News

Naira Nosedives To N1,625.88/$1 At NAFEM, Worst In Six Months

Published

4 months ago

September 5, 2024

By Mario

The naira recorded its worst performance in six months at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, September 4, 2024, where it exchanged for N1,625.88 to the dollar.

This marks the lowest exchange rate since March 8, 2024, when NAFEM recorded a performance of N1,627.4/$1, despite an improved FX turnover of $205.76 million – one of the highest since August 12, 2024, when dollar supply hit $246.44 million.

Data from the FMDQ website on the NAFEM window showed that naira’s depreciation on August 4 represents a 0.89% decline from the previous day’s rate of N1,611.34/$1.

Intra-day activity showed that the naira traded at a high of N1,640/$1 and a low of N1,400/$1, indicating significant volatility in the foreign exchange market before settling on the equilibrium of N1,625.88.

The $205.76 million FX turnover for the day was a marginal drop of 1.84% compared to the previous day’s $209.61 million – the highest since August 12, 2024.

The drop in exchange rates indicates an uncertain trend as the Nigerian government announced a 45% increase in the pump price of petrol on September 3, 2024.

This is believed to spark a high inflation rate which would herald a wave of renewed hardship for the citizens, households and businesses.

Nigeria’s headline inflation rate fell in July for the first time in well over two years – dipping to 33.40% in annual terms from 34.19% recorded in June.

Food inflation rate in July 2024 was 39.53% points higher compared to the 12.55% rate recorded in July 2023

This crash occurred amid a reported hike in petrol prices across the country, which may add to the plights of businesses and ordinary Nigerians, further worsening inflation.

The Nigerian official foreign exchange (FX) market experienced a marked decline in turnover in August, despite the initial Retail Dutch Auction conducted by the Central Bank of Nigeria (CBN).

The troubled naira is a reflection of the drop in the nation’s foreign exchange reserves, which fell to $36.32 billion as of August 29, 2024, marking a decline from the year’s peak of $36.70 billion recorded on July 29, 2024.

The CBN has intensified efforts towards achieving a stable rate of the domestic currency which industry experts believe is not sustainable given the import-dependent nature and the poor productive base of the economy.

News

Tinubu Jets Out Of Abuja On 5-Day Trip

Published

2 hours ago

January 11, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

President Bola Tinubu is expected to leave Nigeria for an international event in Abu Dhabi.

He is expected to participate in the 2025 edition of Abu Dhabi Sustainability Week (ADSW 2025).

In a statement signed by Bayo Onanuga, Presidential spokesman on Friday, His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, invited President Tinubu to attend the Summit, which will take place in the emirate from January 12 to 18.

“The Summit will bring together global leaders to accelerate sustainable development and advance socioeconomic progress.

The event, ‘The Nexus of Next; Supercharging Sustainable Progress,’ will enable policymakers, business, and civil society leaders to explore pathways to fast-track the transformation to a sustainable economy and evolve a new era of prosperity for all.

“ADSW, a testament to the power of collaboration, has been held annually for over 15 years. It provides a global platform to foster multi-stakeholder cooperation in addressing global challenges and accelerating growth.

“It has birthed high-value agreements and strategic partnerships between governments, industry leaders, and clean energy pioneers worldwide, driving impactful alliances and advancing the sustainability agenda worldwide.”

Onanuga said the President would use the summit to stress his administration’s reforms, including those related to energy sufficiency, transportation, public health, and economic development.

The Nigerian leader and his entourage would also meet with the emirate’s leadership to discuss issues of interest affecting the two nations.

The Minister of Foreign Affairs, Ambassador Yusuf Tuggar, and other senior government officials will accompany the President.

“He will return to Nigeria on Thursday, January 16.” Onanuga said.

At the time of filing this report, Preparations to take off were being made.

News

Just in: Finally, EFCC summons Okoya’s sons over abuse of naira

Published

2 hours ago

January 11, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

Finally, the Economic and Financial Crimes Commission (EFCC) has summoned Subomi and Wahab Okoya, sons of billionaire industrialist Razaq Okoya, for questioning regarding alleged naira abuse in a viral video.

The summons, issued by Michael Wetkas, acting director of the Lagos office, mandated their appearance at the agency’s special operations office on Awolowo Road, Lagos, at 10 am on Monday, January 13, 2025.

The viral video, which sparked widespread criticism, shows the Okoya brothers dancing to a song while a police officer flaunts bundles of N1,000 notes.

The video, meant to promote a new song, was perceived as a disregard for the Nigerian currency.

Many Nigerians expressed outrage, describing it as inappropriate and unethical.

The Nigeria Police Force has already acted on the matter, detaining the officer featured in the clip.

Muyiwa Adejobi, the police spokesperson, confirmed the officer’s arrest and stated that disciplinary measures would be taken against him for misconduct.

The police reiterated their commitment to upholding professional standards and warned against further abuse of public trust.

News

INEC Chairman Says N126bn Needed To Fund Activities In 2025

Published

2 hours ago

January 11, 2025

Gloria Ikibah

By Gloria Ikibah

The Chairman, Independent National Electoral Commission, Prof Mahmood Yakubu has said that about N126 billion will be needed in 2025 and also to commence preparation for the 2027 general elections.

The Chairman revealed this at the 2025 budget defense and proposal organised by the Joint Committee of rhe House of Representatives and Senate on Electoral Matters on Friday in Abuja.

Mahmood explained that the N40 billion proposed for the Commission in the 2025 budget proposal by President Bola Tinubu was inadequate putting into consideration payment of salaries and allowances for the year in view of the new minimum wage.

He further stated that in 2024, the commission was allocated the same N40bn which only covered salaries and some social contributions such as NHIS contributions, pension, ITF among others.

He said: “We complained about the allocations and you asked what we thought would be adequate. We made a proposal of N80bn then. We are aware that you made efforts to ensure an increase, but that did not work.

“On our part, we made efforts and approached the executive for more funds and we were able to get about N10.5bn from the executive to take care of the Edo and Ondo Governorship elections. That was why we were able to conduct those elections and came out successful.”

Prof. Mahmood who described the year 2025 as a critical year, said:p “We have the Anambra governorship election coming up later in the year. Provision for preparation for that election is not in the budget. We must prepare for the conduct of the Area Council elections scheduled for February 2026 and the budget for that election is not in this budget. We must monitor party primaries for these elections, including the conduct of bye elections and the budget for that is not in the current budget.

“Also, we must begin preparation for the 2027 general elections this year. We have not commenced the Continous Voter Registration exercise because of lack of money. We have to start this year and end it in 2026. We must also begin redistribution of voters to polling units from those that are over populated. All these activities cost money and that has not been considered in this budget”.

The INEC boss asserted that the Commission has about 11 bye elections in 2025 in the National and state Houses of Assembly as a result of death and resignation, and added that they have been able to secure about N500 million from the government for that purpose, but the money will not be sufficient to cover cost of the exercise.

He said despite inflation INEC was still been allocated N40 billion, according to him, currently the commission has over 14,700 staff members apart from political appointees affiliated to the commission.

He listed the political appointees in the commission to include the Chairman and 12 National Commissioners, 37 Resident Electoral Commissioners, their aides who draws salaries and allowances from the funds allocated to the commission.

Mahmood also said that the Commission has over 850 buildings across the country in need of renovation as well as offices in the 8, 809 wards, 774 local government, 36 state offices and the Federal Capital Territory.

He further revealed that currently, there are 59 local government offices located in Local Government Headquarters which it planned to relocate, and said that if the N126b budget proposal is approved, the commission will relocate of at least 30 of them in 2025.

The INEC Chairman also disclosed that the Commission planned to replace some of its items such as BVAS machines, voting cubiciles and other materials, adding that between the conduct of the 2023 general election and now, the commission has lost about 440 BVAS machines.

He however added that INEC has collected insurance premium of about N205m for the damaged BVAS.

He said “that money was not paid directly to the Commision. It was paid directy to government coffers”.

Reacting to the presentation by the INEC Chairman, Senator Ireti Kingible(LP, FCT) urged the parliament to look inward and come up with adequate funding for INEC to enable it discharge its responsibility to the nation.

She said “INEC has to be independent and whatever we have to do to get funding for the commission must be done. It is not whether the commission will get the money. It has to get the money needed. “

Also contributing, a member of the House of Representatives, Adeboye Paul said “From what we are seeing, it s clear that we are running a dangerous system. We are all participants in the electoral process and we know what goes on. When there are shortfall, the local government comes in to supplement and that is dangerous for the system.

“If the essence of budget defence is that we cannot make input, why then do we embark on the exercise. Last year, we were here in this same situation and we made efforts to improve the budget to no avail. We need to deliberate on how best to assist the commission aand save our democracy. If we allow them to continue going cap in hand to the executive for funds, that is not good for democracy in this country.”

The budget defence later went into a closed-door session between the joint Committee and the INEC Chairman and seven of National Commissioners and Directors also in attendance.