• Again, Emir of KANO rubbishes BUHARI's economic team, criticizes 2017 budget

    06/Apr/2017 // 568 Viewers

     

    PARIS, APRIL 5, 2017: (DGW) The Emir of Kano, Muhammadu Sanusi II, has raised alarm over the increasing debt in the country. 

    He stated that among other producing countries in Africa, Nigeria has been on a borrowing bench, “Borrowing domestically to fund current expenditure”.

    He added that the growth of Nigeria was driven largely by rising commodity prices and debt, adding that the module has reached the logical limit such as the collapse in oil price. 

    He said according to the International Monetary Fund (IMF), the Federal Government of Nigeria is spending 66% of its interest revenue on debt, which means only 34% of its revenue was available for capital expenditure, recurrent expenditure and development. 

    The Emir made this known at the Kaduna State Investment Summit with the theme “Making Kaduna Investment Destination of Choice”. 

    He said the 2017 budget presented by the Federal Government is a budget that goes for more debt. He said: “As a country, we must understand that the module of government borrowing and spending has reached its limit, therefore growth must only come from investment”. 

    The Emir crtiticised leaders that go to China to sign MoU and come back with debts forgetting their areas of development. 

    He said: “A nation and a state is only transformed by vision, once that vision is lost every other thing around the vision collapses”. 

    He added that the growth of an economy will not come by borrowing. In his keynote address, he urged the northern leaders to focus more on education and health sector especially in the north. 

    He asked them to use their resources to deal with the issues of poverty in their region. The occasion was well attended by industrialists, traditional rulers, media owners and government functionaries.


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  • JUST IN: Again, Naira sinks, exchange rate outrageous as forex scarcity continues (See exchange rate)

    06/Dec/2016 // 900 Viewers

     

    PARIS, DECEMBER 6, 2016: (DGW) Nigerian domestic currency, the Naira has fallen again on Monday against all major currencies thus causing and anxiety outrage among Nigerians at home particularly importers and Nigerians in the diaspora.

    Reports reaching our newsroom from Nigeria say the Naira   slid to 485 against the dollar and 600 against the British pound on the parallel market.

    At the official side of the market, the naira depreciated from 305 to 315 per dollar, while the pound went for N401.

    This is coming at a time when the Central Bank of Nigeria (CBN) is making special forex auction for oil exporters in the country.

    With the oil prices on the rise at the global market, and Nigeria’s oil template at N285/$1, the interbank market is seen as incapable  of meeting the needs of oil exporters who need forex at N285/$1 not the market’s N315/$1.

    This has necessitated the CBN auction, which is expected to trade dollars below N300.

    Vice-President Yemi Osinbajo, in an interview with Reuters, said “his office was working with the central bank to make the foreign exchange market more flexible and more reflective of actual demand and supply”.

    This year has seen the local currency depreciated the most in its 43-year history, opening at 197 in January at the official market and 265 at the parallel market.


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  • Naira woes: Pundit advocates synergy between monetary, fiscal policy

    06/Feb/2017 // 329 Viewers

     

    By Chioma Obinagwam 
     
    The synergy between Nigeria’s Monetary policy and it’s Fiscal policy is perceived as the panacea to solving the country’s currency (naira)  woes, Rotimi Fakayejo, Chief Executive Officer (CEO) of Enterprise  Stockbrokers PLC, said. 
     
    Speaking in a telephone interview with National Daily Newspapers, the CEO said that there is lack of synergy between the Monetary and Fiscal Policy in the country, hence, both systems need collaboration in order to tackle areas responsible for the scarcity of Forex,  which has brought it’s weight on the naira.
     
    “It is not Rocket science, there’s  no synergy between the Monetary Policy and the Fiscal Policy. We need to look at what is taking our Forex. There should be a reduction in imports. If there’s a level of food sufficiency, then the fiscal policy can put high tarrif on imported goods that are produced locally,” Fakayejo stressed. 
     
    This reaction is, however, coming on the heels of the recent pleas by some stakeholders on the CBN to adopt a flexible exchange rate as a way of tackling the depreciating value of the naira. 
    An action which was refuted by the bank, who in a recent report published by one of the dailies said it would further weaken the currency, increase inflation and cause untold hardship to Nigerians.
     
    Recall that following the outcome of the  254th Monetary Policy Committee(MPC) meeting where the Central Bank of Nigeria(CBN) retained Monetary Policy Rate(MPR) at 14 per cent, Cash Reserve Ratio(CRR) at 22.5 per cent,  Liquidity Ratio at 30 per cent and Asymmetric corridor at +200 and -500 basis points around the MPR, stakeholders have been calling for a float of the exchange rate or a more flexible exchange rate.
     
    A floating exchange rate is a regime where the currency price is set by the forex market based on supply and demand compared with other currencies. This is in contrast to a fixed exchange rate, in which the government entirely or predominantly determines the rate.
     
    He noted that this can be achieved when government ensures steady supply of power by reducing the level of vandalisation at gas sources.
    He said: “If the Generating Companies(GenCos) are supplying enough to the Distribution Companies (DisCos), then the cost of production will be reduced to the bearest minimum.”
     
    The CEO further disclosed that the country’s Forex Reserves is greatly reduced by importation of Premium Motor Spirit(PMS) and that can be achieved by establishing functional refineries in the country.
    He also pointed that there should be transparency at all levels of operation.
     
    “I believe the present policy they’re running can be good, if they’re not yielding to pressure from the nooks and crannies. There’s the issue of arbitrage of funds by banks, which should be addressed.
    There isn’t enough transparency. Moreover,  the margin between the parallel  market and the official market is too wide.”


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  • Again, hopes wane as Naira sinks!

    06/Mar/2017 // 3710 Viewers

     

    PARIS, MARCH 6, 2017: (DGW) AGAIN the Nigerian domestic currency  sank on Friday on the parallel market after appreciating against the green back for days.

    The nation’s currency lost N7 to exchange at N465 to a dollar after closing at N458 on Thursday, while the Pound Sterling and the Euro traded at N542 and N480.

    At the Bureau De Change (BDC) window, the Naira traded at N399 to a dollar, CBN controlled rate, while Pound Sterling and the Euro closed at N610 and N520.

    Trading at the interbank market saw the Naira being sold at N305.25 to a dollar

    NAN reports that the CBN injected over $500million dollars into the market, to boost liquidity, but the Naira continued to depreciate.

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

    Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), said 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.

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


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  • Uneasy silence hits Aso Rock as foreign economic institute descends on Buhari over economic collapse

    06/Sep/2016 // 1255 Viewers

     

    PARIS, SEPTEMBER 6, 2016: (DGW) PRESIDENT  Muhammadu Buhari has come under intense attack by  The West African Institute for Financial and Economic Management (WAIFEM) and the Central Bank of Nigeria for the current economic recession in Nigeria.

    Speaking through its Director-general, Professor Akpan Ekpo, blamed Nigeria's economic situation the maddening delays in passing the 2016 budget  together with the  CBN’s monetary and foreign exchange policies.

    Speaking further Prof. Ekpo said that, “There was a near absence of fiscal policy – the economy lacks the necessary fiscal buffers. Money and exchange rate policies were the only voice. Rather than implementing quantitative easing, the CBN was interested in tightening monetary policy. When an economy is almost in a recession, monetary expansion would help towards recovery,”
     
    “When a commodity is in short supply, market forces cannot determine the ‘correct’ value. The only source of foreign exchange for the economy is crude oil export, hence unrealistic assumptions under a competitive market cannot work in the foreign exchange market,” he added.

    “The delay in adjusting the band of the value of the naira to the dollar, when the market provided a guide through scarcity, heightened the crisis. If recession persists, monetary, fiscal policies would be ineffective.”

     “I hate to disappoint Nigerians, the private sector cannot get us out of the recession. Government must lead for the private sector to follow until recovery sets in. As part of stimulating aggregate demand, the social programmes in the budget must be implemented urgently.

    “Furthermore, government has no choice but to borrow externally and domestically to spend and
    get the economy out of the recession. “Our economy consumes what it does not produce, hence there is need for a re- orientation for citizens to prefer locally produced goods and services. Heavy tariffs must be placed on imported goods and services. Lending rates are just too high to revamp the real sector.”


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  • NAIRA appreciates on THURSDAY as CBN makes mid-week intervention (See exchange rate)

    07/Apr/2017 // 1322 Viewers

     

    PARIS, APRIL 7, 2017: (DGW) The Nigerian Naira on Thursday reportedly apppreciated against the Us dollar and other major currencies, Vanguard reports.

    The Naira according to reports appreciated to N393 per dollar on the parallel market, even as the Central Bank of Nigeria (CBN) offered $100 million to banks for wholesale transactions.

    Acting Director, Corporate Communication Department, CBN, Mr. Isaac Okoroafor confirmed this development, saying no interventions were made in the retail auction window for forex.

    Vanguard further reports that the parallel market exchange rate which rose to N395 per dollar on Wednesday dropped to N393 per dollar by the close of business, yesterday, indicating N2 appreciation for the naira.

    Investigation revealed that the decline in parallel market exchange rate was due to anticipated inflow of $31 million into the bureaux de change segment tomorrow courtesy of the midweek intervention of the $10,000 per BDC by the CBN.


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  • Importers weep as NAIRA crashes again on Friday against all major currencies - (See exchange rate)

    07/Apr/2017 // 1435 Viewers

     

    PARIS, APRIL 7, 2017: (DGW) The Nigerian Naira has fallen abysmally again against all major currency as Central Bank of Nigeria (CBN) recent intervention fails to yield the desired dividend.

    The Naria traded for N405 on Friday to the US dollar on the parallel market as against N397 on Thursday while the Euro exchanged for N425 and pound sterling for N485 respectively.

    This was, however, blamed on the inability to access foreign currencies through the banks which forced customers to invade the black market.


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  • Again, Naira falls abysmally low against major currencies, see exchange rate

    07/Nov/2016 // 1686 Viewers

     

    PARIS, NOVEMBER 7, 2016: (DGW) THE  Naira has  again fallen at the inter-bank and the parallel markets respectively on Monday, the News Agency of Nigeria has reported.

    The naira exchanged at N350 to a dollar from N328 it traded last Friday.
    At the Bureau De Change (BDC) segment, the naira closed at N385 against the dollar, CBN rate, while the Pound Sterling and the Euro closed at N564 and N510 respectively.

    Trading at the parallel market saw the naira exchanged at N470 to the dollar, while the Pound Sterling and the Euro traded at N560 and N510 respectively.

    Traders at the market express hope that the naira would see better days as Diaspora remittances was expected to boost liquidity at the yuletide season.


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  • Volkswagen to start recalling cars in January

    07/Oct/2015 // 184 Viewers

    Volkswagen is to start recalling diesel cars fitted with emissions test-cheating software from January. The carmaker's new chief executive, Matthias Mueller, made the comments in an interview with a German newspaper, ahead of a deadline to submit the plan to regulators. Also today: the French bakers fined for providing customers with their daily bread.


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  • Air France pilots call for French government to intervene in dispute

    07/Oct/2015 // 219 Viewers

    After the violent scuffles at a meeting between unions and Air France management on Monday, the union representing pilots has called for the French government to intervene in the dispute over the carrier's cost-cutting plans. The head of the SNPL union says the state should be represented in a fresh round of talks.


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