News

Naira defies CBN’s forex reforms, tumbled 41% in 2024

Published

2 days ago

January 2, 2025

By Kayode Sanni-Arewa

The official exchange rate between the naira and the United States dollar ended in 2024 at N1,535/$, an analysis of data from the Central Bank of Nigeria has shown.

This was a 40.9 per cent depreciation over the year when compared to the official rate at the close of 2023, which stood at N907.11/$.

The significant depreciation comes amid the CBN’s introduction of several foreign exchange policies aimed at enhancing market transparency and attracting foreign investors.

These measures included reforms such as the unification of FX windows under the Nigeria Foreign Exchange Market and the introduction of the Nigerian FX Code, which mandated ethical conduct and governance among market participants.

On the parallel market, where the naira trades unofficially, the currency exchanged at N1,660/$ at the end of 2024.

This represents a 26.8 per cent depreciation from N1,215/$ recorded at the close of 2023.

The year saw the CBN aggressively expand market-friendly policies to stabilise the FX market and attract foreign investment.

This year, the CBN announced that it had successfully cleared all valid FX backlogs, fulfilling a key commitment by Governor Olayemi Cardoso to address the inherited $7bn in outstanding claims.

In May 2024, the CBN issued revised guidelines to strengthen the operations of Bureaux de Change operators in Nigeria.

The guidelines define permissible activities for BDCs, such as sourcing foreign currency from specified entities and selling foreign exchange for purposes like Personal Travel Allowance and Business Travel Allowance.

The CBN automated foreign currency trading to replace the over-the-counter system, improving market efficiency and oversight.

Another key intervention was the direct selling of FX to BDCs at different times this year.

The apex bank also sold FX on the official market but at a minimal level.

Also, the Nigerian FX Code, introduced in October, set ethical and operational standards for market participants, with mandatory compliance deadlines by the end of 2024.

To bolster foreign reserves and reduce pressure on the naira, the apex bank initiated the Voluntary Disclosure and Repatriation Scheme, allowing individuals and businesses to deposit and invest internationally tradable foreign currencies in designated domiciliary accounts.

There was also the Nigeria Foreign Exchange Market framework, which consolidated all FX trading windows into a unified market to improve transparency and liquidity.

BDC operators were temporarily allowed direct access to buy FX from authorized dealers with a weekly cap of $25,000, a measure implemented during the festive season to meet heightened demand

Despite these interventions, the naira faced immense pressure from limited foreign exchange inflows, the widening gap between official and parallel market rates, and lingering effects of capital flight by foreign investors.

The World Bank listed the naira among the worst-performing currencies in Sub-Saharan Africa in 2024.

The depreciation of the naira is attributed to several factors, including surging demand for United States dollars in the parallel market, limited dollar inflows, and delays in foreign exchange disbursements by Nigeria’s central bank.

The World Bank’s report further highlights that demand for dollars, driven by financial institutions, non-financial end-users, and money managers, has exacerbated the pressure on the naira.

However, the International Monetary Fund has reported that the naira is showing signs of stabilisation, attributing this to recent interest rate hikes and efforts by the Central Bank of Nigeria to address foreign exchange backlogs.

President Bola Tinubu, during his budget presentation speech, said the proposed budget was based on the projections that inflation will decline from the current rate of 34.6 per cent to 15 per cent next year.

He projected that the exchange rate will improve from approximately N1,700 per US dollar to N1,500 and a base crude oil production assumption of 2.06 million barrels per day.

The President of the Association of Bureau De Change of Nigeria, Aminu Gwadebe, earlier said the N1,500/$ peg in the 2025 Appropriation Bill was within reach on the back of recent foreign exchange reforms being pushed by the CBN.

However, Fitch Ratings, a global credit rating agency, noted that a larger-than-expected budget deficit in 2025 could lead to further naira depreciation, higher inflation, and increased borrowing costs, ultimately threatening the government’s reform agenda.

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Gunmen abduct Nigerian Professor, Demand N10m Ransom

Published

4 hours ago

January 4, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

Gunmen suspected to be kidnappers have abducted Professor John Ebeh, a senior lecturer in the Department of Philosophy at Prince Abubakar Audu University (PAAU), Anyigba, Kogi State.

The assailants are reportedly demanding a N10 million ransom for his release.

Eyewitness accounts revealed that the attackers invaded the professor’s residence in Agbeji, a suburb of Anyigba, in Dekina Local Government Area, at about 7 p.m. on Thursday.

According to a neighbor who identified himself as Akpai, “The hoodlums operated in a commando manner. It was swift. We noticed a car trailing him furiously; we took it as one of his friends or colleagues, not until we started hearing gunshots around his gate.”

A family source disclosed that the professor was abducted just as he was about to enter his compound.

“Professor Ebeh was almost at the gate of his house at Agbeji, on his way from the town when the incident happened.

“He had even given out a signal to his people to open the gate of his house when some people emerged suddenly from their hideout and started shooting sporadically.

“Amidst the confusion, someone drove in furiously and blocked his car.

“Some masked people alighted from the vehicle and whisked him away at gunpoint.

“His abductors called the family on Friday night, demanding N10 million,” the source recounted.

University officials have yet to issue an official statement regarding the incident.

However, one of Professor Ebeh’s colleagues expressed shock at the development, saying, “The kidnapping (of the professor) came to us as a shock. I have just visited his family to sympathize with them.”

News

Sad: Ondo SSG Is Dead

Published

4 hours ago

January 4, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The Secretary to the Ondo State Government, Tayo Oluwatuyi, on Saturday died in an auto crash.

The SSG died in the crash which occurred while he was traveling from Akure, Ondo State capital, to Ibadan in Oyo State.

Confirming the incident, Ondo State Commissioner for Information, Wale Akinlosotu, stated that Oluwatuyi was hospitalised before he gave up the ghost.

“Hon. Oluwatuyi was a dedicated public servant whose unwavering commitment to administrative coordination, policy advisory, and implementation had a significant impact on Ondo State.

“Further details regarding memorial arrangements will be shared as they become available,” he added.

News

Mohamed Salah confirms this season as his last season at Liverpool

Published

5 hours ago

January 4, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

Liverpool’s talisman, Mohamed Salah Hamed Mahrous Ghaly, popularly known as Mohamed Salah, has confirmed that the 2024–2025 football season will be his last season donning the shirts of Liverpool.

In an interview with Sky Sports, Mo Salah revealed that he is eager to win this year’s English Premier League title for the Reds to sign off his eight-year stay with the Merseyside based club.

Salah reflected on Liverpool’s previous Premier League triumph in the 2019-2020 season, noting that they were unable to celebrate it as they had hoped. Salah stated that he is determined to help the team win the title this year and celebrate in a manner worthy of their remarkable achievement.

He reflected on Liverpool’s previous Premier League triumph, noting that they were unable to celebrate it as they had hoped. Salah stated that he is determined to help the team win the title this year and celebrate in a manner worthy of their remarkable achievement.

“It’s probably because we didn’t celebrate the one we won in the way we wanted and also, coming back here too, it’s my last year in the club so you want to do something special for the city.

“We waited for that title for 30 years or so. So, to win it and it was the pandemic at that time, we didn’t really have time to celebrate it in the right way. It’s not a nice thing to do, so hopefully we can do it this year.”

“I really want to win the Premier League this season as it’s my last year at the club. I want to give something special to the City.” He said.

Mohamed Salah’s contract with Liverpool is set to expire at the end of the current season. He explained that although his agent, Ramy Abbas, and Liverpool are yet to reach any conclusive decision regarding a contract renewal, he remains focused and is not distracted by the off-field uncertainty.

“We are far away from any progress so we just need to wait and see.

“The thing in my head is ‘OK, if it’s my last six months, or last year, what do you want to see in the future? Do you want to look back and say I was concerned about the contract or I was stressed’ or do you just want to say ‘OK, I had an unbelievable season’.

“That’s in my head now. All the time now. If I feel that kind of distraction, I remind myself ‘You want to look back and you had an unbelievable season’. So that’s what I want to do.” He explained.

He has been in electric form this term, scoring 17 goals in 18 league games, while also registering 13 assists. He has won 9 trophies with Liverpool which includes 1 EPL title, 1 FA Cup, 2 EFL Cups, 1 FA Community Shield, 1 UEFA Champions League title, 1 UEFA Super Cup and 1 FIFA Club World Cup.

Source: Elvisanokyenews.com