The Nation Newspaper

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  • Buhari to CBN: release N500b Paris Club cash

    Buhari to CBN: release N500b Paris Club cash

    President advises governors to pay salaries, pension

    STATES got a piece of cheery news yesterday.

    President Muhammadu Buhari directed Minister of Finance Mrs. Kemi Adeosun and Central Bank of Nigeria (CBN) Governor Godwin Emefiele to quickly facilitate the payment of the second tranche of the London-Paris Club refund to – to ease states’ financial hardship.

    Many Are not paying workers because they are short of cash.

    The President said the money – about N500 billion – should be used to pay outstanding workers’ salaries and pension.

    He gave the directive during a meeting with governors after the National Economic Council (NEC) meeting. The NEC is chaired by Vice-President Yemi Osinbajo.

    A statement by Senior Special Assistant on Media and Publicity, Garba Shehu, quoted the President as telling the governors: “I will not rest until I address those issues that affect our people.  One of these basic things is the issue of salaries.

    “It is most important that workers are able to feed their families, pay rent and school fees, then other things can follow.”

    Although he did not mention the amount involved, The Nation’s lead story on Monday scooped that about N500billion is to be shared among the 36 states.

    The Federal Government has given the conditions that the states must meet to get the cash.

    Part of this is that they must give account of how the first tranche of the refund was spent.

    The seven states being investiogated by the Economic and Financial Crimes Commission (EFCC) over the alleged diversion of part of the money must be cleared by the anti-graft agency.

    President Buhari, who went round the Council Chamber to greet the governors one after the other, praised the unity of the Forum of Governors.

    He thanked them for displaying “love and respect” for him.

    It was the President’s first meeting with the governors as a group since his return from a 50-day medical vacation.

    According to him, he was overwhelmed by his recent experience in which states, irrespective of political differences, urged their citizens to pray in mosques and churches for his well-being. He apologised to governors for barring them from visiting him while he was in London.

    “I didn’t want government to move to London. I wanted it to remain here and I am glad it did,” Buhari said.

    After narrating his experience while on vacation, Buhari noted the suggestion by the governors for him to have more rest, but insisted that he would remain relentless in the pursuit of the interest of Nigerians at all times.

    This, he said, is the only way to show his gratitude to the people who “had given so much to me.  “I was overwhelmed by the celebration of my return all across the country,” Buhari said.

    The Chairman of the Nigerian Governors Forum, Abdul-Aziz Yari, Governor of Zamfara State, assured the President, on behalf of his colleagues, that they would continue to support his policies and actions which they had adjudged as being in the nation’s best interest.

    Governors Rochas Okorocha (Imo), Udom Emmanuel (Akwa-Ibom), Rauf Aregbesola (Osun) and Okezie Ikpeazu (Abia) thanked President Buhari for saving the day for states through the first tranche of the London-Paris Club refund.

    They also praised the trust the President reposed in the Vice-President, Prof. Yemi Osinbajo, who they said did not disappoint when he acted as President.

  • Forex: CBN receives bid for $100m

    Forex: CBN receives bid for $100m

    The Central Bank of Nigeria (CBN) says it has received bids for foreign exchange (forex) of about 100 million dollars from authorised dealers in the interbank market to meet the requests of genuine customers.

    The acting Director, CBN Mr Isaac Okorafor, in a statement on Thursday in Abuja, said that the sales would be settled on Friday.

    He said that no intervention was made by the apex bank to meet requests for invisibles on Thursday.

    Okorafor reiterated that the CBN would continue to make necessary interventions in the interbank market to meet all legitimate transaction-based foreign exchange demands by customers.

    It will be recalled that the Bank in its last auction sale on Wednesday, offered 150 million dollars to the interbank market with the highest bid rate at N335 to a dollar, while the marginal rate was N320 to a dollar.

    Meanwhile, the Naira continues to firm up against the dollar at the parallel market.

    The Naira today traded at N448 to dollar as against N450 it traded on Wednesday and N452 on Tuesday.

    The Naira has also appreciated against the Pound Sterling, trading at N530 as against N540. It also traded at N465 to the Euro as against Wednesday rate of N475.

    At the Bureau De Change (BDC) window, the Naira continues to trade for N399 to a dollar, while a Pound Sterling and Euro changes for N580 and N525, respectively.

    The Nigerian currency also traded at N306.2 at the interbank market

  • NCC, CBN join forces to save Etisalat from creditors

    NCC, CBN join forces to save Etisalat from creditors

    Creditors have lost their battle to take over mobile giant Etisalat.

    The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) staved off the planned takeover  by a consortium of banks the company is owing over  N200 billion.

    NCC Executive Vice Chairman Prof. Umar Garba Danbatta broke the news yesterday at a conference shortly after the opening of the” NCC’s Year of Consumer”, which was held at its headquarters in Abuja.

    He said NCC, as part of its strategic  partnership, intervened in the matter to save the industry from a major calamity, but added that more negotiations would yet take place among the stakeholders.

    Danbatta said the NCC and the CBN scheduled another meeting for next week among the major actors, pointing out that shareholders would also be involved in the talks to ensure an amicable resolution of the problem.

    “At this point, let me assure you that there is no cause for alarm regarding the matter; the regulators are on top of the situation and details of the resolution would be made available within the next couple of weeks.”

    “The NCC and the CBN have to intervene regarding this issue, particularly in a manner that will not disturb the business operations of all the parties involved and in the larger interest of the nation’s economy,” Danbatta said.

    He spoke of how in 2015,  consumers spent $5.6 billion on telecommunications services. “And in 2016, they topped it up by another 1 billion dollars to make it $6.6 billion,” the NCC chief said.

    To him, “today’s event is remarkable and more remarkable is that the year 2017 is dedicated to the Nigerian Telecom consumer – a management decision that compels us to seek to amplify our activities towards ensuring that the consumer enjoys a consumer experience that is enhanced and consistent in time and granted.

    “Just as their patronage is important, they must not and cannot be taken for granted. NCC knows and recognises this. That is why 2017 and I dare say, and even beyond the consumer will be be our focus. NCC intends to inform and educate the consumer with the sole intent to protecting and empowering them to make the right decisions.”

    Communications Minister Adebayo Shittu said the government had articulated its position and direction on issues that are key to ICT development at global and national levels, in collaboration with the NCC.

    He said the Ministry was working on formulating cogent policies, frameworks and guidelines on protecting ICT consumers, especially in telecommunications.

    “Nigeria has established itself as one of the fastest growing (and as such one of the most important) mobile cellular markets in the world. The normal anticipated consumer data-base should be hosting about 450 million records of users, if each consumer joins at least two networks vendors, with each having at least a single SIM card,” the minister said

  • CBN injects $195m into forex market

    CBN injects $195m into forex market

    •Inflation declines to 17.78% 

    The Central Bank of Nigeria (CBN) yesterday said it will inject $195 million comprising of $150 million for the wholesale auction and $45 million in the invisible segment for such items as medical fees, tuition fees, Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).

    Confirming the foreign exchange sales, the CBN Acting Director, Corporate Communications, Isaac Okorafor, said that the bank acted promptly and proactively in line with its promise to keep the market liquid enough to meet the needs of genuine requests.

    He also confirmed that more dollar liquidity was returning to the market which has helped most banks to meet market demands. “As you can see, all the pent-up demand for invisibles have been met to the extent that banks are urging customers to come and obtain forex”, he said.

    He reiterated the bank’s determination to continue to fund the importation of raw materials and plant and machinery for manufacturing, agriculture, and other eligible items.

    He also assured that the Bank remained resolute in ensuring stability in the forex market by keeping an eagle eye on the activities of authorised dealers in order to ensure sharp practices are reduced barest minimum He also confirmed that more dollar liquidity was returning to the market which has helped most banks to meet market demands. “As you can see, all the pent-up demand for invisibles have been met to the extent that banks are urging customers to come and obtain forex”, he said.

    Meanwhile, the Consumer Price Index (CPI) which measures inflation dropped to 17.78 per cent in February, the National Bureau of Statistics (NBS) has said.

    In its latest report released yesterday, the NBS noted that with the slower rise in already high prices of food and other consumer items, the inflation rate dropped from 18.72 per cent in January, to 17.78 per cent in February – a reduction of less than one per cent.

  • CBN boosts forex supply with $195m

    CBN boosts forex supply with $195m

    The Central Bank of Nigeria (CBN) on Tuesday sustained the supply of foreign exchange to the market by releasing 195 million dollars.

    The CBN acting Director, Corporate Communications, Mr Isaac Okorafor, who gave a breakdown of the release, said of the amount 150 million dollars was released  through wholesale auction.

    He said that the  remaining 45 million dollars was for medicals, tuition, Personal and Business Travel Allowance.

    Okorafor said that the Bank acted promptly and proactively in line with its promise to keep the market liquid enough to meet the needs of genuine requests.

    He said that banks were becoming saturated with foreign exchange, as most of them were now able to meet demands for foreign exchange within the stipulated time frame.

    “As you can see, all the pent-up demand for invisibles have been met to the extent that banks are urging customers to come and obtain forex,” he said.

    Okorafor reiterated the bank’s determination to continue to fund the importation of raw materials, plants and machinery for manufacturing, agriculture, and other eligible items.

    He also assured that the apex bank remained resolute in ensuring stability in the forex market by keeping an eye on the activities of authorised dealers in order to ensure sharp practices were reduced to the barest minimum.

    It will be recalled that the CBN had in the past two weeks pumped over 1.2 billion dollars into the foreign exchange market to stem liquidity challenges faced by businesses and individuals.

    Last week, the regulator pumped 170 million dollars into the foreign exchange market, as foreign reserves hit 30 billion dollars.

    Meanwhile the Naira continues to firm up against the dollar at the parallel market. The Naira today traded at N452 to a dollar as against N455 on Monday.

    Compared to Monday’s sales, the Naira has also appreciated against the Pound Sterling, trading at N540, while it fell against the Euro trading at N475 compared to the N470 it sold for on Monday.

    At the Bureau De Change (BDC) window, the Naira continues to trade for N399 to a dollar, while a Pound Sterling and Euro changes for N580 and N525, respectively.

    The Nigerian currency also traded at N306 at the interbank window

  • CBN moves to check forex abuse in banks

    CBN moves to check forex abuse in banks

    The Central Bank of Nigeria (CBN) has deployed mystery shoppers to commercial banks to guard against foreign exchange abuse by the lenders.
    The CBN, Fidelity Bank Plc Managing Director Nnamdi Okonkwo said yesterday, is particular about ensuring that banks disburse funds meant for Business Travel Allowances (BTAs) and Personal Travel Allowances (PTAs), and school fees payment abroad to genuine foreign exchange end-users.
    Many of the lenders, it was learnt, were are aware of the moves by the apex bank to punish any operator that violates the new forex rules.
    The CBN has in the past two weeks pumped $1.2 billion into the foreign exchange market to stem liquidity challenges faced by businesses and individuals. Last Thursday, the regulator pumped $170 million into the foreign exchange market, as foreign reserves hit $30 billion. The bank offered $100,000,000 as wholesale interventions.
    It gave $70,000,000 to meet requests for business and personal travel allowances.
    Okonkwo, who spoke at a news conference organised by the Chartered Institute of Bankers’ of Nigeria (CIBN) ahead of the World Conference of Banking Institutes (WCBI) holding from April 24 to 28 in Lagos, said he was personally called by CBN Governor Godwin Emefiele when a customer reported one of his bank’s branches to the regulator. “I got a call from the CBN Governor, reporting a branch that failed to pay PTA to a customer. I quickly contacted the branch and was informed that the customer came with fake documents,” he narrated.
    He said the CBN is doing everything possible to ensure that there are more dollar liquidity in the system and that all genuine forex demands were met.
    Mystery shoppers are used by watchdog organisations to perform specific tasks such as purchasing a product, asking questions, registering complaints or behaving in a certain way, and then provide detailed reports or feedback about their experiences to the regulator.
    Okonkwo said that banks have cleared backlog of school fees, PTA, BTA and medicals after the CBN channeled huge dollar disbursements to the lenders.
    When contacted, CBN Spokesman, Isaac Okorafor, said he would not comment on discussions between CBN Governor and Fidelity Bank chief, but disclosed that the apex bank was effectively monitoring dealers and participants in the forex market. He said that any dealer or market participant caught undermining the forex process and policies will be severely sanctioned.
    He said that in line with CBN’s objective to continuously and to vigorously pursue a transparent, liquid, and efficient forex market, it would neither tolerate unscrupulous actions nor hesitate to bring serious sanctions on offenders, be they banks or their employees.
    He therefore urged market participants to assist in ensuring that these new measures engender the preservation of our external reserves, stability of our financial system and growth of our economy to the benefit of all Nigerians.
    Okorafor also cautioned dealers in foreign exchange not to engage in any unwholesome practice that is detrimental to smooth operations in the market, warning that the CBN would impose heavy sanctions on any organization or official involved in such act.
    A statement earlier sent by the CBN said: “Having cleared the historic backlog of matured letters of credit at the inception of the current flexible exchange rate system, the CBN would immediately begin to provide foreign exchange to all commercial banks to meet the needs of both personal travel allowances (PTA) and business travel allowances (BTA) for onward sale to customers.
    “All banks would receive amounts commensurate with their demand per week, which would be sold to customers who meet usual basic documentary requirements.”
    According to the CBN, the needs of parents, guardians and sponsors to make payments of school and educational fees for their children and wards would be met under the new dispensation. It, however, stated that such payments must be made by commercial banks directly to the institution specified by the customer.
    The CBN has promised to ensure that the process is as smooth as possible and that as many customers as possible get the foreign exchange on genuine demands.
    In order to further increase the availability of forex to all end-users, the CBN has decided to significantly reduce the tenor of its forward sales from the current maximum cycle of 180 days to 60 days from the date of transaction.
    In order to further ease travellers’ burden and ensure that transactions are settled at much more competitive exchange rates, the CBN also directed all banks to open forex retail outlets at major airports as soon as logistics permit.
    Okorafor said the apex bank has started the implementation of its articulated programme to clear all the unfilled orders in the interbank forex market. He said that given CBN’s plan to meet all unfilled orders, “provision of forex to the manufacturing sector would remain the CBN’s strong priority. We will no longer impose allocation/utilisation rules on commercial banks, and also implement an effective intervention programme to support the inter-bank market to ensure adequate liquidity necessary to deliver an efficient forex market.”

  • Banks seek buyers as CBN floods market with forex

    Banks seek buyers as CBN floods market with forex

    Banks  are awash with dollars, as the Central Bank of Nigeria (CBN) continues to support the naira.

    The banks have cleared the backlog of requests for foreign currencies for basic travel allowance, school fees and medicals.

    A banker told NAN that his bank had so much dollars that its marketers were asked to encourage customers to request for the greenback.

    The source said that the bank wanted to avoid a situation where it would be forced to return excess Forex to the CBN.

    Doing so would force the CBN to reduce the quantity of Forex sold to the bank.

    Another source from First Bank said following the CBN intervention, the bank had succeeded in clearing all pending requests for Forex as far back as September, 2016.

    Also, a source in Guaranty Trust Bank commended the decision of the CBN to flood the market with Forex, thereby allowing the banks to meet legitimate requests from its customers.

    It was also gathered from Heritage Bank that prior to now, the bank published the names of individuals and companies it disbursed forex to in a page of any particular newspaper.

    “Right now, we take two or three pages in the newspaper to publish names of legitimate individuals and companies that we disbursed forex to.

    “We have more than enough foreign exchange to meet the request of our customers for school fees and others,” NAN was told.

    In a data released by the CBN, the apex bank, within three weeks, injected more than 1.4 billion dollars for both wholesale and retail intervention into the interbank Forex market.

    Mr Ayo Teriba, Chief Executive Officer, Economic Associates, is optimistic that the CBN would be able to sustain its intervention on the forex market.

    Teriba told the NAN that increase in oil production and high oil prices had increased the foreign reserve base of the country.

    “We are back to a situation where the forex at the disposal of the CBN is likely to go up.

    “The CBN could not intervene in the forex market in 2016 because of low oil production, prices and because foreign reserves were also low.

    “Today, oil price is up, reserves have also gone up, the outlook of the oil prices is stable and production in Nigeria is going back to capacity; so it has the capacity to intervene.

    “In a couple of months, the apex bank should be able to meet all of the demands and all the multiple exchange rates will converge.”

  • Forex: Banks seek buyers as CBN continues to flood market

    Forex: Banks seek buyers as CBN continues to flood market

    The new strategy of the Central Bank of Nigeria (CBN) to meet all legal demand for foreign exchange (Forex) has led Money Deposit Banks to contend with expending all the dollars in their possession.

    A check by the News Agency of Nigeria (NAN) in Abuja showed that the banks had cleared all backlog of demands for foreign currencies for basic travel allowance, school fees and medicals.

    A source in the United Bank for Africa, told NAN that UBA had so much dollars that the bank’s marketers had been asked to encourage customers to request for foreign currencies.

    The source said that the bank wanted to avoid a situation where it was forced to return excess Forex to the CBN.

    It explained that doing so would force the CBN to reduce the quantity of Forex it sold to banks.

    Another source from First Bank said following the CBN intervention, the bank had succeeded in clearing all pending requests for Forex as far back as September, 2016.

    Also, a source in Guaranty Trust Bank commended the decision of the CBN to flood the market with Forex, thereby allowing the banks to meet legitimate demands from its customers.

    It was also gathered from Heritage Bank that prior to now, the bank published the names of individuals and companies it disbursed Forex to in a page of any particular newspaper.

    “Right now, we take two or three pages in the newspaper to publish names of legitimate individuals and companies that we disbursed Forex to.

    “We have more than enough foreign exchange to meet the request of our customers for school fees and others,” s0NAN was told.

    In a data released by the CBN, the apex bank, within three weeks, injected more than 1.4 billion dollars for both wholesale and retail intervention into the interbank Forex market. (NAN)

  • Forex: CBN to inject more funds

    Forex: CBN to inject more funds

    There are strong indications that the Central Bank of Nigeria (CBN) is unrelenting in its move to ensure liquidity in the interbank foreign exchange (Forex) market, as it will inject more funds into market this week.

    This is according to information gathered by the News Agency of Nigeria (NAN) on Sunday in Abuja from market operators.

    Confirming the proposed additional foreign exchange injection into the system, the acting Director, Corporate Communications of the CBN, Mr Isaac Okorafor said the CBN was determined to sustain the provision of liquidity in the Forex market.

    Okorafor cautioned dealers in foreign exchange not to engage in any unwholesome practice that could be detrimental to the smooth operations in the market.

    He also warned that the CBN would impose heavy sanctions on any organisation involved in such acts.

    The CBN had, as at last week, injected over 1.4billion dollars into the interbank Forex market for both wholesale and retail interventions. (NAN)

  • $1.72bn debt: NCC, CBN halt Etisalat’s takeover

    The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN)  have secured a reprieve for Etisalat on the $1.72 billion  (N541.8 billion) loan crisis facing the company.

    The Director of Public Affairs of NCC, Mr. Tony Ojobo, said in a statement on Saturday in Lagos, that the reprieve came following a meeting convened by CBN and NCC to find a quick resolution to the crisis.

    ”Friday’s meeting succeeded in halting the attempt by Etisalat’s creditors at bringing it under any form of takeover,” Ojobo said.

    ”Receivership was completely taken off the table in a meeting that was very productive and constructive.

    ”The meeting, which held at the CBN office in Lagos, had the consortium of banks being owed and Etisalat in attendance.

    ”The banks and the mobile network operator agreed to concrete actions that will bring all parties closest to a resolution.”

    He said CBN and NCC were able to secure for Etisalat the necessary “oxygen” to enable it continue to meet urgent operational expenses.

    Ojobo said the CBN Governor, Mr. Godwin Emefiele, who chaired the meeting, was firm in declaring what needed to be done by both parties towards a quick resolution.

    He said the Commission equally made it clear that everything necessary must be done to protect the 23 million Etisalat subscribers.

    The NCC spokesman said there was also the need to protect the telecom industry to prevent potential investors from developing cold feet.

    According to him, effort has been made to ensure that Etisalat remains in business while the consortium of banks meet their obligations to their customers.

    ”A meeting will hold on March 16 to agree on a payment restructuring path going forward.

    ”The NCC will lead the CBN in a possible crucial meeting with Etisalat’s shareholders anytime soon,” he said.

    A consortium of banks  on March 8 attempted to take over Etisalat over the  debt.

    Etisalat is Nigeria’s fourth largest telecommunications operator with about 23 million subscribers as at January this year.

    The company commenced operation in Nigeria in 2009.

    NAN