Connect with us

Business

Naira Maintains Downward Trend As Dollar Trades at N876 Now

Published

on

The naira maintained its downward trend against the dollar as it traded for 876/$ at the parallel market on Sunday.

Some Bureau de Change operators, who spoke to The PUNCH, said the local currency had earlier exchanged to the dollar at 820 a week earlier.

Since the unification of the exchange rates in the country by the Central Bank of Nigeria in recent weeks, the naira had continued to slide to the dollar, due to liquidity crunch, speculations, and other challenges.

Speaking with our correspondent, a BDC operator in Lagos, Alhaji Sanni Abdul, stated, “Naira is currently bought and sold at 850/$ and 876/$. The exchange rate has not been stable for some time now.”

Another BDC operator, Alli Ibrahim, said, “Things are getting more expensive. As of Friday, we were buying and selling the naira at 850/$ and 865/$.”

Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said the foreign exchange market was evidently under pressure as a result of a number of factors.

He said there was a curious surge in monetary expansion in the last month.

Yusuf said, “Money supply grew by an unprecedented 15 per cent in one month between May and June 2023.  Broad money grew by over N9tn, from N55.7tn to N64.9tn. This surge in monetary growth is unprecedented. Obviously, this must have had an effect on the exchange rate.”

He said the monetary authorities should investigate this drastic growth in money supply and take steps to curb subsequent expansion.

“Such dramatic growth in money supply poses a significant risk to macroeconomic stability, especially price stability,” he said.

Over the last few years, he said, there had been a cumulative backlog of unmet foreign exchange demand, running into billions of dollars as a result of acute illiquidity in the foreign exchange market.

With a more liberalised forex market, he said, the pressure of the backlog of unmet demands and other maturing forex-related obligations had been unleashed on the investors’ and exporters’ window.

However, at the Investor & Exporter forex window, naira appreciated by 3.24 per cent against the dollar in the previous week.

According to the data from the official trading platform of FMDQ Securities, there was a slight appreciation of the naira by 3.24 basis per cent, bringing its value to 777.82/$. It ended the previous week at 803.90/$.

The naira maintained its downward trend against the dollar as it traded for 876/$ at the parallel market on Sunday.

Some Bureau de Change operators, who spoke to The PUNCH, said the local currency had earlier exchanged to the dollar at 820 a week earlier.

Since the unification of the exchange rates in the country by the Central Bank of Nigeria in recent weeks, the naira had continued to slide to the dollar, due to liquidity crunch, speculations, and other challenges.

Speaking with our correspondent, a BDC operator in Lagos, Alhaji Sanni Abdul, stated, “Naira is currently bought and sold at 850/$ and 876/$. The exchange rate has not been stable for some time now.”

Another BDC operator, Alli Ibrahim, said, “Things are getting more expensive. As of Friday, we were buying and selling the naira at 850/$ and 865/$.”

Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said the foreign exchange market was evidently under pressure as a result of a number of factors.

He said there was a curious surge in monetary expansion in the last month.

Yusuf said, “Money supply grew by an unprecedented 15 per cent in one month between May and June 2023.  Broad money grew by over N9tn, from N55.7tn to N64.9tn. This surge in monetary growth is unprecedented. Obviously, this must have had an effect on the exchange rate.”

He said the monetary authorities should investigate this drastic growth in money supply and take steps to curb subsequent expansion.

“Such dramatic growth in money supply poses a significant risk to macroeconomic stability, especially price stability,” he said.

Over the last few years, he said, there had been a cumulative backlog of unmet foreign exchange demand, running into billions of dollars as a result of acute illiquidity in the foreign exchange market.

With a more liberalised forex market, he said, the pressure of the backlog of unmet demands and other maturing forex-related obligations had been unleashed on the investors’ and exporters’ window.

However, at the Investor & Exporter forex window, naira appreciated by 3.24 per cent against the dollar in the previous week.

According to the data from the official trading platform of FMDQ Securities, there was a slight appreciation of the naira by 3.24 basis per cent, bringing its value to 777.82/$. It ended the previous week at 803.90/$.

As of Friday, the naira traded at an intra-day high of 855/$ and a low of 665/$ with a total turnover of $77.99m.

The Punch

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

It’s Time to Stop Subsidy on Petrol, Dangote Cautions FG

Published

on

By

Aliko Dangote, Founder of Dangote Petroleum Refinery, has said that the right time has come for the Federal Government to stop petrol subsidy.

Dangote spoke during an interview with Bloomberg TV on Monday.

“I think it is the right time to (take away subsidy) because all countries have gotten rid of subsidy,” he said.

He said subsidy is a sensitive issue, adding that once a country subsidises the product, people would increase the price.

Dangote said it would lead to the government “paying what they are not supposed to be paying”.

Dangote added that the petrol sold locally by his refinery will be tracked to ensure the consumption rate is accounted for.

“But this refinery will bring quite a lot of issues out there. It would show the real consumption of Nigeria because nobody can tell. Some people say it is 60 million litres per day, some say it is less,” the billionaire said.

“But right now, by us producing, everything can be counted and accounted for. Most of the trucks or ships that will load from us, we will put a tracker on them to be sure they are going to take the oil within Nigeria and that can help the government to save a lot of money.

“For example, Saudis, the citizens believe that oil is our god-given gift and should not charge us for it. Government was selling it at a very low price. But today, as we speak, gasoline is about 40 percent cheaper in Nigeria than in Saudi Arabia, which I think does not make sense.”

‘FG CAN’T AFFORD SUBSIDY’

Noting that petrol subsidy is not sustainable, Dangote informed that government cannot afford to keep subsidising.

“Our price of gasoline is about 60 percent the price of our neighbouring countrries and we have porous borders, so it is not sustainable. Government cannot afford the amount of subsidies we are paying,” he said.

Speaking further on the viability of petrol subsidy, Dangote said it is the government’s decision to either continue with or halt the payments.

“We have a choice of exporting when we produce and we sell locally. We are a private company and it is true we have to make a profit,” he said.

“We built something worth $20 billion, and definitely we have to make money.

“The removal of subsidy is totally dependent on the government, not on us.

“We cannot change the price but I think the government would have to give up something for something.”

Dangote said eventually, the subsidy would have to go.

Eecall that on May 29, 2023, President Bola Tinubu said the petrol subsidy regime was over as part of his inauguration speech. However, recent events have continued to prove that the subsidy regime is still very much in vogue.

Continue Reading

Business

NOVA Bank Appoints Isiavwe, Iloghalu As New Executive Directors

Published

on

By

NOVA Bank has announced the appointment of David Isiavwe as Executive Director, Operations and Information Technology, and Chinwe Iloghalu as Executive Director, Institutional and Commercial Banking.

These appointments are part of NOVA Bank’s plan to strengthen its leadership team as the Bank continues its innovative journey, following its recent transition to a national commercial bank.

Dr. Isiavwe has over 30 years of banking experience in domestic and international banks. With a Ph.D. in Accounting, Dr. Isiavwe is a Fellow of the Institute of Chartered Accountants of Nigeria (FCA) and Fellow Compliance Institute of Nigeria (FCIN) in addition to other professional certifications such as Certified Information Systems Security Professional (CISSP), Certified Information Security Manager (CISM), Certified Governance of Enterprise IT (CGEIT), Certified Information System Auditor (CISA), Certified Data Privacy Solutions Engineer (CDPSE) amongst others. David has attended leadership programs in some major global institutions such as Harvard Business School, MIT and Oxford University. He currently serves as the President and Chairman of the Board of Trustees for the Information Security Society of Africa, Nigeria (ISSAN), and holds a position on the Governing Council of the Fintech Association of Nigeria. Additionally, he chairs the Statutory Audit Committee of Nigeria Inter-Bank Settlement System Plc (NIBSS). His appointment underscores NOVA’s focus on digital transformation, with his vast experience playing a crucial role in advancing the Bank’s technology-driven phygital model.

Mrs. Chinwe Iloghalu, with close to 30 years of experience in the banking industry, joins as Executive Director for Corporate and Commercial Banking, the key business and relationship management engine of the bank. Throughout her distinguished career, she has made significant contributions in business and corporate banking, with expertise spanning sectors such as energy, corporate, commercial and digital banking, where she has consistently created sustainable value and returns for key stakeholders. Holding an MSc in Media and Communications, along with an MBA, Chinwe is a Fellow of the Institute of Credit Administration (FICA). She has attended leadership and executive programs in key institutions such as Said Business School Oxford, Harvard Business School, Wharton amongst others. Her role will be central to enhancing NOVA’s commercial banking rollout across all key business development segments.

Phillips Oduoza, Chairman of NOVA Bank, commented on the appointments: “The addition of Dr. Isiavwe and Mrs. Iloghalu marks a critical point in constituting the management team that will lead NOVA into its next phase of growth. David’s expertise in technology will be key in enhancing our phygital model, while Chinwe’s strong business drive and relationship management coupled with the retail and product engine of the bank will be instrumental in driving the Bank’s strategic intent to become a formidable player in the banking industry. Their deep understanding of digital and electronic banking will significantly contribute to our trademarked phygital experience, which seamlessly combines the best of in-person service and bespoke digital solutions to serve our customers. Both leaders bring valuable experience that aligns perfectly with NOVA’s vision to be Africa’s preferred financial solutions provider.”

These two appointments will further diversify the board and bring about inclusiveness, noted Mr. Oduoza.

As NOVA Bank continues its expansion and transformation into a national commercial bank, these leadership appointments highlight its commitment to delivering innovative financial services. The Bank’s phygital model, combining cutting-edge technology with a physical presence, is redefining customer experiences and setting the stage for future advancements in the Nigerian banking landscape.

Continue Reading

Business

NNPCL’s Claim of Buying PMS at N898 Misleading, Not True, Says Dangote Refinery

Published

on

By

The rivalry between the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Refinery, took a dramatic turn Sunday when Refinery refuted claims made by the spokesperson of the NNPCL, Olufemi Soneye, that the refinery sold Premium Motor Spirit (PMS) to the company at N898 per litre.

Recall that on Sunday, the NNPCL as the sole buyer, commenced lifting of PMS, also known as petrol, from the 650,000 barrels per day refinery at Ibeju Lekki, Lagos State.

However, the Dangote Refinery, in a statement issued Sunday night by the Group Chief Branding and Communications Officer of Dangote Industries Limited (DIL), Mr.  Anthony Chiejina, described the claim as misleading and an attempt to undermine the significant progress made in addressing Nigeria’s long-standing energy challenges.

Chiejina emphasised that the refinery’s current stock of crude was procured in dollars, adding that sales to the NNPCL were conducted in dollars, resulting in considerable savings compared to the prices of imported fuel.

He also reassured Nigerians that there will soon be adequate petrol supply across the country, reaching the most remote local government areas.

The refinery urged Nigerians to disregard the claims made by NNPCL spokesperson, Mr Olufemi Soneye and await the formal pricing announcement from the Technical Sub-Committee on Naira-based crude sales, appointed by President Bola Ahmed Tinubu.

The refinery reiterated its commitment to ensuring the availability of quality petroleum products and ending fuel scarcity in Nigeria.

The statement reads, ”Our attention has been drawn to a statement attributed to NNPCL spokesperson, Mr Olufemi Soneye, that we sell our PMS at N898 per litre to the NNPCL.

”This statement is both misleading and mischievous, deliberately aimed at undermining the milestone achievement recorded today, September 15, 2024, towards addressing energy insufficiency and insecurity, which has bedevilled the economy in the past 50 years.

”We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing, by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Ahmed Tinubu GCFR, which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars.

”It should also be noted that we sold the products to NNPCL in dollars with a lot of savings against what they are currently importing. With this action, there will be petrol in every local government area of the country regardless of their remote nature.

”We assure Nigerians of availability of quality petroleum product and putting an end to the endemic fuel scarcity in the country.”

Continue Reading

Trending