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Tag: Naira

  • Why I endorsed Emefiele’s Naira redesign policy – Buhari

    Why I endorsed Emefiele’s Naira redesign policy – Buhari

    Former President Muhammadu Buhari has opened up on why he endorsed the Naira redesign policy spearheaded by the embattled former Governor of the Central Bank of Nigeria, Godwin Emefiele.

    TheNewsGuru.com (TNG) reports Buhari to have said he endorsed the controversial Naira redesign policy in the twilight of his administration to protect his own integrity.

    Speaking in a televised interview on Nigerian Television Authority (NTA) on Monday night, the former President stressed the Naira redesign policy was also to show Nigerians that there was no shortcut to success.

    “Whether Nigerians believe it or not, we are an underdeveloped country. And in that sort of situation, there’s materialism and sometimes ruthlessly they didn’t care how they made the money.

    “…I still feel that the only way I could deprive these people was just to make sure that my integrity became unquestionable…I think as a developing country we still have a long way to go.

    “The motivation (for introducing the policy) was to try and make Nigerians believe that there is no shortcut to successful leadership,” Buhari said in his first interview after exiting office about six months ago.

    Besides, he explained that he wasn’t shocked that he was taken to court by Governors from his own party at the time to reverse the policy.

    Buhari said he allowed people to do their jobs when he assigned tasks, stressing that if he was given the same chance he wouldn’t do anything differently under Nigeria’s current system.

    He argued that Nigerians were a difficult set of people to govern, maintaining that they know the right thing to do, but would mostly refuse to do so, because they think they know better than the person on the saddle.

    Buhari said he was still being ‘harassed’ by people who throng his home on a daily basis, noting that if the border with a nearby country was not closed, he would have run out of Nigeria by now.

    He added, however, that he was glad he now wakes up anytime he likes. The former president said he doesn’t miss anything after leaving government.

    “God gave me the opportunity to serve my country, but I did my best. But whether my best was good enough, I leave for people to judge.

    “Nigerians are extremely difficult. People know their rights. They think they should be there, not you. So, they monitor virtually your every step.

    “And you have to struggle day and night to ensure that you are competent enough,” he said.

    He argued that some Nigerians attempted to set a trap for him by trying to ambush him with certain opportunities, but that he avoided the trap because he knew that once they knew he had been compromised, they would take advantage of the situation to milk the country. He added that they would rather become his boss.

    On the Ethiopian/Nigerian Air debacle at the tail end of his administration, Buhari said that if there was any shortcoming he had, it was giving people the free hand to do their work.

  • Naira appreciates slightly against US Dollar

    Naira appreciates slightly against US Dollar

    Nigerian currency, Naira has again appreciated  against the US dollar at the foreign exchange market.

    FMDQ’s official data showed that the country’s currency appreciated to N791.25 against the dollar at the close of work on Friday, compared to N841.14/$1 on Thursday.

    The figure represents a 5.87 per cent or N49.39 gain compared to the exchange rate on the previous day.

    Meanwhile, at the parallel market, naira maintained a level of stability.

    A Bureau De Change operator in Wuse Zone 4 Abuja, Dayyabu Mistila, confirmed that he sold dollar at N1140 and bought at N1125 on Friday.

    Recall that the naira recorded a N31.23 gain on Wednesday despite an October inflation hike in Nigeria.

    Naira has been experiencing turbulent times in recent months.

  • Naira recovers slightly, records gains against US Dollar

    Naira recovers slightly, records gains against US Dollar

    The Naira on Wednesday recovered from its free fall to gain slightly against the US Dollar despite the country’s soaring inflation rate.

    Report from the FMDQ shows that the naira firmed up against the Dollar to N818/$1 on Wednesday compared to N850.22/$1 exchanged on Tuesday.

    The figure represents a N31.23 gain compared to the exchange rate on the previous day.

    Meanwhile, at a parallel market, the country’s currency maintained relative stability as it traded at N1120 against the Dollar on Wednesday, the same rate quoted the previous day.

    Findings show that on Thursday morning  the rate is up marginally to N1140 against the US dollar at the parallel market.

    The development comes as the National Bureau of Statistics’ latest Consumer Price Index data puts the October inflation rate at 27.33 per cent from 26.72 per cent in September.

    The latest inflation rate in Nigeria represents the highest in two decades.

  • How Buhari fuelled inflation, weakened value of Naira – Sanusi

    How Buhari fuelled inflation, weakened value of Naira – Sanusi

    Former Governor of the Central Bank of Nigeria (CBN), Muhammad Sanusi II has opened up on how former President Muhammadu Buhari triggered inflationary pressure in Nigeria and weakened the value of the Naira.

    TheNewsGuru.com (TNG) reports Sanusi to have said CBN’s lending to the federal government under the administration of former President Buhari through Ways and Means triggered inflationary pressure and weakened the value of the Naira.

    Speaking in Abuja on Tuesday at a two-day Premier Capital Markets Day Event organised by MTN, the former CBN Governor said Buhari’s 8 years saw the rapid expansion of the apex bank’s balance sheet through ways and means.

    The 14th Emir of Kano said the CBN has, however, embarked on aggressive monetary tightening through various liquidity control instruments, including open market operations, Open Buy Back (OBB) and high T-bills rates, which Sanusi said is an indication that the bank was sticking to its core mandate of financial systems stability and inflation control.

    “I am optimistic, especially in the short term. We’ve had eight years of rapid expansion of the central bank’s balance sheet through ways and means. And that has fueled inflation and weakened the currency. And that is the fact.

    “If you look at OMO Bills and OBB rates in the last few weeks, I can see that the central bank has started a process of aggressive tightening. OBB rates are beginning to approach what they should be. And I think that’s what the market needs to look at; that the central bank is taking this role of tightening money and fighting inflation as a primary focus.

    “For the short term, I don’t think we have a problem. I think the central bank is doing the right thing – tightening money, clearing the backlog, trying to fund the market, and I think we will have stability,” Sanusi II said.

    TNG reports Ways and Means is a way in which the federal government raises funds by borrowing from the CBN.  The CBN’s loan to the federal government hit N22.7 trillion, an amount the CBN said had been securitised not to dampen its balance sheet.

    Speaking earlier at the event, CBN Governor, Olayemi Cardoso, represented by Director in charge of Research Department, Dr Omolara Duke, said the bank would return to its primary role of price stability.

    Cardoso said “The Ways and Means will no longer be more than five percent, going forward. The period for the government to access Ways and Means is over” while adding that the central bank was looking at how to drive down the cost of remittances to increase the inflow and move them away from the informal sector into the formal.

    Telecom sector contributes 16% to Nigeria’s GDP – MTN

    Meanwhile, the Chairman of MTN Nigeria, Dr Ernest Ndukwe disclosed at the event that the telecom sector now contributes over 16 per cent to Nigeria’s Gross Domestic Product (GDP).

    According to Dr Ndukwe, in pursuant to MTN’s vision 2025 strategy, the company had evolved from telecom to technology business, adding that it assured on building connectivity business while expanding its focus on platform businesses.

    Ndukwe said that as the digital ecosystem continued to grow, MTN’s impact on the nation’s economy would continue to increase.

    “MTN remains the largest network operator in Nigeria, and we recognise the enormous responsibility bestowed on us to continue to deliver world class ICT services to the people that patronise our services.

    “We aalso seize strong oopportunities or growth in both our voice and data businesses as we work to increase our market permutations on geographical coverage.

    “Our customers and their desires are the heart everything we do and plan for the future of the business. We are proud to say that the MTN ecosystem has directly or indirectly created employment for more that two million people, while supporting the livelihood of people across the country.

    “We are fully committed to working with our partners and the Nigerian government to ensure that Nigeria’s digital economy has its full potential on customers and stakeholders,” he said.

    In his remarks, the Chief Executive Officer (CEO) of MTN Nigeria, Mr Karl Toriola, expressed optimism that  the economic challenges of the country were gradually coming to an end.

    Toriola called on the stakeholders to enjoy the experience of the programme.

    Mr Timi Popoola, CEO of Nigeria Exchange Limited, said the event would make both local and foreign investors stay close to the country, adding that it deepened interactions with MTN.

    Popoola said that a sort code of *5474# was launched by MTN  in order to get a bouquet of options, which include: opening and closing prices of any security listed on the exchange.

    “We hope that this is the first step of using a tool like this to invest in a capital market,” he said.

  • BREAKING: CBN halts Emefiele’s December deadline for old Naira notes

    BREAKING: CBN halts Emefiele’s December deadline for old Naira notes

    The Central Bank of Nigeria (CBN) has halted the December 31, 2023, deadline to completely phase out the old 200, 500 and 1,000 Naira notes.

    Recall the CBN under Mr Godwin Emefiele had during the introduction of the redesigned 200, 500 and 1,000 Naira notes set certain deadlines for the old design to cease as legal tenders.

    However, in a statement on Tuesday by Isa Abdul Mumin, CBN’s Director of Corporate Communications, the apex bank has extended the legal tender status deadline of the old design of 200, 500 and 1,000 denominations, ad infinitum.

    This means that these banknotes will continue to be accepted as legal tender in Nigeria indefinitely.

    CBN said this was in line with international best practices and to forestall a repeat of earlier hardship faced by Nigerians.

    “Accordingly, all CBN branches across the country will continue to issue and accept all denominations of Nigerian banknotes, old and redesigned, to and from deposit money banks (DMBS).

    “The general public is enjoined to continue to accept all Naira banknotes (old or redesigned) for day-to-day transactions,” CBN stated while encouraging the public to embrace alternative modes of payment day-to-day transactions.

    The CBN also said that it was working with relevant authorities to vacate subsisting court ruling on the same subject.

  • How to ensure stability of Naira – BDC operator

    How to ensure stability of Naira – BDC operator

    The Managing Director, 313 Bureau de Change, Alhaji Murtala Bashir, has emphasised the need for collective efforts to ensure the stability of the naira at the Foreign Exchange Market in Nigeria.

    Bashir, who made the call in a statement on Friday in Abuja, said the Federal government and the Central Bank of Nigeria (CBN) should as matter of urgency constitute a strong committee to monitor and ensure the stability of the naira against the dollar at the Forex market.

    He said the committee should include representatives of the Federal government, CBN, commercial banks, business men, bureau de change, EFCC and other security agencies.

    According to him, the committee should be saddled with the responsibility of monitoring the Forex market and at the same advise the government on any problem observed and come up with solution.

    Bashir also commended the CBN on its efforts toward stabilising the naira at forex market.

    He added that restoring transparency and engendering investors’ confidence were the next steps to take if Nigeria must unlock dollar flows needed to support the naira.

  • US Dollar fights back as Naira falls to N1, 000/$ at official market

    US Dollar fights back as Naira falls to N1, 000/$ at official market

    After few days of the Naira strengthening against the Dollar, at both official and the official and parallel markets, findings show that Dollar is fighting back.

    The naira has weakened for three day running after efforts by the Nigerian central bank to clear a backlog of matured foreign-exchange forward contracts left a number outstanding.

    The naira closed trading on the Investor & Exporter forex window on Thursday at N996.75/$.

    This is a 13.95 per cent decline from the N874.71/$ it closed trading on Wednesday. So far, the naira has lost 27.75 per cent of its value since opening the week at N780.23/$ according to details on FMDQ OTC Securities Exchange.

    So far, the naira has lost about 40 per cent of its value in 2023, earning the tag of one of the worst performing African currencies from the World Bank.

    Recall that the Special Adviser to the President on Economic Matters, Dr Tope Fasua, boasted  that the measure recently being introduced by the Central Bank of Nigeria  will help the Naira achieve N500-N600/$1 in the future.

  • CBN will prioritise core mandate of price stability – Cardoso

    CBN will prioritise core mandate of price stability – Cardoso

    The Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, has reiterated that his leadership would focus mainly on the core mandate of price stability.

    According to a statement from the CBN, Cardoso disclosed this recently, while playing host to the Impact Investing Community.

    The Impact Investing Community was led by the 14th Emir of Kano, Muhammadu Sanusi II, who is a former Governor of the CBN.

    Cardoso said that he and his team were determined to change the narrative about the CBN, and make it more impactful in the lives of Nigerians by curtailing inflation.

    According to him, at the end of our tenure, we want to look back and see that our policies have positively impacted people’s lives.

    He said that the community represented an excellent future for Nigeria and has the potential to transform the country’s economy.

    Cardoso assured the visitors that the apex bank would collaborate with them in the direction of putting in place frameworks that will encourage investments.

    In his remarks, Sanusi said that the CBN’s activities had a massive impact on the lives of Nigerians.

    According to him, many people often do not know the impact of a Central Bank’s works until a Central Bank fails.

    He urged the new leadership at the CBN to work persistently at driving down inflation rate, which he said had severely impacted the wealth of individuals.

    Sanusi acknowledged the importance of long-term planning by the CBN in achieving its goals.

    He emphasised on the need for the fiscal authorities to focus on agriculture and education, especially for the girl-child.

    Sanusi pledged his continued support, along with the Impact Investing Community to the CBN in achieving its goals.

    Also speaking, the Chairperson of Impact Investing Community, Mrs Ibukun Awosika, said that the team was at the CBN to register its willingness to support the apex bank.

    Awosika said that the organisation would support the authorities in changing Nigeria’s investment climate, by redirecting resources to areas where they will make the most positive impact.

    According to her, over 200 trillion dollars is available around the globe as investment funds, with Impact Investing controlling one trillion dollars of that sum.

    She further said that Impact Investing, with a presence in over 41 countries, was willing to blend with traditional investment practitioners to make an impact in the country.

    Awosika sought the support of the CBN to enable the body to achieve its goal.

    Dr Bala Bello, CBN’s Deputy Governor, Corporate Services, underscored the importance of investment, saying that global capital was moving towards social investment.

    Bello said that collaboration and effective communication were vital to successfully navigating the current challenges in the country.

  • Naira ranked 96th strongest currency in the universe

    Naira ranked 96th strongest currency in the universe

    The Naira has been ranked 96th strongest currency in the world.

    According to a report by Forbes Advisor, the ranking to determine the strongest of the 180-odd traditional fiat currencies recognised as legal tender worldwide was carried out based on their relative value against the US dollar.

    Despite being the most traded currency on the global stage by some margin, the US dollar is not the strongest currency in the world.

    The Kuwaiti dinar (KWD), Kuwait’s official currency, is the strongest currency in the world. A Kuwaiti dinar is currently worth $3.26. The Bahraini dinar (BWD), Bahrain’s official legal tender, is the second strongest currency in the world with one Bahraini dinar exchanging for $2.65. Oman’s official currency, the Omani rial (OMR), is the world’s third strongest. One Omani rial currently exchanges for $2.60.

    The Jordanian dinar (JOD) and the British pound (GBP) are the fourth and fifth strongest currencies in the world respectively. While one JOD exchanges for $1.41, £1 is currently worth $1.23.

    Other legal tenders that make up the top 10 strongest currencies in the world list include Gibraltar pound (GIP), which is the sixth strongest, Cayman Islands dollar (KYD), the seventh strongest, Swiss franc (CHF), eighth strongest, the Euro (EUR), ninth strongest and the US dollar ($).

  • Why Naira regained strength against dollar

    Why Naira regained strength against dollar

    The Association of Bureau De Change Operators of Nigeria (ABCON), has revealed why the Naira is regaining strength against the dollar.

    “The development stems from the ‘double-edged sword dollar liquidity injection and the mopping up of the naira through interest rate hikes,” its President, Alhaji Aminu Gwadabe, said in a statement on Sunday in Lagos.

    “What is happening in the market and the continues naira rebounds is the manifestation of the CBN double-edged sword measures of dollar liquidity injection and naira mopping through the instrumentality of interest rates hikes.

    “It is a good development as it is a greater risk to speculate, hoard and substitute naira for other currencies,” Gwadabe said.

    The ABCON boss, however, said that the speculators are usually interested on the elements of sustainability of the feat so far achieved, arguing that it is panic selling as against panic buying.

    Gwadabe urged the management of CBN to continue to make clarifications and implement some of the association’s recommendations in charting a way forward for naira stability at the FX market.

    Among the recommendations, he said, is the inclusion of the BDCs in the foreign exchange market in view of their roles in meeting the needs of the critical retail end sector.

    “The BDCs are necessary in the demand measures of the apex bank, transaction monitoring mechanism and clients utilisation with correcting and moderating potentials,” Gwadabe said.

    The financial expert said that the country is experiencing increasing reserves due to increased demand of crude oil, its major export commodity.

    “This is due largely to the U.S. increasing inventories and the escalation of tension in the Middle-East,” he explained.

    As we continue to observe developments, there is the need to exercise caution in attacking the Naira as it all appears that the CBN seems poised to sustain the gains already recorded at the market,” Gwadabe said.