Tag: Naira

  • Again, Naira appreciates, now trades at 1,275/$ at parallel market

    Again, Naira appreciates, now trades at 1,275/$ at parallel market

    After few days of the naira relapsing, the currency has again strengthened against the United States dollar, appreciating by N125 to reach N1,275/$1 over the weekend.

    The new improvement rate represents a 9.8 per cent increase when compared to N1,400 to a dollar it traded at the close of trading activity last week Friday.

    This came as the Senate through its Committee on Finance called for concerted efforts by all relevant stakeholders to rescue and sustain its stability.

    Recall that the senate said there was an urgent need for concerted efforts to tackle the instability and continuous depreciation of the Naira.

    Currency traders have blamed trading uncertainty of the market as reason for the fluctuations in the exchange rate.

    They added that the government must either  choose to increase the currency value or devalue for market stability.

    The fluctuating nature of the naira has caused the prices of goods and services to continue to rise.

  • CBN increases Customs Duty as Naira further nosedives against US Dollar in latest exchange rate

    CBN increases Customs Duty as Naira further nosedives against US Dollar in latest exchange rate

    The Central Bank of Nigeria (CBN) has adjusted the exchange rate for Customs duties at the nation’s seaports by 11.1 per cent due to the devaluation of the naira against the United States (US) dollar in the foreign exchange market.

    The new Customs FX duty rate is now ₦1,277.526/$, up from the previous rate of ₦1,150.16/$, as reported on Thursday, April 25, through the official trade portal of the Nigeria Customs Service.

    This adjustment reflects an 11.1 per cent increase compared to the previous rate of ₦1,150.16/$ used for Form M applications, resulting in an additional ₦127.366 per dollar required for goods clearance at the port.

    Meanwhile, the naira’s depreciation persisted in the official market, closing at N1,309.88 to the dollar on Thursday, marking a 12 per cent decline for the week on the Nigeria Autonomous Foreign Exchange Market (NAFEM).

    In contrast to its closing value of ₦1,169.99 last week, the naira has lost ₦139.89, or 12 percent, within the past four days. On Monday, it closed weaker at ₦1,234.49.

    Interestingly, despite this depreciation, turnover has increased from $89 million to $110 million.

    However, by Tuesday, the naira’s value further depreciated to N1,300.15 to the dollar, with intra-day trading ranging between ₦1,317 and N1,000.

    At the end of Tuesday’s trading, a turnover of $133.65 million was recorded. Continuing the trend, on Wednesday, the naira closed at ₦1,308.52 to the dollar, with trades ranging between ₦1,367 and ₦1,098. The market turnover continued to rise, reaching $197.54 million.

    On Thursday, the naira slightly depreciated to ₦1,309.88 to the dollar, with intra-day deals ranging between ₦1,439 and ₦1,000.

    Notably, the turnover significantly increased to $318.08 million.

    Traders have observed that the decline in the dollar’s value resulted from market forces, with demand consistently exceeding supply. On Monday, the Central Bank of Nigeria sold dollars to Bureau de Change operators.

    As a result, importers initiating Form M transactions today will need a higher amount of money to cover import duties compared to those who completed Form M earlier in the week.

  • Naira continues downward spiral against Dollar

    Naira continues downward spiral against Dollar

    The Naira on Wednesday further depreciated at the official market, trading at N1,308.52 to the dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the Naira lost N8.37.

    This represents a 0.64 per cent loss when compared to the previous trading date on Tuesday, April 23, when it exchanged at N1,300.15 to a dollar.

    However, the total daily turnover further increased to 197.54 million dollars on Wednesday, up from 133.65 million dollars recorded on Tuesday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,367 and N1,098 against the dollar.

    The Central Bank of Nigeria (CBN) had sustained ongoing reforms which were yielding results with steady appreciation of the Naira until the local currency experienced a recent four days decline.

    Supporting the CBN’s efforts, the Economic and Financial Crimes Commission (EFCC) froze over 300 accounts linked to illicit forex trading to ensure the safety of the foreign exchange market.

    EFCC Chairman, Ola Olukoyede, announced the freezing of the accounts on Tuesday, during an interactive meeting with media executives in Abuja.

    Olukoyede said the anti-graft agency discovered another scheme other than the crypto trading platform, Binance, and its system.

    The EFCC boss noted that there were people within the system who were carrying out activities worse than Binance using P2P platforms.

    He said the 300 illicit accounts would have led to a crash of the Naira value to remove the steady gains within a week if the EFCC had not moved in.

  • Naira loses 5.3% against Dollar at official market

    Naira loses 5.3% against Dollar at official market

    The Naira on Tuesday depreciated at the official market, trading at N1,300.15 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the Naira lost N65.66.

    This represents a 5.3 per cent loss when compared to the previous trading date on Monday, April 22, when it exchanged at N1,234.49 to a Dollar.

    However, the total daily turnover increased to 133.65 million dollars on Tuesday up from 110.17 million dollars recorded on Monday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,317.00 and N1,000.00 against the Dollar.

  • CBN releases Dollars to BDCs at N1,021

    CBN releases Dollars to BDCs at N1,021

    The Central Bank of Nigeria has approved the sale of an additional 10,000 dollars to 1,583 eligible Bureaux De Change (BDCs) in the country to meet market demands.

    The Director, Trade and Exchange Department of the CBN, Dr Hassan Mahmud, made this known in a letter addressed to the President, Association of Bureau De Change Operators of Nigeria (ABCON) on Tuesday in Abuja.

    Mahmud said that the CBN would sell to the BDCs at the rate of N1, 021 to a dollar.

    “The BDCs are in turn to sell to eligible end users at a spread of not more than 1.5 per cent above the purchase price,” he said.

    He directed all eligible BDCs to commence payment of Naira deposit to some designated CBN Naira deposit account numbers.

    “All BDCs are advised to continue to abide by the rules and conditions as stipulated in our earlier operational guidelines,” he said.

    The apex bank had earlier, on April 8, approved the sale of 10,000 dollars to 1,588 eligible BDCs operators at the rate of N1,101 to the dollar.

    The approvas are part of CBN’s intervention in the foreign exchange market to improve liquidity and stabilise the Naira.

  • Exchange rate: Naira loses 6% against Dollar

    Exchange rate: Naira loses 6% against Dollar

    The Naira on Monday slightly depreciated at the official market, trading at N1,234.49 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the Naira lost N64.50.

    This represents a 5.51 per cent loss when compared to the previous trading date on Friday, April 19, when it exchanged at N1,169.99 to a Dollar.

    However, the total daily turnover increased to 110.17 million Dollars on Monday, up from 86.68 million Dollars recorded on Friday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,295.00 and N1,051.00 against the Dollar.

    CBN Governor, Yemi Cardoso, on Saturday, April 20, 2024 said the apex bank was doing everything possible to achieve a stable exchange rate.

    He said the apex bank was also working to ensure that the exchange rate found its adequate price discovery level.

    Cardoso said that CBN’s foreign exchange reforms were paying off and had made the naira the best-performing currency globally.

    He spoke at a press conference during the annual meeting of International Monetary Fund (IMF) and World Bank Group.

    He predicted ups and downs, but assured the global economic community that the Naira would steadily gain against foreign currencies.

  • Naira abuse: Bobrisky seeks lesser punishment

    Naira abuse: Bobrisky seeks lesser punishment

    Controversial cross-dresser, Idris Okuneye, popularly known as Bobrisky has asked the Court of Appeal to replace his six months jail sentence with a lesser punishment.

    TheNewsGuru.com (TNG) reports this is contained in a notice of appeal filed on Monday to challenge the six months sentence handed to him by a Federal High Court, Lagos.

    Recall Bobrisky was charged by the Economic and Financial Crimes Commission (EFCC) on four counts bordering on Naira abuse.

    He pleaded guilty before Justice A.O. Awogboro of the Federal High Court, Lagos.

    Awogboro, on April 12, sentenced Okuneye to six months imprisonment without an option of fine.

    The judge, while sentencing the convict, said the judgment should serve as a deterrent to others fond of abusing and mutilating the naira.

    However, counsel for Okuneye, Mr Bimbo Kusanu, has filed a notice of appeal, praying the Court of Appeal to set aside the sentence.

    Kusanu is asking the court to replace the sentence with an option of N50,000 fine on each of the counts.

    The counsel stated in the notice of appeal that the trial court imposed the maximum sentence on the appellant, who had no previous criminal record of conviction.

    He stated that there were options to impose a lesser sentence by the provisions of the Administration of Criminal Justice Act (ACJA).

    He averred that the sentence imposed by the trial court against the appellant was punitive and contrary to the mandatory provisions of the ACJA.

    The appellant stated that the trial court did not consider the positive antecedent of the appellant, who did not waste the time of the court by pleading guilty to the charge.

    He stated that the appellant honoured the invitation of the respondent on the first invitation.

    He said that the trial court failed to exercise its discretion judiciously and judicially in sentencing the appellant, explaining that such an act had occasioned a miscarriage of justice against his client.

  • The Naira abuse palaver – By Dakuku Peterside

    The Naira abuse palaver – By Dakuku Peterside

    There is no disputation that Naira abuse or more specifically the act of spraying money at social events has become an acceptable  norm or cultural practice in Nigeria. Nigerians have a cultural affinity for lavish social gatherings. Many people regard these occasions as a means of displaying social status  and wealth. Spraying Naira notes, and other currency notes, at events progressively appear to be the  ultimate way to flaunt your social standing. Even burials that are supposed to be sober moments have been turned into considerable fanfare. This has created a new industry of mint note trading and events management. All of these constitute the social infrastructure of Naira abuse. A new dimension of the social infrastructure of Naira abuse is the arrival to the scene of the nouveau rich. Society has labelled them with all sorts of nomenclature: Yahoo Boys, Yahoo Plus, and 419.

    Nigeria has since recognized the dangers of Naira abuse but  that is not the focus of this piece. The government has made rules and laws to check it and provided enlightenment campaigns to educate people. The Central Bank of Nigeria( CBN) gave Naira abuse as one of the reasons why it is pushing for digital-based financial transactions. Naira abuse, like its ancestor-mother social epidemic of corruption, has remained stubborn and refused to go away.

    There is ambiguity about what constitutes Naira abuse. The Central Bank of Nigeria Act of 2007 in Section 21 of the CBN Act 2007 clearly defines Naira abuse and prescribes various punishments to deter citizens from abusing the Naira. They include – spraying banknotes at events; writing on banknotes; stapling banknotes; tearing banknotes; dancing or stamping on Naira; defacing the bank notes with substances or ink, oil; selling currency banknotes; mutilation of the Naira note; money bouquets. However, law enforcement has been lax. It is commonly believed that the laws against Naira abuse are either symbolic or desuetude because no one is held accountable, everyone gets away with it, and things have normalised.

    The social phenomena of Naira abuse, especially the spraying of money, have become an epidemic in Nigeria. Lately , it is of significant concern. We have exported this to many parts of the world, and social media is replete with evidence of this in weddings and other social events attended by Nigerians in different parts of the world.

    Malcolm Gladwell’s book, “The Tipping Point: How Little Things Can Make a Big Difference” explores the idea that social phenomena, like trends and epidemics, often reach a tipping point where they suddenly become widespread. He identifies three key factors that contribute to this tipping point: the Law of the Few (the idea that a small number of people have a disproportionate influence), the Stickiness Factor (how messages or ideas stick in the minds of people), and the Power of Context (how the environment influences behaviour).

    Through engaging anecdotes and research, Gladwell illustrates how understanding these factors can help individuals and organizations create or manipulate trends and epidemics. The book emphasizes the importance of paying attention to small details and understanding the social dynamics behind spreading ideas and behaviours. The fundamental concepts of the book about Naira Abuse are twofold. First, the cultural context or external environment provides the soil for bad or good behaviour to grow and spread. Second, key people with remarkable personalities can cause or stop social epidemics because of their social profile or social network.

    There is a link between the recommendation of Malcolm Gladwell and the arrest and prosecution of  Idris Okuneye better known as Bobrisky, a cross-dresser and social influencer, for Naira abuse, and the arrest and ongoing prosecution of Cubana Chief priest Pascal Okechukwu in connection with Naira abuse. Why selectively arrest the duo when everybody is involved in some form of Naira abuse either by trampling, spraying ,mutilation  or rumpling ? Truth is that it is nearly impossible for any law enforcement organisation to find and apprehend every perpetrator. Resources  exist in limited supply . It is simple wisdom to begin with people who have disproportionate influence. This is perhaps what EFCC has done.  First common ground is that both of them enjoy considerable social media  influence whether for positive or negative reasons depending on your own value system. These two cases, though similar, are following different paths. Bobrisky, in court, pleaded guilty and has since been handed six months imprisonment. Cubana Chief Priest did not plead guilty, so his case will go to full trial, putting the law to the test. This court case will assist us in providing answers to some critical questions: what are the societal ramifications of Naira spraying, and how can Naira misuse be proven? Is there need to amend the existing law and make it more relevant to the challenge? Will this fresh wave of enforcement stop the epidemic of Naira abuse ? Regardless of how the legal proceedings turn out, they have highlighted how important it is to take the triplet societal plague of poor social behaviour, Naira abuse, and their ancestor-mother corruption very seriously.

    I have identified six pillars to control or stop Naira abuse: Fight corruption because it is an enabler for abuse of the Naira. The incestuous relationship  between corruption, illicit financial transactions and Naira abuse is well established . Second,the government should deepen knowledge and change people’s orientation by embarking on mass enlightenment, people must understand clearly what constitutes Naira abuse and what the punishment is for such offence . Third, address cultural issues relating to Naira abuse through community engagement. People gifting money to celebrants at occasions is no crime but the manner of gifting is the issue. Fourth, government should renew the push for digital transactions. Fifth, government must strengthen the structures of law enforcement. It is not just police and EFCC matter . The judiciary must upend its knowledge on the subject matter . Sixth, government must be impartial and objectively enforce the law to change cultural norms and public behaviour that defaces the Naira. This may entail revisiting and improving the law.

    CBN , Police and the EFCC should study different models of changing public behaviour in the past and draw up a model and strategy to deal with the issue of Naira abuse, especially since it has become embedded in some cultures. Good examples abound abroad and in Nigeria. The British government employed various strategies to change public behaviour regarding spitting and other personal vices. Spitting in public places was prohibited by local bylaws or municipal regulations but it is social persuasion that gave the result . These laws serve as deterrents and can result in fines or other penalties for offenders. They launched public awareness campaigns, collaborated with community stakeholders, and monitored and enforced the law. However, most of all, they leveraged social norms and peer pressure to influence behaviour and encourage individuals to conform to accepted standards of behaviour by highlighting the societal consensus against spitting and certain destructive behaviours and showcasing positive role models who embody desirable conduct. Today, the practice of spitting publicly, urinating on the road corners, and other public nuisances are controlled to the barest minimum.

    In Nigeria, good examples of efforts to change public behaviour can be seen around us. Most were successful to a greater degree. The government should revisit some of these campaigns and learn from them.

    A model that seems to be working in Akwa Ibom State is the State Ethical and Attitudinal Reorientation initiative  . Before 1999, the Akwa Ibom people experienced a severe social epidemic, “The Pervasive and prevalent House help Syndrome,” which gained widespread notoriety and led to the dubbed moniker “Ekaette” for nearly every female domestic helper. The administration of Obong Attah took up the task of reorienting the Akwa Ibom people’s mindset. He established the Ethical and Attitudinal Reorientation Commission (EARCOM) in Akwa Ibom and gave them the responsibility of raising public awareness about the importance of “minoring” vices and “majoring” in moral principles.

    The struggle has persisted throughout the regimes, and Pastor Umo Eno’s present administration appears to be taking it to newer, more profound heights by hiring assistants for each ward and unit and charging them to carry out the Commission’s work of value reorientation in remote areas. As bait, he is using the incentivization  and social support model, drawing on the country’s current food and hunger crisis to reach out with the message of value reorientation. Today, a negligible number of Akwa Ibom daughters are house helps , and the majority are highflyers in the professions and business.

    The success story of Akwa Ibom is a model that the federal government can replicate. Changing public behaviour requires a multifaceted approach that combines legislation, education, community engagement, social support  and enforcement efforts. By addressing the underlying factors contributing to undesirable behaviours and promoting positive alternatives, governments can effectively shape public attitudes and foster a more socially responsible society.

  • Naira will continue to appreciate against Dollar – Shettima

    Naira will continue to appreciate against Dollar – Shettima

    Vice President Kashim Shettima has expressed optimism that the Naira would continue to appreciate against dollar at the forex market.

    Mr Stanley Nkwocha, spokesperson of the Vice-President in a statement on Saturday, said Shettima stated this at a meeting with officials of the Lagos Chamber of Commerce and Industry (LCCI), at the President Villa, Abuja.

    He said President Bola Tinubu ended the fuel subsidy and ensured the unification of the multiple exchange rate because the former arrangement was producing billionaires overnight.

    “Naira went haywire and some people were celebrating but inwardly we were laughing at them because we knew that we have the leadership to reverse the trend.

    “Asiwaju knows the game, and truly the Naira is gaining and the difference will drop further.”

    He recalled that the quality of leadership provided by President Tinubu as governor of Lagos laid the foundation for the massive development witnessed in the state.

    Shettima assured that the Tinubu administration is doing its best to address challenges in the power sector.

    According to him, Tinubu’s administration is aware that power is absolutely essential for development.

    “We are determined to ensure that we generate jobs for our youths. Honestly, the President’s obsession is to live in a place of glory, to transform this country to a higher pedestal.

    “He wants to leave a legacy, one of qualitative leadership because the hope of the black man, the hope of Africa rests with Nigeria.

    ‘ I want to assure you that President Bola Ahmed Tinubu is one of you. He understands your ecosystem. In this government, you have an ally and a friend.”

    Earlier, the President of LCCI, Gabriel Idahosa, emphasised the need for the Federal Government to consider more innovations to address the insecurity challenge in the country.

    He also urged the Tinubu administration to ensure a significant upswing in the pace and scale of alternative policy measures that promote credit access, stimulate investment, and support entrepreneurship.

    “This could include targeted interventions such as concessional lending facilities, loan guarantees, and interest rate subsidies tailored to the needs of SMEs and key sectors of the economy like agriculture, manufacturing and power technology.”