• Experts fault NAFEM intra-day rates, demand full disclosure, transparency

The naira gained marginally against the United States dollar at the Nigerian Autonomous Foreign Exchange Market on Tuesday, closing at N1,542.58/$ from N1,551/$ recorded on Tuesday.

The rate represents a 2.9 per cent appreciation from the N1,598.54 traded on Monday and a meagre 0.58 per cent against Tuesday’s rate.

According to data from the FMDQ Securities Exchange-a platform that oversees FX trading in Nigeria-the local currency hit an all time intra-day high of N1,755 and an intra-day low of N1,050.

Also, the foreign exchange turnover increased to $172.14m from the $66.43m and $117.32m recorded on Monday and Tuesday, respectively.

Banks sale of approximately $172m on Wednesday represents about 47 per cent increase from the $117m sold on Tuesday. While the sale of forex on the FMDQ is dominated by banks, the Central Bank of Nigeria and multinationals especially oil firms also participate in the sale and purchase of forex on the platform.

However, the Wednesday’s 1,542.58/dollar closing rate of the national currency at NAFEM further widened the gap between the official and paralleled market rates.

On Wednesday, the naira depreciated further to 1,900 against the dollar at the parallel market, bringing the gap between the official and black market rate to over N300 and fuelling concerns over round-tripping.

Analysts and Bureau De Change Operators predicted on Wednesday the local currency might reach all-time low of 2,000/dollar at the parallel market before the end of next week.

A BDC operator in Wuse, Abuja, identified as Abubakar Yahu, said the demand for the greenback was fuelling volatility.

He said, “Today’s rate was at N1,900. We bought at N1,900/dollar and sold  around N1,850 and N1,870. Some people say the rate may hit N2,000 by next week or before then.”

Also, A BDC operator in Allen Avenue, Ikeja, Lagos, Mr Lawan Lawal, said the local currency was bought and sold at N1880/dollar and N1,860, respectively.

Another BDC operator at the Lagos airport, Mustafa Zakari, said the naira-dollar exchange rate had experienced high volatility at the parallel market in the past few weeks due to the activities of currency speculators.

On Wednesday, The PUNCH learnt that operatives of the Economic and Financial Crimes Commission stormed the Wuse Zone 4 market in search of currency speculators.

The development was part of ongoing efforts by the EFCC and the CBN to restore exchange rate stability and boost forex liquidity.

It was learnt the CBN and the EFCC, supported by the Office of the National Security Adviser were determined to deal with currency speculators whose activities had led to widening gap between the official and parallel market rates of the naira against the US dollar.

The Office of the NSA had in a statement on Tuesday said it was working with the central bank to tackle illicit financial activities.

The partnership, according to ONSA, will involve a coordinated effort with key law enforcement agencies, including the Nigeria Police force, EFCC, Nigeria Customs Service and the Nigeria Financial Intelligence Unit.

However, it appears the efforts have yet to yield the expected results, as the naira continues to fluctuate at both forex markets.

 President Bola Tinubu on Tuesday said his administration was making efforts to raise at least $10bn to increase forex liquidity and stabilise the naira.

In June 2023, the Tinubu administration floated the naira. The CBN subsequently diirected commercial banks in Nigeria to sell forex freely at market-determined rates.

In a series of guidelines recently, the CBN ordered Deposit Money Banks to sell their excess dollar stock and maintain certain level of prudential thresholds. The moves were aimed at raising dollar liquidity in the market.

Last week, the apex bank released another set of guidelines that stopped banks from paying Personal Travel Allowance to their customers in dollars. it also asked International Oil Companies not to repatriate all their revenue to their parent companies at once. The apex bank, in another circular, reviewed its guidelines to stop under-invoicing of exports and over-invoicing of imports.

Despite the central bank’s efforts to boost forex supply through various policy interventions, challenges have persisted in the forex market.

Meanwhile, analysts and some stakeholders have faulted the intra-day rates at the official NAFEM, raising concerns over the huge gap between the intra-day high and intra-day low rates.

They said the huge gap between the intra-day rates indicated there was a need for more transparency and disclosure at NAFEM.

Chief Executive Officer of Cowry Treasurers Limited, Charles Sanni; and President of the Association of Bureau De Change Operators  of Nigeria, Aminu Gwadabe, spoke on the various challenges facing forex market especially NAFEM.

Gwadabe, while querying the huge gap between both rates, said there was a need to separate the ownership and structure of the FMDQ Exchange.

He said, “The gap between the intra-day high and intra-day low is too huge. There is also lack of adequate disclosure on who bought what and who sold what on the platform. There is a need to publish this on the FMDQ websites.

“However, my worry is that FMDQ is 90 per cent owned by the banks and 10 per cent owned by the CBN. The banks dominate the place. So, there is an issue here. How can we call this the official rate? I feel the government needs to set up a platform that would be fully independent.”

The ABCON president also wondered how a circular issued by the CBN led to the movement of rates on the FMDQ platform from N900/dollar to over 1,400/dollar.

Gwadabe explained, “This is unacceptable. The country needs patriotism. FMDQ needs to be more transparent, committees can be set up. There is exchange rate volatility which is driven by speculation and other activities.”

The Chief Executive Officer of Cowry Treasurers Limited, Charles Sanni, speaking with The PUNCH, however, said the wide gap between the intra-day trading rates of dollars at the official market was an abnormal situation driven by poor forex supply.

He said, “This shows that while the demand is there, the supply is not okay. That is what is responsible for it. It just speaks to the fact that there is a scarcity of foreign exchange. That is why traders would quote only one-way. It usually occurs in an abnormal situation.”

Efforts to get the CBN to comment on the development did not yield any result. Calls made to the Acting Director, Corporate Communications, CBN, Hakama Sidi Ali, by our correspondent, was not responded to as of the time of filing this report.

However, according to top official who spoke on condition of anonymity because he was not authorised to speak on the matter, the CBN does not publish the details of parties who bought and sold on the FMDQ platform.

[Punch]

Ohanaeze Ndigbo has called on President Bola Tinubu to dismiss terrorism charges against the leader of the Indigenous People of Biafra, Nnamdi Kanu, as done to a Yoruba activist, Omoyele Sowore.

The apex Igbo socio-cultural organisation made the appeal in a statement signed by it’s Secretary General, Mazi Okechukwu Isiguzoro on Wednesday.

According to Isiguzoro, Consistency and equality before the law are fundamental principles of a just society.

He then implores President Tinubu to extend the same precedent given to Sowore to Nnamdi Kanu without hesitation or delay.

The statement reads “As the impending trial of IPOB Leader Nnamdi Kanu on Terrorism Charges commences on Monday, 26th February 2024, OHANAEZE NDIGBO vehemently advocates for the immediate dismissal of these charges, mirroring the commendable action taken by the Federal Government in dropping the treasonable felony charge against Yoruba activist Omoyere Sowore. President Bola Tinubu’s commitment to Nigeria’s healing process must encompass fairness and impartiality.

“The apex Igbo socio-cultural organisation commends the decision to void the charges against Sowore, emphasising the necessity for equitable treatment under the law. It is imperative that justice is dispensed uniformly, without prejudice or favouritism. OHANAEZE NDIGBO implores President Tinubu to extend this same precedent to Nnamdi Kanu without hesitation or delay.

“Nigerians, most notably the Ndigbo community, fervently urge President Tinubu to direct the Attorney General of the Federation, Lateef Fagbemi (SAN), to halt Kanu’s trial and withdraw all associated charges, invoking Sections 174(1)(c) of the 1999 Constitution of the Federal Republic of Nigeria and Section 107(1) of the Administration of Criminal Justice Act 2015, akin to the action taken in the Sowore case. Consistency and equality before the law are fundamental principles of a just society.

“OHANAEZE NDIGBO asserts that the liberation of Nnamdi Kanu is imperative for national reconciliation and stability. By aligning the legal treatment with the highest standards of fairness, President Tinubu can significantly promote unity and harmony in the nation. The importance of this decision transcends mere legalities; it underscores a commitment to rectifying historical injustices and fostering a climate of inclusivity.

“Mazi Okechukwu Isiguzoro, the Secretary General of OHANAEZE NDIGBO, affirms that undisclosed diplomatic channels are being utilised to advocate for Kanu’s freedom, recognising the political nuances at play. It is incumbent upon President Tinubu to heed this impassioned appeal, as dropping the charges against Kanu signifies a crucial step towards healing the wounds of the past and ushering in a new era of justice and reconciliation.

“OHANAEZE NDIGBO stands resolute in its call for fairness and equity in the legal system, emphasising that the liberation of Nnamdi Kanu represents a pivotal moment in Nigeria’s quest for genuine unity and progress”.

An undercover investigation has exposed how officers of the Nigeria Customs Service (NCS) update smugglers on the itinerary of their colleagues in a bid to facilitate the movement of smuggled goods. 

The undercover investigation “Undercover as a Smuggler” was carried out by Fisayo Soyombo, an investigative journalist and founder of the Foundation for Investigative Journalism (FIJ).

Soyombo attempted to illegally import 100 bags of rice from the Republic of Benin into Nigeria to prove how porous the country’s borders are.

The investigative journalist succeeded in transporting the bags of rice without resistance from security operatives, owing to information provided by some officials of the NCS.

In the report, Soyombo narrated how he linked up with a smuggler identified as Jide, who in turn linked him with one Alaba at Ilaro, a town in Ogun state.

The investigative journalist also narrated how he and the smugglers travelled from Ilaro, through Olorulekan, Ebute, Oja-Odan and Ologiri to Adja-Ouèrè, a trading town in the Benin Republic, to buy the bags of rice.

After the purchase of the bags of rice in November 2022, they were transported through the forest by some motorcycles to Oja-Odan for temporary storage before being moved to Ilaro.

However, there was a delay in the transportation of the rice from Oja-Odan to Ilaro because one of the smugglers said he had not been given instructions by some NCS officials.

“There is someone who controls each of those roads, even the road leading right to the border,” Soyombo quoted the smuggler as saying.

“They are customs bosses; you have to be under one of them. You have to let them in on your plans, your movement. They are the ones who tell you the specific days and hours when you can move. Once you have their permission, you have no problem.”

After some days, the smugglers were yet to receive signals from the customs officers for the transportation of the rice to Ilaro.

Subsequently, the bags of rice were sold off after customs officers raided a smuggling safe house in Oja-Odan. 

In April 2023, the investigative journalist embarked on the second phase of the trip.

“Things pace faster than usual on April 5, 2023, the day I resume in Ilaro for phase two of my mission,” he wrote.

“We had seen the stalls back in November, so it was unnecessary to re-enter Benin Republic. Instead, I make payments and wait in Ilaro while the motorcycle smugglers move the 100 bags to Oja-Odan through the forests.

“Then we begin the arduous wait for the rogue Customs officers to grant permission for smuggling by road. It takes only six days this time.”

You can read the full investigation here.

‘NIGERIA’S SMUGGLING PROBLEM’

Over the years, smuggling has been blamed for the widespread of fake products, arms, and prohibited goods among others in the country.

In 2019, former President Muhammadu Buhari closed some of the country’s borders to encourage local production of food, especially rice.

The border closure was criticised by some economists who believed that the country could not singlehandedly feed its citizens.

In May 2023, Buhari said Nigerians would eventually appreciate the border closure, adding that God can effectively guard the borders of the country.

The Labour Party yesterday confirmed the arrest of its National Chairman, Julius Abure, in Benin City, Edo State.

State Chairman Comrade Kelly Ogbaloi, Ken Omusi, Simeon Obehi, and two others were also arrested.

A statement by the spokesperson of the Zone 5 covering Edo and Delta States, Tijani Momoh, said Abure and the others were arrested yesterday afternoon for alleged conspiracy, brutal assault, attempted murder, robbery, grievous harm, and conduct likely to cause breach of peace.

The statement reads: “The arrest follows a petition addressed to the Inspector-General of Police (IG) Kayode Egbetokun, which was endorsed by Office of the IG to the AIG Zone 5, Benin, for investigation.

“Detectives of Zone 5, upon surveillance and with warrants of arrest, apprehended Abure, Ogbaloi and others with a pump-action gun and three rounds of live ammunition. It is expedient to state that contrary to false narratives on the social media, Abure was not assaulted by the police detectives.

“While effecting the arrest, some persons with Abure obstructed the detectives and made Abure sit on the ground to curry sympathy from the public.

“The AIG Zone 5 Headquarters, Benin City, Arungwa Nwazue, has directed speedy investigation into the matter, and anyone found culpable will be arraigned in court.”

But the Lamidi Apapa group said Abure was arrested in connection with alleged forgery and perjury, according to a statement by the faction’s National Publicity Secretary, Abayomi Arabambi.

The statement reads: “Abure’s arrest today (yesterday) was in connection with the police investigation report that indicted and established a prima facie case of forgery, perjury and criminal conspiracy over his involvement in the forgery of the signature of a FCT High Court Judge, Commissioners of Oath, and generating his own receipts from the Treasury Single Account (TSA).

“His arrest is also connected to the arson and attempted murder of our National Youth Leader.”