The Nation Newspaper

Tag: allocation

  • Poor budgetary allocation affects Nigeria’s technological development, says union

    The National Association of Academic Technologists (NAAT) has expressed displeasure over low budgetary allocation to the education sector, which has consistently fallen below the UNESCO benchmark of 26 per cent.

    The union blamed low allocation to the sector for the failure of any Nigerian university being ranked among the first 500 in the world.

    The union, in a communiqué at the end of its National Executive Council (NEC) meeting, therefore, urged the federal and state governments to give priority to budgetary allocation to the education sector.

    In the communiqué by NAAT General Secretary, Comrade Hamilton Iyoyo, the union said across the world, countries are budgeting hugely to improve their technological sector, stressing that Nigeria cannot afford to be left behind.

    The union’s NEC also urged the government to honour and implement agreements reached with unions to forestall unquantifiable losses in man-hours, negative impact on the economy, and other losses occasioned by incessant strike actions.

  • Deductions take toll on 11 states’ FAAC allocation

    Deductions take toll on 11 states’ FAAC allocation

    The National Bureau of Statistics (NBS) has said 11 states lost a huge part of their August 2017 allocation to deductions.

    According to the latest Federal Account Allocation Committee (FAAC) report released by the bureau, a total of N467.85 billion was distributed among the three tiers of government in August.

    “The amount disbursed comprised of N387.32bn from the statutory account and N80.53billion from valued added tax (VAT).

    “Federal Government received a total of N193.05billion from the N467.85billion shared. States received a total of N130.69billion and local governments received N98.01billion.

    “The sum of N31.59billion was shared among the oil producing states as 13 per cent derivation fund.”

    Eleven states lost more than N1 billion from their allocations, with Lagos being the worst hit.

    Lagos got a gross allocation of N9.52 billion and lost N2.80 billion to deductions. Osun got a gross allocation of N3,06 billion and lost N2.41 billion to deductions, to have a net allocation of N650 million.

    Delta also got a gross allocation of N10.50 billion and lost N2.45 billion to deductions, to have a net allocation of N8.05 billion.

    States which lost more than N1 billion to deductions were Zamfara, Rivers, Plateau, Ondo, Ogun, Cross Rivers, Ekiti and Jigawa.

  • Report: 60% forex allocation ‘ll boost manufacturing

    The Central Bank of Nigeria’s (CBN) preferential allocation of foreign exchange (forex) to the manufacturing sector was short-lived and fraught with controversies, but the initiative hugely boosted the sector during the period, a report has said.

    The report, which was accessed by The Nation, was contained in the executive summary of the Manufacturers Association of Nigeria’s (MAN) Economic Review of the second half of last year, which showed a 9.54 per cent increase in capacity utilisation from 49.64 per centin the second half of 2015 to 59.18 per cent in that of 2016.

    Although the report said the initiative, which began in August, 2016, came to an end in February 2017, it attributed the increase to the 60 per cent preferential forex allocation to the sector for importation of raw materials and machinery not locally available.

    According to the report, “Capacity utilisation averaged 51.74 per cent in 2016, as against 50.17 per cent of 2015, indicating a 1.57 percentage point increase over the period.”

    A further analysis of capacity utilisation based on sectors also showed that it increased in the entire sectoral groups in the period under review.

    “Capacity utilisation in  Food, Beverage and Tobacco group  increased to 60.3 per cent in the second half 2016 from 53.7 per cent recorded in the corresponding half of 2015, thereby indicating 6.6 percentage point increase in the period. It also increased by 10.5 percentage point when compared with 49.8 per cent recorded in the preceding half.

    “Textile Apparel and Footwear (group) increased to 56.9 per cent in the period under review from 52.7 per cent recorded in the corresponding half of 2015, indicating 4.2 percentage point increase over the period. It also increased by 15.3 percentage point when compared with 41.6 per cent recorded in the preceding half,” the report added.

    Analysis across MAN industrial zones also showed that capacity utilisation increased in Rivers, Ikeja, Apapa, Kasno Bompai, Ogun and Kaduna zones. In Ogun Zone, for instance, capacity utilisation increased to 68.0 per cent in the period under review from 59.5 per cent recorded in the corresponding half of 2015, indicating 8.5 percentage point increase over the period.

    It also increased by 17.8 per cent when compared with 50.2 per cent recorded in the preceding half.

    According to the report, total production volume in the sector equally increased to N8.38tr as against N7.71tr in 2015, indicating N0.67tr or 8.7 per cent increase over the period.

    Manufacturing investment during the period stood at N448.94bn, out of which N313.62bn or 69.9 per cent went to Ogun Zone.

    The impact extended to job creation; 10,061 jobs were created in the manufacturing sector in the second half of 2016 as against 9,393 jobs created in the corresponding half of 2015. This indicated an increase of 668 jobs over the period.

    At the end of 2016, an estimated 1.63 million historical cumulative jobs were created in the sector, the report said.

    Food, Beverage and Tobacco sectoral group was said to have accounted for most of the jobs created with 2,947 jobs.

    The report noted, however, that a total of 4,408 jobs were lost during the period as against 12,400 jobs lost in the second half of 2015.

  • Guidelines for raw sugar allocation out

    To boost its Backward Integration Programme (BIP), the Federal Government has released new guidelines and benchmarks for raw sugar allocation to operators in the sector.

    National Sugar Development Council (NSDC) Executive Secretary Dr. Latif Busari  said under the guidelines, operators would be required to submit their requests for sugar in December.

    Busari, who made this known in Abuja, through the Council’s Senior Information Officer, Mr. Yunusa Abdullahi, said this year’s allocation would be the last based on the old criteria, including market and share refinery capacity.

    He said from next year, allocation would be based on quantitatively- verified improvement in performance.

    Busari, however, added that the Sugar Roadmap Implementation Committee (SURMIC) and Sugar Industry Monitoring Group (SIMG) were expected to monitor all BIP projects quaterly.

    According to him, the outcome of each monitoring will be forwarded to all operators with copies sent to the Council and to the Office of the Minister of Industry, Trade and Investment.

    Busari explained that the Key Performance Indicators (KPIs) for assessing and scoring BIP’s performance shall be the size of the land developed and target for the year.

    Other indicators include mill development and factory operation, sugar produced in tons and jobs created for the year.

    The NSDC boss said that to ensure compliance, government would put in place sanctions for poor BIP performance.

    “Any operator that fails to achieve performance target for the year, based on BIP commitments as released by the Joint Harmonisation meeting, shall be penalised for poor performance, with reduction in quota commensurate with performance scores,” Busari said.

    He added that scores by operators shall be in percentages and an operator shall be allocated the percentage of its score in the year’s projected allocation.

    Busari also said there would be sanctions for quota infringement by any of the BIP operators.

    He explained that any operator who abused allocated quota through excess importation would pay for the excess sugar imported, calculated on the extant tariff indicated in the Nigerian Sugar Master Plan (NSMP).

    Busari said: “Erring operator must pay the duty penalty for excess importation before it can be allowed by the Nigerian Customs Service to discharge its raw sugar cargo.

    “The Council reserves the right to recommend additional sanction if the above appears not effective in ensuring compliance.

    “It is hoped that these measures, if adopted and strictly implemented, shall bring some sanity to the implementation of the sugar BIP programme and enhance the performance of operators.’’

    According to him, the Federal Government had, following the official take-off of the NSMP in January 2013, began the implementation of the Sugar Backward Integration Programme.

    He said three refineries were approved as BIP operators and were made to sign formal commitments detailing a number of indicators by which their performance would be measured.

    Busari explained: “As part of the arrangement, raw sugar quotas at the concessionary tariff of five per cent duty and five per cent levy, was to be allocated to operators on the basis of performance of their BIP projects.

    “It will also act as incentive to encourage operators to plough back profits to their BIP projects.’’

    He added that the concessionary tariff would last for three years in the first instance, and that operators’ performance would be assessed by two special committees – SURMIC and SIMOG – set up by the NSMP.

  • Federal allocation and Ayade’s magic

    There is outrage in Cross River following the disclosure of federal allocation to the state in the first quarter of 2017 by the Minister of Finance, Mrs. Kemi Adeosun. As disclosed by the Finance Minister and reported by most media outlets across the country, Cross River State got N4.28 billion in three months. Only Osun State got something lower.

    A breakdown of the allocation translates to N1.4 billion monthly, an amount that cannot pay salaries of local government workers, talk less of paying the entire state workforce, which wage bill is put at over N5 billion.

    No doubt, the figure is an improvement from the previous allocations where the state consistently received zero allocations in the last three quarters of 2016.

    That is the reality facing Cross River, reality that is made more difficult to accept given that some of its sister states got close to N40 billion in the same period.

    It is amazing how in spite of such poor federal allocation, the Ben Ayade-led government is not behind in payment of salaries.

    If anything, the governor has commonized payment of salaries.

    Apart from payment of salaries, the Ayade administration has gone about diligently executing projects aimed at not only providing jobs to the teeming mass, but also expanding and improving the state’s revenue base.

    The Calabar Garment Factory, Ikom and Itigidi water projects, Calabar Monorail, the Calabar International Convention Centre are among some of the projects already completed by the Ayade-led administration.

    Other projects at various stages of completion include: the 21megawatt of power plant, the Calabar pharmaceutical Company (Calapharm), the Ogoja Rice Mill, Cocoa Processing Plant in Ikom, 145 kilometre-dual carriage highway that cuts across the five local governments in northern part of the state.

    There is also an ongoing road project being constructed to, for the first time, link Eastern and Western Boki, the Mbaobui road in Akamkpa amongst others.

    Several schools across the state have been given complete rehabilitation through the State Universal Basic Education Board (SUBEB); Primary Healthcare Centres have also been rehabilitated.

    He also expanded government with a view to putting food on the table for a greater number of people.

    All these achievements and others too numerous to mention, have been recorded in just two years in spite of the poor and lean revenue allocation to the state by the federal government. As we speak, the design for the Bakassi Deep Seaport and the superhighway is completed, even as the government still awaits the EIA approval from the federal authorities.

    How Ayade has been able to achieve so much with very little resources at his disposal remains a mystery. It is no wonder that some sections of the state call him a magician.

    Instructively, it is not what he is called or described in the state that is significant here. What is rather worthy of note is his die-hard resilience to bring about a difference in governance architecture by adopting a paradigm shift.

    Part of these dynamics is the governor’s call for a collective sacrifice from Cross Riverians, particularly his appointees. Much as it is difficult to swallow, virtually every of his appointee has come to appreciate the direction he is navigating the state and its economy towards.

    For instance, while his colleagues in other states travel with a large retinue of aides whenever they are outside their states, Ayade hops into the aircraft alone with his luggage in his hand. This is part of the cost-saving measures he has introduced, in addition to the collective understanding by his appointees and himself for their salaries to be halved. How much sacrifice can a leader make in order to appease his people?

    In addition to sustaining the momentum of ramping up the revenue base of the state, Ayade has looked inward to ensure that Internally Generated Revenue (IGR) is improved upon. Those who should pay tax are made to pay their taxes with the strengthening of state’s revenue generation agency, Cross River Internal Revenue Service.

    In the same vein, the administration has exempted low income earners and the vulnerable in the society from paying taxes.

    His drive to enhance the state’s revenue base has however, often met with stubborn and belligerent resistance from some segments of the business public.

    The current withdrawal of services by Petroleum Tank Farm Owners, the Petroleum Tankers Drivers Association and others is one clear example.

    Unicem has over the years been paying road maintenance levy, which assists the state to maintain its road infrastructure. However, the effort to get operators of the downstream sector of the petroleum industry to act responsibly in similar manner is what has led to the withdrawal of services by the group.

    The question that is begging for an answer is: is it no longer worthy that what is sauce for the goose should be sauce for the gander? If Unicem and other such entities are paying this levy to help the state stay afloat, what is wrong with the operators in the petroleum sub-sector doing same?

    Every day, thousands of trucks enter Calabar to lift petroleum products to several states. The damage done on the roads is incalculable.

    It is, rather ironic that elsewhere, such levies are compliantly being paid to state governments where tank farms are sited. So why the outrage from operators in Cross River?

    No doubt, this systemic institutional short-change has become a matter of deliberate effort to stifle our collective drive to grow our local economy.  So, paying a levy to ensure the state keeps the road motorable should not induce a call to arms. Rather, it is a time for all to pull together in one direction. Failing to do this, the fate that has befallen Apapa in Lagos, awaits us.

  • Reps to investigate AGIS over land allocation

    The House of Representatives is set to investigate the Abuja Geographic Information System (AGIS) over its alleged failure to process land applications for scores of Nigerians in the six Area councils of the Federal Capital Territory (FCT).

    The lawmakers complained that AGIS’ refusal to process land applications in the Area councils through the Accelerated Area Councils and Sectional Title Reissuance Scheme (AACSTRIS) has denied many of their Certificates of Occupancy (C of O).

    The lawmakers insisted that the investigation was meant to ascertaining the amount generated and remitted (if any) by the Scheme from inception to date, the operational costs of the Scheme from inception to date, the number of applications received, the number of applications verified or processed and any challenges facing the Scheme, and make appropriate recommendations.

    The proposed investigation followed the adoption of a motion by Olatubosun Olajide  (APC, Oyo), who noted that AACSTRIS was established by the Federal Capital Territory Administration (FCTA) to fast-track the processing of applications for the issuance of C of O for land located at the Area Councils in the Federal Capital Territory, Abuja.

    He said, “The original plan was that while AACSTRIS, which is manned by private consultants appointed by the FCTA, will be processing the huge backlog of applications relating to Area Councils’ land or property, the AGIS will be producing the C of Os of successful applicants.

    “Under the scheme, members of the public with valid or genuine ownership of land or property in the Area Councils were required to apply for revalidation and processing of their C of Os on payment of the non-refundable fee of ¦ 100,000 only per application. However, since the establishment of the scheme, thousands of Nigerians who are desirous of perfecting their title documents to land or property located in the Area Councils have applied and paid the prescribed fees, which run into billions of Naira without getting any commensurate service from AACSTRIS which appears to have derailed from its mandate and is now just serving as a platform for generating revenue for successive FCT Administrations.

    “It is of concern that the failure of AACSTRIS and AGIS to fast track the processing of C of Os of genuine land and property owners who are qualified, has encouraged the fraudulent practices that are often associated with the processing of Area Councils C of Os in the FCT, Abuja and wonders why despite the failure of AACSTRIS to discharge its mandate effectively and efficiently to the public, successive FCT Administrations have retained the services of the consultant manning the Agency”.

    Committee on Federal Capital Territory Area Councils and Ancillary Matters that was mandated to undertake the investigation was given eight weeks to report back for further legislative action.

  • Real sector: Sectoral forex allocation to the rescue

    Real sector: Sectoral forex allocation to the rescue

    The 60 per cent special foreign exchange (forex) allocation to manufacturers may have raised their capacity. This has prompted the Central Bank of Nigeria (CBN) to extend the initiative to Small and Medium Enterprises (SMEs) operators. Experts say this can be the wedge for this troubled segment of the real sector, if effectively monitored and enforced. CHIKODI OKEREOCHA and OKWY IROEGBU-CHIKEZIE report. 

    It has been particularly tough for real sector operators, especially those in the Small and Medium Enterprise (SME) segment. For long, they watched helplessly as the crisis in the foreign exchange (forex) market hit hard on their businesses. Because of scarcity of forex, many of them could not fund the importation of essential but eligible raw materials and finished goods critical to their operations.

    Given that SMEs were crowded out of the forex market, many of them who could not stand the heat either disappeared from the manufacturing landscape or scaled their operations, leading to massive job losses. This has been the situation since mid-June 2014 when global oil prices began declining, forcing a number of fiscal and economic distortions on SMEs’ operations.

    Some of the distortions included drop in foreign earnings, decline in foreign reserves and an unstable macro-economic environment among others. The crisis in the forex market, which was also a fallout of the oil price crash, was, perhaps, the most devastating for real sector operators, especially SMEs.

    The crisis was also an addition to the multitude of business environment-related woes plaguing SMEs, such as lack of electricity supply, rising inflation, declining consumer purchasing power, multiple taxation, weakening manufacturing base and policy inconsistency, among others.

    However, a turnaround in the fortunes of this segment of the real sector appears to be in the offing. This is sequel to the recent unveiling of a special form X by the Federal Government through the Central Bank of Nigeria (CBN) to ease access to forex for SMEs.

    On the strength of the intervention, which came on stream about two weeks ago, SMEs were granted special consideration for $20,000 to import essential but eligible raw materials and finished goods critical to their operations.

    CBN spokesman Isaac Okorafor explained that the purpose of the intervention was to ease the difficulties encountered by small manufacturers. He said the Manufacturers Association of Nigeria (MAN) acknowledged that the earlier 60 per cent forex allocation to the sector raised their capacity hence, they canvassed more forex to be made available for SMEs.

    Last year, the CBN waded in to avert the collapse of more companies by creating a 60 per cent special forex allocation window for manufacturers. This was after manufacturers, through several representations and stakeholders’ engagements, sought the creation of a special forex window to allow them fund the importation of raw materials.

    MAN President and arrowhead of the advocacy Dr. Frank Udemba Jacobs lamented that the inclusion of essential raw material inputs for manufacturing in the CBN import prohibition list forced many outfits to close shop and relocate to neighbouring West African countries.

    The CBN in June 2015 announced a forex policy that restricted importers of 41 items from accessing its official window. Even those who export products that fall under the 41 items listed in the CBN circular were barred from using their export proceeds to fund the importation of their raw materials, which were unfortunately classified as not valid for forex.

    The CBN had explained that the policy was necessary to promote locally-produced goods, build robust foreign reserves, and also create jobs. “…..We needed to aggressively begin the process of feeding ourselves and producing much of what we need in this country.

    “The huge amounts of money the country spends on importing things we can produce locally have become a significant drag on our foreign exchange reserves …,” CBN Governor Godwin Emefiele said.

    But manufacturers and other members of the Organised Private Sector (OPS) kicked, arguing that the forex restriction was “obnoxious, superfluous, and ill-conceived’’. They also pointed out that the vague nature in which the items in the import prohibition basket were described in the circular impeded the access of several local manufacturers to forex for procurement of raw materials.

    Following persistent requests by real sector operators, the CBN directed that a special 60 per cent forex allocation window be set aside for manufacturers. The apex bank said that the gesture was to address an observed imbalance in the sector, as a negligible proportion of forex sales were being channelled towards the manufacturing sector.

    Obviously encouraged by the success of the intervention, manufacturers were said to have requested for its extension to SMEs. The request, according to Okorafor, was examined and the result of the examination showed that indeed, SMEs were being crowded out of the forex market hence the need for steps to address their challenges.

    The Nation learnt that with the opening of the special window, genuine SME operators are no longer patronizing or sourcing forex through unofficial windows. By extension, this has reduced the pressure on either the Bureau de Change operators (BDCs) or any other unofficial sources.

    However, the special forex window for SMEs was the latest of such sectoral forex allocations by the CBN aimed at stabilizing the value of the naira and galvanising the real sector, which is credited with the capacity to create jobs and engender economic growth and development.

    For instance, the CBN created a special forex window for investors and exporters on April 21, 2017. This was to boost liquidity in the forex market and ensure timely execution and settlement of eligible transactions, which included invisible transactions such as loan repayments, loan interest payments, dividends, income remittances, capital repatriation, management service fees and consultancy fees.

    Other transactions on the eligible list are software subscription fees, technology transfer Agreements, personal home remittances including ‘miscellaneous payments’ as detailed under Memorandum 15 of the CBN Foreign Exchange Manual.

    The invisible transactions under this window excluded international airlines ticket sales’ remittances. CBN said the window covered bills for collection and any other trade-related payment obligations, which are at the instance of the customer.

    It clarified that the permitted invisible transactions and bills for collection were eligible to purchase forex sourced from the CBN forex window limited to secondary market intervention sales (SMIS) wholesale, which is spot and forwards sales.

    “International airlines ticket sales’ remittances shall only be eligible to access the CBN FX window (SMIS-Retail and Wholesale) spot and forwards. The supply of foreign currency to the window shall be through portfolio investors, exporters, authorised dealers and other parties with foreign currency to exchange to Naira,” CBN’s Director, Financial Markets, Dr. Alvan Ikoku, explained.

    Like the forex intervention for SMEs, the special forex window for investors and exporters was music to real sector operators. For instance, the Lagos Chamber of Commerce & Industry (LCCI) has applauded the policy, noting that its significance lies in the widening of the scope of the market in forex transactions.

    LCCI Director-General Mr. Muda Yusuf said the policy was an important step towards the restoration of normalcy to the foreign exchange market as it signposts the easing of restrictions in the forex market.

    Yusuf said the policy has implications for the economy because of its capacity to boost the confidence of foreign and domestic investors while also moderating the effect on the country’s risk.

    He also said it will impact positively on the liquidity in the forex  market by impacting positively on forex inflows from the autonomous sources, increase transparency in non-oil export transactions and further reduce pressure on foreign reserves as autonomous inflows increase.

    The LCCI DG listed other benefits to include improvement in the stock market performance, positive impact on investment growth, and reduction in the transparency problems and sharp practises that exist in the foreign exchange market.

    Besides, the policy, he said, would significantly check the phenomenon of round tripping including the reduction in the gap between the official rate and parallel market exchange rates.

    Yusuf said: “We seek the cessation of the multiple windows in the forex market. Multiplicity of windows hurts the economy. The CBN could intervene from time to time to modulate the rates in a manner consistent with its capacity.

    “Investors need to be assured of CBN’s commitment to a market-based exchange rate policy as enunciated in the Economy Recovery and Growth Plan (ERGP) of the Federal Government”. He, however, stressed the need to review the CBN’s policy restriction on 41 items.’’

    Similarly, a financial expert, Dr. Uche Uwaleke, believes that the policy will encourage return of portfolio investors to the capital market.

    According to Uwaleke, who is Head of Banking and Finance Department, Nasarawa State University, Keffi, the new policy will impact positively on the capital market with more portfolio investors returning to the market.

    He noted that constraints in the forex market caused illiquidity in the market, leading to exit of foreign investors from the capital market.

    “CBN’s conscious attempt to ease forex access through a special window for foreign investors promises to impact the capital market positively with more portfolio investors returning to the market,’’ Uwaleke stated, adding that the development has brightened Nigeria’s chances of re-admission into the JP Morgan Index.

    Earlier last November, the CBN granted manufacturers access to over $660 million foreign exchange through the inter-bank forex market to source raw materials and spare parts for their industries. The apex bank was emphatic that the intervention was in keeping with its promise to strengthen the real sector of the economy.

    The Chairman, Apapa branch of Manufacturers Association of Nigeria (MAN), Mr. Babatunde Odunayo, described CBN’s interventions in the real sector as “welcome development.” He said such gestures would bring some relief to manufacturers affected by the restrictions on the sourcing of forex.

    Encouraged by the anticipated positive spin-offs from such interventions, the CBN has vowed to sustain its intervention in the forex market. The apex bank believes that this would not only stabilise the value of the naira, but also galvanise the real sector.

    The CBN boss noted that the country’s foreign reserve currently stands at $31 billion, and that the increasing strength of the nation’s foreign reserve is giving CBN the necessary firepower to play in the forex market.

    “You will all have observed that in the last two months, CBN has been involved in some form of intensive intervention in the forex market and this has fortunately resulted in a downward trend in the parallel market price of foreign exchange, Emefiele said, shortly after a closed door meeting with Senate President Bukola Saraki, in Abuja.

    Continuing, he vowed, “We are going to continue this intervention because the reserve looks very good. Our reserve stands at above $31 billion and that provides us enough of firepower or ammunition to be able to defend the currency and we will do so with all intensity to ensure that foreign exchange is procured by everybody.

    “You want to import raw materials, you will get foreign exchange, you want to import plant and equipment you will get foreign exchange, you want to pay school fees or you are a small business that wants to buy foreign exchange for you to import your small items you will procure foreign exchange.”

    However, there are fears that CBN’s sustained sectoral interventions particularly in the real sector where it now targets SMEs might fail to make the anticipated impact unless they are backed by proper monitoring, supervision and enforcement.

    Perhaps, to demonstarte its resolve to make it work this time, the CBN on Tusday

    suspended 12 banks from participating in the weekly forex intervention to the SMEs.

  • BDCs demand $30,000 weekly allocation, rate harmonisation

    BDCs demand $30,000 weekly allocation, rate harmonisation

    Bureaux De Change (BDC) operators yesterday called on the Central Bank of Nigeria (CBN) to review their $8,000 weekly allocations upwards to $30,000 as dollar liquidity in the economy continues to improve.

    The operators also urged the apex bank to harmonise the rate at which the dollars are sold to BDCs with the rates at which commercial banks purchase their dollars from the regulator.

    President, Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe who spoke on the operators’ demands, said raising the weekly dollar allocations to BDCs will deepen dollar liquidity and force the rates further down.

    Gwadabe regretted that the CBN is selling dollars to BDCs from the International Money Transfer Operators (IMTOS) proceeds at N381/$ while the regulator sells to commercial banks from the interbank market proceeds at N315/$. He said the banks buy at N315/$ and sell at N375 while the BDCs buy at N381/$ and sell at N399.

    The ABCON boss said by selling at different rates to banks and BDCs, the regulator has placed BDCs at a disadvantage position, saying this could lead to currency speculation.

    Gwadabe urged the CBN to harmonise the BDCs and banks rates to ensure fair pricing and competition as well as create greater confidence in the market.

    He also called on the banks to bring out their dollar reserves and help the CBN deepen the market. “It is supposed to be a two-way quote whereby both the CBN and banks are pumping dollars into the economy to help the local currency. Today, it is only the CBN that is performing the role while the banks continue to warehouse their dollars. I want the banks to also feed the system with dollars so as to help the local currency sustain ongoing rally,” he stated.

    Meanwhile, the naira closed at N450 to dollar lower than N445 traded on Tuesday. The local currency is expected to firm in the days ahead as the impact of $180 million intervention from the Central Bank of Nigeria (CBN) and plans to sell Personal and Business Travel Allowances begin to add up. Naira has been rallying against the dollar in the last one week at the parallel market.

  • Bayelsa urged to stay action on land allocation for grazing

    A group, Ijaw Professionals Association (IPA), yesterday urged Bayelsa State government to stay action on its plan to allocate 1,200 hectares to herdsmen for grazing.

    Mr. Iniruo Wills and Mr. Elaye Otrofanowei, the homeland chapter president I and president in charge of Lagos chapter, in a statement in Yenagoa, enjoined Governor Seriake Dickson to put the decision on hold until after stakeholders’ consultations.

    They condemned the attack by suspected members of Bayelsa State Volunteers on a group of Ijaw stakeholders during a peaceful protest in Yenagoa

    The IPA decried what it called “the hypocritical role played by security agents and top public officers” who supervised the alleged assault on the protesters.

    It wondered why such violence would be unleashed on the stakeholders, who protested peacefully on February14 in “The Jerusalem of Ijaw Nation”.

    “This is a most dangerous and grossly undemocratic practice that must not be allowed in Ijaw land or indeed in Nigeria.

    “The peaceful exercise of fundamental rights to freedom of assembly, expression and peaceful protest under the law, should not to be forcefully denied or suppressed, whether by official or unofficial forces,” the organisation said.

    It advised the governor to “urgently conduct a wide consultation to get further insights on the subject by allowing stakeholders to express their views and allay the deeply held apprehension.”

    IPA urged the National Human Rights Commission and the Inspector-General of Police to order an independent investigation into the February 14 incident.

    It said the probe would unravel the truth and ensure redress for the victims, adding that culprits would be brought to justice.