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More pressure on industries, businesses over N952/$1 exchange rate for import

• N2m increase on 40ft container, N350,000 rise on vehicle clearance
• Importers to divert cargoes to other climes, Nigeria’s ports to become idle
• Stakeholders: Increase will induce inflation, more businesses to shut down
• Cost of drugs to increase, health of masses a concern
• FG urged to address security, shipping growth, ports operations

Barely a month after the Federal Government through the Central Bank of Nigeria (CBN) raised the exchange rate for importation to N783/$, Nigerians are in for more hardship this yuletide as the rate was again raised to N952/$ yesterday, leaving importers stranded as they face more financial pressure to clear their goods at the port.

This is the fourth time in six months the import exchange rate has been adjusted by the Nigeria Customs Service (NCS) under the President Bola Tinubu ‘Renewed Hope’ agenda after the Service started the implementation of the floating foreign exchange rate regime by the CBN.

The CBN had on June 24, 2023, adjusted the exchange rate from N422.30/$ to N589/$. On July 6, it was re-adjusted to N770.88/$, and again on November 14, it was re-adjusted to N783.174/$, and now a new regime rate of N951.941/$. The new rate was reflected on the Customs portal.

This adjustment in FX rate for cargo clearing at the port, coming a few weeks before the Christmas and New Year celebrations, according to port users, will have a huge impact on the prices of imported goods already being pressured by surging inflation.

Already, prices of goods have increased as well as cost of production, as investors dump the country. Also, containers are being abandoned at the seaports, causing congestion. The new increment will have the seaports congested with abandoned cargoes as importers and agents will not be able to clear their cargoes.

Stakeholders have raised concerns that the new FX rate will effectively cause an increase in import duty payable to the NCS and would overall affect prices of goods in the market.

Confirming this, the Public Relations Officer, Tin-Can Island chapter of the Association of Nigerian Licenced Customs Agents (ANLCA), Onome Monije, told newsmen that importers and their agents are going to experience a bleak Christmas owing to the high tariff for clearing goods at the port. She said the increment would affect both vehicle and containerised goods, and advised clearing agents to engage their principals to forestall disagreement.

The Public Relations Officer, Association of Registered Freight Forwarders of Nigeria (AREFFN), Taiwo Fatomilola, lamented that the duty on 1×40ft container has increased from N7 million yesterday to N9 million after the increase of the exchange rate. He also said there is a N350,000 increase on the duty on each car.

The Vice Chairman of Business Action Against Corruption (BAAC) Integrity Alliance, Lagos, Jonathan Nicol, said the sudden hike in exchange rate for goods clearing will jeopardize shippers’ businesses and definitely increase cost of doing business, which will further induce inflation.

Nicol, who is also the former President, Shippers Association of Lagos (SAL), said the Federal Government, in tackling the issue of foreign exchange rate, is unfortunately driving existing industries into coma, in addition to the cost of diesel, unbudgeted exchange rate, cost of transportation, which will certainly go up, along with the cost of 400 per cent increase in terminal charges, among others.

According to him, more cargo will be diverted to other climes and the nation’s ports will not be as busy as they should have been.

“I also know the government is aware of the inflationary pressure on citizens. Increase of cost of clearing at this time is ill-timed during the Christmas festive period. The government targeted the Christmas rush to make more money through Customs duty, while goods cleared will be difficult to sell.

“We hope this will be the last onslaught of government pressure on importers. Next year, hopefully, things might change for Nigerians as the cost of doing business in Nigeria will be tackled vehemently to restore confidence in our trading public. Imports will reduce drastically and more industries will close down due to uncontrolled investment uncertainties in the sector,” he stated.

 

The National President, Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Frank Ogunojemite, said from the business perspective, it is sad news to wake up and see the margin of Customs exchange rate from move from N783/$ to N951/$, which means that the cost on both import and export will definitely increase.

He said this will also affect the projected amount of the money allocated for such procurement and in return the end users will bear the burden.

Ogunojemite added without any reservation that inflation will take place and possibility for businesses to collapse is higher, thereby creating more unemployment.

“The weakness in people’s purchasing power due to inflation caused by all these incessant increments will aid bribery and corruption or inefficiency at work places,” he said.

The Chairman/CEO of St. Rachael’s Pharma, Mr. Akinjide Adeosun, expressed concern that there will be an increase in the price of drugs because the import rate has gone up as over 70 per cent of drugs consumed in the country are imported.

MEANWHILE, the Federal Government has been urged to disburse the over $350 million Cabotage Vessel Finance Fund (CVFF) to indigenous shipowners to grow local capacity building in the country, while pointing out that shipping and ports operation still suffers numerous challenges.

Stakeholders who made the call at the 25th yearly Retreat/Award of the League of Maritime Editors (LOME), held in Lagos yesterday, stressed the need to ensure the ports run 24 hours, while urging the government to address issues like security in the maritime industry.

The theme of the event is “Harnessing Nigeria’s Potential in Marine and Blue Economy/The new customs 2023 Act and its implication on trade.”

The President of LOME, Timothy Okorocha, urged President Tinubu to provide the Minister of Marine and Blue Economy, Adegboyega Oyetola and his ministry, the needed impetus to end the unending rat race of the disbursement of the CVFF, established in 2003.

He said Tinubu should start a new lease of life for the capacity development of the indigenous ship owners and to enable Nigeria participate meaningfully in the nation’s seaborne trade; especially with the proposed commencement of the implementation policy of the blue economy.

According to him, as insiders, the League over the years has seen the genuine struggle by the Nigerian Maritime Administration and Safety Agency (NIMASA) and its leadership, especially under the present administration to disburse the CVFF in its commitment to grow local capacity building, but observe the otherwise disruptive tendencies within the field of political play.

[Guardian]

 
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NIBSS Bars Fintechs From Banks’ Fund Transfer Channels

Nigerian banks have received a circular from the Nigeria Interbank Settlement System Plc (NIBSS) instructing them to remove non-deposit-taking financial institutions, such as switching companies, payment solution providers, and super agents, from their NIP fund transfer channels.

The NIP channels encompass USSD, mobile banking apps, POS, ATMs, as well as web and internet platforms.

 

The NIBSS circular states, “listing non-deposit-taking financial institutions such as switching companies (switches), Payment Solution Service Providers (PSSP), and Super Agents (SA) as beneficiary institutions on your NIP funds transfer channels contravenes the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria dated February 2014.”

The circular clarifies that while the financial institutions will be barred from receiving inflows, they are permitted to process outflows as inflows to banks.

“For clarity, Switches, PSSPs, and SAs may process outward transfers as inflows to Banks but are not to receive inflows as their licences do not permit them to hold customers’ funds.”

The policy enforcement aims to remove Fintechs without banking licences from banks’ fund transfer channels. Under this new arrangement, these platforms are expected to facilitate outward transfers to banks but won’t be able to receive fund inflows.

[Leadership]

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P&G Exit: Our Business Environment Is Deteriorating Continually – Peter Obi Laments

The presidential candidate of the Labour Party in the 2023 general election, Peter Obi has reacted to the recent decision of multinational giant, Procter & Gamble to divest from Nigeria.

 

Reacting to the report, the former Anambra governor lamented that the continued exit of multinational companies from Nigeria was an indication that the country’s business environment was deteriorating continually.

Obi said that “A few months ago, I lamented the exit of one of the top global Pharmaceutical giants, GlaxoSmithKline (GSK) from Nigeria. GSK remains a top global pharmaceutical manufacturer and has had 51 years of operations in Nigeria. The reason for their exit was that there was no longer a perceived growth in Nigeria anchored on productivity. Today, Procter & Gamble (P&G), the world’s largest personnel care and household products company, makers of iconic brands like Pampers, Gillette, etc, is again leaving Nigeria, for the same reason GSK left.

“Following this also are French pharmaceutical company Sanofi-Aventis, and top Energy firm, Norwegian behemoth Equinor which has sold off its Nigerian business development associates Fifteen years ago, P&G, as they are commonly called, viewed Nigeria as a strategic country of importance and invested millions of dollars in an ultra-modern chain supply structure in Agbara which, sadly, is now up for sale. The presence of these iconic companies in any economy is not only that they signify trust and confidence, as well as belief in the medium to long-term socio-economic prospects of such countries, but they massively create jobs, invest in Research and Development, as well as pieces of training which smaller players in the industry learn from and adapt. They help, to a great extent to develop local talents for both local and global jobs.

 

“The exit of these top global companies shows that our medium to long-term prospects strategy is in the negative. Our investment profile is not attractive and our business environment is deteriorating continually. The purchasing power of most Nigerians is nose-diving every day. In the face of the absence of the rule of law, and a conducive business environment, it will be difficult to retain such iconic companies and talk more about attracting new ones. Governments at all levels in Nigeria must therefore take immediate steps to ensure that institutions of governance are put in place and actively engaging to show that the situation is reversed. National greatness and development cannot be pursued in an atmosphere that is scaring away strategic international investors.”

Naija News had earlier reported that Atedo Peterside suggested that the investors who are leaving Nigeria are those who cherish the rule of law, policy consistency, macroeconomic stability and a level playing field.

 

Peterside, in a post via his official X handle, lamented that good investors were being replaced only partially by investors who know how to partner with politicians or game the system through waivers and exemptions.

[NaijaNews]

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Nadal Not Certain 2024 Will Be Last Year Of His Career

Rafael Nadal said on Thursday he could not confirm that 2024 would be his final season before retirement, saying it “makes no sense” to set a deadline for the end of his career.

The 22-time Grand Slam champion will make his return from a near year-long injury absence at the Australian Open warm-up event in Brisbane next month.

The 37-year-old had previously suggested he would hang up his racquet at the end of 2024.

“There’s every chance that it’s going to be my last year and I’m going to enjoy the tournaments in that way,” Nadal said in a video posted on his social media accounts.

[DailyTrust]

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AFN holds board meeting Dec. 10

The Executive Board of the Athletics Federation of Nigeria, AFN, the body responsible for all decisions related to the sport of athletics, as well as for the  conduct and management of the sport and its disciplines, will hold a crucial meeting on Sunday December 10.

The meeting will deliberate on a number of issues with the ratification of the 2024 programme of activities and consideration of the report of an audit  committee which looked into the finances of the federation.

With the African Games coming up between March 8 and 23, the federation will deliberate on how to prepare the athletics team to the Games.

In 2019, the Nigerian track and field team won the athletics event at the Games with a total of 23 medals made up of 10 gold, seven silver and six bronze  medals ahead of Kenya who won a total of 20 medals (10 gold, seven silver and three bronze medals)

The Executive Board will also deliberate on the report of the audit committee it set up via a resolution of its board meeting of September 16, 2023.

The Executive Board will consider the recommendations of the committee and decide on the next step(s) to be taken.

[TheNation]

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Some foreign airlines may quit Nigeria, IATA warns FG

…Lagos, Abuja airports fees highest amid poor infrastructure

The International Air Transport Association has warned the Central Bank of Nigeria that some foreign airlines may be forced to quit the Nigerian markets if nothing is done about the $790m ticket revenue currently trapped in the country.

The IATA Regional Vice President, Africa & Middle East, Kamil Alawadhi, at a media presentation with African journalists at the IATA Global Media Day in Geneva, Switzerland, on Thursday also said Lagos and Abuja airports had been ranked the most expensive gateways in the region despite the poor state of their infrastructure.

According to him, the Nigerian government is currently holding the highest amount of airline-trapped funds.

 

On blocked funds, the IATA VP listed Nigeria as the country with the highest amount of airlines’ blocked funds at $792m followed by Egypt ($348m); Algeria ($199m); AFI zone ($183m) and Ethiopia $128mn.

While Ethiopia has mapped out a strategy to defray the debt, he said that Nigeria had yet to do anything on its own.

Al-Awadhi said, “Ethiopia is seeking a way to resolve this issue even though the blocked fund is rising. The first step for us to solve these blocked funds is for both parties to engage. If parties don’t engage, it is very difficult to move forward. I have not been able to engage with Nigeria’s CBN Governor. He said he would engage with me when he had a solution. He is not promising but I have engaged with the Aviation Minister who is very understanding, new to the position, or maybe wowed by the situation he inherited will help to resolve the matter.”

“The airlines in Africa are owed $34 million. That $34 million is blocked. Depreciation has set in on the money. They have already lost $10 million because of depreciation. That is not fair for the airlines because they have paid all the dues to the operators of the airports. Every due has been paid for. They carry Nigerian officials on these flights and they can’t get their money.

On the state of aviation in Nigeria, the IATA boos said with 25 per cent interest on loans, high airport taxes and insurance premiums which it said was six times more than anywhere in the world, it would be difficult for Nigerian airlines to make profit.

According to Al-Awadhi, any airline in Nigeria operating outside of Nigeria has a cheaper operating cost and better prices than Nigerian airlines.

He said, “Every airline has its challenges and it depends on where it operates. To answer this question, I will use Nigeria as an example. Nigeria has two most expensive airports; their fuel is higher than elsewhere in the world, and insurance is six times more expensive than anywhere else in the world.”

“The interest on loans is 25%. It is ridiculous. It is the highest interest I have ever seen. When you set up these airlines, you are already disadvantaged. Any airline in Nigeria operating outside of Nigeria has a cheaper operating cost and better prices than Nigerian airlines. You can see why it is difficult for African airlines to make profit.

He added, “IATA is identifying why these costs are high and we are trying to tackle them one by one by seeing how they can reduce the costs. We are expecting that the operating costs of the African airlines will be lowered and they can become profitable”, said Al-Awadhi.

IATA is identifying why these costs are high and we are trying to tackle them one by one by seeing how they can reduce the costs, hoping that the operating costs of the African airlines will be lowered and they can become profitable. “

[Punch]

 
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‘I battled postpartum depression’ — Bambam shares her motherhood journey

Bamike ‘Bambam’ Olawunmi, the former BBNaija housemate, has recounted her struggles with childbirth and postpartum depression.

 

In a recent interview with Chude Jideonwo, the media personality, Bambam said she was diagnosed with preeclampsia during her first pregnancy.

The mother of two said pregnancy transformed her body, adding that she went from a dress size 8 to 16.

She praised Teddy A, her husband, for being supportive during the transition phases of her pregnancy.

 

The reality TV star said she ignored social media trolls who mocked her for gaining weight because “they cannot understand”.

“I would never have imagined that my body would get this thick. I look in front of the mirror and thank God for supportive husbands like mine,” she said.

“Imagine I had a man who was not open to the transition phases I went through with each pregnancy.

 

“My second pregnancy was even more merciful than the first. What! Zendaya! I went from Maroon to black, I had skin tags, I had acne breakouts and went from size 8 to 14/16.

“I was in shock. I went through postpartum depression. I was a mess. I did not understand. I transformed literally.

“But I mean look at the girl. Now you understand why she did what she had to do.

“I had to ask the doctor, ‘is that my baby?’ ‘How is she so white looking?’ She had grey eyes and now they are brown.

 

“She looked so different. I had preeclampsia with her pregnancy, she had detached from my placenta by the time I arrived at the hospital.

“So the thought of losing her, if I hadn’t been diligent with my antenatal classes or taking my vitamins. We tried going to have her abroad but there were a lot of setbacks so we had to settle.

“And the hospital we got, thank God they were so diligent. Imagine they didn’t do my urinalysis test and the doctor didn’t call at the time that he did?

“Her birth was a miracle, my pregnancy phase was a miracle. Postpartum depression was because I kept playing all the what ifs in my head.”

[TheCable]

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Canada Jerks Up Cost-of-Living Threshold For International Students

From January 1, 2024, the cost-of-living financial requirement for study permit applicants will be raised to $20,635 from the initial $10,000 so that international students are financially prepared for life in Canada.


Canada’s Minister of Immigration, Refugees and Citizenship, Honourable Marc Miller, announced the review on Thursday. He said that moving forward, the new threshold will be adjusted each year when Statistics Canada updates the low-income cut-off (LICO).

LICO represents the minimum income necessary to ensure that an individual does not have to spend a greater than average portion of income on necessities.

According to the information posted on the website of the Canadian Government, the cost-of-living requirement for study permit applicants has not changed since the early 2000s, when it was set at $10,000 for a single applicant. As such, the financial requirement hasn’t kept up with the cost of living over time, resulting in students arriving in Canada only to learn that their funds aren’t adequate, a development that can put them in a financial crisis.

Consequently, for 2024, a single applicant will need to show they have $20,635, representing 75% of LICO, in addition to their first year of tuition and travel costs. The change will apply to new study permit applications received on or after January 1, 2024.

While this will help prevent student vulnerability and exploitation, Minister Miller said: “We recognize that the impact of the change could vary depending on the applicant. Next year, in collaboration with partners, we intend to implement targeted pilots that will test new ideas aimed at helping underrepresented cohorts of international students pursue their studies in Canada.

“Today’s announcement follows important reforms to the International Student Program announced on October 27, 2023, regarding the development of a new framework to recognise learning institutions that provide top-quality services and support, including housing, to international students. We expect learning institutions to only accept the number of students that they can provide adequate support for, including housing options.

“In welcoming international students, we have a responsibility to make sure that students are supported when they come to our country. Ahead of the September 2024 semester, we are prepared to take necessary measures, including limiting visas, to ensure that designated learning institutions provide adequate and sufficient student support as part of the academic experience. In order to achieve this result, it is imperative to work together with provincial and territorial governments, learning institutions and other education stakeholders, so we can ensure international students are set up for success in Canada.”


LEADERSHIP reports that Canada is a top destination for international students, owing to her high-quality educational institutions; her welcoming, diverse society; and the opportunities for some to work or immigrate permanently after graduation. While international students have contributed to life on campuses and innovation across the country, they have also experienced some serious challenges, such as finding adequate housing, as they pursue their studies in the North American country.

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Musician arrested for defiling lover's 16-year-old daughter

Operatives of the Nigeria Security and Civil Defense Corps (NSCDC), Ogun Command, have arrested a 35-year-old musician, Odewala Iseoluwa Akinleye, for defiling the 16-year-old daughter of his lover.

The suspect was paraded at the command’s headquarters in Abeokuta on Thursday, December 7, 2023.

Spokesman of the command, Dyke Ogbonnaya, said the suspect was arrested following a report at the Anti-Human Trafficking Irregular Migration and Gender Unit of the command.

“On Monday, the 4th of December 2023, the Anti- Human Trafficking Irregular Migration and Gender Unit received a matter which was transferred from the Ofada/Mokoliki division of the command, involving one Odewale Iseoluwa Akinleye, male, 35 years (suspect) and a victim (female) of 16 years of age, name withheld,” he said.

“We got to know about the matter through the family members of the victim and our men went after the suspect, got hold of him and brought him to our division. Going through the matter deeply, they saw that it was something they couldn’t handle on their own so it was brought to the state’s headquarters. And on investigation, he confessed to the crime and would be charged to court,”

Ogbonnaya cautioned parents, particularly mothers, to exercise caution when interacting with men when their female children are within the environment because this could have a negative impact on the kids

Speaking to newsmen, the suspect who is a musician and drummer, said he had been in a relationship with the victim’s mother before she travelled to Israel in 2017.

“We had sex together. I started sleeping with her around 2017, I knew her through her mother who was my band leader. I play talking drum for her and we love each other and we were sleeping together (mother) and she had a son for me before she travelled to Israel," he said.

"When her mom was traveling, she handed her over to my elder sister and her two brothers and we gave her a separate room and I had the opportunity to go inside her room. That was when the relationship started.

"When we were at Oke Aregba, I didn’t sleep with her until we moved elsewhere that was when she confessed to me this year August she has a boyfriend and he has been sleeping with her. So, for me not to tell her mom, she asked what she can do; and I told her that whenever she needs sex she should come to me.

"I can’t remember her age when I started sleeping with her. She’s going to 17 years old by December 14 this year. Her mom travelled in November 2017 and left her with us.

“I didn’t penetrate her then in 2017, we were just cuddling ourselves. It was just a family relationship.”

The suspect admitted giving the victim lime after having intercourse with her in order to prevent pregnancy.

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Two more abducted youth corps members regain freedom

The National Youth Service Corps announced on Thursday that two more of the abducted female prospective corps members have been released, bringing the total number freed so far to four out of the eight taken hostage along with their bus driver in August.

The two women were abducted by gunmen in Zamfara while travelling from Akwa Ibom to the orientation camp in Sokoto.

According to a statement on Thursday, efforts by the Nigerian Army recently secured the release of a male and a female abductee.

The NYSC Director-General, Brig.-Gen. Yush’au Ahmed, noted that negotiations are ongoing for the safe return of the remaining captives.

“The scheme, in conjunction with security agencies, will explore every available strategy to ensure their release unhurt and reunite them with their families,” the Director of Press, Eddy Megwa stated.

The NYSC expressed appreciation for the support from the Nigerian Army so far in working towards freeing the prospective corps members as they remain resolute in their responsibility of promoting national unity and integration.

“NYSC management also wishes to appreciate the overwhelming support received from the Nigerian Army in its concerted efforts towards securing the release of the abducted prospective corps members,” Megwa added.


He reiterated the scheme’s determination to remain resolute in its statutory responsibility of fostering national unity and integration.

NAN

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