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Nigeria taking steps to strengthen naira, says Edun
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Strategic steps are being taken by the Federal Government to de-dollarise the economy and boost the naira value, Minister of Finance and Coordinating Minister for the Economy, Wale Edun, said yesterday in the United States (U.S.).
He spoke during the investors parley held on the sidelines of the ongoing World Bank/International Monetary Fund Annual Meetings in Washington DC.
As a partially-dollarised economy, Nigerian operates with dollar bias for international trade, finance invoicing and of recent, store of value.
Under high and persistent inflation, market participants defend themselves by shifting to the dollar.
The most common type of dollarisation is financial dollarisation (FD), or asset substitution, caused by a poor performance and falling value of the local currency.
The local currency is used more for payment transactions but is replaced by the dollar as saving asset or store of value.
Speaking on the theme: “A new Nigeria: An era of bold reforms”, Edun said that the government has asked manufacturers and businesses to invoice in naira, instead of dollar, thereby reducing demand for dollar in the domestic market.
At the investors parley were Standard Chartered Bank, Goldman Sachs, JP Morgan, and strategic investors in the economy. Also present at the event are Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, Director-General, Debt Management Office, Patience Oniha, Director-General of the Budget Office of the Federation, Tanimu Yakubu; Permanent Secretary, Federal Ministry of Finance, Mrs. Lydia Jafıya among others.
Edun, said government is also taking steps to ensure that more dollar flow into the economy, to stabilize and protect the naira.
The minister said: “We are asking people to invoice in naira, rather than dollar, thereby reducing the demand for dollar. We have moved to free market pricing in petrol, jet fuel, kerosene, and that is the first time in 40 years that we are doing that.”
According to him, increase in oil production means more dollar inflows into the economy.
He also spoke of the effort by security operatives to ensure sustained rise in oil production, adding that the financial markets and bond markets remain open to Nigerians in Diaspora to invest dollars to the economy.
Edun explained that essentially, it was October 2, that petrol subsidy was effectively removed through market-pricing practices.
The minister said: “It is now that we will assess the gains of the subsidy removal, which will be a huge dividend to the people.”
On his part, Central Bank of Nigeria (CBN) Governor Yemi Cardoso, said the last Monetary Policy Committee took cognisance of petrol subsidy removal, in its decisions. He said the CBN will issue more Open Market Operation (OMO) bills, to ensure market mechanisms reflect effectively.
On reports, that the Nigeria National Petroleum Corporation (NNPC) is mopping up dollars from the open market, Cardoso said: “The NNPC buying dollars from open market is not for the CBN to determine, because the NNPC remains a customer that is entitled to make its business decisions.”
He said with higher interest rates, more Nigerians will be more inclined to produce locally, even as inflows from Diaspora remittances continue to rise.
Deputy Governor, Economic Policy, CBN, Mohammed Sani-Abdullahi, said the apex bank was working to raise non-oil export earnings from around N3.6 billion to $10.3 billion. He said the external reserves have also hit a new high of $40.3 billion, and will continue to rise as oil production grows.
Sani-Abdullahi, said the Federal Government has taken strategic steps, to ensure that Nigeria remains a good investment destination for local and foreign investors.
Speaking on the naira, he said: “We’re not defending the naira, and we used to. We are rather building buffers. We want to improve supply organically, without the CBN putting in money all the time. We want to find that naira finds its natural level”.
We want to address liquidity risks, and ensure that the market functions. We are still in price discovery, we want to get to transparency and market determined rate for the naira.
He attributed volatility and rising demand for dollar to people’s belief that forex will not be available when they need it, hence the rush for the greenback.
Sani-Abdullahi, said there has been work to strengthen public finance, make tax administration and collection stronger, and build non-oil export economy.
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NSCDC, Tantita intensify joint efforts to combat oil theft in Niger Delta
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The Nigeria Security and Civil Defence Corps (NSCDC) and Tantita Security Services Limited (TSSL) have intensified their joint efforts to eliminate economic sabotage in the Niger Delta, in line with the Renewed Hope Agenda set forth by President Bola Ahmed Tinubu.
As part of his inspection of NSCDC operations in the area, Commandant-General Dr. Abubakar Audi led a group of senior officers to meet with Chief Kestin Pondi, Managing Director of TSSL, and High Chief Government Ekpemupolo, commonly referred to as Tompolo, in Warri and Oporoza, Delta State.
Audi and his team also toured the operational facilities of NSCDC operatives working with Tantita in far-flung creeks of the Niger Delta and other formations to assess their activities and encourage the frontline security agents.
The Commandant-General while paying a courtesy visit to Pondi said his operational tour of the Niger Delta was to enable him get first hand information of his men on ground and strengthen the relationship between the corps and Tantita.
Audi said the NSCDC would celebrate the gallantry of his men on March 1st adding that the occasion would recognise fallen heroes of the corps and empower the families of deceased officers.
He said: “We place high premium on the welfare of our staff that is why every March 1st we recognise our personnel who died on active duty by assisting their families through payment of life insurance benefits and other empowerment schemes.”
In his remarks, the Managing Director, Tantita Security Services Ltd, Mr Kestin Pondi, heaped praises on President Ahmed Tinubu for providing the enabling environment to fight oil theft in the Niger Delta region.
He assured of closer collaboration with security forces including the NSCDC in the ongoing efforts to tackle pipeline vandalism and oil theft.
Pondi said without the collaborative efforts of the NSCDC and other security agencies, the success record would have been impossible.
He said prior to Tantita’s involvement in combating oil theft, production levels hovered around 800,000 barrels per day, adding that the increased production was because of the collaboration with NSCDC.
He said: “The success recorded in the recent past is not without the collaborative efforts of NSCDC. At the moment we have over 450 personnel in our organisation who have been providing collaborative services to our personnel.
“It is worthy of note that as at the time we came on board, the nation was producing between 600000 – 800000 barrels per day in 2022, but as at today we have gone over 2 million barrels per day and this is largely due to our collaboration with you.
A former President, Ijaw Youths Council (IYC) Worldwide, Engr. Udengs Eradiri, hailed NSCDC and Tantita for their mutual relationship saying their operational style was in line with President Tinubu’s leadership approach of community and stakeholders’ engagements.
Describing President Tinubu as a community man, Eradiri said Tinubu’s approach was centered around the people adding that in similar way Tantita and NSCDC approach instilled confidence in people to protect oil facilities within their domain.
“This is in line with President Tinubu’s leadership style. President Tinubu is a community man. His approach has always been about the people. For some of us who have known him for years ago, we are not surprised that he is doing things differently.
“Recall that when he was campaigning he came to the Gbaramatu Kingdom. President Tinubu expanded the relationship with Tantita and consolidated on what he met and that is why the trajectory has been smooth. President Tinubu is the reason Tantita is succeeding and we want to commend him for believing in Tompolo and the people,” he said.
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Imo govt warns nightclub, lounge proprietors against selling hard drugs to customers
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The Imo Government has issued a stern warning to hotel owners and nightclub operators, urging them to refrain from permitting the use of hard drugs within their establishments.
This announcement was made in a statement signed by Chief Ezechukwu Obonna, the Special Adviser to Governor Hope Uzodinma on Narcotics and Illicit Drugs Monitoring, and was shared with journalists in Owerri on Saturday.
According to Obonna, the state government has observed that hard drugs, especially cannabis, popularly called ‘loud’, are now being freely sold and consumed in public places, especially in lounges and nightclubs in the state, as if the drug is no longer prohibited by law.
He warned operators of nightclubs and lounges to immediately put an end to the consumption and sale of hard drugs, particularly in their business areas.
He said that any establishment found to be enabling or permitting the use of hard drugs would face severe consequences.
“The government is issuing this stern warning to lounge and nightclub owners across the state to note that the government will no longer tolerate the use of private businesses as havens for illicit drug use.
“We urge all lounge and nightclub owners to take responsibility for ensuring their patrons are not engaging in illicit activities.
“The Imo State Government is committed to protecting the health and well-being of its citizens, and we will not hesitate to take action against those who compromise this effort,” he said.
He added that the International Narcotics Control Board had expressed concerns about the growing trend of drug use and its impact on public health.
According to him, the Imo Government is taking proactive steps to address this issue and ensure a safer, healthier environment for all citizens.
“We appeal to all lounge and nightclub owners to cooperate with the government in this effort and to report any suspicious activities to the authorities immediately. Together, we can create a safer, more responsible tourism and entertainment industry in Imo,” he said.
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Watch Saturday episode of Your Family Lawyer on ‘How can I get a divorce under Islamic marriage
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Seasoned lawyer and progenitor of Your Family Lawyer, Chuma Chinye tackled how you can get a divorce under Islamic marriage.
Using vivid examples and solutions on how you can maintain a cool head when faced on how to get your rights under Islamic marriage.
Watch podcast below:
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