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Naira recovers on back of rising foreign reserves

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By Kayode Sanni-Arewa

The naira rallied to a recovery at the weekend on the back of sustained increase in the country’s foreign exchange (forex) reserves.
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The naira appreciated by 1.0 per cent to N1, 482.81 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

This came as the nation’s forex reserves rose by additional $73.05 million to $32.74 billion. It was the fifth consecutive accretion in the continuing buildup of the reserves.

Penultimate week, the reserves had added $195.01 million. It had grown by $89.76 million, $132.68 million and $10.76 million in recent weeks.

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At the forwards market, naira contracts closed on the upside at the weekend with the one-year contract appreciating by 1.1 per cent to $1,504.10 per dollar. The three-month contract recovered by 1.4 per cent to N1,546.65 per dollar while the six-month contract appreciated by 0.6 per cent to N1,621.89 per dollar. However, the one-year contract slipped by 0.1 per cent to N1,769.62 per dollar.

Finance and economy experts were unanimous that the buildup in external reserves was a good indication for the country’s currency management and macroeconomic stability.

Analysts expected that changes in forex management rules, steady improvement in crude oil production and upbeat in global oil price could help the country mitigate its volatile forex situation.

President, Association of Capital Market Academics in Nigeria, Prof Uche Uwaleke, said any increase places the CBN in a stronger position to meet forex obligations as well as intervene in the forex market.

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“If this development is sustained, we are likely to witness an appreciation of the naira in the forex market and more stability in the exchange rate following improved liquidity. This is one positive development capable of keeping away destructive speculators from the forex market,” Uwaleke said.

Uwaleke however said Nigeria needs to curb excessive import dependence to support its forex recovery.

“It goes without saying that export-based diversification remains the oly sustainable solution to the present forex crisis,” Uwaleke said.

According to him, to curb the demand pressure, government should compel a change in consumption behaviour by enacting a ‘Buy Nigeria law’ akin to the ‘Buy America Act’ of 1933 and recently the ‘Build America, Buy America Act’ of 2021.

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“Also, Nigeria’s import data support revisiting and scaling up the CBN’s currency swap deal with the Peoples Bank of China. Given that the bulk of Nigeria’s imports are from China, it stands to reason, therefore, to explore ways of bypassing the dollars and settling these transactions in the Yuan. This was the idea behind the currency swap with China which was largely inadequate in size. In order to increase the stock of Yuan in our external reserves, Nigeria can issue panda bonds, which are bonds denominated in the Chinese Yuan and are considered cheaper than Eurobonds,” Uwaleke said.

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FG earmarks N250bn for Lagos-Abuja rail project in 2025 budget

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The federal government has made an allocation of N250 billion in the 2025 budget for the Lagos–Abuja mass transit rail project.

This budgetary investment is part of a broader plan to revitalize Nigeria’s infrastructure and stimulate economic growth.

The government’s focus on infrastructure development is rooted in the belief that it is a cornerstone of long-term economic planning.

By investing in critical infrastructure such as roads, railways, energy, healthcare, and education, the administration aims to create a conducive environment for both domestic and foreign investment.

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The Lagos-Abuja rail project, in particular, is expected to have a transformative impact on the Nigerian economy.

By improving transportation connectivity between two major economic hubs, the project will facilitate the movement of goods and people, reduce logistics costs, and stimulate economic activity.

Additionally, the project is expected to create numerous jobs, both directly and indirectly, contributing to the country’s overall employment rate.

The government’s infrastructure investments are also aimed at addressing regional disparities.

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By connecting different parts of the country through improved transportation networks, the administration hopes to stimulate economic growth in underserved regions, reduce poverty, and promote equitable development.

The 2025 budget signals the government’s commitment to transforming Nigeria’s infrastructure landscape.

By investing in critical projects like the Lagos-Abuja rail line, the administration aims to lay the foundation for a more prosperous and connected Nigeria.

However, the success of these initiatives will depend on effective planning, efficient implementation, and transparent governance.

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Why we dismissed ex-cop in viral video, by Police

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The Nigerian Police Force (NPF) has disclosed that Vincent Makinde, a former officer seen in a viral video, was dismissed from service as an Inspector in 2022 due to extortion and other serious offences.

This clarification was issued on Wednesday by the Force spokesperson, ACP Olumuyiwa Adejobi, via a statement on his official X account. Adejobi refuted the claims made by Makinde in the video, describing them as misleading.

According to Adejobi, Makinde was dismissed after a thorough investigation and an orderly room trial for offences including abuse of office, extortion, gross misconduct, dereliction of duty, and insubordination.

The police also addressed the viral video showing Makinde in leg restraints, where he claimed to be an Assistant Superintendent of Police (ASP) and alleged unlawful detention.

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The situation has attracted attention, including calls for his release by renowned legal luminary and human rights activist, Mr. Femi Falana, SAN.

The NPF emphasized that Makinde’s dismissal followed due process, countering the narrative he is pushing online.

The police urged the public to disregard the misleading claims and reaffirmed their commitment to upholding discipline and accountability within the force.

“While awaiting the validation of orderly room proceedings and subsequent prosecution, Vincent Makinde assaulted a senior police officer on duty and subsequently escaped from lawful custody,” he said.

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“Around June 2024, he resurfaced, parading himself as a bona fide member of the Nigeria Police Force, adorning the rank of Assistant Superintendent of Police without being previously absolved of his offences or promoted. Being made aware of this, the Police authority issued a directive for his immediate re-arrest.

“The suspect was apprehended while personating himself as an active sworn senior police officer, and armed with a rifle. When approached by police operatives, Vincent Makinde exhibited violent and aggressive behaviour while resisting lawful arrest and detention.

“Upon his arrest, the suspect was restrained using feet restraining devices due to his continuous violent nature coupled with the fact that he had previously escaped from lawful custody in a violent manner.

“The officers deemed it necessary to employ the use of these restraints as a precaution to ensure the safety of the officers on duty, prevent another escape, and secure against any potential harm to him and others around him, that might arise from his aggressive demeanour.

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“It is pertinent to note that the use of restraining devices is a global practice for individuals actively, aggressively, or aggravatedly resisting lawful detention”.

Adejobi said Makinde remains a dismissed police officer, serial criminal, and is currently in custody awaiting conclusion of investigations and prosecution.

The police spokesman added that further investigations have revealed his involvement in several other nefarious acts in addition to those which led to his earlier dismissal.

As such, Adejobi said intensive investigation into the circumstances of his current impersonation offence is also ongoing.

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He added that the Nigeria Police Force remains dedicated to fostering transparency and accountability within its operations, striving to maintain the public’s trust and confidence.

“Through thorough investigations and strict protocols, the Force is steadfast in the pursuit of truth and justice, while ensuring that its personnel who violate the law are held accountable for their actions. This commitment is evident as the Nigeria Police Force continues to work tirelessly to uphold the rule of law and reinforce the integrity of policing.”

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Jigawa governor sacks special assistant on gender

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Jigawa State Governor, Malam Umar A. Namadi, has approved the dismissal of his Special Assistant on Gender, Miss Khadija Sidi Suleiman, from office.

This was confirmed in a statement issued by the Secretary to the State Government, Malam Bala Ibrahim, and made available to reporters by Malam Ismaila Ibrahim, the Public Relations Officer of the office.

The statement reads: “Governor Malam Umar A. Namadi has relieved Khadija Sidi Suleiman of her appointment as Special Assistant to the Governor on Gender, with immediate effect.”

The statement further clarified that all rights and privileges associated with her office have been revoked.

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Suleiman is also directed to immediately hand over all government property in her possession to the office of the Secretary to the Government of Jigawa State.

While the statement did not provide any specific reasons for her dismissal, it expressed appreciation for her services to the state and wished her well in her future endeavors.

Miss Khadija Sidi Suleiman, a former staff member of the State Radio and a civil society activist, had been appointed as the governor’s Special Assistant on Gender. She hailed from the same town, Kafin Hausa, as Governor Namadi.

Suleiman’s removal marks the second instance of a governor’s aide being dismissed in the past three months.

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