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Bishop David Oyedepo, the Presiding Bishop of Living Faith Church Worldwide, also known as Winners Chapel International, has issued a stern warning against internet fraud, commonly referred to as “Yahoo Yahoo.”
During a Sunday service in Canaanland, Ota, Bishop Oyedepo advised the youth to steer clear of fraudulent activities and live within the bounds of the law.
Naija News reports that Bishop Oyedepo, in his message to the congregation, warned against deceit and corruption, specifically targeting those involved in internet scams.
“Nobody playing games has a future in the kingdom. Hear this and hear it forever. If that is your trade, stop it,” he declared, explicitly condemning the activities of those who engage in acquiring people’s ATM card details through deceitful means.
The Bishop emphasized the inevitable bitter end for those involved in such nefarious activities.
“You are on a very fast lane that always ends in bitterness and destruction,” he warned.
Bishop Oyedepo reminded his listeners about the spiritual laws of sowing and reaping, and the principles of seedtime and harvest.
He encouraged engagement with these laws cheerfully, willingly, and tirelessly, suggesting that lawful endeavors would eventually lead to prosperity.
“Engage with that law and watch how you begin to lay up gold with time,” he advised.
Recall that in 2022, Pastor David Ibiyeomie of Salvation Ministries labeled internet fraudsters thieves and proclaimed that they would ‘know no peace’ as long as they continued to steal from others.
Bishop Oyedepo’s condemnation of internet fraud comes at a time when Nigeria grapples with a high rate of cybercrimes, impacting the image of the country internationally.
A recent report by Statisense has ranked the Nigerian Naira and the Argentine Peso among the top 15 weakest currencies against the U.S. dollar, highlighting ongoing economic challenges in both nations.
Naija News reports that this revelation follows a considerable depreciation in the value of the Naira.
The currency hit a record low in March, exchanging at over N1,900 to a dollar before significantly improving to N1,100.
However, recent trends indicate a continued decline, with the Naira currently trading for over N1,300 to the dollar. This fluctuation underscores the naira’s persistent volatility and weakening stance in the global currency market.
According to the Statisense report, the top 5 currencies listed to be performing poorly against the dollar were Lebanon, Syria, Argentina, Nigeria and South Sudan, respectively.
Malawi, Angola, Turkiye, Egypt, Zambia, Venezuela, Burundi, Belarus, Congo, and Laos are also among the 15 countries whose currencies are performing poorly against the U.S. dollar.
The report situates the Naira and the Argentine Peso within a broader context of global economic instability, where multiple countries are grappling with inflationary pressures, political instability, and challenges in the financial sector.
In Nigeria, factors such as fluctuating oil prices, foreign exchange reserve pressures, and speculative activities are exacerbating the situation, leading to a continuous depreciation of the Naira.
Similarly, Argentina has been dealing with longstanding economic difficulties, inflation, and fiscal deficits that have weakened the Peso.
Economic analysts suggest that stringent economic reforms, better fiscal management, and stabilizing measures are crucial for improving the strength of these currencies.
‘Let Tinubu Breathe’ - APC Chieftain Slams Daniel Bwala For ‘Pursuing’ President To Saudi Arabia
AFOLABIA chieftain of the ruling All Progressives Congress (APC), Joe Igbokwe, has attacked Daniel Bwala, branding the former Atiku Abubakar’s spokesman as a “hungry man” after he visited President Bola Tinubu to Saudi Arabia where the president had participated in World Economic Forum (WEF) meeting.
In a Facebook post on Monday, Igbokwe described Bwala, who ahead of the 2023 presidential election defected from the APC to the Peoples Democratic Party (PDP), as shameless.
Bwala had left Tinubu ahead of the election to work for Atiku’s presidential campaign organisation as a spokesperson.
“Why is this PDP man running helter-skelter? Why is he rushing PBAT (President Bola Ahmed Tinubu) anywhere he goes? What is he looking for? What is he pushing for?” Igbokwe wrote, adding that Bwala has no shame for disturbing the president in Saudi Arabia after previously pursuing him to France recently.
“Let this man receive little sense and dignity by sticking to his Party PDP and allow PBAT to breathe? Haba! Kilode gan ni? Oginidi?” the APC chieftain added.
Bwala, a former supporter of Tinubu before he defected to Atiku’s camp, has been making overtures to reestablish ties with the president, including pledging allegiance to him after a meeting at the Presidential Villa in January.
Bwala stated after the meeting that he was committed to supporting Tinubu’s administration, even if it required returning to the APC, saying “President Bola Tinubu is my motivation.”
It was a reversal from Bwala’s earlier criticism of Tinubu’s appointments as “nepotism pro max” when he was Atiku’s spokesman.
Reacting to Igbokwe’s post, Segun Showunmi, a former spokesman for Atiku’s campaign, said: “Blame the handlers of President Bola Tinubu. I have spoken on this and how those who work so hard might be feeling. I hope they know the larger implications of these things.”
Explaining his decision to realign with Tinubu, Bwala had said in January, “Some of his ministers that were allegedly reported to have committed infractions, instead of protecting them, he asked that the law should take its course. And he suspended somebody without wasting time. That to me is impressive because it is about the people.
“Secondly, there has been this outcry that the government is bloated and the rest. Yesterday he introduced a policy to reduce the cost of governance and today he told me it is just the beginning. There are many more decisions of government that would reduce the cost of governance,” Bwala added.
Bwala further stated, “This is not about political parties and you need to know that I was with him (before the presidential election) before I left and I was doggedly committed to him. I told him today, I am committing to play my part to support your administration, and I have no apologies to anybody.”
When asked if he’s back in the ruling APC, Bwala said, “APC is a party. President Bola Tinubu is my motivation; if supporting him will take me to APC, so be it.”
‘NEPOTISM PRO MAX’
In his previous criticism, Bwala had accused Tinubu of nepotism when the president nominated additional persons to serve as ministers in his cabinet.
“President Bola Tinubu’s appointment is nepotistic and now has earned the status of nepotism pro max 15,” he had said in September on Channels TV’s Sunday Politics.
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“We earn the right to point out things that the President and his administration are doing which are not uniting Nigeria, which are not pushing us towards the path of progress”.
“I earn the right to speak truth to power because President Bola Ahmed Tinubu is somebody that I, Bwala Daniel, respect with the greatest respect,” Bwala added. “I supported him when I was in the APC in the primaries, and more than just that, I, along with the PDP, sent my congratulations to him after he was sworn in which brought a lot of backlash to me.”
Media
I am delighted to meet Mr President, His Excellency Bola Ahmed Tinubu at the ongoing World Economic Forum, Riyadh, Saudi Arabia where President Tinubu delivered at the forum a well defined agenda for Nigeria and the rest of the world through collaboration. pic.twitter.com/YzbtEEX7cU
— D. H Bwala (@BwalaDaniel) April 29, 2024
The Nigerian currency, the Naira, has experienced a significant decline in value, falling to ₦1,340 per dollar in the parallel market, a notable decrease from N1,300 per dollar just last Friday.
Naija News reports that the depreciation trend continued in the Nigerian Foreign Exchange Market (NAFEM), where the Naira weakened to ₦1,419.11 per dollar from ₦1,339.23.
According to data released by FMDQ, the indicative exchange rate for NAFEM showed a sharp depreciation of ₦79.88, exacerbating concerns among investors and the public about the underlying economic pressures facing the country.
The growing disparity between the official and parallel market rates, which now stands at ₦79.11 per dollar compared to ₦39.23 last week, underscores the volatility in the foreign exchange market.
Economic analysts suggest that the widening gap could be indicative of increased demand for dollars that is not being met by adequate supply in the official channels.
This imbalance often forces individuals and businesses to turn to the parallel market, where rates are typically higher but more readily available.
The Central Bank of Nigeria has yet to respond to the current market dynamics, but financial experts are calling for urgent interventions.
Measures such as enhancing foreign exchange liquidity and addressing structural economic challenges could help stabilize the Naira.
As the country grapples with these financial uncertainties, the impact on import costs, inflation, and general cost of living continues to be a major concern for both businesses and households across Nigeria.
The ongoing depreciation of the Naira highlights the need for robust economic policies and effective management of the foreign exchange market to safeguard the economic stability of the nation.
Nigeria’s financial institutions including commercial banks, Point of Sales (PoS) operators and others lost about N17.67 billion to fraudsters in 2023.
The Nigeria Inter-Bank Settlement System (NIBSS) disclosed this in its Annual Fraud Landscape (January to December 2023) report published on its website on Monday.
NIBSS incorporated in 1993 offers a mechanism for same-day clearing and settlement of inter-bank transfers and payments
According to the report, the fraud count dropped by six per cent to 95,620, as actual loss from fraud grew by 23 per cent in 2023 when compared to 2022 with the first quarter being the month with the highest fraud volume in 2023 and the fourth quarter being the month with the highest fraud value.
It also disclosed that the month of May recorded the highest fraud count of 11,716, followed by February with 9,492 while October saw the highest actual loss in 2023 at N3.7 billion, followed by January with N2.7 billion.
According to the data submitted to NIBSS by financial institutions through the Industry Fraud Reporting Portal, the mobile channel is the preferred means for fraud as it increased by five per cent compared to the previous year.
Based on the report, the Web and POS businesses were the most exploited payment channels by fraudsters in 2023.
It said the count of Web Fraud decreased by 38 per cent and ATM fraud recorded a 64 per cent reduction from 2022 to 2023.
Also, in 2023, people aged 40 and above remained the primary targets of fraudsters, which NIBSS said signified a persistent focus on the targeting strategy of fraudsters.
“This sustained trend emphasizes the enduring appeal of the demographic group as potential victims, reinforcing the need for continuous efforts to educate and protect individuals in this category from fraudulent activities,” NIBSS said.
In 2023, a total of 80,658 unique customers fell for the gimmicks of fraudsters which is four per cent less than 84,130 customers recorded in the previous year.
“This decline, though apparent, does not diminish the severity of the issue, urging the financial industry to remain vigilant, enhance security measures and collaboratively address the tenacious challenges posed by fraud,” it said.
The report, however, suggested some of the regulations inputted to check fraud in financial institutions need detailed examination, modification and reinforcement.
“Some regulations need thorough examination, modification, and reinforcement to reduce the potential for fraud and enhance the chances of successful recuperation,” the report added
As Senators Kick Against Electricity Tarrif
ABUJA- THE Federal government has said that if the Power sector must be revived to perform optimally, a total sum of 10 billion dollars was required yearly, just as it also disclosed that the country would cough out N2.9 trillion to achieve full subsidy of the sector.
Speaking yesterday in Abuja at a one day investigative hearing on halting the new electricity tarrif increase by the Nigerian Electricity Regulatory Commission (NERC) for onward implementation by the Distribution Companies (DisCos), the Minister of Power, Adebayo Adelabu said thT the 10 billion dollars was needed anually in the next ten years to revive the nation’s power sector and end the liquidity challenge.
This is as Senators have called on the Minister of Power, Adebayo Adelabu and the Nigerian Electricity Regulatory Commission, NERC, to as a matter of urgency, reverse the recent decision to increase electricity tariff for band A customers in the country.
The investigative hearing by Senator Enyinnaya Abaribe, APGA, Abia South led Senate Committee on Power is also about the N2.9tn required for electricity subsidy payment, other debts owed in the sector, and the state of metering in the country as well as the $1.3 billion owed gas companies even as it asked why Nigerians were suddenly classified under various bands.
The Minister told the Senate Committee that the major challenge in the sector was absence of liquidity, saying that the sector has been operating on a subsidised tarrif regime,given the absence of a cost reflective tarrif, just as he stressed the subsidy had not be funded over the years as huge liabilities was been owned the Generating Companies ( GenCos) and the Gas Companies.
Adelabu who noted that the inability of the government to pay outstanding N2.9 trillion subsidy was due to limited resources, hence the need to evolve measures to sustain the sector, however pleaded with the Senators to support the process of paying the debt owed operators across the value chain of generation transmission and distribution.
According to him, the increase was based on supply and that any customer that do not receive 20 hours power supply will not be made to pay the new tarrif, adding that the government was committed to ensuring sustainable reform in the sector, even as he told the Senate that eight million meters would be acquired in the next four years.
The Minister who noted that there was the urgent need to clear the outstanding debt owed GenCos and Gas companies, said, “For this sector to be revived, government need to spend nothing less than 10 billion dollars annually in the next 10 years. This is because of the Infrastructure requirement for the stability of the sector, but government can not afford that.
According to him, poor metering remains a big issue too in the industry when he told the lawmakers about how a company, Ziklag Networks Limited allegedly collected N32 billion for a contract to supply meters but has refused to do so in 20 years.
“And so we must make this sector attractive to investors and to lenders. So for us to attract investors,and investment, we must make the sector attractive, and the only way it can be made attractive is that there must be commercial pricing.
“If the value is still at N66 and government is not paying subsidy ,the investors will not come. But now that we have increased tarrif for a Band, there are interest been shown by investors.”
According to Adelabu, to improve power supply, the government was investing in hydro electric power, even as he said that construction of 700 mega watt power in Zungeru had commenced, while Kashimbila Hydroelectric power plant of 40 mega watt was awaiting evacuation to improve generation.
The Minister also disclosed that there was also an on going investment of 26 small hydro power dams to boost electricity production across the country.
Officials of the Central Bank of Nigeria were also on ground to provide details on how to close the metering gap of 8 million meters.
In his submission, CBN Director of Development Financing, Sahaad Ahmad said the CBN provided N55 billion loan which was assessed by all the 11 DISCOS, pointing out that only N6b has been paid back and that CBN’s intervention has done little to stop estimated billing as many customers remain unmetered.
The only group that seems comfortable with NERC and its action appears to be the Association of distribution companies.
Every other speaker -including the Manufacturers Association of Nigeria and a former NERC Chairman, Sam Amadi who believes sufficient consultation was not done and that the increase was discriminatory and in violation of the law.
Chairman, National Electricity Regulatory Commission, NERC, Sanusi Garba solidly backed the position of the Minister, said that it was a “miracle” that the DISCOS remained afloat to supply electricity as at the 1st Quarter of 2024.
When it was time for the Senators to respond to the presentation of the Minister, they however decried the experiences of Nigerians on electricity supply over the years, despite the unbundling of the sector.
The toughest opposition came from the Senators themselves -who believe the DISCOS have done little to improve their capacity and are all out to rip off their customers to cover for their inefficiency.
On his part, the Vice Chairman of the Committee, Senator Lola Ashiru, APC, Kwara South who noted that Nigerians were paying for inefficiency of power sector operators, said that there was a lot of inefficiency across the value chain of generation, transmission and distribution, adding that poor Nigerians must be protected and that there was the need to consider a reversal of the tarrif increase .
Also speaking, Senator Simon Lalong, APC, Plateau South who told the Minister that there was no consultation before the increase, said that issues of palliative should have been discussed and provided before the tarrif increase.
On his part, Chairman of the Committee, Senator Abaribe who noted that what Nigerians wanted was a solution to the issues and ways to ensure liquidity in the sector, also decried the non of appearance of a company “ZIGLAKS” over the failed agreement to provide prepaid meters for Nigerians, just as he alleged that the company had received N32 billion in 20 years to meter Nigerian electricity consumers.
Also speaking, Senator Adamu Aliero, PDP, Kebbi Central who also said that there was no due consultation before the tariff was increased, said that the public was not at peace with the increase, saying that the increase was over 200 per cent, hence the need for a reversal of the tarrif increase.
Presentations were made by the Nigerian Electricity Regulatory Commission (NERC), Manufacturers Association of Nigeria (NAN), Association of Power Generation (Gencos), Electricity Distribution Companies (DisCos) among others.
Nigerians and other foreign students are facing a tough time in Canada over their inability to secure part time jobs to sustain themselves.
According to a report by the Voice of America, the development has led to some of the affected students living in deplorable conditions.
After Canada opened employment pathways cum immigration opportunities for foreign students, many from Nigeria and other parts of the world flocked to the North American nation.
According to the VOA, photos seen on the Canadian Internet showed crowds waiting in line for a simple cashier job opening, as foreign students lamented the unavailability of jobs that would cater to their financial needs and responsibilities.
Foreign students in Canada can only work part time and mostly in low income jobs.
“The present affordability crisis in Vancouver, along with the declining job opportunities, is becoming very stressful,” Dhvani Malik, a 400-level student of international relations at the University of British Columbia, told VOA. “International students already pay so much in fees, and the increasing rent and living costs have only added to the financial pressure.”
As of March, according to Statistics Canada, the unemployment rate for young people in Canada hit a staggering 12.6 per cent, a red flag signalling that the North American nation may be unable to cope with its rapidly rising population, most of whom were immigrants.
Aware of the situation, Prime Minister Justin Trudeau admitted that the number of temporary immigrants was “something we need to get back under control” while speaking at Dartmouth in Nova Scotia on April 2, according to Global News.
“Whether it’s temporary foreign workers or whether it’s international students in particular, that have grown at a rate far beyond what Canada has been able to absorb,” Mr Trudeau said.
However, reducing international students may not be the option for Canadian institutions, as they make a large chunk of their money from fees paid by international students.
The government may be torn between shutting its doors to temporary immigrants or allowing its institutions to continue benefiting from the high tuition cost of international students.
Nigerian Street singer Portable reignites feud with his wife, Bewaji, over her Instagram post caption.
In her recent post, Bewaji declared herself as a Queen and criticized the ingratitude of some humans. Encouraging her followers to prioritize their own happiness, she emphasized how easily people forget acts of kindness.
In response, Portable lashed out at her in the comments, asserting that she is nothing without his presence in her life.
He blamed his wife Bewaji for the lack of respect he now receives from others, questioning what more he could possibly do for her and highlighting her constant state of unhappiness.
Accusing his wife of jealousy due to his fathering children with other women despite her previous claim of no more desire for childbirth, Portable rejected the idea of being controlled by her and suggested that she was attempting to manipulate him.
He pointed out that he covers all her expenses, suggested that she should leave if she is unhappy, while reminding her of the line of women eager to take her place should she depart.
“‘If they remove my name from your name you are nothing. You h*te me because another woman had a child for me. Were you not the one that said you have stopped childbearing? Everything I do for you, you are not grateful. It is my money you love. You always tell me everytime that you would leave but enjoyment did not allow you to. You are an ungrateful woman. Ask your mother if your father took care of her like I do. There are women begging me to come back. The moment you leave, you are not coming back to my house. Go if you want to go, I am not your slave”.
Former BbNaija housemate Doyin raises the question of why sinners seem to benefit more from God’s grace more than those who have faith.
She wondered why those who have devoted their lives to Christ do not seem to have as prosperous a life as those who live in sin.
The reality TV star also disclosed her belief that when Jesus Christ expressed his preference for sinners over the saved, she took his words to heart.
Doyin strongly emphasized that it appears that sinners receive God’s favor in abundance compared to others.
In her own words:
“When Jesus Christ said he is more interested in the sinners than the saved.
I think he meant it literally. You see bad people, na them dey enjoy the grace of God pass.
The moment you give your life to Christ like this, trial and tribulation go almost finsh you. You will be asking yourself if you’re the Gen Z version of the “job” in the Bible. Like say God dey recruit his toughest soldiers among the saved…
But why? Abi make person join the sinners?? Make e no be say person do.
misunderstand the lord o.
Hmmm so the question is…why does the “sinner” who doesn’t have direct access to the father seem to be enjoying more than the child that has direct access??
Why does the father not make it more enticing to be his child by providing certain perks that you only have access to once you become his child? Sort of like a members only type of privilege.
If I had a child, I’d give him the world before I attend to a stranger right? So why does it feel like the father pays more attention to strangers than his kids?? Almost like he. gives to strangers what his kids have been begging him for. Omo idk”
Shatta Wale opened up on his emotional turmoil following his parents’ separation in a heartfelt social media post.
He revealed how the breakup affected him deeply, leaving him with lasting emotional scars that carried into his adult years.
The singer spoke about the challenges of growing up in a separated home, emphasizing the instability and emotional upheaval it brought into his life.
He spoke of the impact the lack of a stable family unit had on his sense of security and self-identity during his formative years.
“Ungrateful woman, without me you’re nothing” – Portable reopens beef with wife, Bewaji
Sharing his struggles to cope with the aftermath of his parents’ split, Shatta Wale disclosed feeling lost and vulnerable as a result, stating that the emotional wounds inflicted by the separation seeped into his relationships and overall well-being, shaping his behavior and responses to difficulties in life.
Recalling moments of feeling misunderstood and labeled disrespectful by his parents, Shatta Wale revealed his decision to leave home in pursuit of peace, facing homelessness as a consequence.
He detailed nights spent sleeping on the streets, seeking refuge in unlikely places like Nkrumah Circle and Adabraka.
“You know what my parents put me through? Because of them, I slept on the streets, I slept in front of stores. Those days, it was the prostitutes at Nkrumah Circle who were watching over me. I slept at filling stations at Circle including the one that got burnt. I slept on the streets of Adabraka and so on” Shatta said
Speaking on a coping strategy of distancing himself from stress and negativity, Shatta Wale shared how he learned to cut off toxic relationships without hesitation.
He stressed the importance of prioritizing his mental well-being by removing individuals who bring negativity into his life.
“As a result, I started running from stress, running from people who would stress me. That’s where I learned how to cut people off because I don’t want stress. I cut people off without thinking twice. I am the chief cutter. I have learned that in life, it is important to cut off anyone who wants to bring negativity into your life” he added.
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Dufil Prima Foods Ltd has announced reduction in price of indomie.
The producer of Indomie Instant Noodles explained that its product costs have decreased forcing a reduction in the price of indomie.
Mr. Temitope Ashiwaju, the company’s Group Corporate Communications and Event Manager, confirmed this in an interview with the Nigerian News Agency (NAN) on Saturday in Lagos.
Ashiwaju underlined the necessity of clarifying any misconception about the product’s recent price modification. He also said that economic realities had an influence on the firm, which had previously resulted in increasing costs for Indomie noodles.
He said: “For a listening company such as ours, we felt at some point in time, against our operational cost to adjust when things started to improve.
“We are not here to rip people’s out. Of course, if you starve people and make the products out of reach, it will also affect us.
“Reduction in prices came when the operational cost started to go down. “We don’t have a choice than to adjust to realities of times and other indices as they improve because serving people are at the centre of our core value.
“The moment we realised that things started to stabilise, we all hope and pray the economy gets better, as a responsible company, we felt it was time to do a further price reduction.”
Ashiwaju highlighted that the company has been operating in Nigeria for over two decades, with factories and installations across the country.
The Chinese Premier Li Qiang told Elon Musk, Tesla CEO, that the Chinese market is always open to foreign-funded firms.
China’s number Two official disclosed this on Sunday after an unannounced meeting in Beijing with Musk, who doubled as the Executive Chairman of X.
“China’s very large-scale market will always be open to foreign-funded firms.
“China will stick to its word and will continue working hard to expand market access and strengthen service guarantees, ” said Li Qiang.
On his part, Musk said in a post on X that he was “honoured” to meet Li Qiang.
“We have known each other for many years, since early Shanghai days,” Musk said.
Musk’s meeting with Li Qiang comes as Chinese carmakers promote their latest electric vehicles at the Beijing Motor Show from April 25 to May 5.
President Bola Tinubu on Sunday meet with Microsoft Founder and Philanthropist, Bill Gates, on the sidelines of the World Economic Forum Special Meeting in Riyadh, Saudi Arabia.
During the meeting President Tinubu spoke extensively about the role technology will play in ensuring his government delivers its promises to the Nigerian people.
Below are five major things the President told Bill Gates during their meeting.
1. Technology is the enemy of corruption
Tinubu told Bill Gates that technology will play a pivotal role in his government’s fight against corruption that has for too long left Nigeria trailing in the community of nations.
According to him, technology is a potent weapon against corruption and financial impropriety in public service. “Technology is the enemy of fraud, corruption, and irregularity,” the President stressed.
2. We are investing in Technology to ensure transparency
Tinubu also assured Mr. Gates that his administration is extensively investing in Technology, especially that which is tailored towards ensuring transparency and accountability in government and accelerating public-sector performance and service delivery to the Nigerian people.
According to the president work is ongoing to improve the technology architecture that exist at the moment as to serve the people effectively.
3. Reliable tech will support new government interventions
President Tinubu further asserted that the tech being improved upon at the moment will be made very reliable as to support a national consumer credit system and many other critical new government interventions for all Nigerians.
4. we will bend the curve and Nigeria will receive the benefits
While noting that resistance is often expected when efforts are made to strengthen systems and forestall malfeasance, the president said Nigeria will at last benefit greatly from the investments being made in technology as it will help birth the promises upon which his administration was voted into power.
“There is always the initial resistance. Corruption, self-interest, and fraudulent activity will always be an enemy, but when you bend that curve, you will receive the benefit. The nation will receive the benefit,” the President buttressed.
5. There is no shortcut
President Tinubu in recounting how he deployed technology to enhance the revenue base of Lagos State while serving as governor, emphasized that there is no other shortcut to improving the economic situation in Nigeria, than to invest in technology, remain focused, diligent, and hardworking.
Tinubu who said he ensured the collection and utilization of essential data, creating an efficient tax system for Lagos State, further noted that it is no news that he began his governorship tenure with just N600 million and ended up with over N8 billion.
The president underscored that with the use of technology, Lagos is now targeting a trillion naira, a feat which he believes can be replicated on a larger scale, now that he serves as Nigeria’s leader.
A surge in demand for dollars in the parallel market driven by banks and end-users combined with slow forex disbursement to BDCs by the Central Bank of Nigeria, CBN, caused the Naira, last week, to fall by 23 per cent against the dollar, thus recording the worst weekly performance of the Naira since February.
Though the CBN came to the rescue of the Naira on Friday by intervening in the official Nigeria Foreign Exchange Market, NAFEM, hence the appreciation of the Naira in the parallel market on Friday, currency dealers and analysts were uncertain about the fortunes of the Naira this week, citing pace and speed of CBN intervention as a determining factor.
After two months of steady appreciation to N1,140 on Friday, April 19, from N1,1,820 per dollar on Wednesday, March 21, the Naira, last week, depreciated for four consecutive days by N285 (25%) to N1,405 per dollar on Thursday, April 25th.
Following the same trend in the official market, the Naira depreciated by N169.24 (9.9%) to N1,339.23 per dollar on Friday last week, April 26th, from N1,169.99 per dollar on Friday, April 19.
FX rate differential
Financial Vanguard investigations revealed that the steady reversal in the fortunes of the Naira was triggered by a combination of factors, including sharp practices encouraged by the lower exchange rate in the parallel market.
Since the CBN resumed dollar sales to Bureaux De Change, BDCs, the parallel market exchange rate had been below the official market exchange rate. For example, on Friday, April 19, the parallel market rate at N1,120 per dollar was N64.5 lower than the official rate of N1,234.49 per dollar on that day.
To exploit this gap, banks besieged the parallel market, buying dollars at the cheaper rate and reselling to their customers at the higher official exchange rate.
Following the steps of the banks, some forex end-users also bought dollars in the parallel market, deposited them in their domiciliary account and sell to the banks at a higher official rate.
This practice according to currency dealers triggered huge demand for dollars in the parallel market and hence the 25 per cent depreciation of the Naira in four days last week.
Currency dealers also cited the slow pace of dollar disbursement to BDCs by the CBN. They noted that dollar disbursement to BDCs comes in trickles, with some BDCs not getting dollars for more than two weeks after naira payment to the apex bank.
Confirming this to Vanguard, President, Association of Bureaux De Change Operators of Nigeria, Dr. Aminu Gwadabe, said: “The depreciation of the dollar was caused by two factors. The first was that people were buying from the open (parallel) market, depositing the dollars in their domiciliary accounts and sell in the interbank market and this is because the open (parallel) market rate is always lower than the interbank market rate.
“The second factor is that we have seen the resurgence of Person-to-Person, P2P, where hedging, margin trading are taking place.
“After nipping in the bud of Binance, other platforms sprang up. And you know transactions in those platforms are purely speculative. The likes of Binance can only be profitable at the expense of naira depreciation because it is a market that you buy low and sell higher.”
Scant FX supply in the official market
Investigation also revealed the situation was aggravated by the absence of CBN intervention in the official market for some weeks while inflow from Foreign Portfolios, and FPIs also dwindled.
Explaining this development, Nnamdi Nwizu, Co-Founder of Comercio Partners, a Lagos-based investment bank, said: “Until yesterday (Friday) when they intervened, CBN had not intervened in the interbank market for weeks, and inflows were drying up.
“Also forex demand that waited for Naira to strengthen (appreciate) seems to be filtering through now, both local and FPI’s.”
On the outlook for the Naira in the coming weeks, Nnamdi said: “A lot depends on if the CBN continues to intervene in the market to ensure that they don’t lose control of the market. And also if we start to see renewed FPI flows.”
CBN intervenes
In a bid to arrest the depreciation of the Naira, CBN intervened in the official market on Friday. It also increased the speed of dollar disbursement to the BDCs, while also stepping up enforcement activities with its monitoring task force which visited some BDCs and parallel market locations in Abuja and Kano on Friday.
As a result, the Naira appreciated in the parallel market on Friday to N1300 per dollar from N1,405 per dollar on Thursday.
Confirming this development, Umoru Ahmed, a currency dealer based in Lagos Island said: “The naira was traded at N1,500 this morning which I bought. There is no inflow of dollars like before and not all the BDCs have access to dollars especially if they registered late.
“The rate later crashed today to N1,300 per dollar for selling and N1,250 for buying.
“This is because the CBN’s task force stormed the market today arresting many black market traders which led to many operators reducing their price to sell off their dollars as they don’t know what the market will be like tomorrow.”
Similarly, Isa Yahaya, a currency dealer in Ikeja said: “In Ikeja today, we bought at N1,320 and sold at N1,350. But the market opened today at N1,450 per dollar of which I bought a dollar for N1,550.
“But we received a hint that the CBN’s task force was arresting many black market traders. This led to the appreciation of the naira because we just wanted to quickly sell what we had and wait till tomorrow to see what the market holds.
“The increase in the rate is due to demand pressure. The number of people demanding for dollars is higher than those selling.
“So it is difficult to meet the demand as we do not have access to buying from BDCs talk of from the CBN.”
Also confirming this development and expressing optimism that the naira will further appreciate this week, Gwadehe said: “There is a turn of events now. Naira is appreciating as we speak, the rate has come down to N1,250 – N1,270
“Now the rate is going down due to a combination of factors. The CBN has intervened today at the NAFEM market. Dollar sales and disbursement to BDCs have been coordinated and streamlined for efficiency and liquidity.
“The securities agencies have swooped on those illegal behaviours, arrests were made today in Abuja and Kano. So all these factors are playing a bigger role because all the behaviours that have no economic value have been checkmated and streamlined. So I believe appreciation of the Naira cannot but continue.”
Speaking further, Gwadabe called for an executive order to deposit their holding into a non-exports domiciliary with silent sources requirement of an amount below # 50k for 3 months.
He also called for the creation of investment bonds for Nigerians in the Diaspora without tax charges.