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  • Recent forex stability commendable, says CBN gov, Cardoso

    Recent forex stability commendable, says CBN gov, Cardoso

    The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, says recent stability achieved in the foreign exchange market is commendable.

    Cardoso said this on Tuesday in Abuja, while presenting the communique from the 294th meeting of the apex bank’s Monetary Policy Committee (MPC).

    According to Cardoso, the stability is a result of CBN’s recent policy actions and reforms, which are geared towards restoring investors’ confidence and attracting foreign investments.

    “The committee noted with satisfaction the level of stability achieved in the foreign exchange market in the last few weeks.

    “This, in the view of members, reflects the impact of the CBN’s recent policy actions and reforms, as well as increased transparency in the market.

    “In addition, the committee noted the efforts of the apex bank in offsetting verified foreign currency obligations, an action
    that will greatly enhance investor confidence and attract foreign investments to Nigeria,” he said.

    Cardoso said that the MPC also reviewed developments in the banking system and noted that the industry remained safe, sound and stable.

    He said that the apex bank would sustain its surveillance and ensure compliance of deposit money banks with existing regulatory and macroprudential guidelines.

    The CBN governor said that domestic headline inflation rose further to 31.70 per cent in February from 29.90 per cent in January.

    According to him, food inflation accelerated to 37.92 per cent
    from 35.41 per cent, while core inflation rose to 25.13 per cent from 23.59 per cent.

    “Key drivers of inflationary pressure remain the strong exchange rate
    pass-through to domestic prices; rising cost of transportation; high cost of energy and other production inputs.

    “Lingering insecurity, especially in food producing areas and legacy infrastructure deficits are also responsible,” he said.

    He said that the committee would continue to monitor developments in the global and domestic economies to ensure that inflationary expectations were anchored to restore and sustain macroeconomic stability.

  • BREAKING: CBN increases interest rate to 24.75 percent

    BREAKING: CBN increases interest rate to 24.75 percent

    The Central Bank of Nigeria (CBN) has raised the interest rate to 24.75 percent from 22.75 percent.

    This is according to a Tuesday communique by the CBN governor Yemi Cardoso after the second MPC meeting of his tenure in Abuja.

    The new interest rate is a jump from the 22.75 percent announced by the MPC about a month ago.

    Details later

     

     

     

  • Naira appreciates to N1,400/$ as CBN continue to plug leakages

    Naira appreciates to N1,400/$ as CBN continue to plug leakages

    The Naira recorded a significant gain at the official market represents an appreciation of N68 or 4.5 per cent, from the N1,560/$1 recorded on Tuesday.

    13.5 per cent or N190 gain was also recorded at the parallel market.

    Findings show that there is a significant drop in the stocking of dollars by speculators following waning demand by prospective buyers amid CBN clampdowns.

    It would be recalled that the Central Bank of Nigeria has released series of circulars warning currency speculators and racketeers to desist from exploiting the loopholes.

    Moreso, the CBN also put measures in place to block the loopholes and plug leakages.

    Also, the recent clampdowns on the activities of illegal BDC operators in Lagos, Abuja and Kano by the operatives of the Economic and Financial Crimes Commission have helped to reduce the volatility of the naira.

     A Bureau De Change Operator at Wuse 2, Abuja, Ibrahim Yahu, said on Wednesday that the greenback was bought at the rate of N1400/$1 and sold at N1500/$, allowing operators to make a spread of N100/$1.

    He said, “The highest I can buy from you is N1400/$ but we are selling at N1500/$.

    He noted that some persons bought at the rate N1,300/$ during the daily trading activity.

     

  • CBN has cleared all outstanding FX obligations – Director

    CBN has cleared all outstanding FX obligations – Director

    The Central Bank of Nigeria (CBN) says all valid foreign exchange backlogs have now been settled.

    This is according to a statement by CBN’s Acting Director, Corporate Communications, Mrs Hakama Sidi.

    Sidi said that the step was in fulfilment of a key pledge of the CBN Governor, Yemi Cardoso, to process an inherited backlog of seven billion dollars in claims.

    She said that the CBN recently concluded the payment of 1.5 billion to settle obligations to bank customers, effectively settling the residual balance of the fx backlog.

    She also said that independent auditors from Deloitte Consulting meticulously assessed these transactions, ensuring that only legitimate claims were honoured.

    According to her, any invalid transactions were promptly referred to the relevant authorities for further scrutiny.

    Meanwhile, Cardoso said that the apex bank made clearing the fx backlog a priority to restore credibility and confidence in the Nigerian economy.

    “It was important that we go through an independent and credible process that would determine the authenticity of those obligations, and, at this point, I can tell you that we have now cleared all genuine, verifiable transactions.

    “This encumbrance to market confidence in the country’s ability to meet its obligations is now totally behind us,” he added.

    Clearance of the foreign exchange transactions backlog is part of the overall strategy detailed in the last Monetary Policy Committee (MPC) meeting.

    The aim, according to the CBN, is to stabilise the exchange rate and thereby curb imported inflation, spurring confidence in the banking system and the economy.

    Cardoso had used the MPC meeting and a subsequent conference call with foreign portfolio investors to set expectations for sustained increase in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.

    The CBN, afterwards, reported a significant increase in external reserves, rising by 993 million dollars to 34.11 billion dollars as of March 7, the highest level in eight months.

    The apex bank reported that month-on-month increase was driven by a marked advance in remittance payments by Nigerians overseas.

    It said that higher purchases of local assets, including government debt securities, by foreign investors , was also responsible for the increase.

  • CBN lifts FX restrictions on dairy products import to crash prices

    CBN lifts FX restrictions on dairy products import to crash prices

    The Central Bank of Nigeria, CBN, has lifted forex restrictions on the importation of milk and dairy products in the country, a move expected to push down prices.

    This was contained in a CBN circular with the reference number TED/FEM/PUB/FPC/001/010 dated March 12 to all banks.

    Zenith Bank further confirmed the development in a recent notice to customers.

    “Please be informed that the Central Bank of Nigeria (CBN), through its circular Ref No: TED/FEM/PUB/FPC/001/010, dated March 12, 2024, has provided an update on eligible items for foreign exchange (Non-Valid for FX),” the statement reads.

    “In light of the preceding, please note that the restriction on foreign exchange for importing dairy products and its derivatives to all entities except selected companies has been lifted.”

    Recall that on February 11, 2020, the CBN had added milk and dairy products to the list of items not eligible for forex.

    Meanwhile, on October 12, 2023, the apex bank announced lifting the ban on 43 items previously restricted from accessing forex.

    On Tuesday, the Naira appreciated to N1,560.57 per USD from N1,572.82 on Monday at the official forex market. This reduced the import duty exchange rate to N1,572.507 per USD on Tuesday from N1,593.41.

  • NGX: Investors lose N239 billion; CBN blamed

    NGX: Investors lose N239 billion; CBN blamed

    The Nigerian Exchange Ltd.(NGX) market capitalisation on Monday closed on a negative note, losing N239 billion.

    Specifically, the market capitalisation which opened at N59.416 trillion, lost 0.40 per cent or N239 billion to close at N59.177 trillion.

    Similarly, the All-Share Index also declined by 0.40 per cent or 422 points to close at 104,663.34, as against 105.085.25 recorded on Friday.

    As a result, the Year-To-Date (YTD) return fell to 39.97 per cent.

    Selloffs in MTN Nigeria,  Guaranty Trust Holding Company (GTCO), Zenith Bank, Transcorp and Chams dragged the market to a negative terrain.

    Reacting, Mr David Adonri, Vice Chairman, Highcap Securities Ltd., said that the downward performance of the market was due to little fatigue experienced after a prolonged rally, propelled by demand pull.

    Adonri in an interview in Lagos disclosed that the selloffs in the trading session were high capitalization stocks.

    “Hence, any decline on such stock is blown out of proportion.

    He mentioned that the share price of Tier-one banks, appreciated over the weeks, also witnessed relief.

    The broker stated that some of the recent policies by the Central Bank of Nigeria (CBN), such as the proposed bank recapitalisation, might have also affected investors’ decisions on stocks.

    On the loser’s table, McNichols Plc led, dropping by 9.30 per cent to close at N1.17 per share.

    Daar Communications followed by 8.97 per cent to close at 71k, while UPDC Real Estate Investment Trust lost 7.89 per cent to close at N1.40 per share.

    Also, MTN trailed by 7.58 per cent to close at N247.50 and Regency Alliance Insurance fell by 5.13 per cent to close at 37k per share.

    Conversely, ABC Transport led the gainer’s table by 9.86 per cent to close at 78k per share.

    NEM Insurance followed by 9.77 per cent to close at N7.30, while Livestock Feed Plc went up by 9.68 per cent to close at N1.70 per share.

    NGX Group appreciated by 9.55 per cent to close at N24.10, while Thomas Wyatt rose by 9.34 per cent to close N1.99 per share.

    However, market breadth closed positive with 27 gainers and 18 losers on the trading floor.

    Analysis of the market activities showed trade turnover was higher than the previous session, with the value of transactions up by 115.75 per cent.

    A total of 287.45 million shares valued at N10.80 billion were exchanged in 9,077 deals, compared to 217.21 million shares valued at N5.01 billion exchanged in 6,457 deals posted in the previous session.

    UBA led the activity chart in volume with 46.23 million shares traded in value of N1.19 billion, followed by GTCO with 35.35 million shares worth N1.65 billion.

    Transcorp also sold 21.51 million shares valued at N324.98 million, Zenith Bank traded 21.49 million worth N834.06 million and FBN Holdings traded 17.91 million shares worth N698.14 million.

  • Why inflation may persist – CBN Governor

    Why inflation may persist – CBN Governor

    Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso has said inflationary pressures, driven predominantly by escalating food prices, may persist in the short term.

    TheNewsGuru.com (TNG) reports Cardoso said this while announcing the allocation of 2.15 million bags of fertiliser to the Ministry of Agriculture and Food Security on Wednesday.

    According to the CBN Governor, the 2.15 million bags of fertiliser are valued at over N100 billion.

    Cardoso said the apex bank was collaborating with the Ministry of Agriculture and Food Security to mitigate the surge in food prices in the country.

    He stressed CBN’s fertiliser contribution is aimed at amplifying food production capabilities and foster price stabilization within the agricultural sector.

    Cardoso, meanwhile, assured that the apex bank will continue to implement comprehensive measures to curb inflation in the country.

    Cardoso stressed the critical need to address food inflation as a pivotal aspect of managing headline inflation rates.

    “The CBN has veered away from direct quasi-fiscal interventions and transitioned towards leveraging conventional monetary policy tools for executing monetary policies effectively.

    “My team and I reiterate our unwavering commitment to prioritising price stability and instilling confidence in the Nigerian economy by upholding consumer price stability and ensuring a balanced foreign exchange market,” Cardoso said.

  • How CBN gave contracts to Emefiele’s wife and relative – EFCC

    How CBN gave contracts to Emefiele’s wife and relative – EFCC

    A Seventh Prosecution Witness, PW7, in the trial of a former governor of Central Bank of Nigeria (CBN), Godwin Emefiele on Monday, March 11, 2024 told Justice Hamza Muazu of the Federal Capital Territory, FCT, High Court, Abuja, how Emefiele allegedly signed and approved award and payments of contracts to April 1616 Investment Limited and Architekon Nigeria Limited, companies that allegedly belong to Sa’adatu Ramalan Yero, his wife, Margaret Emefiele and his in-law respectively.

    The witness, Agboro Michael, an investigator with the ICPC, led in evidence by the prosecution counsel, Rotimi Oyedepo,SAN, was part of the investigation team that comprised the EFCC, ICPC, CCB, DSS and the Nigerian Police. He testified on the count-charge of abuse of office and conferring  an unfair advantage to a public officer and relatives, preferred against Emefiele.

    “My Lord,  these companies were awarded about 45 contracts to supply Toyota Vehicles. We were worried as investigators as to how a particular company would get bids concurrently to supply vehicles. We did our investigation, and discovered that the company was not even accredited by Toyota.

    “In the companies my Lord, one has Sa’adatu’s husband and siblings as directors, and the other one has Sa’adatu as the director of the company while she is still a civil servant.

    “Document ‘F1’ shows the signature and approval of the defendant to pay the sum of N854, 700,000 (Eight Hundred Fifty-Four Million, Seven Hundred Thousand Naira)  His signature was number three on the document”,  he said.  Testifying further, Michael said in ‘F3’, the defendant approved 1, 85,700,000 (One Billion, Eighty-five million, Seven Hundred thousand) for the supply of 47 units of Toyota Hilux.

    While ‘F4’ was the defendants approval to purchase for the bank an armoured Toyota Avalon car at the cost of N99,900,000 (Ninety-Nine Million, Nine Hundred Thousand Naira), and ‘F5’ was the approval to procure two units of Toyota Hilux for the bank, and all were bought from April 1616 Investment limited.

    Speaking on the findings of the investigative team on exhibit P26, page 86 of 107 on November 6, 2021. Michael said; “It is a credit into the account from the CBN to the tune of N41, 943, 400, 34 (Forty-one Million, Nine Hundred and Forty-three Thousand, Four hundred and Thirty four kobo).

    “Page 87 was also a credit in April 2016 from the CBN, N304, 853, 50 (Three Hundred and Four Million, Eight Hundred and Fifty Three Thousand naira, Fifty kobo).

    “26 January, 2021, April 1616 Investment Nigeria limited also received N304, 853, 720, 55 (Three Hundred and Four Million, Eight Hundred and Fifty Three Thousand Seven Hundred and Twenty Naira Fifty-Five kobo) from the CBN.

    “On the 10th of February, 2021, the CBN paid N201, 23, 323, 31 (Two Hundred and One Million, Twenty-Three Thousand, Three Hundred and Twenty-Three Naira, Thirty-One kobo).

    The approval of payment of March 24, 2021 was  N304,843,720,85, April 27, 2021 was 60,976,744,17 (Sixty Million, Nine hundred and Seventy Six thousand, Seven hundred and forty-four naira, Seventeen kobo) May 31, 2021 was a payment of 60,976,744,17 (Sixty Million, Nine hundred and Seventy Six thousand, Seven Hundred and Forty-four Naira, Seventeen kobo), and February 21, 2021 was a payment of N50,547,508,30 (Fifty Million, Five Hundred and Forty-Seven Thousand, Five Hundred and Eight Naira Thirty kobo) were equally approved by the defendant.

    The witness further told the court that the team recorded the defendant’s statement under caution and video recorded in a conducive environment.

    Testifying further, the witness said; “In 2019, again,  we discovered the defendant also used his office and position to confer a corrupt advantage to one of the staff of CBN, Sa’adatu Ramalan Yero to supply  one unit of Toyota Land Cruiser V8 at the cost of N73, 800,000 (Seventy-Three Million, Eight Hundred Thousand to her company April 1616 Investment Nigeria limited where she is a director, and equally a director in the CBN.

    “Again my Lord, the defendant also approved the payment of renovation of the CBN Governors’ residence at No 2. Global road, Ikoyi Lagos to a company named; Architekon Nigeria Limited where his wife and brother-in-law are both directors.

    “Sometime in 2020, the defendant used his position as CBN Governor to confer on his wife and brother in-law corrupt advantage by awarding their company landscaping of the CBN governor’s residence in the sum of N39,46,000 (Thirty-Nine Million, Forty Six Thousand Naira”,he said.

    Continuing, Michael said a contract to procure furniture items was also awarded to his brother in-law in the sum of 97,000,000 (  Ninety Seven Million Naira), and again,  a contract to procure a power line at the same CBN Governor’s residence in the sum of N68,568,740 (Sixty-Eight Million, Five Hundred and Sixty-Eight Thousand, Seven Hundred and Forty naira).

    While cross examining the witness, counsel to the defendant,  Matthew Burkaa SAN queried the witness  that though there are many signatories in the memo only his client was on trial. In response, the witness told him that the defendant was on trial because he was the approving authority, while others only minuted on the documents to justify the process, and didn’t  have the power to make such payments and approvals.

    Burkaa also wanted to tender the defendant’s  statement at the Nigerian Police force before the court,  but Oyedepo objected, stating it was a public document and needed to be certified before it can be tendered as an exhibit.  Burkaa then withdrew the document and promised to provide the true certified copy at the next adjourned date.

    Justice Muazu thereafter adjourned the matter till 25 and 26 April, 2024 for continuation of trial.

  • CBN reports increased forex inflow in February

    CBN reports increased forex inflow in February

    The Central Bank of Nigeria (CBN) has reported a significant increase in foreign exchange inflow into the economy in February.

    Acting Director, Corporate Communications Department of the CBN, Mrs. Hakama Sidi, said this in a statement on Friday in Abuja.

    Sidi said that the upsurge in forex inflow was recorded with marked increments in remittance payments by Nigerians overseas and purchases of naira assets by foreign portfolio investors.

    According to her, the apex bank’s data indicates that overseas remittances rose to 1.3 billion dollars in February, more than four times the 300 million dollars received in January.

    “Foreign investors purchased more than one billion dollars of Nigerian assets last month, with total portfolio flows of at least 2.3 billion dollars recorded thus far in 2024 compared to 3.9 billion dollars seen in total for last year,” she said.

    She said that higher forex inflows has continued in March, driven by increased investor interest in short-term sovereign debt following the recent adjustment to benchmark interest rates.

    She said that government securities issuances had been significantly oversubscribed, with foreign investors accounting for over 75 per cent of bids received at the auctions conducted on March 1 and 6.

    Recall that the CBN Governor, Mr Yemi Cardoso set out a detailed inflation-targeting strategy, using the last Monetary Policy Committee meeting in February.

    Cardoso also targeted exchange rate stabilisation, and strategies to spur confidence in the banking system and economy.

    He held a conference call with foreign portfolio investors to set expectations for sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.

    According to him, all the different measures we have taken to boost reserves and create more liquidity in the markets have started to pay off.

    “When people understand the real issues and see a strategy and a plan, things tend to calm down.

    “Our objective today is to ensure that the market has supply, that the market functions, and that investors can come in and go out,” he said.

  • Emefiele: Signatures, documents used to pay election observers $6.2m forged – Forensic Analyst reveals

    Emefiele: Signatures, documents used to pay election observers $6.2m forged – Forensic Analyst reveals

    The ex- Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, continued on Thursday before Justice Hamza Muazu of the Federal Capital Territory High Court in Abuja as a forensic analyst confirmed that the documents used to request the payment of $6.2million for foreign election observers were forged.

    The witness, Bamaiyi Meriga, called by the Economic and Financial Crimes Commission (EFCC), informed the court that following forensic analysis of the disputed documents, he discovered that there was clear evidence of forgery of signature, and the seal of execution were different from the original.

    He also confirmed that the signature were not those of former President Muhammad Buhari and ex-Secretary General of the Federation, Boss Mustapha.

    The two documents, presidential directive on foreign observer election and presidential directive on foreign observer election tendered in evidence was admitted in evidence by the trial judge, justice Muazu.

    Under cross-examination by counsel for Emefiele, the witness said he was not a staff of the EFCC, and was not being paid by the anti-graft agency but his salary was domiciled with the Nigeria Immigration Service.

    Counsel for Emefiele, Matthew Burkaa, expressed displeasure over the conduct of the witness, saying that the witness misled the court by evading questions.

    However, the Prosecution Counsel, Rotimi Oyedepo, was not not happy with the defence counsel.

    The trial has been adjourned till March 11 for continuation.