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Tag: emefiele

  • We are optimistic Nigeria’s recession will end by third quarter – Emefiele

    We are optimistic Nigeria’s recession will end by third quarter – Emefiele

    Governor of the Central Bank of Nigeria, Godwin Emefiele, has said Nigeria will be out of recession by the third quarter of this year.

    The CBN governor said this after meeting with the leadership of the Senate in Abuja on yesterday.

    Emefiele said efforts by the Federal Government has shown that the country’s economy will experience a boost.

    He added that the CBN would continue its foreign exchange intervention, adding that efforts by the apex bank so far had been yielding positive results.

    “We are very much optimistic that by the end of the second quarter, or latest the third quarter, we should be out of recession that we are in right now,” he said.

    While briefing journalists after the meeting, Emefiele said discussions were held between the apex bank and the legislature on the current state of the economy.

    He said, “Actually, the Senate President invited us to come and brief the Senate leadership in a closed session and to provide some updates on the foreign exchange markets. You would have observed that in the last two months, the central bank has been involved in some form of intensive intervention in the foreign exchange market and this has fortunately resulted in a downward trend in the parallel market price of foreign exchange, from as high as N525 to a dollar to as low as N370.

    “Right now, it hovers between N370 and N380. I think it’s an opportunity for me to say that we are going to continue this intervention because the reserves look very good. As I speak to you, our (external) reserves stand at above $31bn and that provides us enough of firepower or ammunition to be able to defend the currency, and we will do so with all intensity to ensure that foreign exchange is procured by everybody.

    “If you want to import raw materials, you will get foreign exchange; you want to import plant and equipment, you will get foreign exchange; you want to pay school fees or you are a small business that wants to buy foreign exchange for you to import your small items, you will procure foreign exchange.”

    Emefiele spoke on the CBN policy for foreign investors in the country’s forex market.

    He said, “It is the market or window that is opened for them to bring in their foreign exchange and come into the market on what we call a willing-buyer, willing-seller basis, in which case there will be no form of any price intervention by anybody, including the Central Bank of Nigeria.

    “Indeed, with the kind of firepower that we have, we are also going to play in that market to ensure that as the prices move on based on the managed float regime that we run, we should be able to control the price based on the willing-buyer, willing-seller basis.”

  • Forex scarcity: Emefiele appears before Reps, calls for support

    Forex scarcity: Emefiele appears before Reps, calls for support

     

    Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele on Saturday appeared before the House of Representatives to explain what the apex bank was doing over the continuous scarcity of forex and free fall of the Naira against the dollar.

    Emefiele also explained why oil marketers and dealers in petroleum products have been facing difficulties in getting foreign exchange to procure fuel overseas.

    Emefiele, whose representative appeared before the Nnanna Igbokwe-led House of Representatives Adhoc Committee on the Reduction of Petrol Prices explained that the progressive decline in the amount of foreign exchange available to the CBN was responsible for the apex bank’s inability to meet the demands of oil importers and marketers .

    TheNewsGuru.com reports that the inability of the marketers to get forex to import fuel could lead to the scarcity of the product that may push up prices, and increase the cost of production of goods and services .

    Represented by his deputy, Mrs. Sarah Alade, Emefiele said: “There is shortage of foreign exchange. In 2013 to 2014, the Federal Government used to get $2 billion to $3 billion monthly and the CBN in the interbank sold about 30 per cent of that. About 70 per cent came from the foreign investors. Today, we get $600 million, $700 million. Nothing comes in from interbank. About $1.5 million is sold everyday and $1 billion is done in December to clear matured letters of credit. It’s not the way it used to be. “

    Also, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu identified the full utilisation of the local refineries as the panacea to the problem of shortages associated with foreign exchange and fuel supply.

    He assured that by 2019, the nation’s comatose refineries would be able to contribute about eight million out of over 20 million litres of petrol consumed in the country daily.

    Kachikwu stated the Federal Government had perfected a strategy to attract foreign investors to partner the Nigeria National Petroleum Corporation (NNPC) by initiating a model to repair the country’s refineries within two years.

    On why International Oil Companies (IOCs) are selling foreign exchange to marketers directly, he explained that the arrangement was made to ease the forex scarcity being experienced by importers who collected between 35 and 40 per cent of the foreign exchange in the CBN.

  • Emefiele to appear before reps over forex sale to oil marketers

     

    The House of Representatives on Monday summoned the Governor of Central Bank of Nigeria, CBN, Mr Godwin Emefiele, over the apex bank alleged sale of foreign exchange to International Oil Companies (IOCs).

    Emefiele’s invitation by the House’s Ad hoc Committee on the Review of Pump Price of Petrol followed the committee’s rejection of the records of the foreign exchange transactions presented to it.

    The committee, which continued its public hearing on the issue in Abuja, ordered that the CBN governor should appear with details of all beneficiaries of the foreign exchange deals.

    He is also expected to give insight into the banks used by the apex bank in the transaction with the oil marketers.

    In the rejected record presented on behalf of Emefiele by Dr Alvan Ikoku, Director, Financial Market Department of CBN, he told the committee why the bank acted as third party to oil companies and importers of petroleum products.

    He said that the CBN took over the purchase of dollars from the IOCs and began to sell directly to petroleum marketers seeking foreign exchange to import products.

    It was, however, not revealed in the records how much the apex bank sold the currencies to the companies even when it stated that Emefiele determined the rate the currencies were sold to oil marketers.

    The committee Chairman, Rep Raphael Igbokwe, directed that the CBN boss should prepare explanations on the legal grounds or provisions that allowed IOCs to operate as financial institutions selling foreign exchange to Nigerians.

    According him, by so doing the IOCs acted as parallel financial clearing houses.

    The committee demanded explanation on the criteria for the allocation of foreign exchange to dealers as well as necessary documents to show such allocations to the marketers.

    It also ordered the appearance of Managing Director of Duke Oil and other oil marketers, who were invited.

    Igbokwe explained that the order was important as the representatives of the oil marketers were not in the capacity to respond to some allegations levelled against the companies.

    Commodore P.A. Efedue who represented the Nigerian Navy, explained that multiple charges by government agencies operating at the ports were responsible for most oil importers avoiding Nigerian ports.

    Efedue said that the charges were part of the reasons why some of the oil marketers preferred to deliver their products through ports in neighbouring countries.

    He said that the development was in spite of security which had improved tremendously at Nigerian ports.

    “The oil marketers come to my office every day and I ask why Lome, not Lagos port. They said the reason is that charges in Lagos are higher,’’ Efedue said.

    He, therefore, advised that the charges at the ports should be addressed to attract oil vessels to Nigeria’s ports, saying that the rate of insecurity in the country’s waterways had reduced.

    “Cases of piracy have reduced, so it is the charges that are the issue with the marketers.”

    He also said that the navy did not charge any money to grant approval to marketers, adding that the collaboration between navy and NIMASA was helping in securing the water ways.

    On his part, Commodore A.O. Bamidele of the Operations Directorate, Naval Headquarters, also reiterated that insecurity was not the reason for marketers preferring neighbouring countries’ ports.

    “It is not security; look at Lagos harbour and anchorage, we don’t have security challenges.

    “It is only in Bayelsa and Rivers area but we are making efforts to put it in check,” Bamidele said.

     

    NAN


  • CBN insists on retaining current forex policy

    CBN insists on retaining current forex policy

    The Central Bank of Nigeria has insisted on retaining the current foreign exchange policy.

    The bank said no amount of criticism and blackmail from “self-centred individuals” would make it change the policy.

    In a statement on Thursday, titled: “Nigeria’s current economic situation: Our case,” signed by its Acting Director, Corporate Communications Department, Isaac Okorafor, the CBN said: “The Central Bank of Nigeria (CBN) has observed with great concern the continued and unwarranted attack on its policies by a group of Nigerians, whose real interests, findings have shown, are anything near altruistic but rather self-serving and unpatriotic.

    “While we respect the rights of every Nigerian or stakeholder to their respective views, we find it curious that certain interests have remained persistent in their move to misinform the larger public, with the intention of discrediting genuine efforts at managing the economy, thereby creating public distrust and panic within the financial system.

    “Indeed, self-centered individuals, who have failed to assail our patriotic position, have resorted to the sponsorship of serial propaganda to misinform and mislead the public on the objectives of our policies.

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

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

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

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

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

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

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

    i. Ensure that inflation remains within manageable limits;

    ii. Intervene in critical sectors of the economy, through injection of much-needed capital to promote growth and employment;

    iii. Promote export-driven industrialisation;

    iv. Provide access to credit to farmers and small scale entrepreneurs at single digit rates, to create wealth;

    v. Protect the interest of Bank customers in Nigeria; and above all,

    vi. Ensure that the masses of our country’s low income earners are protected from the vagaries of high naira depreciation.

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

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

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

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

  • New e-payment pricing policy coming – CBN

    New e-payment pricing policy coming – CBN

    The Central Bank of Nigeria (CBN) has deregulated the Merchant Service Charge (MSC) and will be implementing a new pricing regime on electronic transactions by the second quarter of this year.

    MSC is a fee paid by merchants for e-transactions done through Point of Sales (PoS) terminals.

    CBN Director, Banking and Payment System Department (BPSD), ‘Dipo Fatokun announced that from May 1, the apex bank would no longer regulate the MSC, adding that it would be repalced with Interchange Fee regime.

    He said as a result of the limitations of the MSC regime and in tandem with the objectives of the Payments System Vision 2020, the CBN, in consultation with stakeholders decided to migrate the payment card to a superior pricing mechanism.

    He said the new pricing regime would boost payment card issuance, investment in loyalty programmes and the expansion of acquirer network infrastructure across the country.

    In a document entitled: Circular on the Implementation of the Interchange Fee, Fatokun said: “With the introduction of the Cash-Less Nigeria Project and the release of the Guidelines on PoS Card Acceptance Services, the CBN outlined the MSC and the modalities for the payments system.

    “This had enhanced the issuance and utilisation of cards transaction in the country and brought structure to the compensatory mechanism for parties involved in the transaction.

    “With effect from May 1, 2017, the CBN will no longer regulate Merchant Service Charge (MSC). The interchange fee regime will replace the MSC. Merchants and Acquirers will henceforth negotiate the MSC, while the CBN will control the interchange fees paid by the Acquirers to the Card Issuer and other regulated service providers, as defined by the CBN

  • Emefiele elected to lead global Islamic bank

    The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, has been elected as the Chairman of the International Islamic Liquidity Management Corporation (IILMC).

    In a statement on issued on Friday, the CBN said Emefiele was elected on Thursday in Jakarta, Indonesia.

    The Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor, said that by this development, Emefiele had also become the head of the general assembly of the financial body comprising nine countries and the Islamic Development Bank, with headquarters in Kuala Lumpur, Malaysia.

    The International Islamic Liquidity Management Corporation is a global institution established by central banks, monetary authorities and multilateral organisations to create and issue short-term Shariah-compliant financial instruments to facilitate effective cross-border Islamic liquidity management.

    By creating more liquid Shariah-compliant financial markets for institutions offering Islamic financial services, the IILM aims to enhance cross-border investment flows, international linkages and financial stability.

    The body’s major mandates include developing a robust Islamic liquidity management as a catalyst for cross-border financial linkages and facilitating effective cross-border liquidity management instruments for institutions that offer Islamic financial series.

    The organisation is also charged with the responsibility of enabling a future global finance industry with greater connectivity, stability and sophistication.

    The body, which was established in 2010, is open to central banks, monetary authorities, financial regulatory authorities or government ministries or agencies that have regulatory oversight of finance or trade and commerce, and multilateral organisations.

    The current shareholders comprise of central banks and monetary authorities of Indonesia, Kuwait, Luxembourg, Malaysia, Mauritius, Nigeria, Qatar, Turkey, the United Arab Emirates and the Islamic Development Bank.

  • Adeosun, Emefiele back Senate’s proposed scrapping of BoI

    …as BoI kicks

    The Minister of Finance, Mrs. Kemi Adeosun and the Governor, Central Bank of Nigeria, CBN, Mr. Godwin Emefiele have thrown their weights behind calls in some quarters especially the National Assembly to scrap the Bank of Industry (BoI) to be replaced with a National Development Bank (NDB).

    However, in a swift reaction, the BoI kicked against the move. Speaking Monday at a public hearing organised by the Senate Committee on Banking, Insurance and Other Financial Institutions on the establishment of the NDB, the Acting Managing Director, BoI, Mr. Waheed Olagunju, said the Bol plays a distinct role which already encapsulated the role of the proposed NDB.

    A bill seeking to establish the NDB had passed second reading in the Senate on October 12.

    Titled: ‘A Bill for an Act to establish the National Development Bank, 2015’, and sponsored by Senator Ibrahim Gobir, it seeks to repeal the BoI, the Bank for Commerce and Industry Act and the National Economic Reconstruction Fund Act.

    The bill further seeks to bring the total assets of the organisations under one body to be called the National Development Bank.

    Olagunju stated that what was needed was more funding of the bank by the Federal Government so as to increase its support to the real sector rather than duplicate functions with the establishment of another bank with a similar purpose.

    In his words: “We are of the opinion that the BoI, as presently constituted, is fulfilling the mandate envisaged in the proposed legislation by supporting genuine entrepreneurs. Therefore, it should be left to continue its operations as it is. The merger envisaged in the proposed bill has already taken place.

    “The BoI should be provided with more capital to be able to further support the real sector instead of duplicating functions by creating new development finance institutions, bearing in mind the failure of similar DFIs in the past, such as the NBCI, NERFUND, People’s Bank, Community Banks, etc.”

    He added, “We advise that the National Assembly should support industrialisation by enacting legislation that will help create an enabling environment for business to thrive, such as an amendment to the Land Use Act, tax incentives for SMEs and establishment of industrial parks.

    “This will substantially address the demand challenges of finance for SMEs in Nigeria, as vagaries of the business environment have been making the sector unattractive to private and public lenders.”

    However, Adeosun, who was represented by a director in Ministry of Finance, Christopher Gabriel, said the ministry strongly supported the bill, adding that the proposal was in tandem with the economic reconstruction efforts of the Federal Government.