Business
CBN sells $876m to banks at N1,495 per dollar
The Central Bank of Nigeria (CBN) says it sold foreign exchange (FX) to banks worth $876.26 million at N1,495 per dollar.
The apex bank said the auction aimed to reduce demand pressure in the FX market and promote price discovery, according to a statement on Wednesday, signed by Omolara Omotunde Duke, CBN’s director of financial markets department.
The CBN said the transaction was conducted through a retail Dutch auction system (rDAS).
The system, announced on August 4, is a direct sale of FX by the CBN through the banks to the end users.
The rDAS is based solely on the actual demand of FX by the end users.
“The Central Bank of Nigeria (CBN) undertook the sale of foreign exchange (Fx) to end users through a Retail Dutch Auction System (rDAS) to reduce the demand pressure in the FX market, and promote price discovery on Tuesday, August 06, 2024,” CBN said.
“Authorised dealer banks were required to submit a comprehensive template that contains the details of the Forms A and M of all the outstanding trade backed unmet FX demand of their customers via email on Tuesday, August 06, 2024, between 9:00am and 3:00pm.
“The templates were all password protected with the passwords submitted to the CBN after the deadline for the submission of the bids, thereafter, the bids were opened and collated.
“The accounts of all end users were to be funded with the naira equivalent of their bids by Wednesday, 07 August 2024. The settlement for the successful bids is T+2, that is, Thursday, August 08, 2024.”
According to the CBN, a total bid of $1.18 billion was received from 32 dealer banks.
The regulator said while bids valued at $876.26 million from 26 banks qualified, bids from six banks were disqualified, as four banks missed the deadline and two did not provide bids in their submitted templates.
“A total bid valued at US$1.18 billion was received from 32 authorized dealers banks, of which, bids valued at US$876.26 million from 26 banks qualified, while bids valued at US$313.69 million from 6 (six) banks were disqualified,” the bank said.
“Of the disqualified bids, 4 (four) banks submitted their bids after the cut off time of 3:00pm, while 2 (two) banks did not provide bids in the template submitted. All bids with Form Q, and unverifiable Form A and Form M on the trade portal were disqualified.
“In line with the objective of the CBN to boost Fx liquidity to the market as well as promote price discovery, the bank approved a cut off rate of N1495/US$ for the Retail Dutch Auction where bids valued at US$876.26 million from 26 banks qualified.”
CBN said it will publish the total bids submitted by banks and all qualified bids for payment on its website for public information to ensure the transparency of the process.
Business
NMDPRA seals four filling stations in Delta for ‘under-dispensing’
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has shut down two gas plants and two petrol stations in Delta state, for under-dispensing.
Victor Ohwodiasa, coordinator of NMDPRA in Delta, spoke to the press in Warri on Thursday.
Ohwodiasa said NMDPRA’s surveillance team closed the stations at the Asaba and Ibusa axis of the state on Tuesday and Wednesday due to under-dispensing, operating without valid licences, and other illegal practices.
“In line with our mandates, we constantly visit petroleum retail outlets to ensure they sell one litre for one litre,” he said.
“Agreeably, there are bound to be variations due to mechanical error in their machines, but these are subject to limits; when it exceeds, we shut down the facilities.”
Ohwodiasa urged petroleum marketers to ensure that their meters are well-calibrated to sell accurately.
“Based on what we have been doing to ensure the consumers are not shortchanged, we have been visiting retail outlets across the state to ensure sanity is maintained within the area,” Ohwodiasa said.
“This week, we have sealed four stations within the Asaba and Ibusa axis over offences bordering on under-dispensing, operating without valid licenses and illegal activities within the filling stations.”
He said the regulatory authority will continue inspecting such cases through the end of the year to ensure fair sales to consumers.
Ohwodiasa encouraged the public to report suspicious practices to NMDPRA, including under-dispensing, the discharge of unauthorised products by petroleum marketers, product quality, suspected diversion, and illegal bunkering activities.
Business
Power cut off at UCH Ibadan over N400m debt, says IBEDC
The Ibadan Electricity Distribution Company (IBEDC) says it disconnected University College Hospital (UCH) Ibadan from the national grid over an outstanding N400 million debt.
On Monday, patients at the UCH staged a protest following incessant power cuts at the facility. Nurses and doctors have been using lights from their smartphones to find their way around.
The demonstrators said there has been no water and electricity at the hospital in the last 17 days. The protesters expressed concern that the lack of essential services has contributed to patient deaths.
One member of staff blamed IBEDC for placing the hospital on the Band A tariff — the most expensive electricity band in the country.
In February, IBEDC cut off UCH’s power over “technical faults and indebtedness”.
At the time, the company said the hospital owed about N500m in electricity bills.
According to Punch, Busolami Tunwase, the electricity company’s spokesperson, confirmed that the disconnection was due to an outstanding debt of N400m, adding that the university has not fulfilled its promise to pay up.
She said while the company sympathises with the hospital, IBEDC was compelled to take drastic action because it is being pressured to meet financial obligations to stakeholders.
“However, IBEDC reiterated its commitment to working with UCH and remains open to discussions on a flexible payment arrangement that could be mutually agreed upon by both parties,” she said.
In a statement on Wednesday, Funmi Adetuyibi, UCH spokesperson, said the hospital’s management has held several meetings with IBEDC on payment modalities.
The spokesperson said the electricity bills from IBEDC, inclusive of accumulated bills since 2019 to date, amounted to N3,104,568,114.61.
She added that the hospital has so far paid N2,916,567, 724.27.
“In a bid to mitigate the effects of this hardship, the management has taken some steps, which include dissemination of information to patients and alternative power sources,” the statement reads.
“We have back-up generators to power critical areas, including the Emergency department, operating theatres, Intensive Care Unit, Laboratories, among others.
“Solar/inverter panel has been made available in the Emergency Department, Main Theatre, Intensive Care Unit, Paediatrics, East 3 Ward, South East 3, Owena Dialysis Ward, High Dependency Unit, South West 2 and all the clinics.”
Business
Air Peace Lagos-bound flight disrupted by bird strike in Abuja
Air Peace Lagos-bound flight was disrupted by a bird strike shortly before takeoff in Abuja on Thursday.
A bird strike is a collision between a bird and an aircraft which is in flight or on a takeoff or landing roll.
According to a statement by Ejike Ndiulo, its head of corporate communications, Air Peace said the flight from Abuja to Lagos took off around 6:30am.
“We wish to inform our esteemed passengers that our Abuja-Lagos 06:30 flight experienced a bird strike before take-off, prompting a ramp return as a safety measure. All passengers disembarked normally,” the airline said.
“We have deployed a replacement aircraft for the affected flight in order to minimize disruptions, thus ensuring that passengers continue their journeys promptly.
“We appeal for the understanding of our valued passengers impacted by this development, as well as those on other flights that may experience delays.
“At Air Peace, we are committed to providing safe, comfortable, and reliable air travel for all our passengers.”
A passenger, Inibehe Effiong, a Lagos-based human rights lawyer, took to his Facebook page to share his experience on the flight.
Effiong said the development threw some passengers into panic with the attendant screaming.
“While taxing on the runway and just before takeoff, our Air Peace flight from Abuja to Lagos scheduled for 6:30 AM today was stopped forcefully, resulting in panic and screams by some passengers,” he posted.
“The captain attributed the incident to a bird strike. We have been deboarded to await either a replacement or repair of the aircraft.
“Thankfully, whatever happened did not occur after takeoff. It would have been scarier.”
A few minutes later, Effiong posted that the faulty aircraft had been replaced and the passengers were already boarding preparatory to the Lagos trip.
On November 4, one of Air Peace’s flights heading to Abuja from Benin could not continue the trip due to a technical snag the aircraft encountered shortly after takeoff.
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