared that social media must be regulated because it has become a societal menace.
The President, who spoke through his Chief of Staff, Femi Gbajabiamila, said this at a book launch in Lagos State on Thursday, February 8, 2024.
President Tinubu also berated the menace of social media in disseminating fake and wrong information, which has almost torn the country apart and caused violence in some states.
The Nigerian leader stressed the need to regularize the framework of news dissemination on social media to avoid misinformation in the country.
He emphasized the importance of data in policy formulation for the growth of the country, stating that no developing country can succeed without adequate and well-informed data.
Reacting, however, SERAP, in a statement issued on Friday via its official handle on X, said the government’s intention is odd with the country’s constitution and international human rights standards.
It said: “The threat by the Tinubu administration to regulate social media is at odds with the Nigerian Constitution and international human rights standards. We’ll take legal action if the administration carries out its threat to restrict Nigerians’ rights on social media.”
The Presidency has called for an investigation into the civil service framework.
This, according to the Presidency, is to eliminate individuals it refers to as “moles” who are loyal to the main opposition, the PDP.
The moles are allegedly responsible for the unauthorized disclosure of classified documents.
Recall that an internal memo was recently leaked, indicating that President Tinubu allegedly sanctioned the disbursement of N500m from a total of N1bn to the Secretary to the Government of the Federation, Senator George Akume.
The allocated funds were intended for the inauguration of a 37-member Tripartite Committee responsible for discussing the New National Minimum Wage.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, emphasized the need for the Federal Government to take decisive action in identifying and removing individuals who are leaking classified documents and are believed to have allegiance to the opposition.
”This step is crucial in ensuring the security and maintenance of sensitive information,” he said.
Onanuga said, “What is worrisome is, how come a memo written by SGF to the President bearing the President’s signature leaked out? It means that there are some fifth columnists within the government.
“It’s not the first time a memo will leak. There was a memo leak when the President went to UNGA, about a request for money to pay for his hotel bills and you wonder where it is leaking from.
“There are so many moles around who are probably doing the bidding of the opposition. They do not respect the civil service rule for handling official secrets. And it shows that the government should look inwards to probe how memos between officials are getting into the public space. Memos that are supposed to be secret are not supposed to be flying all over the place.”
The Economic and Financial Crimes Commission (EFCC) has declared Margaret Emefiele, wife of a former Governor of the Central Bank of Nigeria, Godwin Emefiele, and three others, wanted for money laundering.
Naija News gathered that Mrs Emefiele, Mr Eric Odoh, Anita Omoile and her husband, Jonathan Omoile, were declared wanted in a post on the X account of the anti-graft agency on Friday night.
The anti-graft agency declared them wanted for allegedly conspiring with the former CBN Governor “to convert huge sums of money belonging to the Federal Government of Nigeria and committed felony to with obtaining money by false pretences, and stealing, contrary to and punishable under Sections 411, 287, and 314 of the Criminal Law of Lagos State.”
In a related development, the Federal Government filed a 20-count charges against Emefiele Federal Capital Territory (FCT) High Court in Maitama, Abuja.
The charges against Emefiele now border on Criminal breach of trust, Forgery, Conspiracy to commit forgery, Procurement Fraud and Conspiracy to commit Felony.
The Governor of the Central Bank of Nigeria, Olayemi Cardoso has said the bank will no longer grant Ways and Means to the federal government unless the outstanding balance is settled.
Me Cardoso also announced measures the bank was taking to tame the rising inflation in the country which has led to an astronomical increase in the prices of goods and services.
He disclosed these on Friday when he appeared before the Senate Committee on Banking, Insurance and other Financial Institutions alongside the Minister of Finance and Coordinating Minister for the Economy, Olawale Edun, the Minister of Budget and National Planning, Atiku Bagudu and the Minister of Agriculture, Abubakar Kyari.
Ways and Means is a loan facility through which the Central Bank of Nigeria finances the federal government’s budget shortfalls.
Last December, the National Assembly approved the securitisation of the outstanding debit balance of N7.3 trillion of the Ways and Means Advance in the Consolidated Revenue Fund (CRF) of the federal government.
This was after medias repeatedly highlighted the violation of Nigeria’s financial laws which state that Ways and Means allocation to the federal government must not be higher than the five per cent of government’s revenue in the previous year.
The Ways and Means had been a recurring loan the CBN issued to the federal government to finance shortfalls in the government budget.
Recall that in March 2022, the Debt Management Office (DMO) announced that the federal government had borrowed a total of N18.16 trillion from the Central Bank.
The debt as of then was more than 40 per cent of the money supply in the economy.
At Friday’s meeting with lawmakers, Mr Cardoso did not state whether the federal government has surpassed the limit of advances according to the CBN Act.
But he insisted that the central bank would not be a part of the Ways and Means agreement with the federal government again the latter fails to refund all the outstanding debts on the Ways and Means already advanced.
The CBN governor said the position complies with section (38) of the CBN Act (2007).
Mr Cardoso said the payment of the outstanding balance of the Ways and Means will control inflation in the country.
“I am pleased to note the Fiscal Authorities efforts in discontinuing Ways and Means advances. This is also in compliance with Section (38) of the CBN Act (2007), the Bank is no longer at liberty to grant further Ways and Means advances to the federal government until the outstanding balance as of December 31, 2023, is fully settled. The Bank must strictly adhere to the law limiting advances under Ways and Means to 5 per cent of the previous year’s revenue.
“We have also halted quasi-fiscal measures of over 10 trillion naira by the Central Bank of Nigeria under the guise of development finance interventions which hitherto contributed to flooding excess Naira and raising prices to the levels of Inflation we are grappling with today.
“The CBN’s adoption of inflation-targeting framework involves clear communication and collaboration with fiscal authorities to achieve price stability, potentially leading to lowered policy rates, stimulating investment, and creating job opportunities.
“Our MPC meeting on the 26th and 27th of February is also expected to review the situation and take further decisions on these important issues.
“Distinguished senators, Inflationary pressures are expected to decline in 2024 due to the CBN’s inflation-targeting policy, aiming to rein in inflation to 21.4 per cent at the medium term, aided by improved agricultural productivity and easing global supply chain pressures”.
Leaked N1bn Memo: PDP Blasts Tinubu Over Purported Approval Of N500 Million For Inauguration Of New National Minimum Wage Committee
AdminDemands Legislative Investigation
The opposition Peoples Democratic Party (PDP), has reacted to President Bola Tinubu’s purported approval of N500 million for the inauguration of the 37-man Tripartite Committee on New National Minimum Wage.
Naija News recalls that the Vice President, Kashim Shettima, inaugurated a 37-man Tripartite Committee on New National Minimum Wage at the Council Chamber of the Presidential Villa, Abuja, on January 30, 2024.
However, a letter addressed to the President by the Secretary to the Government of the Federation, George Akume, released by an anonymous journalist, shows the initial request submitted to Tinubu was a budget of N1.8 billion, which he refused to approve.
The report alleged that Akume submitted another budget of N1 billion, but Tinubu insisted that the committee begin with N500 million.
Reacting, the opposition party, in a statement through its National Publicity Secretary, Debo Ologunagba, described the purported approval as the height of profligacy and financial recklessness.
PDP noted that it is highly provocative that Tinubu is spending such an amount of money, especially when Nigerians are undergoing excruciating economic hardship.
The PDP further called on Tinubu to speak out, come clean and address the nation on this very weighty allegation.
The statement reads, “The Peoples Democratic Party (PDP) condemns the reported approval of a whooping N500 million as first installment of a N1billion allegedly approval by President Bola Ahmed Tinubu for the inauguration of the 37-man Tripartite Committee on New National Minimum Wage as reportedly contained in a leaked memo by the Secretary to the Government of the Federation (SGF), Senator George Akume.
“The PDP describes the said approval of the huge amount for a routine government activity like committee inauguration as the height of profligacy, imprudence and financial recklessness which further validates PDP’s position that the Tinubu-led government is a cesspit of corruption where officials engage in brazen and reckless treasury-looting.
“It is highly provocative and unpardonable that at the time the nation is suffering acute food shortage; when millions of Nigerians are starving due largely to inadequate investment in food production, insecurity and harsh economic policies of the government; a time when workers are still being owed their January 2024 salary and other legitimate entitlements, President Tinubu is allegedly spending NI billion to inaugurate a committee.
“It is even more revealing that the Secretary to the Government of the Federation, allegedly requested for an audacious sum of N1.8 billion for the event which was later scaled down to N1 billion, out of which President Tinubu reportedly directed the SGF to “start with N500 million first”.
“This further shows that the APC administration is insensitive and has no regard for the plight of Nigerians, whom President Tinubu, during his 2024 budget presentation at the National Assembly described as “ordinary people out there”.
“Nigerians can now also see how our national treasury and funds meant for their wellbeing are being looted with reckless abandon by officials of the Tinubu-led APC administration.
“This is apparently a tip of the iceberg of how looters in the APC administration are cashing out with public funds under the cover of the Presidency as witnessed in the reported plundering of over N44 billion in the Ministry of Humanitarian Affairs and Poverty Alleviation.
“Our Party demands that the National Assembly, pursuant to its powers under Section 88 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) immediately commence investigation into this matter which is already agitating the minds of Nigerians across the country.”
The Port Harcourt Refinery is set to start operations following the supply of 475,000 barrels of crude oil by Shell Petroleum Development Company Limited.
A statement by Shell said: “This significant milestone was made possible through intensive preparations, collaboration and the dedication of the Bonny Oil and Gas Terminal, BOGT and Port Harcourt Refinery Company, PHRC teams.”
It stated that some activities, including pressure and leak testing to assure pipeline integrity by relevant subsidiaries of the NNPC Limited and integrity and maintenance activities on the Oil and Gas Terminal, BOT Refinery export pumps and associated instrumentations were carried out at the terminal through diligent efforts of the BOT operations and maintenance teams.
“The recommencement of crude oil supply from the Bonny Oil and Gas Terminal to Port Harcourt Refinery is a significant achievement and a game-changer for the industry and the country. The intensive preparations, collaboration and dedication of both teams involved were instrumental in overcoming challenges and ensuring a safe and efficient supply operation.
“This milestone will support the government’s aspiration of steady supply of petroleum products to the downstream market and other associated benefits to the economy of the nation,” Shell stated.
Already, the Nigerian National Petroleum Company (NNPC) Ltd said it has fulfilled its pledge of achieving the mechanical completion of rehabilitation work on Area 5 Plant of the PHRC.
It stated that rehabilitation work has been ongoing at the Refinery for over two years and the NNPC Ltd. had pledged to complete Phase One of the project (mechanical completion and flare start-up) of Old Port Harcourt Refinery (Area 5) by 31st December 2023.
Speaking during an inspection tour of the rehabilitation project, which also coincided with the 15th Refineries’ Rehabilitation Steering Committee Meeting, the Group Chief Executive Officer, NNPC Ltd., Mr. Mele Kyari, had said as of December 15th, 2023, 84.4% of Area 5 Plant, a key component of the Refinery, and 77.4% of the entire rehabilitation project has been completed
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.”
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CBN Removes 2.5% Spread On FX Transaction, Reintroduces ‘Willing Buyer, Willing Seller’ Policy
AdminThe 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.
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.
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.”