At the backdrop of sustained supply gap in Nigeria’s foreign exchange (forex) market, the local currency, Naira, has hit a new low at the weekend, trading N803.9 to a dollar in the Investors & Exporters (I&E) window which is the official forex market and N822/$ in the parallel market.

Financial Vanguard’s findings indicated a 6.6 per cent decline in volume of dollars traded in the I&E window as dealers said they were disappointed that the increase in supply they expected last week did not materialize.

A week-on-week trend in the parallel market shows a 5.5 percent depreciation to N822/$ as against N779/$ closing rate previous week.

In the I&E window, the local currency depreciated 3.9 percent W-o-W to N803.9/$ from N776.9/$ the previous Friday.

Financial Vanguard currency monitor shows that after the initial massive depreciation on June 14th, 2023 when the Central Bank of Nigeria, CBN, introduced reforms in the market, exchange rate had remained volatile with daily fluctuations until the record low was hit last weekend.

The reform majorly eliminated multiple exchange rates and reintroduced the ‘Willing Buyer Willing Seller’ market model in the I&E window.

Since the new measures were introduced, the Naira has depreciated cumulatively in the I&E window and parallel market by 70 per cent (N321.23) and 7.0 per cent (N58) respectively.

Meanwhile last week’s closing rate also indicated that the parallel market margin that narrowed to almost elimination following the new policy has started widening.

While the measures announced by CBN was aimed at increasing transparency and boosting confidence in order to attract increased forex supply, forex market operators who spoke to Financial Vanguard said the expected increase in supply is yet to materialize, adding that this, coupled with rising demand, and hoarding, are the factors driving the renewed depreciation of the naira in both segments of the forex market.

Dealers lament

Speaking to Financial Vanguard, Mr. Ahmed Danjuma, a parallel market operator in Lagos Island, said: “I bought a dollar for N810 and sold for N819 and N820.

“People are demanding for the dollar. It is not easy to get dollars from the bank because it is very scarce.

“When you have access to dollars the way buyers demand for the currency is like when you take food to the prison.

“The supply is very low. Even Bureau De Changes have little access to the foreign currency.”

Similarly, Mr. Umoru Mohammed, a parallel market operator at Ikotun area of Lagos, said: “Dollar was very scarce today (last Friday) as we could hardly have access to it even from the banks.

“Every day the demand for dollars increases but the supply is very little. This is really hindering business especially for transactions requiring dollars.”

President, Association of Bureaux De Change Operators of Nigeria, ABCON, Aminu Gwadabe, in a chat with Financial Vanguard on the situation, stated: “The situation is tough, it even traded at N822 in some segments today (last Friday).

“You know now the restrictions have been removed, there is also competition and surge in demand. Most people are still holding assets in dollars, and we have not seen significant inflows even from the side of the investors.”

Turnover, external reserves fall

Reflecting the paucity of forex supply amidst rising demand, the volume of dollars traded (turnover) in the I&E window fell by 6.6 per cent or $57.06 million to $807.92 million in the first half of July, from $864.98 million in the corresponding period in June.

Following the same trend, the nation’s external reserves fell by $646 million or 1.9% in one month ending July 13th. Data from the CBN showed that the reserves fell to $34.047 billion on July 13th, from $34.693 billion on June 13th.

Analysts’ insight

To reverse this trend and achieve the expected increased forex inflow, analysts said the CBN must introduce further reforms including removing forex restriction on 43 items and incorporating BDCs into the I&E window as well as clearing the forex demand backlog.

In this regard, Managing Director/CEO Financial Derivatives Company, Mr. Bismarck Rewane, in his Monthly Economic News and Views, said: “In the short term the CBN must tighten monetary conditions, eliminate forex restrictions (Ban on 43 items on the I & E window) and move effective interest rates towards the rate of inflation.”

The above, he added, ”must be complemented in the long term with export-oriented policies, elimination of structural bottlenecks that constrain production and export activities”

In the same vein, analysts at Lagos based CardinalStone Research, in their outlook for H2’23, said: “While the current policy reforms bode well for foreign providers of capital, additional investments into the country will also be partly dependent on the following: 1) the willingness of the CBN to clear existing backlogs, which is estimated at $2.5 – $3.0 billion; 2) the FX market reflects a genuine “willing buyers and willing sellers” structure and supply begins to improve notably. If the 2 highlighted points are achieved, we see legroom for a surge in foreign inflows from the multi-year lows of $5.3 billion in 2022 to about $12 billion over the next one year.”

On this Gwadabe averred that the CBN must increase participation in the official market to include BDC who can play the moderating role needed to stabilise the market.

“The trend will continue except if there is a turnaround, and there are changes in the I&E to bring in more players like BDCs to enhance competition. Once you have competition there will be stability, there will be availability

“They need to wear their thinking cap, because it is like the CBN is not in control of the market, it is the FMDQ. “We are still appealing to the CBN to include BDCs in order to increase liquidity, transparency, and ensure we stop the volatility in the market competition.”

Corroborating this position, a former top management staff of the CBN, who spoke on condition of anonymity said: “We must find a way out to stabilise the exchange rate and still keep the third leg (BDC) as part of the moderator of the market.

“We must eliminate abuses, corrupt practices and police the market for sustainability. We also need to restructure the BDC to trade in the market and not by allocation to moderate the rates.”

According to analysts at Cowry Assets Management Limited, “The Naira hit a new low in 2023 in the face of pressure demand for the dollar across various forex segments as forex demand and supply mismatch continue to play as an underlying driver with more backlog of unmet forex demand.”

The candidate of the Labour Party in the February 25th presidential elections, Peter Obi, has stated that he will not be marking his 62nd birthday anniversary on Wednesday, 19th July, 2023 over the state of Nigeria.

Obi in a series of tweets posted on his verified Twitter handle on Monday urged his family, friends and members of the Obidient movement to donate whatever gift they have for him to hospitals, orphanages, and homes for the aged and people with disabilities.

He added that, on his birthday, he plans to raise money for schools and hospitals while spending his time and resources with ‘less fortunate’ people around him.

The LP candidate maintained that Nigerian leaders must lead by example and make sacrifices for the betterment of the country.

“Wednesday 19th July 2023, marks my 62nd Birthday. While I remain immensely grateful to God for His infinite mercies, I still maintain my decision of over 20 years, that I will not celebrate my birthdays in today’s Nigeria, with the current deplorable state of the nation.

“Let me humbly and respectfully appeal to all those who desire to celebrate me with any kind of gifts, to look around them and extend such gifts to the people in need, especially in these difficult times.

“Those who wish to do more can visit various IDP camps in different parts of the country. I intend to do the same thing. Aside from sharing my time and resources with the less fortunate people around me, I plan to raise money for schools, hospitals, etc.

“I have already said that the sacrifices for a better Nigeria must now start from us, the leaders and the well-placed. The state of our nation must give us cause to pause and ponder. There is far too much insecurity, violence, and bloodshed.

“I want to celebrate in a Nigeria that works for all and which Nigerians can be proud of. This, and not my birthday, is the true celebration that will be beneficial to all Nigerians,” he said.

The Deputy National Chairman, Senator Abubakar Kyari, (North) of the ruling All Progressives Congress (APC), has emerged as acting National Chairman of the ruling party.

This comes after Senator Abdullahi Adamu’s resignation as the party’s national chairman.

In accordance with the party’s constitution, the deputy national chairman from the zone would take over in an acting capacity if a national chairman resigned.

Kyari led some members of the National Working Committee (NWC) into a meeting currently taking place at the party’s national secretariat in Abuja amid tight security.

Kyari was accompanied by the Deputy National Chairman (South), Emma Enukwu; the National Vice Chairman (North-West); the National Vice Chairman (North-East); Salihu Mustapha; the National Vice Chairman (North Central); Issacs Kekemeke; Ejoroma Arodiogu; and the Deputy National Secretary, Barr. Festus Fuanter.

Born in Borno State on January 15, 1960, Kyari is the son of the late Brigadier Abba Kyari, a former military administrator of North Central from 1967 to 1975.

In 1986, he graduated with a bachelor’s degree from the University of Tennessee Martin in the United States. He then enrolled at Webster University in St. Louis, Missouri, in 1989 to pursue a master’s degree in business administration.

In 1998, Kyari was chosen to serve as a representative for the now-defunct United Nigeria Congress Party (UNCP). Between 1999 until 2003, he was elected to the House of Representatives on the platform of the now-defunct All Peoples Party (APP).

He served as Commissioner in Borno State from 2003 to 2005 and 2007 to 2011. He was elected to the Senate in 2015 to represent Borno North on the APC platform. He was re-elected in 2019 and continued in office until 2022, when he was named Deputy National Chairman.

The Central Bank of Nigeria (CBN) has increased the tenure of the Managing Director/Chief Executive of Deposit Money Banks to a maximum of 12 years.

The new tenure of 12 years is an increase of two years when compared to the 10 years contained in the previous corporate governance guidelines.

The increase is containes in a circular on the new, “Corporate Governance Guidelines for Commercial, Merchant, Non-interest and Payment Service Banks in Nigeria.”

The circular dated July 13, 2023, was signed by CBN Director, Financial Policy and Regulation Department, Chibuzo Efobi, and addressed to commercial, merchant, non-interest, Payment Service Banks and Financial Holding Companies

Also, the central bank increased the tenure of Deputy Managing Director (DMD/Executive Director (ED) of a bank to a maximum period of 12 years.

The CBN stated that the objectives of the guidelines are to among other things provide additional guidance on the principles, recommended practices, and responsibilities contained in NCCG 2018; outline industry-specific corporate governance standards for banks; and promote high ethical standards amongst operators, while enhancing public confidence.

Also, in line with the Nigeria Code of Corporate Governance (NCCG) 2018, the apex bank further stipulated that no board of a bank shall consist of only one gender.

In a bid to achieve gender diversity and promote a gender inclusive board, it said banks must take a practical approach to women’s economic empowerment in line with Principle 4 of the Nigerian Sustainable Banking Principles (NSBP).

The apex bank explained that the guidelines followed the pronouncement of the Financial Reporting Council of Nigeria (FRCN) for sector regulators to issue sector-specific guidelines on corporate governance for institutions under their regulatory purview.

The CBN therefore, adapted the principles and recommended practices of NCCG 2018 in developing the new guidelines for affected entities, taking into account, the peculiarities of the sub-sectors.

The central bank said the regulation was issued pursuant to the provisions of Section 2(d) of the CBN Act 2007, and Sections 56(2) and 67(1) of the Banks and Other Financial Institutions Act (BOFIA 2020).

Specifically, the regulation noted that where an ED becomes a DMD, a cumulative tenure of 12 years applies and shall not be extended.

Also, Non-Executive Directors (NEDs) (with the exception of Independent NEDs) of a bank must serve for a maximum of 12 years comprising three terms of four years each.

The CBN stressed that to qualify as a NED in a bank, the proposed NED shall not be an employee of a financial institution except where the bank is promoted by that financial institution and the proposed NED is representing the interest of that financial institution.

The guidelines further stated that an executive (ED, DMD or MD/CEO) who exits from the board of a bank either upon or prior to the expiration of his/her maximum tenure, must serve out a cooling period of two years before being eligible for appointment as a NED in the same bank.

The Economic and Financial Crimes Commission has gone after Abdullahi Adamu, the National chairman of the ruling All Progressives Congress (APC), over his inability to account for over N32 billion raised by the party from the sale of forms for the 2023 general election.

A source in the Commission confirmed to THE WHISTLER that operatives were in Adamu’s residence on Sunday night after he reportedly tendered his resignation letter to the Chief of Staff to the president, Femi Gbajabiamila.

The operatives visited his residence located on Ali Akilu Crescent, by Aso Rock Presidential Villa with a search warrant around 8pm.

The source who does not want to be mentioned, said he was not part of the team that went to the chairman’s house, but a colleague who was part of the team told him that they were barred by police orderlies guarding Adamu’s residence from entering the house.

According to him, the operatives were barred despite presenting search warrants as they were told that it was late to grant such a request.

It was reported that Adamu left only N7 billion in the party’s account despite claims that the party account was audited.

Adamu was said to have sought the support of the state chairmen of the party to avoid being removed but failed.

The APC state chairmen were said to have distanced themselves from the alleged action of Adamu because he didn’t carry to hem along in line with the constitution of the party.

The spokesman for the EFCC didn’t respond to calls and messages sent to him as at press time.

Newcastle United continue to be linked with signing Manchester United’s Harry Maguire, who now looks even more certain to leave Old Trafford this summer.

With Eddie Howe looking to add another centre-back to his squad ahead of next season, there have been rumours that Maguire could swap the North West for the North East.

It has been claimed that Newcastle are interested in the England international, with the Magpies open to signing him on loan. That is in contrast to a permanent deal, with Man United looking to receive up to £50million for the defender.

A permanent move would obviously be preferred by the Red Devils, and the latest decision from Erik ten Hag has increased the likelihood of Maguire departing this summer.

Harry Maguire ready to leave Manchester United after Erik ten Hag decision

According to the Sun, Newcastle are still interested in signing Maguire, who is ‘angry’ after being stripped of the captaincy at Old Trafford.

 

 

 

 

It was confirmed on Sunday that Maguire would no longer be the Manchester United captain, despite having the armband since he joined the club for £80million back in 2019.

The report states that he is now ready to leave the club, and that Man United will likely lower his asking price from £50million to £30million.

With Maguire no longer the captain, an exit feels inevitable. It will surely be difficult for him to stay and be led by someone else after four years of leading the players out. Staying would create a difficult dynamic behind the scenes, and could create further issues down the line.

Erik ten Hag’s decision to change his captain is a brave one, and one that could have a negative impact if Maguire is not sold or loaned out.

That opens the door for someone like Newcastle to make a move, who continue to be linked. However, his £190,000-a-week wages make a switch to St James’ Park pretty much impossible.

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Senator Iyiola Omisore, National Secretary of the ruling All Progressives Congress (APC), has been denied access to an emergency meeting of the party’s National Working Committee (NWC) amid reports that he and the APC National Chairman, Abdullahi Adamu, resigned from their respective positions.

Omisore arrived at the party’s National Secretariat in Abuja at about 12:05 PM but was shut out of the ongoing meeting.

Our correspondent observed that Omisore had entered the party secretariat situated at Blantyre Crescent in Wuse 2, shortly after some members of the APC NWC had arrived.

The visibly angry former Osun senator, however, stormed out of the building after being denied access to the conference room by the sergeant at arms.

Some of the APC NWC members who had arrived before him were Senator Abubakar Kyari, Deputy National Chairman (North), Emma Enukwu Deputy National Chairman (South); National Vice Chairman (North-West), Salihu Lukman among others.

When asked by journalists about his reported resignation, Omisore responded: “I’m going to meet with the National Chairman, Adamu, to know why he’s not here.”

“I want to meet Adamu, and find out what’s wrong,” he said before zooming off from the party secretariat.

The meeting is taking place ahead of APC’s National Executive Committee (NEC) meeting which would be attended by President Bola Tinubu.

Omisore’s exit will pave the way for the Deputy National Secretary, Festus Fuanter (Plateau State), to immediately assume office as Acting National Secretary.

A Councilor, Nelson Sylvester, popularly known as Ofunwa, representing Eha-Ulo ward, in Nsukka Local Government Area Legislative Council, Enugu State, has been shot dead.

According to report, he was murdered by gunmen on Sunday night at his residence in Eha-Alumonah.

Although details of the incident are still sketchy, sources disclosed that the assailants stormed the lawmaker’s house and started raining bullets on him.

He added that the Councilor ran into a neighbouring compound, from where his lifeless body was later recovered.

The development has sparked tension in the town and other neighbouring communities.

According to Dailypost, the source, who described the suspected assassination as one too many, added that “it is heartbreaking; it is too hard for us to swallow. We are in deep agony.”

All efforts to reach the Police Public Relations Officer, PPRO, Enugu, DSP Daniel Ndukwe proved abortive as he was yet to respond as of the time of filing this report.

In another tragic development, a Lagos chief, Baale of Lotu community, Epe, Fatai Jubril, 43, has been murdered by another traditional leader,during a land dispute at the weekend.

It was alleged that the Baale(nameswitheld), led some thugs numbering over 40, accosted the deceased and took him in handcuff to the disputed land in Museyo, Epe.

It was gathered that the thugs were accompanied by security operatives in mufti who handcuffed Jubril.

A family source told Journalists that trouble started when Jubril resisted to be handcuffed and he was beaten and subdued by the thugs accompanied y some security men in mufti before taken him to the land in dispute.

The source said that at the disputed land, those loyal to Jubril wanted to secure his release,but serious crisis ensued and there was exchange of gunfiring where Jubril was shot dead.

According to the source, Jubril died on the spot, fueling speculation that his abductors had the intention of killing him as he was shot in the head a a close range.