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)
PARIS, JANUARY 4, 2016: (DGW) Reports coming in from Nigeria say the Naira against every speculation that it would depreciate further at the end of 2016 actually did not for it remain at N490 on the parallel market while the Pound Sterling and the Euro also closed at N585 and N505 respectively.
At the Bureau De Change window, the dollar exchanged at N399, the Central Bank of Nigeria-controlled rate, while the Pound Sterling and the Euro traded at N598 and N510 respectively.
Trading at the interbank market saw the dollar closed at N305.
Traders at the market said that Forex scarcity was still having its toll on the market.
NAN reports that in spite of the $ billion backlog of Forex cleared by the CBN, the Naira has remained within N490 to a dollar.
Meanwhile, Alhaji Aminu Gwadabe, the President, Association of Bureau De Change Operators of Nigeria, said that the figure was a far cry from the monthly Forex demand in the country.
Gwadabe said: “The $1 billion inflow is far less than what the economy consumes. The entire FX market is over 20 billion dollars monthly.
“The cleared backlog of the CBN are funds that came through the FMDQ OTC foreign investment that came into the economy over time and the CBN has no option than to redeem it, to close the increasing gap of investors’ confidence.”
The magnitude of employment in the Nigerian economy has not been sufficient or adequate to meet the ever-growing labour market, thus leading to continuous rise in the level of unemployment in the country, National Bureau of Statistics (NBS) has said.
In the 2016 second and third quarters of job creation survey, NBS noted that unemployment and underemployment stood at 13.9 per cent and 33.6 per cent respectively.
The survey threw up the fact that “with the Nigerian labour force population rising by a five-year average of over 2.6 million annually, the economy needs to generate the same level of jobs annually just to hold the unemployment rate at the current level of 13.9 per cent.” A recent population projection for Nigeria jointly issued by National Population Commission (NPC) and NBS put the number of Nigerians within working ages of 15 and 64 at 106,257,431 in 2016.
“In the second quarter of 2016, the total number of new (net) employment recorded in the economy was 155,444, this was a 95.6 per cent increase when compared with the preceding quarter and a 10.0 per cent increase when compared to the second quarter of 2015.
“As it has been the case in previous quarters, the informal sector accounted for the largest share of new jobs, recording 67.9 per cent (105,543).
“This was followed by the formal sector, which accounted for 35.5 per cent (55,124) of new jobs in quarter 2 of 2016. Public sector, for the third consecutive quarter, recorded a negative growth in employment, with a figure of -5,223.
“In the third quarter of 2016, the total number of jobs generated rose to 187,226 from the 155,444 generated in quarter two, representing an increase of 20.4 per cent quarter on quarter, but a decline of 60.6 per cent year on year.
“The formal sector recorded 49,587 jobs, representing 26.5per cent share of new jobs in the third quarter,” the survey disclosed.
The informal sector recorded a larger share of new jobs in quarter three when compared to the previous quarter, reporting a figure of 144,651 jobs, which represents 77.3 per cent of new jobs in quarter three. However, the public sector again recorded a negative growth in employment, with a figure of -7,012 in quarter three.
“The reported negative growth in public sector job numbers over the last year has not been entirely surprising, as many state governments across the country have struggled to pay salaries, hence restricting the number of new intakes and, in some instances, placing a complete embargo on new employment into the public service.”
According to NBS, despite negative economic growth since 2016, the net jobs created still remained positive on the whole in both the formal and informal sectors meaning more jobs were being created despite job losses, especially informal low paying jobs. It added that positive net formal jobs in both second and third quarters of the year were driven by the human health and social services sectors, as well as agriculture and accommodation and food services, which accounted for about 90 per ent and was responsible for keeping net jobs created positive in both quarters.
“This reflects the current economic realities with only a few businesses still growing and employing, while many others are shedding jobs.''
Between January and end September, 3.7million people entered the labour force with net jobs of 422,135 created within that period, giving a shortfall of 3.2million for Qquarter one to quarter three in 2016.
This has resulted in a rise in the combined unemployment and underemployment levels from 29.2 per cent (10.4 per cent for unemployment alone) at the beginning of 2016 to 33.6 per ent (13.9 per cent for unemployment alone) by end of quarter three 2016.
PARIS, NOVEMBER 4, 2016: (DGW) A professor of Economics, Innocent Eleazu has given another dangerous prediction for the ailing Nigerian economy warning that as things stand, the economy runs the risk of sliding further into depression Federal Government fails to find and apply the right solution to the problem.
Eleazu speaking to newsmen in Aba, the commercial hub of Abia State, urged state governors to pay their workers’ salaries, look inwards to develop the mineral and agricultural resources in their states to encourage spending among civil servants and increase local production as a means of improving their Internally Generated Revenue (IGR).
According to him, the economic solution many people are proffering in solving the problem of recession is not what should be done in order to come out of the economic quagmire.
He warned that further borrowing could further deepen the situation.
The professor who was due to deliver a lecture in Aba titled, “Recession in a Mono Economy: Challenges, Consequences” on November 15, said he feared that Nigeria does not have the foreign reserve to fall back to should the economy go into depression.
Eleazu debunked the notion that the current recession was caused by the Buhari administration, saying that the economy started depleting about four years ago.
He said that the only solution was the diversification of the economy, as did the United States of America (USA) when they faced a similar situation between 2007 and 2009.
“Since the end of the Second World War, USA has had 12 recessions, the hardest and most severe was the one in 2011 which ended in 2012. In all, they learned from the recessions and came out better.
“In our own case, we have to truly go back to land, get the grassroots farmers well mobilised, not the political or civil servants farmers. Government should not be involved beyond this level because no government agricultural policy has worked over the years”.
He also urged government to assist entrepreneurs and artisans in order to increase productivity.
The economist said he was sceptical about Nigeria’s borrowing from the International Monetary Fund (IMF) to solve the present economic problem, stressing that such steps would increase the debt profile of the country.
He said, “Since some people in the country are richer than Nigeria, the Federal Government should raise the needed funds internally instead of external borrowing with its attendant high interest rates”.
Prof Eleazu who claimed that he was one of the economists in USA the Democrat party used their input to evaluate their economic policies, however regretted that policy makers in Nigeria have not made use of reports experts submitted during the ousted President Jonathan’s regime which he said if implemented, would help to turn the economy around.
“In 2007, the past administration in the country invited me to Abuja and gave me the task of exploring the talents in the youth. After a thorough research, I submitted my report on May 29, 2007, but nothing was done on that till this moment,” he said.
PARIS, APRIL 5, 2017: (DGW) The Nigerian Naira appreciated against the US dollar on Tuesday after one-week long depreciation against all major currencies.
On Tuesday, however, the Naira exchanged for between N380 (buying), and N390 (selling) as against N395 recorded on Monday, while the Pound Sterling and the Euro closed at N480 and N415 on the parallel market respectively.
At the Bureau De Change (BDC), the naira was sold at 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 N306.25.
Traders at the market said that the intervention by the Central Bank of Nigeria (CBN) at the different segments of the foreign exchange market was driving the strengthening of the naira against the dollar.
PARIS, APRIL 5, 2017: (DGW) Group General Manager, Frontier Exploration Services (GGM, FES), Dr Mazadu D Bako, GGM FES NNPC, says oil drilling in the northern part of the country will commence soon hopefully by August this year, Daily Trust reports.
He disclosed this in a chat with Daily Trust saying that his organization has made a tremendous progress in this regard since President Muhammadu Buhari gave the order for intensive search for hydrocarbon in Nigeria's inland basins.
According to him, ''Since Mr. President gave the marching order for renewed effort in the search for hydrocarbons at the inland basins, we have made tremendous progress. For the Chad Basin, we actually started the seismic data acquisition in 2010 after we obtained the approval in 2009. Since then, up to November 2014, we had acquired over 1900km2 of 3D seismic data. Prior to that (1976 - 1997) we had drilled 23 wells based on 2D data and only 2 wells encountered non-commercial gas shows. This 3D is an improvement over the 2D which is newer technology.''
Continuing he said, ''From the over 1900km2 (of 3D seismic data) we have interpreted 1500km2 from which we have identified some prospects that have matured for drilling and we have some leads as well that have been identified. These leads will be further de-risked to a point that we can drill. Prior to now in the Benue Trough, Shell Nigeria Exploration and Production Company (SNEPCO), Chevron and Total had acquired some 2D data. Each of them drilled a well to satisfy the minimum work commitment because they also acquired juicy acreages offshore. They satisfied the minimum commitment and pulled out.''
Only Shell made some find of 33 billion cubic feet (bcf)of gas and they plugged the well and abandoned it. All the same we are going back to look at the whole area and other prospects because the 2D that they acquired we have reinterpreted in-house and seen more leads that we need to pursue. Currently, we are using 3D technology.''
When asked about a significant breakthrough in the renewed search, he said this will take some four to five months, other things being equal.
''Drilling requires a lot of contractual process and this process is going to be like some 4 to 5 months from now; the contractual process for putting the drilling rigs, accessories, access roads takes some time.''
PARIS, APRIL 5, 2017: (DGW) THE current economic recession ravaging Nigeria has been blamed on Buhari's ineptitude, lack of planing and budget discipline, former presidential candidate, Prof. Pat Utomi has observed.
Utomi observed and stated this on Wednesday, while speaking as a guest lecturer at Dr Emmanuel Egbogah budget roundtable, organised by the Business School of Nnamdi Azikiwe University, Awka in Anambra State.
He blamed the recession on a refusal to plan and insists a good national budget would have averted the downturn.
“Our major problem is that we lack planning and budget discipline.
“In beginning of a budgeting process, it must be matched with where the people are going; but beyond revenue and expenditure, budget has to do with discipline and execution.
“Those blaming fall in oil price were just bad managers. That was not the cause of this recession,” Utomi said.
PARIS, APRIL 5, 2017: (DGW) The Nigerian Naira on Wednesday weakened against the US dollar and other major currencies on the parallel market, the News Agency of Nigeria (NAN) reports.
The Nigerian currency lost 8 points to exchange at N398, weaker than N390 recorded on Tuesday, while the Pound Sterling and the Euro closed at N485 and N415.
At the Bureau de Change, BDC, window, the dollar was sold at N362 to the dollar, while the Pound Sterling and the Euro closed at N483 and N430.
Trading at the interbank window saw the Naira close at N306.2 to the dollar.
Traders at the market said that they expected the Naira to appreciate by Thursday as BDCs gets additional dollar allocation from CBN.
The naira plunged to 400 against the dollar at the parallel market on Thursday as shortage of foreign exchange continued to have negative effects on economic activities in the country.
The local currency had closed at 390 against the greenback on Wednesday.
The shortage of forex at the interbank and the black market has continued to weigh on the value of the naira.
After closing at around 378 against the dollar for most part of last week, the naira dropped to 380 on Friday before falling to 382 on Monday.
The currency closed at 315.06 to the United States dollar at the interbank market on Thursday.
Economic and financial analysts have linked the wide depreciation in the value of the naira against the dollar at the parallel market to huge demand for forex by holidaymakers seeking to travel abroad.
However, some experts said the huge demand for forex at the parallel market was beyond the normal summer rush.
They linked the development to the activities of speculators and significant demand by manufacturers and importers whose demand was not being met at the interbank market.
Currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, said, “The issue still has to do with inadequate forex supply. As far as you continue to have some 41 items banned from the interbank market, importers and manufacturers of those items will continue to seek for forex at the parallel market.
“This is part of the reason you are having pressure at the parallel market.”
According to Ezun, the global plunge in oil prices has affected the capacity of the Central Bank of Nigeria to defend the naira.
“If the price of oil should go up, more forex will come in and you will see that things will change,” he added.
A Professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Sherrifdeen Tella, said the huge demand for dollars could be due to the activities of genuine manufacturers and importers seeking forex for production and business purposes, or corrupt people who had stolen state funds.
Tella said, “The naira is falling at the parallel market because there is scarcity at the interbank market. This fall could be due to the activities of genuine manufacturers or some people you cannot identify. These are people who have stored naira somewhere and are seeking to convert them to dollars. They use every chance they have to buy dollars. What the CBN may need to do is to neutralise that money by changing the colour of the N500 and N1,000 notes.
“If the naira keeps falling at the parallel market, then we should prepare for further increase in the prices of goods and services. And this will continue to give us more trouble as a nation.”
The National President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, said the fall in the naira value could be linked to the activities of speculators.
He said the demand was spurious, saying it was not coming from genuine sources.
“The demand is spurious; the challenge is that there is no liquidity in the market. If you ask any of the parallel market operators calling N400 per dollar to bring the dollar that you want to buy it, they don’t have,” Ezun said.
The Chief Executive Officer, Cowry Asset Management Limited, Mr. Johnson Chukwu, said that if the naira continued to fall at the parallel market, the country would need to brace for higher rate of inflation and further contraction in economic growth.
It was learnt on Thursday that the Deposit Money Banks had started selling forex to the Bureau De Change operators in line with the CBN directive.
Banking sources confirmed that the sale begun on Thursday.
The ABCON president, Gwadabe, also confirmed the development.
“The banks started selling to us today, we will be debited tomorrow and then receive the forex. We thank the CBN and the banks. This move will help to close the gap between the exchange rates at the parallel market and interbank market,” he stated.