• Domestic routes air tickets up by 40% , aviation fuel now sells for over N240 per litre as economy sinks (See prices)

    16/Dec/2016 // 896 Viewers

     

    PARIS, DECEMBER 16, 2016: (DGW) REPORTS  reaching our Paris newsdesk tonight have it that the price of air ticket within Nigeria has jumped by over 40% as scarcity of Jet A1 - aviation fuel bites harder.

    According to the report emailed to our newsroom a while ago, major airline operating in the country complained of their inability to get aviation fuel to fly their planes and where it is available the cost is prohibitive thus forcing the airline operators to increase prices of air tickets.

    One of the airline operators who spoke to our reporter at the airport of Lagos said, “As I am talking to you now Jet A1 has increased to N240 per litre from N210. Honestly, it is not easy at all. We are now running after marketers to get fuel.” 

    Information obtained by our reporter in Lagos, Nigeria shows that Medview Airlines takes between N86,000 and N88,000, Arik Air charges between N70,740 and N76,000 while Dana Airlines takes N73,000 for a round trip ticket on the same route.


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  • Again, Naira falls abysmally low on Friday (Exchange rate outrageous!)

    16/Dec/2016 // 1733 Viewers

     

    PARIS, DECEMBER 16, 2016: (DGW)  Again the Nigerian Naira reportedly fell on Friday on the parallel as the US dollar scarcity worsens ahead o the f Christmas season, information reaching DailyGlobeWatch has confirmed.

    The Nigerian currency exchanged at N487 to a dollar, from N485 it had maintained for close to two weeks, while the Pound Sterling and the Euro closed at N605 and N510 respectively.

    At the Bureau De Change (BDC) window, the Naira closed at N399 to a dollar, CBN controlled rate, while the Pound Sterling and the Euro traded at N606 and N515 respectively.

    The Naira remained stable at the inter-bank market, trading at N305 to a dollar.

    Traders said that the demand for dollars was putting pressure on the Naira. (NAN)


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  • Buhari suffers major national disgrace, as another APC policy fails woefully

    16/Dec/2016 // 1450 Viewers

     

    (POST NIGERIA) Some Graduates recently enlisted for the Federal Government’s N-Power Programme in Oyo State, have decried their non-posting, to start the work the government claimed it had secured for them.

    They also urged the Federal Government, especially the office of the Vice President, to investigate, and save them from the improper ways some Local Government Areas in the State are currently managing the scheme.

    Recall, that the Special Adviser to the Vice President, Professor Yemi Osinbajo, Mr. Laolu Akande, had in recent reports, claimed that the 200,000 unemployed youths across the 36 States, and the Federal Capital Territory, FCT, have been posted to their respective places of work.

    He claimed that those employed, will start work and receive their stipend from December 1.

    However, those who spoke at different locations on Thursday, in Ibadan, the Oyo State capital, commended the Federal Government’s efforts to employ 200,000 youths in the first batch of the employment scheme, out of the 500,000 the government promised to employ.

    They however, condemned a situation where none of them have bearing of when, and how to be placed in the scheme.

    They also lamented the way some Local Government Councils in the State, are managing the scheme.

    One of the N-Power beneficiary, who identified herself as Yinka, said she was surprised that in Lagelu Local Government Area, Iyana Offa, there was no one to attend to them, during the submission of their credentials, except serving NYSC corps members.

    She said: “How can serving corpers be given the task of screening us, when some of us have graduated even before some of the serving corpers got admission. It is very ridiculous that in Lagelu Local Government Area, it is the serving corpers that are screening us. It is like when you said the children should screening their parents. Very bad.

    “Even though we have submitted our details, up till now we have not been called, placed, or posted to where we suppose to work.

    “Even, the process is too cumbersome, where they ask unnecessary documents, such as NEPA bill, and National ID card. What does NEPA bill has to do with verification, when they have seen our names and other things on their list. They have the list already, do they need to ask for NEPA bill, before they screen us”.

    Another beneficiary in Akinyele Local Government Area, who simply gave her first name as Kehinde, a graduate of the Polytechnic in Ibadan, said: “Yes, we have submitted our print out, but up till now, we have not been posted. What is worrisome, is the government said we have started to work, they promised that we will collect salary of this month of December, I pray it works out, though, we have not heard anything from them”.

    Similarly, another beneficiary in Ibadan North East Local Government Area, Mr. Abass said: “I don’t know why Oyo State is different, I have a friend who is in Osun State, he said he has been posted, but we are yet to be posted. Even the way this thing is being handled is bad”.

    In his own submission, another yet to be placed beneficiary, Mr. Femi from in Akinyele Local Government Area, urged the State Government, to put the necessary machinery in place, to ensure that it is done properly, so that the benefit will not elude them.


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  • JUST IN: Again, returning INVESTORS 'flee' as IMF releases another damning report on NIGERIA

    16/Jan/2017 // 916 Viewers

     

    The International Monetary Fund (IMF) has blamed the double digit inflation rate in Nigeria on the challenges around foreign exchange (forex), adding that efforts of the Central Bank of Nigeria (CBN) to defend the naira by forex rationing crumbled like soap bubbles.

    About a year ago, its Managing Director, Christine Lagarde, met with the major players in the Nigerian economy, including President Muhammadu Buhari, Finance Minister, Mrs. Kemi Adeosun, and CBN Governor, Godwin Emefiele.

    The IMF chief canvassed the removal of fuel subsidy and naira devaluation— both of which have been done.

    In its policy paper on macroeconomic developments and prospects in low-income developing countries (LIDCs), unveiled at the weekend, IMF said the failures in the economy were due to “delayed/poorly managed policy adjustment”.

    “There were sharp movements in currencies across many LIDCs during 2015. Further sizeable depreciations were recorded in 2016 in commodity exporters under stress,” the paper read.

    IMF said this includes “Mongolia, where reserve levels have been significantly eroded, and Nigeria, where efforts to support the naira through foreign exchange rationing have gradually crumbled”.
    “Inflation has risen to troubling levels in a handful of cases, concentrated in sub-Saharan Africa. Among commodity exporters, large exchange rate depreciations were a key contributor in Mozambique, Nigeria, and Zambia”.

    The IMF blamed the failures on lack of business confidence in conflict zones and delay in policy adjustment by the country’s leadership.
    “Domestic policy failures cited include delayed/poorly managed policy adjustment to lower commodity prices — as in Nigeria, where foreign exchange rationing adversely affected debt service capacity of many corporates.

    “Nigeria (is) affected by Boko Haram-led attacks in the north and disruptions to oil production in the Niger Delta region. Aside from direct damage and increased security outlays, conflict situations undermine business confidence, investment, and tourism.”
    The fund also said Nigeria’s financial developments affected neighbouring countries like Chad, which also plunged into a recession, and Benin.

    “External developments have predictably played an important causal role in the emergence of financial sector stress, through falling commodity prices, declining remittances, and adverse spillovers from neighbors — as in the impact of Nigeria’s economic difficulties on Benin.
    “That said, teams’ assessments indicate that poor macroeconomic policies and weak supervision have also played a significant contributory role,” IMF said.


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  • Marriages broken, suicide rate increase among MMM customers as SERGEY MAVRODI absconds from Nigeria

    17/Dec/2016 // 853 Viewers

     

    Millions of Nigerians are counting their losses after the announcement of suspension of activities by online banking outfit, Mavrodi Mondial Movement (MMM), to which many Nigerians have committed their hard-earned money. In an announcement that sent shock waves than the spines of millions of MMM customers across the country, the online banking outfit said it had decided to suspend operations for one month from December 12, 2016 to January 12, 2017.

    Similar operations of the outfit in countries like Russia, Zimbabwe and South Africa were said to have ended unceremoniously after people had committed huge sums to it, disrupting families, bringing marriages under severe pressure and leading many individuals to commit suicide. The ugly experiences of the aforementioned countries at the hands of MMM has naturally led many to conclude that Nigeria is about to have its own share of the bank’s bitter pill.

    The current crisis has exposed many family members who had been patronising the outfit secretly, and the consequent feeling of betrayal has led a woman in Port Harcourt to declare an end to her marriage with her husband who had been patronising MMM without her knowing about it until the bubble bust.

    Margret departed her matrimonial home on Wednesday after discovering that her husband was among the victims of MMM after previously denying having anything to do with it.

    Margaret said: “I am leaving because I cannot live with a liar. He told me to lend him my business money, saying that he was going to pay back after one month. I warned him that he should not join the MMM, and he said he was going to use the money to execute a contract.


     
    “Seeing his body language, after one week, I told him to promise me that the money I lent him was not for MMM. He said he could not lie to me and vowed that he would never have anything to do with them. But I was surprised when the news of the suspension of MMM’s operations broke yesterday, he went out, got himself drunk and came back to tell me that he was finished.

    “It was then that I realised that my husband was into MMM, He borrowed N500,000 from me. He is a minister in our church. I have just told the pastor everything. I also told the pastor that I’m not going to continue with the marriage again.”

    Mrs. Chiamaka Udu, who said she had invested N2 million in the venture, told our correspondent during the week that she was going to die.

    She said: “Look I am going to die. I just provided help for some persons as directed by the website. Now I’m hearing this kind of news. I will not agree. How can I see them? I’m going to die. Tell me what to do now. Please sir, what do you think I should do? They paid me recently and I added all the money I have to provide help. They said they are coming back in January, but how sure?”

    Another victim, Mr. Geoffrey Nnamdi, said: “Please, I don’t want to say anything. All I believe is that God will make a way. You can see me now I’m drinking to forget about it. If they reopen in January, I will thank God. If they fail to open, I will bear it. At least I will drink more.”

    But another MMM customer, who identified himself simply as Mr. Jude, believes that what the outfit had taken from him was little compared to what he had taken from it.

    He said: “We were the one that started MMM. While others are crying today, we are celebrating because I have since recovered my money. The money with them now is just a change. So if they want to take it, they should go ahead. But to be frank, I don’t think they are running away. People are just panicking.”


     
    Mr. Chinedu Ejimadu, an MMM referee who said he had registered about 40 people, said that people were only panicking, adding that many people were ignorant of the letter posted on the website.

    He said: “I can quote the letter for you. The letter said as usual, in the New Year season, the system is experiencing heavy workload. Moreover, it has to deal with the constant frenzy provoked by the authorities in the mass media.

    “Things are still going well. The participants feel calm. Everyone gets paid. As you can see, there hasn’t been any payment delay or other problems yet. Moreover, there are almost three weeks left to the New Year. Hence on the basis of the above mentioned, from now on, all confirmed Mavro will be frozen for a month.

    “The reason for this measure is evident. We need to prevent any problems during the New Year season, and then when everything calms down, this measure will be cancelled, which we will definitely do.

    “Now tell me, what is wrong in this letter? But Nigeria media is today celebrating with the news, which is bad. This will make some ignorant people to feel bad or even commit suicide.”

    A particularly pathetic case is one involving a primary school teacher and mother of three and her bedridden husband. Her son, who gave his name as Sopulu, said they had received the pension of his bedridden father from the Pensions Commission.

    Sopulu said: “The money came directly to our mum who is the next of kin, according to the form filled by our dad. Mummy’s friend, who lives four houses away from us, convinced her to invest the money in MMM. This she did after deducting an amount for our immediate needs. The rest she sent to MMM and here we are.”

    He said they could not tell their dad about the development because of his precarious health condition. “To be fair to our mum, we were not against her investing the money in MMM. Even now that the venture seems to have collapsed and she has developed high blood pressure, we are giving her all the support, hoping that it shall be well by January as they promised.”

    Sopulu is a 400 level engineering student of Enugu State University of Science and Technology (ESUT).

    Lamentations in Anambra

    In Anambra State, there have been lamentations among many MMM customers, some of who invested close to N10 million and had been using the proceeds to build houses.

    A woman who was said to have registered one million naira cried all day, having failed to heed the advice of her husband not to venture into it. The husband (name withheld) told The Nation that his wife disobeyed him by registering one million naira in the MMM venture but had since been regretting and crying her eyes out.

    But a cyber café operator at Aroma Junction, Awka, Mr. Martin Okafor, told The Nation that he had no regrets being a part of the MMM saga. He said the business outfit was meant to help the poor as recession had hit the country, adding that the business would resume on January 12, 2017.

    The reason it was shut down, according to Okafor, was to stop people travelling for Christmas not to upload fake tellers and to stop the imbalance of the system during the Yuletide, getting help than providing it.

    Panic in Ekiti

    In Ado-Ekiti, anxious customers trooped to various banks to withdraw cash. They lined up for several hours inside the banking halls and in front of automated teller machines (ATMs) but went home frustrated.

    Frustrated MMM customers were noticed at banks located in areas like Ijigbo, Ajilosun, Okeyinmi, Okesa and Secretariat Road, which has the largest concentration of banks in Ado Ekiti, the state capital. The same scenario played out in towns like Ikere, Ikole, Ilawe, Aramoko, Igede, Omuo, Ifaki, Oye, Ise and Emure.

    An investor in MMM, Tunde Ogunsakin expressed frustration at the turn of events, saying he found it difficult to believe that the financial network would return on January 12 as promised.

    “My brother, this development came to me as a rude shock because I just recently invested about N350,000 from my textile business hoping to reap returns very shortly, but see what has happened now.”

    Another MMM investor was heard telling his friend: “My parents warned me against investing my money in MMM but I told them that nothing ventured nothing gained. But you can see now that the risk taken has backfired.”

    Segun Asubiojo, who declined to reveal the amount he invested, said: “I logged into my personal system only to find a message that all my confirmed mavros had been frozen till January 2017 due to overload.

    “This will be detrimental to the community because Nigerians are easily scared and they will panic so badly that no one would even portray fraudulent behaviours to Nigerian population hindering newcomers from joining.”

    A student, Dupe Esan said: “When we started putting our funds in the scheme, one could get assistance within seven days. But this later changed to 14 days. And when we were shut out, the waiting period was 21 days.

    “What it simply means is that the number of people in need of help has outnumbered the number of people joining. Right now, we have nowhere to get our money which we invested.”

    In Warri where many residents have joined the scheme, the reactions to the freezing of the scheme has been diverse. While some are still very optimistic of a comeback, others, who are also waiting to ‘get help’, see it as the back side of a risky venture.

    Checks around Warri showed that many residents, especially those in the lower cadre of the economic scale, have invested varying sums. Some of the investors have put their funds in at multiple times, hoping to ‘Get Help’.


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  • CBN lifts manufacturing, power with $660m forex disbursements

    17/Nov/2016 // 154 Viewers

     

    The Central Bank of Nigeria (CBN) has disbursed $660.17 million to 1,342 manufacturers, power and other real sector operators for the procurement of raw materials, plants and machinery, foreign exchange (forex) utilisation report by apex bank has shown.
    The funds, sourced from the CBN and sold to the beneficiary customers at the official rate of about N30.5 to dollar, were handled by commercial, merchants and non-interest banks using the interbank market.

    The funds were specifically used for the procurement of raw materials, plants and machinery as specified in the Letters of Credit (LCs) under which they were sourced, and in-line with the CBN-stipulated import approval list.

    The forex utilisation report was  meant to promote transparency and accountability on the side of the lenders which act as a link between the regulator and the forex users.

    The report, which was for September, showed that large part of the funds went to 20 companies, with Dana Motors ($12,877,278.81), Nigeria Breweries ($6,240,000), A-Z Petroleum Products Limited ($12,962,425.04), Rahamaniya Oil & Gas ($19,220,000), Dag Motorcycles Industries Nigeria ($27,964,123) and Seven-Up Bottling Company Limited ($5,882,293.67) benefiting.

    Others are Biswal Limited ($6,779,858.11), HIS Nigeria Limited ($10,006,405.57), IPI Power Tech ($7,405,595.55), Promasidor Nigeria Limited ($5, 122, 472.80), Saba Steel Industries Limited ($11,147,478.58), and Crown Flour ($10,254,558). Also in the list are African Foundries Limited ($4,020,679.36), Parco Enterprises Limited ($6,558,320), Prime Plastochem Nigeria Limited ($5,668,012.75), TempoGate Oil & Gas ($7,145,279.25), Saro Agro Sciences Limited ($10,106,833.54), Midland Rolling Mills Ltd ($9,895,653.60), Flour Mills of Nigeria Plc ($11,968,016.74) and Matrix Energy Limited ($14,872,223.91).

    The report also showed the raw materials that the beneficiaries used the funds to import. Dana Motors Limited used its funds for import of Kia brand of vehicles in semi-knocked; Nigeria Breweries Plc for malt row winter specifications while for Dag Motorcycles Industries Nigeria Limited, they were used for  Bajaj vehicles spare parts import.

    The African Foundries Limited used its funds for the importation of industrial raw materials; Parco Enterprises Limited for the importation of hard wheat and  Seven-Up Bottling Company Limited, for the importation of 273 units of Pesi-Cola, the report showed.

    A-Z Petroleum Products Limited, Rahamaniya Oil & Gas Ltd, TempoGate Oil & Gas for gasoline import while for Biswal Limited, the funds were  used for Yaanmar engines import.

    HIS Nigeria Limited used its funds for telecom plant and equipment import while for IPI Power Tech it was for automatic board panel import. Promasidor Nigeria Limited procured Cowbell powder with its funds while for Matrix Energy Limited it was for unleaded gasoline import among others.

    The CBN said providing forex to the manufacturers and other key players in the economy was meant to enable it keep its promise to strengthen the real sector of the economy by ensuring that 60 per cent of available forex are used to procure industrial inputs, such as raw materials, machine spare-parts, telecom equipment, plastic raw materials, agricultural machines and pre-payment meters, amongst others.

    The CBN has also expressed its commitment to ensuring that manufacturers of goods for which Nigeria does not enjoy comparative advantage, are able to get LCs to import the required materials for their businesses.

    The exercise, the CBN insists, would provide a new lease of life in the manufacturing sub-sector, and also boost industrial output and employment. The regulator said it will continue to support and facilitate hitch-free procurement of necessary industrial inputs to sustain productive activities in the manufacturing sector.

    The gesture, it said, buttresses its commitment to rejuvenate and sustain industrial activities and retention of jobs.


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  • Dollar scarcity: Banks suspend ATM card usage abroad

    17/Oct/2016 // 146 Viewers

     

    Deposit Money Banks have begun suspending their Automated Teller Machine cards (debit and credit) from working overseas as dollar scarcity continues to hit the economy badly.

    Stanbic IBTC Bank, Standard Chartered Bank Nigeria and Guaranty Trust Bank on Friday announced the suspension of their overseas ATM card services.

    Also suspended by the banks are online transactions priced in foreign currencies. This means that customers of the banks will no longer be able to use their debit or credit cards to make online transactions that are denominated in dollars, euros, pounds sterling and other foreign currencies.

    In a note to its customers on Friday entitled: ‘Suspension of international transactions on naira debit cards’, Standard Chartered Bank Nigeria said, “Please be informed that effective immediately, your naira denominated debit cards will no longer be functional for international transactions.

    “This is due to the current volatility in the foreign exchange market. Your naira-denominated debit cards can only be used for local transactions at Point of Sale terminals, Automated Teller Machines and online for Nigerian retailers.”

    In a text message to its customers on Friday, Stanbic IBTC Bank similarly said, “Dear customer, kindly note that effective October 18, 2016, your ability to carry out transactions priced in foreign currency using our naira debit and credit cards will be suspended. We apologise for any inconvenience in this regard.”

    Both Stanbic IBTC Bank and Standard Chartered Bank Nigeria advised customers seeking to carry out transactions denominated in foreign exchange to apply for dollar or pounds sterling debit credit cards. According to them, the dollar or pounds sterling debit or credit cards will be linked to the customers’ domiciliary accounts.

    GTBank also announced the suspension of the ATM cash withdrawal service abroad. The lender also slashed its monthly ATM forex transactions to $100.

    In a notice to customers on Friday entitled: ‘Review of the international spending limit on your naira Master Card’, the bank stated, “We write to inform you of the monthly spending limits currently applicable when using your GTBank naira Master Card for international payments via PoS and online. Previous monthly limit via PoS and online was $250; the new monthly limit via PoS and online is now $100. Kindly note that ATM cash withdrawal on your naira MasterCard is now only available in Nigeria.”

    The development will make students studying in the United Kingdom, United States, Canada, Ukraine and other parts of the world to face more challenges getting their monthly stipends from their parents.

    Most of the students had relied on the ATM card withdrawal to get their monthly stipends from their parents before now.

    This means customers seeking to do foreign transactions will have to open domiciliary accounts and fund same with dollars, pounds or euros purchased from the parallel market at the prevailing exchange rates.

    Although other banks have yet to announce the suspension of ATM card services abroad, findings by our correspondent showed that many lenders had reduced drastically the amount that customers could withdraw via ATMs abroad.

    This is despite the fact that the banks have in the past few months reduced the monthly total amount of forex-denominated transactions that customers can do, using their naira debit or credit cards via ATMs and PoS terminals abroad as well as online payments or transactions.

    As of last week, findings showed that some banks had slashed their daily ATM withdrawal limit abroad from the $300 advised by the Central Bank of Nigeria’s Bankers Committee to $100 due to their inability to source for dollars to fund the transactions.

    Unconfirmed sources said some banks had reduced their monthly ATM withdrawal limit abroad to $100.

    Top banking officials close to the development told our correspondent under the condition of anonymity that banks were increasingly finding it difficult to fund their foreign-currency denominated services, especially online forex transactions and overseas ATM withdrawals, as well as PoS usage overseas by customers.

    A top official of Deposit Money Bank, who spoke on the condition of anonymity, told our correspondent on Sunday, “We have to stop the services. Formerly, we were sourcing forex at high prices and we were selling same to customers at similarly high prices. But the situation is now tense; the dollar scarcity has assumed a new dimension.

    “This is coupled with the fact that some bank customers are using the platforms to do round-tripping. It is high time we stopped it.”

    The decision by some banks to suspend overseas ATM card services and online forex transactions came barely one week after the CBN, through the Bankers’ Committee, raised concerns about what it called the indiscriminate and suspicious manner in which some bank customers were spending dollars and other foreign currencies abroad through their naira debit cards.

    Consequently, the regulator said it had concluded that bank customers who spent above the $50,000 annual forex limit it imposed would be barred from the nation’s forex market.

    The Director, Banking Supervision, CBN, Mrs. Tokunbo Martins, stated this after the 329th Bankers’ Committee meeting held at the apex bank’s office in Lagos on Wednesday.

    She said, “In the CBN’s move to manage the demand for forex, there was a rule that was put in place that people were not allowed to withdraw more than $50,000 annually on their naira debit cards.

    “For a while, the policy has been abused by bank customers, and the CBN has not taken any step to that effect. We have decided to take the step now to enforce the rule. So, we want members of the public to remember that that rule is in place.

    “All your accounts are linked to a particular Bank Verification Number. Now, that the BVN only allows you to withdraw only $50,000 per annum, if people continue to breach that rule, they will lose access to forex market.”

    Dollar scarcity has been ravaging the economy after the price of crude oil, Nigeria’s main forex earner.

    It crashed from $110 per barrel to around $44 per barrel from June 2014.

    The nation’s foreign exchange reserves have been depleting since then.

    On Wednesday, the country’s external reserves hit an 11-year low of $24.21bn, the latest data posted on the CBN website showed.

    This means a limited amount of dollars will be available at the official interbank spot market, fuelling concerns over another round of depreciation of the naira.

    The foreign exchange reserves fell by $600m in two weeks before shedding $1bn in four weeks, the CBN statistics showed.

    An expert at Ernst and Young, Mr. Bisi Sanda, lamented on the dollar pressure on the economy.

    He said the Federal Government needed political will to address the issues fuelling dollar scarcity on the economy.

    He said, “The issue of dollar is very important to the economy. It is predicated on the fact that we are a dollar-denominated economy. It appears the government is still begging issues as far as the import-dependent state of our economy is concerned.

    “We need to fix issues, we need to go back to the drawing board. The CBN said between 2010 and 2016, a total of $11bn was sold to the Bureaux De Change annually. We need to plug leakages in this area.”


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  • President Buhari admits own failures, worried about rising inflation and falling foreign reserves

    18/Aug/2016 // 498 Viewers

     

    PARIS, AUGUST 18, 2016: President Muhammadu Buhari has for the first time admitted his own failures regrding his inability to proffer solutions to the myriad of problems confronting the country.

    He made the stunning disclosure in a symposium  while speaking at the Association of African Central Bank titled Unwinding Conventional Monetary Policies' 

    The President said he is very worried  about the  rising inflation, restrictions in capital flows and depleting forex reserves.

    His words:

    “The region is confronted with several global and domestic economic challenges. Most worrisome is the slowdown in growth, weakening global demand, rising inflation, restrictions in capital flows, rising debt levels, increased exchange rate volatility and depleting external reserves,” Buhari said.

    “Those of us who rely on only natural resources such as Nigeria, Angola, South Africa, and Mozambique have been hit the hardest. We have also had to contend with the effect of the Ebola Virus Disease, which struck some countries in the West-African Sub-region.

    “Furthermore, China, a major trade and business partner to a number of African countries is currently slowing down as it remodels its economy, sparking fears of further weakening.”

    He said “African Central Banks have been at their best in keeping African economies afloat through proactive and effective combination of conventional and innovative monetary policies”.

    “I urge you to continue to look for original homegrown solutions, not to rely on ‘fit for all purposes’ prescriptions handed down from abroad. The world is a dynamic place and with innovation, we can survive.

    “In Nigeria, the Central Bank of Nigeria has for many years spearheaded economic stimulus measures through specific intervention programmes. I think these measures should be sustained through good times and through difficult times.

    “Distinguished Ladies and Gentlemen, we fully understand that monetary policy alone is not sufficient to bring about desired economic growth. We must carefully balance monetary and fiscal policy measures.”

    “For us in Nigeria, while recognizing the challenges we are confronted with and the need to surmount them, we are determined to diversify the economy away from excessive reliance on oil and other primary products,” Buhari added.

    “Consequently, we are taking measures and implementing policies that would ensure we are self-sufficient, generate massive employment for millions of our youth, and explore our untapped human and natural resources.

    “We shall also embark on export and production diversification steps including investment in infrastructure; promotion of manufacturing through agro-based industries and expansion of Regional Trade.

    “All these would involve integrating the informal economy into the mainstream and providing funds to Small and Medium Enterprises.  We shall also continue, with greater determination and focus to pursue our goal of ensuring improved security for our country and its citizens, and without letting up on our fight against corruption and terrorism.

    “Side by side, with economic stimulus measures, we must intensify our surveillance and give guidance to the operations of our financial institutions to reverse the trend of illicit flows of funds out of Africa.

    “We should all be serious in putting place measures aimed at ensuring that the proceeds of these illicit flows are repatriated to their countries of origin with minimal bureaucratic hitches.”

    The symposium was attended by Godwin Emefiele, CBN governor, and many other central bank governors across Africa.


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  • Global recession puts pressure on Nigeria’s reserves

    18/Dec/2015 // 128 Viewers

     

    The National Economic Council has urged state governments in Nigeria to adopt stringent conservative measures in handling their finances for the next three years.

    Minister for Budget and National Planning, Udoma Udo Udoma disclosed this while briefing State House Correspondents at the end of the monthly meeting.

    He said the Council reached the decision in order to address the dwindling resources available to government at all levels.

    The National Economic Council meeting, which reviews the position of the economy and looks at options available to government for improvement was presided over by the Vice President, Yemi Osinbajo.

    Addressing newsmen after the meeting, Budget and National Planning Minister Udoma Udo Udoma said the Council emphasized the need for the federal and state governments to work closely on economic matters.

    “We briefed the council about government’s revenue and expenditure projection for the next three years, our view in terms of the global outlook and macro economic framework and we also urged states of the country to look towards improving their internally generated revenue and blocking financial leakages in the system. We emphasized the need in planning for the economy, for the federal government and the states to work very closely together,” he said.

    Taraba state Governor, Darius Ishaku said the country’s excess crude account gained an interest of over 599 thousand dollars, and the current balance of the account stood at 2.2 billion Dollars.

    Sokoto State Governor, Aminu Tambuwal also briefed State House Correspondents at the meeting.

    He said the Central Bank Governor gave an update on current challenges being faced as a result of the fall in the price crude oil, which he said had affected Nigeria’s foreign reserve.

    “The Governor of the Central Bank gave an update on monetary policy measures and foreign exchange management strategy. He reported to the Council about many challenges being faced as a result of the global economy recession. He also reported that a drop in oil prices has caused serious pressure on Nigeria’s reserve, which currently stands at 29 billon Dollars,” Tambuwal explained.

    He said as a monetary policy, the Central Bank Governor announced the adoption of the use of pre-loaded debit cards by travelers instead of cash exchange demand, to reduce the buying of dollar cash for illicit businesses.

     

     

    Source: VON


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  • Nigerian economy improving, showing signs of quick recovery - Analysts

    18/Jul/2016 // 376 Viewers

     

    Nigeria’s economy is still Africa’s number one, notwithstanding the 30 per cent drop in the currency last month knocked almost $150 billion off its Gross Domestic Product (GDP).

    South Africa, which has regained second place after overtaking Egypt, is closing the gap, although its economy also shrank with the   weakening of the rand. The gap between both economies has narrowed to $60 billion from $170 billion at the end of last year.

    The International body said the economy could contract, even as Renaissance Capital Limited’s analyst, Yvonne Mhango urged the government to address the sundry economic issues facing the country.

    Last month, with the CBN’s forex  policy,  the naira depreciated after a 15-month currency peg curbed investment and contributed to a 0.4 percent contraction in the economy in the three months through March.

    According to the IMF, the four-month delay in passing the record N6.1 trillion ($21.6 billion) budget, meant to stimulate growth  by spending on roads, ports and electricity generation, will reduce its efficiency.

    The administration’s vision to diversify the economy which relies on oil for more than 70 percent of revenue, has not translated into big investments, and infrastructure to support local manufacturers doesn’t exist yet, according to Mhango.

    She regretted that not much has been heard enough on how the government planned to improve and make the business environment more conducive. She added in a statement that there has been little color on fiscal policies to drive the growth agenda.

    Nigeria is facing a revenue squeeze as oil earnings fail as a result of militancy. The naira peg at 197-199 per dollar, compared with an unofficial exchange rate of 340 per dollar just before the currency was allowed to float, caused fuel shortages for months as businesses struggled to access foreign currency to place orders.

    “It is not sufficient to focus on going from a de facto peg to a flexible regime,” IMF’s Resident Representative in Nigeria, Gene Leon, said.

    “The authorities need to be announcing at the same time how the change affects fiscal policy, how is it impacting inflation, balance sheets of corporates, balance sheets of the banks, and how the increased fiscal receipts allows the undertaking of development,” he stated in a statement.


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