E-Financial
Naira Now N327/Dollar as CBN, DMBs Worry
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The Naira hit another record low against the dollar and other major foreign currencies yesterday in the parallel market, as the scarcity of the foreign currencies continued to persist at both the banks and the black market.
This is coming as the Central Bank of Nigeria (CBN) and Deposit Money Banks (DMBs) have reportedly resolved to suspend further allocation of forex for the purpose of school fees and medical bills overseas in a bid to battle foreign exchange scarcity.
The naira yesterday fell to 327 a dollar in Abuja and 325 in Lagos and Port Harcourt, according to the traders, extending the wide gap between official rate and that of black market.
The naira lost more than 30 per cent of its value at the parallel market since the suspension by the CBN of the weekly auction to the Bureau de Change (BDCs) operators last month.
The scarcity also affected other foreign currencies such as Pound Sterling and Euro. In Abuja, Zone 4, a pound was traded at N450 and N448 in Port Harcourt while Euro was exchanged at N352 at the same market.
To steady the plummeting local currency, the Bankers’ Committee, yesterday said that forex allocation for medical bills and school fees constituted 15 per cent of foreign exchange demands in the country should be suspended.
Briefing journalists after the meeting, Mrs. Tokumbo Martins, director, Banking Supervision, CBN, , said banks had resolved that most of forex foreign exchange the foreign exchange demands would be granted to developing the real sector.
Martins said that although the decision would be painful, it was a sacrifice Nigerians would have to go through in the short term in order to achieve a long-term development for the economy.
She said: “You know it is something that affects all of us and I think that the watchword is belt-tightening. It is the pain we may need to go through today, short term, so that there will be long term development in the country whether it is infrastructure, manufacturing etc.
So, the question is how we can prevent or reduce the crowding out of the real sector where there is increase in demand on the invisible.
“So, it is something that CBN is looking at and it is something the Bankers’ Committee is looking at.
If you think about it, the pressure on forex now – from school fees abroad – is significant. At what point should we begin to look inwards?
The pressure on medicals is significant. At what point should we begin to look inwards? As Nigerians, we also need to be patriotic in terms of our sentiments.
We need to think about what do I have to sacrifice today for the long term benefit of our country and the economy?”
On his part, Mr. Herbert Wigwe, managing director of Access Bank, said that banks had decided to channel such forex to the real sector because those demands tend to crowd out demands to import raw materials and to support industries.
He said: “The problem with that is the fact that it tends to crowd out the critical foreign exchange that should be used in the real sector to import raw materials, to support industries, to encourage employment. So, there is a question around how far we are going to allow this to continue. Shouldn’t we redirect these resources towards the real sector as we should?”
Wigwe said there was a deliberate effort to increase the rate of financial inclusion, which has risen from 30 per cent to 40 per cent in recent times and is now 66 per cent. He put the banks’ target of financial inclusion at 69 per cent before December 2016.
The committee reached a common ground on how to stimulate more interest and enhance the inclusion of more Nigerians into the banking system.
Martins said: “Currently, we have about 66 per cent, which is 67 million people already included as against the 30-40 per cent we were having some couple of years back, and this improvement is substantial compared to what it used to be.
Our target is to have up to 68.5 per cent by the end of December 2016.”
Considering the dwindling oil prices in the international market and the timely agitations by experts that the economy should be diversified to prevent an imminent economic doom, the committee resolved to pay more attention to the real sector by supporting manufacturing companies, so as to produce export worthy goods and services at a minimal cost.
Focusing more on raw materials development was another common ground that they reached.
The committee also agreed to reduce paper documentations for customers who want to open account at cost effective prices.
The committee also expressed satisfaction on the result which the BVN policy had yielded in the country, saying that the policy had made significant impact to loan, instill confidence in the lending culture of the economy as it now disallowed customers from visiting other banks for loans when they are already in default.
E-Financial
First Securities Brokers Empowers Nigerians to Trade in the Stock Market with the Launch of FirstInvest App
First Securities Brokers, one of Nigeria’s leading stockbroking firms and a subsidiary of FirstHoldCo Plc, is pleased to announce the official launch of the FirstInvest App, an innovative mobile investment platform designed to make stock market investing simpler, faster, and more accessible for Nigerians.
The FirstInvest App offers investors a seamless digital experience, enabling them to open and manage their investment accounts, monitor their portfolios, and trade equities listed on the Nigerian Exchange (NGX) directly from their mobile devices.
Designed with both new and experienced investors in mind, the platform combines convenience, security, and ease of use to help users make informed investment decisions anytime and anywhere.
As Nigeria continues to embrace digital financial services, the FirstInvest App reinforces First Securities Brokers’ commitment to driving financial inclusion and expanding access to wealth creation opportunities through technology.
Speaking on the launch, Fiona Ahmed Ahimie, Managing Director of First Securities Brokers, said: “The launch of the FirstInvest App represents another significant milestone in our digital transformation journey and our commitment to delivering innovative investment solutions to our clients.
“We understand that today’s investors value convenience, speed, and accessibility. FirstInvest has been developed to provide exactly that: a secure and intuitive platform that empowers individuals to participate confidently in the capital market from wherever they are.”
She added: “Our goal is to remove the traditional barriers associated with investing by placing the power of timely investment and decision making in the stock market directly in the hands of Nigerians. Whether you are taking your first investment step, actively managing your portfolio or just evaluating your investment, FirstInvest provides the tools and flexibility needed to support your financial aspirations.”
The app delivers a range of features designed to enhance your investing experience, including: Secure digital account opening and onboarding, Real-time access to investment portfolios, Buy and sell Nigerian equities with ease, User-friendly trading interface, Secure transaction processing, Convenient access to market information and investment opportunities.
The launch of FirstInvest aligns with First Securities Brokers’ broader strategy of leveraging technology to improve customer experience while supporting the growth of retail participation in Nigeria’s capital market.
First Securities Brokers remains committed to providing trusted investment advisory services, innovative financial solutions, and exceptional customer service, helping clients build and preserve wealth across generations. The FirstInvest App is now available for download on the Google Play Store and the Apple App Store.
The next currency crisis could accelerate the shift of the roughly $315 billion global stablecoin market into a digital-dollar alternative for citizens in emerging economies, notably in regions like sub-Saharan Africa and Latin America.
As local fiat currencies face devaluation and high inflation, citizens and businesses are increasingly utilizing smartphone-based stablecoins (such as USDT and USDC) as hedges and primary mediums of exchange.
According to the International Monetary Fund (IMF), the rapid adoption of dollar-linked digital assets—particularly in countries heavily affected by inflation like Nigeria—poses significant risks to monetary sovereignty.
With up to 95% of surveyed individuals in some African markets preferring to receive payments in stablecoins over local fiat, the rising volume of these decentralized, cross-border channels weakens domestic currency demand and dilutes the effectiveness of local monetary policy.
IMF observed in a report titled “Stablecoins in Nigeria: A Growing Cross-Border Channel” noted that the widespread use of stablecoins poses risks to monetary sovereignty, particularly as more individuals and businesses turn to digital dollar-linked assets for savings and transactions.
Nodding in agreement is Future Investment Initiative Institute (FII Institute), a non-profit organisation run by the Public Investment Fund, Saudi Arabia’s main sovereign wealth fund.
FII Institute said that central banks face structural challenges.
And according to the institute, when citizens move savings out of national banks and into private digital wallets, conventional capital controls lose their grip.
Institutions like the Bank for International Settlements warn that interest-bearing stablecoins compete directly with domestic-currency deposits, complicating financial oversight and making smartphone-based transfers incredibly difficult for authorities to monitor.
In Nigeria, Naira depreciation has pushed users toward dollar-stablecoins, according to report by Gino Matos in cryptoslate.com.
A stablecoin is a type of cryptocurrency designed to maintain a steady value by pegging its price to a reserve asset, such as a fiat currency (e.g., the U.S. dollar) or a commodity (e.g., gold).
They act as a bridge between traditional money and the digital asset world, providing the speed of crypto without the extreme price swings of assets like Bitcoin.
Federal government has reopened three federal government of Nigeria (FGN) bond issues valued at N1.2 trillion for subscription as part of efforts to raise long-term funds from the domestic debt market.
The Debt Management Office (DMO), which announced the offer on Tuesday, said the three reopened bond issues are each valued at N400 billion.
According to the DMO, the first offer is the January 2035 FGN Bond, a 10-year reopening, carrying an interest rate of 22.60 per cent per annum.
The second is the May 2028 FGN Bond, a 15-year reopening, with a coupon rate of 15.45 per cent per annum, while the third is the June 2037 FGN Bond, a 20-year reopening, also valued at N400 billion.
The office said the bond auction is scheduled for July 20, while successful subscriptions will be settled on July 22.
It explained that the bonds are offered at N1,000 per unit, with a minimum subscription of N50 million and additional investments in multiples of N1,000.
For the reopened bonds, the DMO said successful bidders would pay a price based on the yield-to-maturity that clears the auction, in addition to any accrued interest on the instruments.
Interest on the bonds will be paid every six months, while the principal will be repaid in full on the respective maturity dates.
The DMO reaffirmed that FGN bonds are backed by the full faith and credit of the Federal Government and constitute obligations chargeable on the general assets of the federation.
It added that the bonds qualify as trustee investment securities under the Trustee Investment Act and enjoy tax exemptions for eligible investors, including pension funds, under the Company Income Tax Act and Personal Income Tax Act.
The bonds are listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange and also qualify as liquid assets for banks in computing their liquidity ratios.
FGN bonds are long-term debt instruments through which investors lend money to the Federal Government in exchange for periodic interest payments and repayment of the principal at maturity.
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