Economy
Naira Redesign Policy That Put Nigerians In Hardship Fails To Achieve Aim, 93% Of Currency Now Out Of Banks
The existing notes were to remain valid until January 31, 2023. This move sparked widespread debate and discussion across the country.
In 2022, a controversy erupted in Nigeria after the Central Bank of Nigeria (CBN), under the leadership of then-Governor Godwin Emefiele, announced plans to redesign and introduce new versions of three denominations of banknotes: N200, N500, and N1000.
The existing notes were to remain valid until January 31, 2023. This move sparked widespread debate and discussion across the country.
According to Emefiele, the decision was reached due to persisting concerns around the amount of naira notes outside the banking system.
Over one year after, check by SaharaReporters shows that the CBN policy which was reported to have gulped over N74 billion has failed.
Already, there are lamentations by Point of Sale machine vendors that they are short on cash.
Checks show that in January 2024, the currency in circulation stood at 3.65 million while the currency outside of banks stood at 3.28 million, representing 89%.
In February, the currency in circulation stood at 3.69 million naira notes, while the currency outside the bank stood at 3.41 million notes representing 92%.
As of March, the notes in circulation were 3.86 million while the ones outside banks stood at 3.62 million, representing 93%.
In April 2024, the currency in circulation stood at 3.92 million notes. Out of this amount, 3.60 million were outside the banks. The figure for May stood at 3.96 million notes while 3.7 million notes out of them were outside the banking system, representing 93.4%.
As of October 2022, when the CBN announced the policy on naira redesign, the currency in circulation stood at 3.2 million notes while 2.8 million notes were outside the banking system, representing 84%.
As of November 2022, the currency in circulation stood at 3.1 million notes while those outside the banking systems were 2.6 million notes, according CBN data. This represents 83%.
In October 2022, 84% of the naira currency was outside the banking system, compared to 93.4% in April 2024, indicating an increase of 9.4 percentage points in the proportion of currency in circulation outside of commercial banks’ vaults over the 18-month period.
Economy
SEC wants govt agencies to list on NGX
The Securities and Exchange Commission (SEC) says it will encourage government agencies and state owned enterprises to list on the Nigerian Exchange Ltd. (NGX).
Dr Emomotimi Agama, the Director-General (D-G) of SEC in an interview with newsmen in Abuja on Thursday, said the listing of the companies on the NGX would guarantee democratisation of their operations.
Agama said the listing would also guarantee inclusiveness and wealth creation for citizens.
He said the Commission would provide incentives that would encourage as much state owned enterprises to list.
According to him, inclusivity is very critical, because in it, you have ownership and so we all build our industries and the country together.
The D-G said the SEC was also working towards inclusion via technology, adding that the use of technology would make the capital market more attractive, especially to the younger generation.
“That is why we encourage apps, we encourage fintech tools, and that is why we supported the inauguration of the electronic offering platform at the Nigerian exchange.
”We encourage everyone who wants to participate and is qualified to participate in this process, to turn around the way people see investing.
“We want investors to have a beautiful experience, to make it so easy for them that each time they feel like investing, it brings happiness to them.
”We will continue to do that through encouragement of technology, through education,” Agama said.
He said the Commission would ensure that bottlenecks usually experienced in process of investing in the market were removed to rejuvenate the country’s capital market.
(NAN)
Economy
SEE Naira To Dollar Exchange Rate In Black Market Today – 19th September 2024
By Mario Deepromoter
The Dollar to Naira exchange rate in the black market, also known as the parallel market (Aboki fx)? Here’s the exchange rate for today, 18th September 2024, based on information from Bureau De Change (BDC) operators
How much is a dollar to naira today in the black market?
As of today, in Lagos Parallel Market (Black Market), the exchange rate for buying a dollar is N1655, while selling is at N1660 on Wednesday, 18th September 2024.
It’s important to note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market) and advises individuals to approach their banks for official Forex transactions.
### Dollar to Naira Black Market Rate Today:
– **Buying Rate**: N1655
– **Selling Rate**: N1660
### Dollar to Naira CBN Rate Today:
– **Buying Rate**: N1651
– **Selling Rate**: N1652
*Note*: These rates may vary slightly based on location and the specific Bureau De Change operator.
### CBN’s Outlook on External Reserves and Economy:
The Central Bank of Nigeria (CBN) has raised concerns over factors that may hinder the growth of Nigeria’s external reserves in 2024/2025. The removal of fuel subsidies, rising import costs, and increased debt servicing are cited as potential threats to the reserves.
This was detailed in the CBN’s Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the fiscal years 2024/2025. Despite these challenges, the CBN projects overall economic growth for Nigeria, driven by policies supporting agriculture, oil sector reforms, and foreign exchange market adjustments.
“The outlook for Nigeria’s external sector in 2024/2025 is optimistic,” the CBN noted, with expectations of favorable trade terms due to higher oil prices and improved domestic production. However, the bank also highlighted risks such as lower oil revenues, increased import bills, and rising external debt obligations.
Economy
Fuel price hike: OPEC blames tax imposition for increase
The Secretary General of the Organisation of Petroleum Exporting Countries, Haitham Al Ghais, has blamed tax imposition by major oil-consuming countries, not oil prices as the primary driver of fuel costs.
He disclosed this in a recent statement.
His comments come as Nigeria experienced several petrol pump price hikes in the last one year.
The latest was on Monday when the Nigerian National Petroleum Company Limited announced an additional pump price hike in its retail outlets between N950 per liter and N1,019.22.
Speaking on the factors responsible for fuel price hikes, Al Ghais explained that the prices paid by consumers at the pump were determined by various factors, including the price of crude oil, refining, transportation, marketing costs, oil company margins, and taxes.
According to Al Ghais, revenues generated from oil sales are often reinvested by oil-producing countries into the oil sector.
He stated that OPEC member countries reinvested a substantial portion of their revenue into exploration, production, and transportation projects.
On the other hand, the OPEC boss noted that consuming countries’ governments received significant revenue from taxes imposed on petroleum products.
In 2023, the Organisation of Economic Co-operation and Development’s average share of total tax on the final retail price increased year-on-year and amounted to approximately 44 percent.
“Therefore, for many consumers, taxation can be a more significant factor than the original price for crude, in feeling any pinch in their pocket at the pump,” he stated
“It is a sovereign right for countries and governments to develop their taxation systems, but when there is talk of concerns about the effect of high pump prices on the disposable income of populations, it is important to remember how much of this is from taxes flowing to finance ministries around the world”, he said.
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