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Naira May Hit N200 to $1 By 1Q14-Analysts

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Nigerians are sharing bitter experiences over the slipping trend of the naira.  Newspapers had reported that the Naira weakened to N171 to the United States dollar at the BDCs by the close of activities Thursday.

In a short survey conducted by the Nigeria CommunicationsWeek, respondents waxed worriedly at the trend warning that the Naira may continue its downward movement.

According to reports during the week banks have not been selling forex exchange to the public, thus forcing customers to rely on the BDC and the parallel market for their supplies.

Sharing his regrets over the trend, Mr. Peter Asolo, said: “I bought dollar for 172.7 Thursday for the first time in my life”.

Analysts heap the blames on the door-steps of the CBN, lamenting that the apex bank has been causing unnecessary panic in the industry by removing management and ownership of banks.

Commenting on this, Asolo said: “CBN brought appointed people, some of whom also reigned in those banks with impunity; displayed over 10000 people from their jobs. At the end of the day were those banks better than they were before take over? There is no single viable window for lending to small business which forms over 80% of the economic activities. Everything we are hearing is nothing but hype.

“Those who are lending are collecting about 28% interest rate the highest anywhere in the world. What a pity. Even in a state of war Nigeria naira should not suffer this great fall. As at last year December it was 149 to a dollar less than one year we are talking of about 22 naira depreciation. Madam Ngozi, the supervisor will come to tell us “there is no inflation” and every purchasing power in the country has decreased”.

“Olutayo Ogunyemi, a public analyst lending his voice to the cause said:  “We import virtually everything to Nigeria which requires high demand for major currencies such as $. We need to go back to the basic and put every infrastructure in place (power, road, etc) and diversify the economy from being crude oil dependent to agric, solid minerals, etc. All these require visionary leaders and not POLlTICAL DEALERS to achieve them. A Dollar exchanged for Naira at the rate of #116 in 2008, and now #172!”

However, Asolo added that, “The prices of goods have gone up by as much as 150% including food stuff. I wonder what economic indices they use to deceive the innocent I see a situation the naira will hit 200 naira to a dollar before the end of first quarter of 2014. If anybody will be honest, that is the actual beginning of the end for the country’s economy. Need I say that this economy is import dependent? The only thing manufactured in Nigeria is sachet water even at that it’s only the water we source locally.

“Government has decided to ban everything knowing that we do not have the productive capacity and we cannot, even if we have stable electricity in the next 5 years. Least I forget to add the fact that no Industry in Nigeria has the capacity to produce the daily consumption of up to 5% of its product for the country’s population which should now stand at about 220million people, if the previous figure of 160million is true. I am just sitting here asking one question when smart and intelligent people will start to manage our institutions.

“The sad part is that most Nigerians are suffering from ignorance and they have all turned to religion for help. The big question is how do we salvage the Naira? Let us forget about politics and parties for once, this is our common language. How do we save the soul of the economy?

Also, they believe that another silent time bomb in population explosion as the mortality rate world over is reducing due to technology advancement. Now people are now giving birth to kids at earlier age than before. Things are happening faster than we can imagine, which the analysts think Nigeria either does something fast to save the naira or we face the music.


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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