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The founder of Afe Babalola University, Ado-Ekiti, ABUAD, Aare Afe Babalola has said that Dele Farotimi, the human rights activist recently remanded by Ekiti Magistrate Court, will be free if he proves the allegations levelled against him.
Recalled that Farotimi had acussed Afe Babalola of corrupting the judiciary in his book titled “Nigeria and its Criminal Justice System”. He was remanded on Wednesday after he was arrested at his chambers by the Ekiti State Police Command.
Addressing journalists on Friday at the Afe Babalola Bar Centre, Ado-Ekiti, Owoseni Ajayi, the lead counsel to Babalola, said Farotimi’s defamatory remarks in his book were targeted to injure the hard-earned reputation of the legal icon, which cannot be remedied by any award of damages.
A case
The former Justice Commissioner in Ekiti, joined by the duo of state’s ex-chairmen of NBA, Olasunkanmi Falade and Lawrence Fasanmi, explained that Farotimi has been inconvenient with Babalola, who won a land dispute case in 2014, where the human rights activist was neither a party nor a counsel in the case.
Babalola had filed a motion for the variation of the judgment of the Supreme Court to correct clerical errors on a certain land portion, which further affected some estates where Farotimi happened to be a lawyer to one of them.
Owoseni emphasised that Farotimi wrote the book not because any injustice was done to him, but because he could not get judgement for his client in court.
The lead counsel wondered why Afe Babalola, who was accused of corrupting the judiciary would lose cases in court and still be fined with over 30 million naira by the same Supreme Court accused of corruption.
He added that Farotimi’s action is an offence punishable under Section 59 of the Criminal Code Act, which emphasises the publication of false news with intent to cause fear and alarm in the public.
His words, “Before I tell you my deductions from all that have happened, allow me to first share with you the events that transpired.
… in 2013
“SUIT NO: SC/146/2005: MAJOR MURITALA GBADAMOSI ELETU & ORS V. H.R.H OBA TIJANI AKINLOYE & ORS (2013) 15 NWLR PART 1378
“The Ojomu family sold 254 hectares of land at Osapa Eti-Osa Local Government Lagos to the late Gbadamosi Bamidele Eletu in 1977. The said parcel of land was subsequently acquired by Lagos State Government in 1989.
“The Ojomu family contested the acquisition against Lagos State Government in Suit No: ID/1883/89 wherein the court set aside the acquisition by the Lagos State Government. The Ojomu family then instituted the suit at the High Court of Lagos State, claiming that title to the land had reverted to the Ojomu family despite the earlier sale of the land to late Gbadamosi Bamidele Eletu.
“The Gbadamosi Eletu family lost the case at the High Court and the Court of Appeal before briefing Aare Afe’s Chambers to represent them at the Supreme Court.
“Judgement was delivered by the Supreme Court on 13/7/2013 in favour of the Eletu family wherein the Supreme Court held that:
“Where a party has fully divested himself of all interest in land, no right vests in him to deal with the same property by way of further alienation anymore. He is caught by the maxim, nemo dat quod non habet; that is, he cannot give that which he no longer has.
“In the instant case, it was unfortunate that the respondents claimed title to the whole of their family land compulsorily acquired by the Lagos State Government including the portion earlier sold to the father of the appellants and in which they were in effective possession.
“The claim so made without disclosing the truth and excluding the said portion so sold was clearly made in bad faith and smacked of insincerity. It was very unconscionable and consequently against the principles of equity and good conscience.
“A court of law should not allow itself to be used as an engine for the perpetration of fraud, in whatever guise.
“By this judgement, the Supreme Court recognised the sale of land to the Gbadamosi Eletu family.
‘Error in hectares of land’
“You will recall that 254 hectares were sold to the Gbadamosi Eletu family.
“However, instead of the 254 hectares, Honourable Justice Kumai Bayang AKA’ AHS JSC, who wrote the lead judgement, recorded 10 hectares in error.
“Upon the delivery of the judgement, the Gbadamosi Eletu family surreptitiously employed the services of SB Joseph & Co to enforce the judgement before Afe Babalola Chambers applied for variation of the judgement. This was presumed to be because the Gbadamosi Eletu family wanted avoid paying Aare Afe Babalola’s chambers its professional fees.
“However, in 2014, the Gbadamosi Eletu family came back to Aare Afe Babalola’s Chambers. Immediately, lawyers from Aare Afe Babalola’s chambers filed a motion for variation of the judgement of the Supreme Court pursuant to Order 8 Rule 16 of the Rules of the Supreme Court, which allows application to be brought to correct clerical errors.
“The said motion was heard and ruling delivered on 18/3/2014 granting statutory right of occupancy to the Gbadamosi Eletu family in respect to the entire 254 hectares sold to late Gbadamosi Bamidele Eletu by the Ojomu family.
Enter Farotimi …
“Several residential estates were affected by the judgement of the Supreme Court among which were Pinnock Estate, Beach Resort, NICON Estate, Friends’ Colony Estate and Victory Park Estate etc. Mr. Dele Farotimi was a lawyer to one of these estates.
“The affected estates and individuals immediately filed fresh suits against the Eletu family with the purpose of frustrating the judgement of the Supreme Court. The Eletu family was lured by the affected estates to settle some of the suits behind Afe Babalola’s chambers despite being counsel on record.
“They filed terms of settlement with court without the knowing of Afe Babalola’s chambers.
“The Lagos State Government issued a publication indicating their awareness of the Supreme Court judgement and the need for the State to intervene in order to maintain public peace and order. The Lagos State Government invited the Eletu Family and a compromise was reached so as to avoid a massive dislocation of persons and communities directly affected by the judgement.
“Once Mr. Dele Farotimi can show proof that his assertions in the book are true, then he will be free. Until then, the law allows free speech, but not one that is calculated to injure the good reputation of another.
“All facts are verifiable. I urge Nigerians to verify and find out what the truth is first before picking a side”.
Visa fees are an important factor for anyone looking to work or migrate abroad as some countries demand much greater fees than others, making visa applications limited to serious applicants.
Understanding these fees is critical for people considering changes in global locations when planning their worldwide careers.
5. India
India comes in fifth place with the ₹45,174 ($542) Employment Visa. This visa enables foreigners to work lawfully in the country in the healthcare and information technology sectors. Even though it is the least expensive of the top five, it is still a substantial cost for anybody looking for work in India.
4. Japan
Japan’s Highly Skilled Workers Visa is ranked fourth at ¥150,000 ($1,000). This visa is intended for high-level workers in technology, research, and academics, and it provides quicker residency to approved applicants.
3. United Kingdom
The UK skilled workers visa is the number three on this list with £1,343 ($1,688). This visa, which has extra costs including a health surcharge, is intended for experts to fill job vacancies in industries.
2. United States
The United States H-1B Visa, specially designed for skilled workers in fields such as technology and engineering, comes second at $1,717. Although companies frequently share application fees, it remains one of the most expensive visas worldwide.
1. Australia
Top of the list is Australia with Temporary Skill Shortage Visa (Subclass 482), which costs AU$3,035 ($1,973). This visa was designed to address skill shortages in the Australian labour market. The cost of this visa may be very expensive, but it provides easy entry for foreign experts in various fields and lucrative career possibilities.
Human rights lawyer and activist, Deji Adeyanju, has called out the Peoples Democratic Party (PDP) and Labour Party (LP) to rise to their responsibilities of holding the ruling All Progressives Congress (APC) accountable.
Adeyanju, during an interview with Arise News, criticised the LP and PDP leadership over their inability to provide credible opposition to APC.
Speaking on the threats of legal action by the acting PDP National Chairman, Umar Damagun and National Secretary, Samuel Anyanwu, over his recent remarks criticising the opposition parties, Adeyanju insisted that his comments were aimed at urging the opposition to fulfil their responsibility of holding the ruling party accountable.
Adeyanju expressed his readiness to face any legal challenge, describing the threats as an attempt to stifle critical voices.
He said, “I’m happy and excited that it has gotten their attention. The idea behind these remarks, the majority of these remarks, is for people in the opposition to be alive to the responsibility of holding government accountable at all levels.
“The PDP and the Labour Party have not held government accountable, and they have not been credible oppositions to the APC government, and they must do better.
“For me, basically, I’m of the opinion that if metrical statements were made concerning people and they feel like they want to sue me, so be it. I would be glad and willing.
“I’ve said it time and again that arrest is like public relations for me, and jail is campaign for me. Those are some of the things I enjoy.
“There is no malice against anyone. All I’m asking is for the opposition to be a credible one, to wake up to their responsibility, to be alive to opposing the government.”
The Joint Border Patrol Team Sector 2, overseeing the South-West zone under the National Security Advisor, announced the interception of six pump-action rifles and 1,125 live cartridges during a routine patrol along the Okerete-Ododo bush path near the Oyo State and Benin Republic border.
The weapons, identified by their serial numbers, were concealed inside sacks of cassava flour (garri) and loaded in a Toyota Camry Saloon car as a decoy.
Speaking in Lagos, the Team’s Coordinator, Mohammed Salisu Shuaibu, disclosed that since August 2019, the unit has seized goods valued at ₦36.7 billion and intercepted 1,507 illegal immigrants, reflecting its commitment to border security and anti-smuggling operations.
His words: “The former code-named “Operation Swift Response” was inaugurated on 20th August 2019 to address security challenges along the nation’s international borders caused by the proliferation of smuggled small and light weapons, illicit drugs, prohibited goods, and other cross-border crimes.
“As the principal adviser to the President on national security, the Office of the National Security Adviser coordinates the management of the Joint Border Patrol Team (JBPT), working closely with the Nigerian Armed Forces, the Police, the Immigration Service, the Department of State Services, the National Intelligence Agency, and the Nigerian Customs Service as the lead agency to ensure improved security at the nation’s border.
“The Joint Border Patrol Team Sector 2 covers the Southwest geopolitical zone of Nigeria. It specifically focused on the border corridors with the neighbouring countries.
He pointed out that “the doggedness and the sacrifice of JBPT Sector 2 in fighting cross-border crimes were instrumental in achieving some significant successes. This includes the seizure of goods worth a duty-paid value of over N36.7 billion and the interception of 1,507 irregular immigrants. ” The Sector’s efforts also boosted the Federal Government’s revenue through auction sales. An aggregate of N1,140,162,562 was paid into the federation account from the sales of seized petroleum products.
The recent of this kind of seizure, he said, “was on December 3, 2024, when a patrol team sighted a man running away from a stationed Toyota Camry Saloon car along the Okerete-Ododo bush path of Oyo State. The fleeing man’s action raised suspicion on the abandoned vehicle, and it was intercepted.
“After conducting a search on the vehicle, it was found to contain six pump-action rifles with the following numbers: 602-H22YT641, 602-H22YT-397, 602-H22YT-623, 22-MT-0238, P537916, and T051084. A total of 1,125 pieces of live cartridges were found to be carefully concealed inside sacks containing cassava flakes.
Prominent among other seizures recorded from 20 August 2019 till date, he added, ” are: I, 130,954 bags of foreign bags of rice (50 kg) equivalent to 218 truckloads; 7,200 kg of pangolin scales; 5,575,020 litres of Premium motor spirit; 11,322 cartons of foreign frozen products; 4,124 bales of used clothes; 4,057 kegs of vegetable oil; 15 pump action riffles; 280 suspected cases of human trafficking; 480 units of motor vehicles; and 1,190 means of conveyance
“The Joint Border Patrol Team (JBPT) Sector 2 had encountered some operational challenges like any other establishment. However, these challenges were surmounted with the aid of collaboration with some critical stakeholders, developing innovative problem-solving skills, and commitment to effective leadership and management.
“At this juncture, I express my deepest appreciation and gratitude to the officers and men of JBPT Sector 2, across the component security agencies, patriotic citizens, and stakeholders for your unwavering commitment to fighting cross-border crimes.
“I am honoured to lead a courageous and determined team that is committed to the safety and security of our nation. Your dedication, bravery, and perseverance have been instrumental to the successes recorded by the team.
“The tireless efforts you made towards securing our borders by suppressing smuggling and the interception of illegal immigrants are not unnoticed. Thank you for demonstrating professionalism, teamwork, and patriotism in the face of numerous challenges.
“To the National Security Adviser, Mallam Nuhu Ribadu, and the Comptroller General of Customs, Bashir Adewale Adeniyi, we express our heartfelt appreciation for your unwavering support towards the success of the Joint Border Patrol Team.”
Their leadership styles and logistics supply, he added ” are instrumental to our success story at suppressing cross-border crimes. We are grateful for the opportunity to work under your supervision,” he said.
Renowned filmmaker Kunle Afolayan has addressed the controversy surrounding his recent comments about Netflix’s funding of Nigerian original movies.
Speaking in an interview on Channels TV, Afolayan clarified that his statement had been misinterpreted.
He explained that he was not suggesting Netflix is exiting Nigeria but was emphasizing the importance of developing local distribution platforms instead of relying solely on Netflix.
The filmmaker noted that his remarks were taken out of context, stating that he was advocating for Nigerian filmmakers to explore alternative channels for distributing their content.
Afolayan also disclosed that Netflix had reassured him and other filmmakers of their continued support for Nigerian content, though with some adjustments to their operational structure.
“If Netflix parks and leaves, of course, it is going to affect all of us. I was addressing some of the government officials who were there at Zuma because Victor Okhai who is the moderator was a voice in the Nigeria film industry. I was not at the event he was talking about. I was not privy to whatever conversation must have happened there,” he said.
“I think there is a bit of a change in the structure and mode of operation. And this is open to people who supply them with films.
“The last time they were here, we had a meeting, they were still reassuring us, saying, look, we are still here. We are going to do stuff but we might not be able to do the kind of volume that we used to do.
“What I was emphasizing is that even if Netflix say they are not doing enough, or taking as many films as they should, why shouldn’t we as a country come up with other distribution platforms? Just like other people put up their films on YouTube.
“I never said Netflix is leaving Nigeria. What I said was we just shot two seasons of ‘Anikulapo’ and I heard some people who were not quick enough to make their films say they can’t shoot again because they are cutting down on numbers.
“We have a relationship that we have built over the years. I give them good content and we will continue to give them as long as they are here.”
Netflix had earlier said “we are not exiting Nigeria. We will continue to invest in Nigerian stories to delight our audience”.
Scientists have developed a urine test that could indicate the first signs of lung cancer.
The researchers from the University of Cambridge and Early Cancer Institute said the goal was to find a test that is a cheaper alternative to scans.
The study was funded by Cancer Research UK. The group examined proteins excreted by senescent cells into the lungs.
Senescent cells are often called “zombie cells” because though alive in the body, they are unable to grow and divide.
The cells reprogramme their immediate environment to help promote the emergence of cancer cells.
The scientists developed an injectable sensor that interacts with the zombie cell proteins and releases an easily detectable compound into urine.
The method has been successfully tested on mice and there is optimism that it could be used on humans soon.
Ljiljana Fruk, one of the scientists, said his team set out to develop a urine test that could help doctors identify signs of the early stages of cancer — potentially months or even years before noticeable symptoms appear.
“We know that before cancer emerges there are changes in the affected tissues,” he said.
“One of the changes is the accumulation of damaged cells that are not damaged enough to be removed, but enough to release signals that reprogramme the tissue and make it perfect for cancer development.
“Once in urine, this part of the probe is too small to be detected, but it can be made visible by adding a bit of silver solution to it — the same silver compound used in photography in the early days of analogue photos.
“By monitoring the colour of urine after the injection of the probe, we can say if cells are present in lungs that would indicate the early signs of pathological changes that might lead to cancer.”
Atsi Kefas, the sister of Agbu Kefas, the governor of Taraba state, has reportedly been shot by a police escort during an attack by gunmen on Thursday.
According to Zagazola Makama, a counter-insurgency publication focused on the Lake Chad region, Jumai, the governor’s mother and Atsi were driving along Kente road in Wukari LGA of Taraba state when they were attacked.
The publication stated that a police officer assigned to escort the family “accidentally shot Atsi” while attempting to fend off the assailants.
Following the attack, troops rescued the victims and evacuated both Jumai and Atsi Kefas from the scene with the use of an air ambulance.
The injured sister was rushed to the hospital for treatment and her condition remains undisclosed at the time of this report.
The vehicle used by the gunmen was recovered by the security force including an empty magazine and luggage of the passengers were found in the vehicle.
David Adeleke, the world-famous, Grammy-nominated Nigerian singer, who is widely known as Davido, has shared in an interview with The Morning Hustle, an American music podcast, how his father's influence turned what he initially thought was a one-time act into his annual orphanage donations.
The musician said that following a random tweet where he posted his account on his birthday, fans sent him close to $400,000 which his father encouraged him to donate.
He said: "I do it every year, I've done it for like 3 years now. On My birthday two years ago I tweeted my account number randomly on twitter, like yoo it's My birthday, send me money. And then my fans ended up sending me up to like $400,000, it was a big story.
"So I'm thinking,like what should I do, then My Pops called me like, you know you can't keep that money right.
"Then we decided to just give it all away, to a course, which was the motherless babies ,so we did that the first year, we did that the second year back to back.”
Media
VIDEO: How my father influenced my annual orphanage donations - Davido
— The Nation Nigeria (@TheNationNews) December 6, 2024
Grammy-nominated singer, David Adeleke, popularly known as Davido, revealed in an interview with The Morning Hustle an American Music Podcast, how his father influenced his annual orphanage donations,… pic.twitter.com/c8VpK238Cm
We Can't Find Husbands - Nigerian Lady Expresses Sadness Over Ordination Of 25 Catholic Priests
AFOLABI
Ada Egede, a Nigerian lady, has gone online to make a serious complaint.
The woman has expressed great sadness after 25 men were ordained Catholic priests.
According to her, husbands have become scarce as more men are taking interest in becoming priests. She advised women in relationships to hold on to their men.
“25 men taken by the Holy Catholic Church yesterday as priests.
"And we no see husband marry. Ladies husband no day again oo.
"Hold your man well ohh. Good night,” she wrote in a Facebook post on Thursday.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has acknowledged that Nigeria's justice system is deeply plagued by corruption.
The commission’s chairman, Musa Adamu Aliyu, SAN, made the remark on Thursday while speaking at the 2024 Annual Lecture/Award Ceremony, organised by the Crime Reporters Association of Nigeria, CRAN.
Aliyu opined that corruption remains one of the most persistent challenges affecting all sectors and institutions of Nigerian society.
He stressed that the trend undermines policy decision-making in the country.
According to Aliyu, the Justice System Administration faces institutional, funding, infrastructural, human resources, and socio-cultural challenges.
He added that, “The widespread corruption within the justice system, including bribery, influence peddling and attitudinal challenges are more fundamental and daunting.
“I dare say that the justice sector remains a focal point of concern, particularly regarding bribery involving stakeholders in the justice sector, and despite limited public contact, judicial officials exhibit relatively high bribery prevalence, hence the need for targeted anti-corruption measures in this sector.”
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Godswill Akpabio, the Senate President, has reiterated the Senate's dedication to progressing legislative work on the contentious tax reform bills, highlighting their significance for Nigeria's development.
Presiding over the plenary on Thursday, Akpabio explained that the committee led by Senator Abba Moro, established to interface with the Attorney General of the Federation (AGF) on the contentious aspects of the bills, is part of the Senate’s internal mechanisms.
“We are elected to work for the interest of Nigerians,” Akpabio said, adding, “Once a bill passes a second reading in the Senate, it is alive. It is then up to the committee on finance to begin consultations and hold public hearings.”
Earlier, Senate Leader Opeyemi Bamidele (APC, Ekiti Central) clarified that the Senate had not suspended deliberations on the tax reform bills, countering media reports purporting that the Deputy Senate President Barau I. Jibrin’s announced indefinite suspension of action on the bills during Wednesday’s plenary.
On Wednesday, Senator Barau, who presided over the session, was reported to have said that the Senate Committee on Finance, chaired by Senator Sani Musa (APC, Niger East), will put on hold further action on the bills.
He had also announced the formation of a special committee led by Senator Moro to engage with the AGF on the concerns raised.
However, Bamidele, invoking Senate Rule 42 on Thursday, asked: “Where was it stated that we have suspended our proceedings on the tax reform bills? This Senate did not suspend and does not intend to suspend, deliberations on the tax reform bills.
“These bills are executive bills and can only be withdrawn by the President. There is no basis for their withdrawal, and the Senate Committee on Finance is actively working to meet its six-week deadline, including conducting a public hearing. The bills remain very much alive.”
Efforts to confirm whether the scheduled meeting between the Senate committee and the AGF took place were unsuccessful. Calls to Senator Moro, other committee members, and the AGF’s office went unanswered at the time of filing this report.
South-South senators back tax reform bills
In a related development, 16 senators from the South-South region have pledged their support for the proposed tax reform bills. Following a meeting on Wednesday, the caucus, in a communiqué signed by Senator Seriake Dickson (Chairman) and Senator Jarigbe A. Jarigbe (Secretary), emphasised their commitment to fostering legislative initiatives that ensure the country’s peace, prosperity, and progress.
The communiqué stated, “Recognising the importance of tax reforms in enhancing national revenue and fostering economic stability, we resolved to support the tax reform bills. This support will be based on a comprehensive study and thorough evaluation of the bills to ensure they align with the overall interest of Nigerians, particularly the well-being of the South-South region.”
The caucus also urged restraint from individuals attempting to inject regional, ethnic, or tribal sentiments into the national dialogue and expressed readiness to participate in robust consultations and interactions initiated by the Senate.
The PH Refinery ships its first export of petroleum products to Dubai.
The company is expected to load the cargo in the coming days onboard the Wonder Star MR1 ship, signalling the commencement of operations at the plant and the exportation of petroleum products.
The ship will load 15,000 metric tons of the product, which translates to about 13.6 million litres.
Although the volume coming from the NNPC into the global market is still small, the development has the potential to impact the Very Low Sulphur Fuel Oil (VLSFO) benchmarks in the future while changing the market realities for Atlantic Basin exporters into Nigeria and other regions.
The sulfur content of the export by NNPC stands at 0.26 per cent per wt and a 0.918 g/ml density at 15°C, according to Kpler, a data and analysis company.
The cargo was reportedly sold at an $8.50/t discount to the NWE 0.5 per cent benchmark on a Free on Board (FOB) basis.
Kpler reported that the development would help displace imports from traditional suppliers in Africa and Europe, as Nigeria’s falling clean product (CPP) imports are already decreasing, dragging imports into the wider West Africa region lower as well.
President Bola Ahmed Tinubu has given marching order to Nigerian Consumer Credit Corporation (CREDICORP) to ensure return of Peugeot Automobile and Dunlop tyre to the country as Nigeria joins nations with credit facility for the purchase of brand new automobiles.
Managing Director/ CEO of CREDICORP Engr. Uzoma Nwagba, confirmed Tinubu’s directive to his agency yesterday at the launch and signing of Memorandum of Understanding ( MoU) for N20 billion consumer credit fund for the purchase of locally assembled automobiles in Abuja between CREDICORP, NAMA and NADDC.
Nwagba said he had gone to brief the President on progress of the agency, with reference to N20 billion credit fund for purchase of locally assembled automobiles by Nigerians.
“The President told me: I want to see Peugeot, Dunlop and others come back to the country,” he quoted the president saying. He said CREDICORP was creating a scenario obtained in advanced countries where, people get car automobiles at a single – digit interest rate. CREDICORP for auto purchase will commence in January 2025.
Nwagba said his agency will engage automobile plants in the country working with the National Automotive Design and Development Council (NADDC), the Nigerian Automotive Manufacturers Association (NAMA) to drive down prices of vehicles at an affordable cost for Nigerians.
“We are trying to make the financing more available and more easily accessible. Meaning in terms of the rates also, to enable Nigerians have cheaper credits.
We work with financial institutions, and for this particular intervention, we are looking at going over time, targeting a single-digit rate to enable Nigerians to purchase these vehicles.
For people who have very strong credits, and who show a good credit history, the financial institutions are taking a bet and a confidence in them for those who are accessing our capital that we are providing, as well as those who are accessing our guarantees.
“We know that interest rates are quite high and is one of the discouraging factors and that is the economic reality of Nigeria; one that obviously makes it more difficult to access credit for mobility, is the high interest rates that we have now.
But given the mandate of Mr. President and his passion for enabling people to get cheaper credit to be able to access these life-enhancing goods, we are targeting lending on a single-digit interest rate. “But for now, you can see that our credit, enabling the banks and microfinance banks are the cheapest in the country.
So, it continues to go down as much as people show good credit history. And the fund that we are launching today is just a start. It’s a start to show a commitment to this industry. “It’s a start to show the commitment of the President.
And it’s a start to actually catalyse credits and allow people to access, get out of transport poverty. Transport poverty is a thing in Nigeria, where a lot of people, especially people in the cities, what you call the urban poor or urban middle class, struggle with access to good transportation,” he said.
The naira has seen steady appreciation since the Eurobond sales and the introduction of the Electronic Foreign Exchange Matching System (EFEMS) on Monday.
Data from the Central Bank of Nigeria showed that the naira on Wednesday appreciated to N1,608/$1 at the Nigerian Foreign Exchange Market (NFEM). This is from N1625/$1 on Tuesday and N1660 on Monday.
Analysts have projected that this appreciation will likely remain till early next year.
A source who wants to be anonymous said that the gains the naira has witnessed stem from the transparency in the foreign exchange market due to the EFEMS, boosting confidence in the market.
“This transparency has shown that the banks had more liquidity (dollar supply) before the launch of the platforms,” the source said.
On Monday the CBN kick-started the EFEMS, an electronic platform introduced to tackle speculation and improve transparency in Nigeria’s FX market. It automatically matches buy and sell orders, promoting fairness and efficiency in FX trading. Financial experts have expressed optimism about EFEMS’ potential to address persistent challenges affecting the naira and Nigeria’s FX reserves.
The EFEMS system allows authorised dealers, including commercial banks, to place buy and sell orders in real-time. Transactions are automatically matched based on predetermined rules, ensuring swift execution and real-time visibility for market participants and regulators.
Similarly, Gbolohan Ologunro, portfolio manager at FBNQuest said that the country has seen more dollar inflows as Foreign Portfolio Investors (FPIs) have been quite active in the foreign exchange market and that’s because the yield on one-year bills has made it more attractive for them to hold more naira assets.
At the last three primary treasury bills auctions, yields have been at record highs, peaking at 30.71 percent, before dropping to 29.75 percent yesterday.
On Wednesday the one-year NT-bills saw the largest bid this year of about N2.53 trillion.
Uduak Jacob, portfolio manager at Comercio Partner Asset Management also mentioned that FPIs have been flooding the market with dollars.
“FPIs have been flooding the market with dollars, in anticipation of an OMO auction. Some even participated in the NTB auction yesterday,” Uduak said.
Yields at recent OMO auctions are at a record high of 32 percent.
Ologunro mentioned that alongside yields which have attracted foreign investors, the newly introduced EFEMS platform has boosted confidence in the FX market.
“If the platform continues to function efficiently and the yields continue to remain at current levels till next year, FPIs will continue to have faith in the naira and will continue to hold naira assets and this will increase dollar inflows,”.
[b]“These inflows will be sustained by the sales from the Eurobond into the system by January which will likely drive reserves to $45 billion, and continue the naira’s appreciation to February,”[/b]Ologunro said
Nigeria revisited the international bond market on Monday and sold $2.2 billion worth of Eurobonds across two tranches after being oversubscribed to the tune of $9.1 billion.
The Federal Government sold $700 million worth of the 6.5-year Eurobond maturing in 2031 at a coupon rate of 9.625 percent and $1.5 billion of the 10-year tenure at 10.375 percent.
Analysts at CSL stockbrokers said in a recent report that on the positive side, the proceeds from the Eurobond issuance, expected to flow into Nigeria’s foreign exchange reserves by December 9, 2024, are projected to boost the reserves to over $42 billion by year-end.
“This increase could provide the Central Bank of Nigeria (CBN) with greater capacity to support the naira in the near to medium term, potentially leading to a modest appreciation of the domestic currency,” the report stated.