• Again, NAIRA sinks, defies CBN moves to boost liquidity (See exchange rate)

    03/Apr/2017 // 1349 Viewers


    PARIS, APRIL 3, 2017: (DGW) The Nigerian Naira on Monday again fell on the black market in spite of the Cemtral Bank of Nigeria moves to boost liquidty in the market, the News Agency of Nigeria (NAN) reports.

    The naira lost two points to exchange at N395 to the dollar from N393 recorded on Friday, while the pound sterling and the Euro closed at N480 and N415, respectively.

    At the Bureau De Change (BDC) window, the naira was sold for N362 to the dollar, while the Pound Sterling and the Euro closed at N483 and N430, respectively.

    Trading at the interbank market saw the naira closed at N306.3 to the dollar.

    Traders at the market expressed optimism that the naira would bounce back as the CBN continued to boost liquidity at the interbank market and the BDC sector in the week.


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  • N'Delta is economic live blood, with bombing of oil facilities there, no one will lend Nigeria $30bn - Sanusi

    03/Dec/2016 // 1858 Viewers


    The Emir of Kano, Alhaji Lamido Sanusi, on Friday kicked against the Federal Government’s plans to borrow $29.96 billion for the country.
    Sanusi stated this in Abuja at a policy dialogue organized by the Savannah Centre for Diplomacy, Democracy and Development.

    President Muhammadu Buhari had in October forwarded a request to the National Assembly to approve external borrowing plan to fund projects across the country between 2016 and 2018.

    Sanusi, while acknowledging the fact that the Buhari-led administration inherited a lot of problems from the previous government, lamented that the present government has not taken the necessary steps to drive the economy in the right direction.

    He also stated that the fact that there is no proper system in place to check the exchange rate of the country, makes it problematic for any country to give loans to Nigeria, stating that the system lacks credibility.

    Sanusi said: “I can tell you for free, if the Senate today approves that we can borrow $30 billion, honestly, no one will lend us.

    “It should be approved and I will like to see how you will go to the international market with an economy that has five exchange rates.

    “There is one rate for petroleum marketers, there is interbank rate, there is another for money market operators such as Western Union, Money Gram, there is Bureau De Change rate and there is a special rate you get when you call the Central Bank of Nigeria for a transaction.
    “So who will borrow you when they don’t know your exact reserve and exchange rate?

    “I want to see who will borrow you money when the Niger Delta bombing of oil is there, ‎when the main source of the loan repayment is oil.”
    Sanusi further regretted that Nigeria is the lowest spender per capital on development, citing that Kenya spends more than Nigeria on capital projects.

    Sanusi also regretted that a large chunk of the country’s resources is used to pay salaries, stressing that this trend can no longer continue since the population has continued to grow.

    He, therefore, called on the Federal Government not to see this present economic recession as destructive, but an opportunity to move the country forward.

    He also called for the implementation of the June 2016 forex reforms.
    A former Governor of Anambra State, Peter Obi, who also spoke at the event, called for a drastic reduction of the costs of governance.

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  • Nigerian e-commerce company wins $325 million investments

    03/Mar/2016 // 253 Viewers


    LAGOS, Nigeria (AP) — Africa's leading e-commerce platform Jumia says it has won funding of more than $325 million from French, German, South African and U.S. companies eager to invest in one of the continent's fastest-growing online economies.

    Parent company Africa Internet Group said the investment boosts its value to nearly $1.1 billion.

    The investment announced Thursday comes from U.S. investment bankers Goldman Sachs, French insurance multinational AXA, German startup Rocket Internet and a long-time backer, South African telecommunications giant MTN.

    Jumia was founded in Nigeria in 2012 to provide a platform for local African businesses to sell products online. It has expanded to 11 African countries while Africa Internet Group's activities have grown to include online taxis, travel, real estate, and job and food delivery marketplaces.

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  • JUST IN: Again, hopes wane as Naira loses steam, nosedives again for the worse!

    03/Mar/2017 // 3410 Viewers


    PARIS, MARCH 3, 2017: (DGW) Hopes are waning again after days of the Nigeria's domestic currency, the Naira gained weight against the US dollar. The naira reportedly lost its steam to the consternation of all closing yet at an outrageous price against the dollar at N465, losing N7 from its Thursday closing price of N458.

    At the bureau de change (BDC) window, the naira traded at N399 to a dollar at the CBN-controlled rate, while pound sterling and the euro closed at N610 and N520 respectively.

    At the interbank market, naira traded at 305.25 to a dollar.

    The CBN has injected over $500 million into the market to boost liquidity and ease the trouble experienced by Nigerians who need foreign exchange for various reasons.

    Traders in the market expressed concern about the depreciation of the Naira in spite the gains earlier recorded.

    Aminu Gwadabe, president, Association of Bureau De Change Operators of Nigeria (ABCON), told NAN that there was need for a review of the distribution mechanism.

    “Many banks are selling to only clients with current accounts and not to savings account holders and there is also increasing demand for forex from our neighbouring countries,” he said.

    “The different applicable exchange rates and volumes with Travelex and banks need to be harmonised and with that of BDCs to reduce friction.”

    On Thursday, Isaac Okorafor, acting director, corporate communications of the bank, said that the appreciation of the naira was due to intelligent work by the apex bank.

    The naira, which traded for as high as N520 to a dollar, appreciated after CBN  adjusted its forex policy, providing forex for school feels, medical and travel expenses.

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  • Finally, Dr Ngozi Okonjo-Iweala breaks silence on Nigeria, economy

    03/Oct/2016 // 3326 Viewers


    PARIS, OCTOBER 3, 2016: (DGW) The immediate past Nigeria's Finance Minister, Dr Ngozi Okonjo-Iweala has finally opened up on Nigeria and the ongoing economic recession ravaging the country.

    The world class economist, policy maker on Economic Finance and Development in an interview with Al-Jazeera said in no uncertain terms that she loves Nigeria, the place of her nativity in spite of all odds.

    The former Finance Minister says Nigeria is doubtless the most interesting country in the world and hopefully, the country will find it way out of the ongoing recession.

    Her words:

    "Nigeria is still the most interesting country in the world. It is a vibrant country. I love it so much. I know it is going to come out of this recession one way or another"

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  • Naira collapses again before Buhari, see new exchange rate!

    04/Aug/2016 // 2768 Viewers


    The naira crashed again on Wednesday against the US dollars on the parallel market from N382 it had exchange the previous day, that is Tuesday to be precise.

    On Wednesday however, the Naira exchanged for  N390 to the dollar on the parallel market.

    A currency analyst, who preferred to remain anonymous, blamed the continuing slide of the nation’s currency on the parallel market to demand pressure.

    According to him, demand for FX for most of the 41 items that had been excluded from the interbank market was still being met with dollars bought from the parallel market.

    The source also attributed the development to the fact that banks that act as agents of international money transfer operators were yet to comply with a Central Bank of Nigeria (CBN) directive instructing them to sell foreign currency remittances to licensed bureau de change (BDC) operators.

    On the interbank market, on the other hand, the naira strengthened to N311.03 to the dollar yesterday, higher than the N316.83 to a dollar from the previous day.

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  • Why we import cheap goods from China - Igbo traders

    04/Dec/2016 // 665 Viewers


    As fake and counterfeit products continue to flood Nigerian markets, despite the presence of the regulatory and security agencies at the nation’s gateways, Igbo traders who have been accused of going to China to import fake products, say they go to the Asian country to import cheaper products and not fake.

    The traders told Sunday Telegraph in separate interviews at the weekend that their effort is to ensure that they import goods that are affordable to the millions of poor Nigerians, while the expensive ones are always there for the rich.

    Most of the traders stated that before they discovered the Chinese market, most products imported to Nigeria were made in Great Britain and other European countries, “but unknown to many of us, most of the goods were produced in Asia, including China; but the final packaging was normally done in Britain before exporting to Nigeria with added cost.

    Chief Hyacinth Uzoeshi, electronics appliances importer based in Alaba International Market, Lagos, said unlike what people think, “Our discovery of the Chinese manufacturers brought down the cost of goods in the market and made it affordable to millions of Nigerians.

    There is high level of poverty in the country, so as a trader, I look for products majority of the middle and low income people can afford. If you enter the market today to buy umbrella, you will find the ones sold at N500 as well as those that go for N2500.

    If you are a businessman, you will find out that the turnover on the N500 umbrella is higher and profit margin is equally higher.” He stated that the N500 umbrella is not fake, but not of the same quality with one of N2500.

    “That does not imply that the cheap umbrella is fake or substandard; it is just a function of price.” He further said, “If you go to the market to buy shoes, you can find shoes of N5, 000, N10, 000, N50, 000, N100, 000 and above.

    What we are doing is to ensure that it is not only the rich that can afford everything, we look for things that are affordable. Standard is the business of SON, ours is to comply with the set standard,” he said.

    Chief Uzoeshi, who is the Managing Director of Zimax Electronics Limited, admitted, however, that the Chinese produce fake and substandard products on demand.

    “It is a big challenge to traders; because we are required by the Standard Organisation of Nigeria (SON) to produce our SONCAP certificate before our goods leave the port. The documents are also one of the requirements for you to to clear your goods at the ports.

    So, the fake products are either coming in through our ports when the regulators compromise or through unapproved border routes. It is a problem which only the Federal Government can solve, using its security agencies and regulatory institutions.” He said those importing fake and counterfeit products are not genuine traders.

    “They are the get rich quick people who exploit the inadequacies of our system. They are ungodly,” he said. Legal Adviser to a group of 24 tomato importers, Mr. Ikenna Amaechi, in reaction to the allegation that they are importing fake, substandard and cancercausing tomato paste from China and India, said that the allegation is misleading and lacking in substance.

    According to him, the importers have submitted their products to the House of Representatives Committee on Healthcare Service, Drug and Narcotics for laboratory analysis.

    However, Chief Martins Egbeyiugo, electrical appliances importer and former Chairman of Electrical Dealers Association of Nigeria (EDAN), said he is aware that every businessman sets out to maximize profit, including looking for cheaper products.

    But the onus is on the regulatory authorities to set standards which the importers or the manufacturers should comply with. He said though his association has put measures in place to ensure that customers get value for their money, customers must also note that the price also determines quality. “But what is paramount is standard,” he added.

    The Chairman of the Fancy and Furniture Dealers Association (FFDA), Emeka Mozoba, who is also the President, Alaba International Amalgamated Traders Association, admitted that, Nigerian market is flooded with fake and substandard goods, but noted that no genuine trader worth his onion will go to China and tell them to make fake or substandard products for him to sell in the Nigerian market.

    He blamed the scourge on smuggling and corruption, saying those who bring in those dangerous goods are not the regular traders in the market “because we have a taskforce in place which is saddled with the responsibility of ensuring that customers are not defrauded by any trader, either by selling fake or substandard products or cheating.

    “Where any case of fake or substandard product is reported to us, it is thoroughly investigated and if anyone is found culpable, such is not only made to pay for the right product for the customer, but he is further sanctioned by the association. Such sanctions do not exclude expulsion from the market.”

    He said, “If SON respects the SONCAP and its officials do not compromise along the line, fake and substandard products in our markets will be reduced by 50 per cent.

    The remaining 50 per cent comes in through our porous borders, through smuggling. The Nigerian Customs Service has to ensure that our borders are water-tight against smuggling.

    “For your information, the activities of smugglers is threatening our source of livelihood. But for the drastic fall in the exchange rate of the naira, you would have seen that the rate of trafficking goods across our borders is very alarming. Anything can enter the country, including arms and ammunition.”

    He warned that unless the Nigerian borders are properly manned to prevent smuggling, the country will never have control over what is imported “fake and substandard products will remain with us.”

    Sunday Telegraph learnt that SON, as part of its continuous efforts to protect Nigerian consumers from unsafe and/or substandard products, has introduced an off-shore ‘SON Conformity Assessment Programme’ (SONCAP) since September 2005.

    The programme is to ensure that regulated imports comply with the approved technical and other specifications acceptable in Nigeria. But this seems not to have stopped the influx of fake products into the country.

    It is against this backdground that the new Director General of SON, Osita Aboloma, said the agency will redouble its enforcement efforts, adding that, SON will more than ever before, ensure that no importer circumvents SON “While SON will continue to inspect products and issue SONCAP certificate to those that meet standard at the point of export, we will redouble our oversight functions at our ports, markets and importers’ warehouses.

    This is because it is obvious that some of the importers manage to beat the checks by our agents abroad. “Despite our efforts, importers of fake and substandard products find a way to avoid the inspection abroad, thereby breach the set standards.

    I started visiting the ports and border stations to forge a common synergy with sister agencies to ensure that those fake products do not enter our country again. “I also believe that if we are at the ports, it will be easier for us to ensure that all consignments that do not meet standard are seized right in the port and taken to where we will destroy them,” he said.

    Meanwhile the National Public Relations Officer (PRO), Nigeria Customs Service (NCS), Wale Adeniyi, has said that the Service invites SON, NAFDAC and NDLEA when necessary during examination of cargo, saying, normally, the bodies issue certificate of examination to the consignee before the Service allows the consignment to exit the ports, adding that, NCS does not allow any good out of the port without ensuring that the regulatory agency that has interest in it okays it.

    “NCS does not approve any consignment without SONCAP and whenever there is cargo examination, SON and other regulatory agencies are invited, if the goods fall under their regulatory function,” he said.

    Credit: Sunday Telegraph

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  • Fitch: Nigeria's Oil Response Has Downside Fiscal, Growth Risks

    04/Feb/2016 // 295 Viewers


    LONDON, February 04 (Fitch) - The Nigerian authorities' recent economic policy announcements show the response to the oil price shock is coalescing around state-led development to boost economic growth and import substitution to blunt the effects of declining oil receipts, Fitch Ratings says. It is yet to be seen whether the associated measures will promote growth while containing fiscal pressures, but we believe there are a number of downside risks.

    The emerging economic policy under President Muhammadu Buhari includes an increase in public spending and state-directed investment, revenue-side reforms, and accommodative monetary policy. December's mildly expansionary 2016 budget envisages spending of NGN6trn (USD30bn), up from NGN4.6trn in the 2015 budget, including a 30% increase in capital spending.

    Read Also: Nigeria's foreign reserves crash to its lowest since 2005

    The government aims to finance additional spending through revenue-side reforms, including improved tax collection and public finance management, and by increasing external financing. The fall in oil prices below the USD38/b level assumed in the 2016 budget has increased the need for external financing, and the government recently announced it is looking to the World Bank and African Development Bank for additional lending and is exploring a Eurobond issuance sometime in 1H16.

    The Central Bank of Nigeria (CBN), took a large role in implementing economic policy during last year's six-month wait for cabinet appointments. It introduced exchange controls and restrictions on foreign currency and resisted pressure for further naira devaluation. The CBN cut benchmark rates by 200bp in November and reduced the cash reserve ratio for commercial banks.

    The CBN has continued to restrict access to FX in 2016, limiting dollar sales to Bureau de Change operators. It has maintained its support of the naira rather than risk the inflationary impact of devaluation. Overall, these policies present downside risks to Nigeria's sovereign credit profile, although there are various mitigating factors: Increased borrowing and higher interest payments would add to pressure on the fiscal position. But public debt is low, and the government is unlikely to fully execute its spending plans. Capital expenditure, for example, has constituted only about 20% of total federal government spending in recent years and is estimated to have dropped to about 13% for 2015.

    Underspending would reduce the negative impact on the public finances, but also the boost to growth. The government has indicated that it will use low energy prices to begin phasing out fuel subsidies in 2016, which would partly contain the deterioration in the public finances. Unorthodox or unpredictable FX policy makes raising external financing more difficult, deterring both private investors and possibly multilaterals. The persistent spread between the retail and official interbank exchange rate indicates unmet demand for dollars in the Nigerian economy.

    We think the drag on growth from the Nigerian private sector's inability to access sufficient hard currency will outweigh the benefits of planned fiscal stimulus, and that the CBN will struggle to defend the naira indefinitely. Erosion of fiscal and external buffers and policy uncertainty drove our revision of the Outlook on Nigeria's 'BB-' sovereign rating to Negative in March 2015, which we affirmed in September. An economic policy response that contained fiscal pressures, kept debt levels manageable and carried out planned reforms would be positive for the rating.

    An inadequate response that failed to carry out growth-enhancing reforms and put debt levels on an unsustainable path would have a negative effect on the rating.

    Contact: Jermaine Leonard Director Sovereigns +852 2263 9830 Fitch (Hong Kong) Limited 19/F Man Yee Building 68 Des Voeux Road Central Hong Kong Jan Friederich Senior Director Sovereigns +852 2263 9910 Mark Brown Senior Director Fitch Wire +44 20 3530 1588 Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com



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  • Nigeria's Economy: 3.78% growth expected in 2016 from 2.97% in 2015

    04/Feb/2016 // 286 Viewers


    PARIS, FEBRUARY 4, 2016: (DGW) - Despite the crash in oil prices Nigeria's economy is expected to grow by as much as 3.78% from 2.97%, the National Bureau  of Statistics said on Thursday.
    An upward movement of 5.47% is also expected through to 2019 as a result of investment in infrastructure to support oil and non-oil sectors.
    Said the report from the bureau, '' Output in the oil and non-oil sectors are expected to perform marginally better relative to 2015''.
    Nigeria, Africa's largest economy has been battling to survive the slump in oil prices amid a weakened naira by up to 35% below the official level on the black market.
    Be that as it may President Muhammadu Buhari has consistently refused to bow to pressures from every quarter to devalue the naira which is likely to continue through 2016 occasioned by the sudden drop in foreign reserves to $28.2 billion the lowest ever recorded since 2005.

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  • : Again, Naira sinks! (See exchange rate)

    04/Feb/2017 // 1649 Viewers


    The Naira on Friday depreciated further on the parallel market after it had remained stable for nearly three weeks, the News Agency of Nigeria (NAN) reports.
    The Pound Sterling, the Euro, and the dollar traded at N616,  N530, and N500 respectively at the open market.

    The Nigerian currency, however, remained stable at the Bureau De Change (BDC) segment of the market exchanging at N399 to a dollar, while the Pound Sterling and the Euro closed at N617 and N527, respectively.

    The Naira also remained stable at the interbank window exchanging at N305.25 to a dollar.

    Traders at the market said that the scarcity of the greenback was far from being over.NAN reports that in spite of the weekly sale of forex to BDCs by the apex bank, the Naira could not resist the temptation to fall. (NAN)


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