The widening gap between the demand and supply of dollars in the banks and at the parallel market has continued to worsen the value of the naira, findings by newsmen have revealed.
In less than three weeks, the naira lost N100 after sliding from 860/$ to 960/$ at the parallel market as of Friday.
Before the Central Bank of Nigeria enabled the free float of the naira against other global currencies in June, the naira had traded at 471/$ at the Investor & Exporter window.
However, on June 13, a day after the regulator floated the local currency, the naira rose to 664/$ the next day.
However, the naira which traded in a close margin at both the official I&E window and parallel market soon began to witness serious volatility in the black market.
After crossing the N900/dollar ceiling at the parallel market last week, the local currency tumbled to 925/dollar in Lagos.
On Friday, the naira reached a high of 799/$ before closing at 740.60/$ at the I&E forex window. However, at the parallel market, the naira closed at 930/dollar in Lagos and 960/$ in Abuja at the parallel market.
The development came as dollar shortage hits banks with several lenders complaining of not having enough greenback to meet customers’ demand.
At the parallel market, currency dealers also complained of dollar shortage.
Bank officials said the CBN removal of cash deposit limits on domiciliary accounts in June had led to the repatriation of funds through the banks.
As a result, he said the demand for the dollar had outweighed the supply significantly.
“Some of the dollars are being repatriated through the banks but the demand is still higher than supply because everyone is still sourcing for dollar for imports, PTA, BTA, others,” an official of a lender, who chose to speak on condition of anonymity because he was not authorised to speak on the matter, said,
“Nigerians are still hoarding dollar, customers are still hoarding FX because they don’t trust the policy. Banks are not getting forex supply from the CBN regularly like before,” he added.
Also, an official of tier-1 bank, who pleaded anonymity, said, “Before, the banks used to get dollar from the CBN every week but now, it has reduced drastically; we have not been getting again. Banks are sourcing for forex everywhere. The banks don’t have enough. We have not been getting supply from the CBN for weeks now.”
The President, Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, in a chat with our correspondent, said liquidity squeeze in the FX market had continued to put the naira under heavy attack from speculators.
He said, “The dwindling supplies in the I&E window shifted the demand to the parallel market where volatility and spikes is most pervasive. The entire forex market is plagued by liquidity shortages.
“The banks, as a result of the supply shortages, are limiting their available position for the financing of visible letters of credit and abandoning the invisible request like PTA, school fees, medicals of their clients and inadvertently adding more pressure in the parallel market.”
He added, “As it is, most licensed BDCs due to their demand for KYC requirement have lost their clients to the parallel and undocumented space with no regulation and standardisation. It is indeed a difficult time for most of our members as we are excluded from the harmonised market.”
Proffering solutions, Gwadabe said Nigerians should aspire to have a stable exchange rate devoid of illegal economic behaviour like arbitrages, hoarding and panic buying.
“ABCON is desirous to partner the apex bank and the Federal Government for an elaborate dialogue and engagement to champion paths to naira recovery,” he said.
He added that the financial architecture should be reviewed to include BDCs in the harmonised markets.
The monetary and fiscal authorities should create enabling environment and friendly policies, he said.
5 not-so-obvious signs you’re a horrible boss and employees probably hate you
Recently, a lot of attention has been given to bosses who create a toxic atmosphere at work, but the truth is that many toxic bosses lack self-awareness, and introspection is hard, so let’s help them with some clarity.
Here are five not-so-obvious signs you’re a terrible boss:
1. You say things like “We’re a family” or “We are building something big”
This is often a gaslighting technique used to make people take on things that aren’t really part of their job description, because how else can a boss rationalise forcing all his or her employees to attend their colleague’s naming ceremony or wedding and contribute money towards it? You can’t enforce what people use their private time and money to do.
Another way the “we are a family” phrase leads to toxicity is sending employees on errands that have nothing to do with work, like picking up your laundry.
We are building something big in another phrase toxic bosses say to force you to take pay cuts and work crazy hours. It’s often healthier to differentiate work from family.
2. You have no filter
A quality of a good boss is tact, and a quality of a bad boss is a lack of tact. There are just some things you shouldn’t say, like sexual jokes such as “I bet you had a wild night last weekend” or “When was the last time you had sex?”.
Also, when passing criticism, you shouldn’t cast aspersions on their character or mutter full-blown insults like, “You are dumb” or “fool” “stupid”.
3. You don’t pay salaries on time, but you expect your employees to work
To expect people to put in their best and even come to the office and not pay them when due is akin to emotional torture. If you can’t pay your employees, you probably shouldn’t hire them in the first place.
4. You are always calling for work at odd hours and weekends
If you are sending an urgent email or putting a phone call through by 12 a.m. in the middle of the night, then you are quite toxic. Except that it’s a matter of literal life and death, there is no need to send that mail or put that call through to your employees. The same rule applies on weekends and when they are on vacation.
5. You love long, pointless meetings
Before you schedule a long meeting, ask yourself, “Can this be an email?” If you love to waste everyone’s time in meetings that really don’t add to productivity, then rest assured that your employees or subordinates probably hate you.
Presidential fiscal committee to end obsolete taxes, says Taiwo Oyedele
Taiwo Oyedele, the chairman of the presidential committee on fiscal policy and tax reforms, says they will be revoking some taxes considered to be unduly burdensome.
Oyedele told the national economic council (NEC), chaired by Vice-President Kashim Shettima, on Thursday, that his team will be looking into suboptimal and obsolete taxes that need to be repealed.
He said the committee will also be enacting new harmonised tax laws, as well as provide a list of taxes and levies — that do not exceed a single digit — for all levels of government.
Listing other expectations from the committee, Oyedele said they would also produce a new national policy on tax and fiscal policy for ratification by the federal and state governments after reviewing the 2017 national tax policy.
He said the committee will also be providing a national fiscal risk framework for efficient fiscal governance, fiscal consolidation, and stability.
The fiscal policy expert told NEC that the committee will draft bills for constitutional amendments on fiscal matters to promote fiscal federalism, as well as enhance the revenue administration system to improve revenue mobilisation.
According to Oyedele, part of the committee’s outcomes include ensuring a robust framework for tax revenue accounting and reporting to improve taxpayer trust and establishing of national office of tax ombudsman, fiscal policy, and tax simplification.
He said the team will also mobilise revenue through tax and non-tax, as well as review the quality of government spending.
“The committee will identify relevant measures to make Nigeria an attractive destination for investment and facilitate inclusive Economic growth,” Oyedele said.
He said they are also expected to review and redesign sustainable debt management as part of the fiscal system.
Our three subsidiaries paid N474bn tax to FG, says Dangote
Three subsidiaries of Dangote Group paid a total of N474bn as tax to the Federal Government in three years.
An official of Dangote Group, Hashem Ahmed, disclosed this at the opening ceremony of the 18th Abuja International Trade Fair on Thursday.
Ahmed, who represented the multibillion dollar group, disclosed this while speaking on the theme of the fair titled, ‘Sustainable financing and taxation as drivers of the new economy’.
The trade fair was organised by the Abuja Chamber of Commerce and Industry, in conjunction with other private and public partners.
After conveying the greetings and well wishes of the Group President, Aliko Dangote, Ahmed said, “For us, the theme for this year, which focuses on sustainable financing and taxation, is apt, as it resonates with our modus operandi.
“As you may be aware that apart from being the highest employer of labour in the private sector, the Dangote Group is also the biggest tax payer. In just three years, Dangote subsidiaries paid a staggering N474bn to the Federal Government.
“These are Dangote Sugar, Dangote Cement and Dangote Salt, combined. This corridor of sustained financial support by the Dangote Group is in addition to several empowerment/skill acquisition programmes, Corporate Social Responsibility programmes, sponsorship and philanthropic schemes, running into several billions of naira.”
He said the group was also pleased that the Federal Government was pursuing a tax reform policy that would help expand the tax net and provide necessary financing for the development of the country’s infrastructures.
Also speaking at the event, the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, said the government had announced a plan to support small businesses and startups in Nigeria in response to the country’s current economic challenges.
Uzoka-Anite, who was represented by the Director, Commodity and Export, FMITI, Kaura Irimiya, stated, “We intend to spend N75bn by March 2024 to strengthen the manufacturing sector. We also intend to provide small grants to micro businesses in each to the 774 Local Governments of the federation.
“We have also earmarked a fund of N75bn that will be used to support up to 100,000 start-ups and MSMEs at single digital interest rates repayable over 36 months.”
She added that last week, “we launched the National Technology Export programme, in partnership with Microsoft and earlier this year, we launched the over $600m investment in Digital and Creative Enterprises programme, in partnership with African Development Bank and other partners.”
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Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.
She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others
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