Connect with us

Business

FX restrictions on 43 items weakened naira, says CBN

Published

on

The Central Bank of Nigeria (CBN) says the foreign exchange (Forex) restriction placed on cement, rice, tomatoes and 40 other products contributed to the hike in dollar rate in the parallel market.

CBN said the restriction, which was intended to reduce demand for forex in the official market, pushed demand for FX to the parallel market.

In a statement on Friday, CBN said the restriction aimed to support local production of the 43 products to improve employment generation and conserve foreign reserves.

“The restrictions pushed importers into the parallel market, contributing to the surplus demand for FOREX. This weakened the parallel-market exchange rate, pushing up prices,” CBN said.

According to the central bank, the forex restrictions had implications on inflation, causing the prices of affected goods to increase.

The apex bank said it decided to remove the restriction to unify the forex market with flexible and transparent pricing.

CBN said it wants to promote “orderliness and professional conduct by all Nigerian Foreign Exchange Market participants to ensure market forces determine exchange rates on a Willing Buyer – Willing Seller principle”.

“The CBN wants to ensure price stability and is seeking to boost liquidity in the Nigerian Foreign Exchange Market. As liquidity improves, we expect the distortions to moderate.”

IMPLICATIONS OF REMOVING FX RESTRICTION

The financial regulator said a unified and well-functioning forex market – where pricing is based on a willing-buyer and willing-seller system – will make monetary policy tools effective.

CBN said taking such action will make it possible to realise the apex bank’s core functions and mandates.

“The willing-buyer and willing-seller system allows the exchange rate to adjust to clear the market and ensure that there is always supply,” the central bank said.

“In recent months, the widening premium between the official rate and the parallel market indicates that the rate has not been setting a clearing price.

“Importers of these products rely on the parallel market to source FX for importing these goods. This puts additional demand pressures on the parallel market, thereby widening the gap with the official rate and permanently segmenting the market.

“Removing these restrictions eliminates the need for importers of these products to go to the parallel market, reducing the pressure on the naira.”

CBN said lifting the restriction will enable producers to access cheaper imported inputs and consumers will benefit from cheaper retail products.

The apex bank said part of the benefits of lifting the restriction is that it boosts employment, as closed factories will re-open.

Part of the benefits listed by the CBN include price stability, which will improve Nigeria’s economy and the standard of living.

Business

Julius Berger hands over Second Niger Bridge to FG

Published

on

By

The federal government has taken delivery of the second Niger bridge from Julius Berger, seven months after it was commissioned by former President Muhammadu Buhari.

David Umahi, minister of works, while addressing journalists on Sunday after inspecting the project, said he is satisfied with the level of work done.

Umahi described the project as “impeccable, very beautiful and well completed”.

He said efforts are ongoing to mount street lights on the bridge.

“What we have agreed is to deploy solar solution in the coming weeks so that every night we don’t have to run diesel,” NAN quoted Umahi as saying.

“The roads are going to be completed when we have completed the two inter changes, one is taking us off from Asaba town to cut off the traffic and the other one is going to be done by Reynolds Construction Company (RCC) Ltd.

“President Bola Ahmed Tinubu is very committed to the project and we are going to acquire more, so that we can build service stations, filling stations, restaurants and super markets and other facilities as we see in the western world.

“We are determined to do that; the need to do this with the inter changes is going to be a very smart one, so that over the years we can have a beautiful and maintained road.”

The minister further assured of security on the bridge, noting that CCTV cameras would be installed and some security personnel deployed, so that travellers could get security assistance within five minutes.

Continue Reading

Business

UBA wins ‘African Bank of the Year’ award in eight countries

Published

on

By

United Bank for Africa (UBA) has been named the ‘African Bank of the Year’ at the 2023 Bankers Awards organised by The Banker Magazine — a publication of the Financial Times of London.

UBA Group won nine awards at the event, according to a statement on Sunday.

Dominating the African continent, UBA not only clinched the title of African Bank of the Year at the event, but also propelled its subsidiaries to victory in eight additional African nations.

The bank’s subsidiaries in Cameroon, Chad, Ghana, Cote d’Ivoire, Mozambique, Congo, Sierra Leone, and Tanzania all emerged as the Bank of the Year in their respective countries.

According to the statement, it would be the second time in the past three years that the bank has won the regional award as the best bank in Africa, after winning the title in 2021.

Oliver Alawuba, UBA’s group managing director, said the recognitions come as a reassurance that the bank is on track in its goal of consolidating its leadership position in Africa, and creating superior value for its stakeholders.

“UBA is honoured to be named the Bank of the Year in these eight countries and to receive the overall Award for Africa,” he said.

“This accomplishment is a testament to the hard work, dedication, and innovative spirit of the entire UBA team.

“We remain committed to delivering top-notch banking services that positively impact the lives of our customers across the continent.

“We have our millions of customers across the globe and our many thousands of staff to thank for this. They are the very reason why we keep winning and receiving these accolades.”

Joy Macknight, editor of the Banker Magazine, said UBA remains a clear winner across a wide range of criteria, having performed impressively across its footprint with a strong financial performance across most of its markets.

“In a year of strong competition among the continent’s major banking groups, UBA has gained the edge on its rivals to win the Bank of the Year award for Africa for the 2nd time in three years,” she said.

“The award recognises the bank’s strength across Africa, including many of its most competitive markets.”

Continue Reading

Business

Ogun state government shuts three industries over environmental infractions

Published

on

By

The Ogun State Government has shut down three industries in the state for flouting various environmental infractions that go against the environmental best practices in the state.

The affected companies are Ruili Recycling Limited, Mowe, Robust International PTE Limited also in Mowe, and Star Pipe Limited, Sagamu.

The Ogun State Commissioner for Environment, Ola Oresanya gave the order for the closure of these companies, according to a press release published on the official X (formerly Twitter) handle of the Ogun State Government.

Oresanya revealed that the infraction of Ruili Recycling Company was discharging its wastes and stormwater into their immediate environment, especially on the premises of Christopher University which exposed the students to avoidable danger.

Furthermore, the commissioner noted that the pet bottle recycling company was guilty of refusing to obtain drainage approval to properly channel the unwanted water to the appropriate place, as well as burning all its solid wastes within its premises contrary to the state’s Environmental Laws.

For Robust International PTE, the commissioner cited the illegal demolition of a fence bounding the company and Christopher University to reclaim some portion of land and subsequently divert stormwater into the premises as part of the infractions levelled against them.

Furthermore, Oresanya said Robust International PTE also failed to heed the government’s directives for proper remediation.

Star Pipe Limited located in Sagamu, Oresanya said the company failed to install effluent treatment plants in their facilities as they discharge raw and hydraulic acid into their immediate environment. This, according to the commissioner, has led to contamination of the groundwater of these communities which has made the water unsafe and unhygienic.

Oresanya declared that the three companies will remain shut until they correct all the lapses detected and adhere to the best global environmental standards that the state government has adopted.

Continue Reading

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

Most Read...