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  • CBN mulls $50b biofuel equity fund

    CBN mulls $50b biofuel equity fund

    • Kachikwu advises govt on fiscal federalism

    Central Bank of Nigeria (CBN), Governor Godwin Emefiele  yesterday said the bank planned to raise a Biofuel Industry Equity Fund (BIEF) of $50 billion.

    Government parastatals, development banks including Bank of Industry (BoI), Bank of Agriculture (BoA) and Development Bank of Nigeria (DBN)  will also finance biofuel production in the country.

    Represented by Director of Research at the CBN, Mr. Lawrence Odeh,  during the National Capacity Building & Sensitisation Workshop on Biofuels, which the Petroleum Products Pricing Regulatory Agency (PPPRA) organised in Abuja, Emefiele said a document already outlined a range of funding arrangement.

    He said: “On the domestic front, it is instructive to know that the Nigerian biofuel policy and incentive draft document had outlined a range of funding arrangements and incentive packages for firms involved in biofuel production.

    “The document envisages that equity funding arrangement to be known as BIEF of $50billion and to be purely funded by parastatals and development banks,  including BoI, BoA and DBN.”

    The apex bank chief noted that the scope of funding sources have become irrelevant as development partners such as United Nations Development Programme (UNDP), United Nations Environmental Programme (UNEP)  and the UN habitat are now actively involved.

    He said these multilateral agencies have been known to provide assistance to some African countries both technically and financially.

    He added that both the private and the public sectors are partnering to have the required funding for the development of the biofuel sector, which  will ensure the efficient deployment of resources and best judgement in business and investment decisions.

    For this model to be effective, he said there has to be a vibrant private and institutional equity investment outlets alongside relevant source of regulations guiding their operations.

    Also speaking, the Minister of State, Petroleum Resources, Dr. Ibe Kachukwu, urged the Federal Government to respect fiscal federalism in biofuel policy.

    Represented by Dr. Timothy Okon of the Nigerian National Petroleum Corporation (NNPC) the minister advised the government to be wary of the manner in which it assigns responsibilities to institutions without a clear cut funding direction.

    The minister doubted if the current policy on biofuel has comprehended the fiscal federalism issues in the country, and advised the Federal Government to consider funding, food insecurity, energy sustainability and fiscal instability in the proposed policy.

    In order to avoid having recourse to the Federation Account, Kachikwu said there must be prioritisation that will not create an uneconomic basis.

    “That is not the situation now. So that simply mean that a sort of prioritisation we need to place and must be put in the context is what is going to happen in future crisis.

  • CBN sells N400b T-Bills to mop up liquidity

    CBN sells N400b T-Bills to mop up liquidity

    •Capital importation hits $1.5b

    The Central Bank of Nigeria (CBN) sold N400 billion ($1.27 billion) of Treasury bills at the weekend, lifting the interbank lending rate to 12 per cent.
    The apex bank sold N82 billion in 181-day Treasury bills at 18 per cent and N309 billion at 18.6 per cent, mopping up liquidity from the money market and pushing up the cost of borrowing among lenders. “We have some major placers quoting about 20 per cent for overnight placement, but most takers are not willing to borrow at that rate,” one dealer told Reuters.
    The markets had opened on Thursday with a surplus liquidity of about N467 billion due to an injection of matured Treasury bills until the CBN debited banks for the purchases of N302.4 billion in primary market Treasury bills.
    Traders said the CBN further moved to cut liquidity with the sale of open market operations bills, which brought returns above the inflation rate.
    The CBN raised N302.4 billion at the Wednesday’s Treasury bills auction, more than the N242 billion planned due to strong demand for the one-year debt, while payment for the purchased was debited from commercial lenders’ accounts on Friday.
    The naira traded flat at both the official interbank window and parallel market, with black market traders quoting N498 to the dollar. Commercial lenders quoted the currency at 305.25 a dollar, about the level it has traded since August.
    Meanwhile, data from the National Bureau of Statistics (NBS) showed that Nigerian Capital Importation, which covers fourth quarter of last year was estimated at $1.5 billion, a decline of 15 per cent quarter-on-quarter and 0.5 year-on-year.
    Monthly imports within the quarter were relatively although December recorded marginally the highest level of $555 million.
    Yearly, capital imports fell by 47 per cent from $9.6 billion in 2015 to $5.1 billion. The figure was the lowest since the series’ inception in 2007.

  • Police, CBN begin arrest of Naira abusers

    Police, CBN begin arrest of Naira abusers

    The Nigeria Police Force and the Central Bank of Nigeria (CBN)have disclosed that they would embark on nationwide arrest of whoever defaces the Naira.

    The CBN lamented that there is an increase in the rate of abuse of the Naira which contravenes Section 20 and 21 of the CBN Act.

    Section 20 and 21 of the CBN Act stated that whoever sells, buys, sprays and squeezes the Naira would  be imprisoned for six months or given an option of N50,000 fine or both.

    This was disclosed in Abuja by the Commissioner of Police in Federal Capital Territory (FCT), CP Muhammad Mustafa during a joint briefing with senior directors of the CBN.

    Already, the police have arrested two members of staff of the CBN and two others who were caught in the act of defacing the Naira.

    Those arrested are; Iliyasu Musa, Awua Felix, Mercy Otuma and Abdulwahab Kusa.

     The CP said: “The CBN Enforcement Committee on the abuse of the Naira in collaboration with the FCT Police Command carried out a raid at Dei-Dei, Jabi and other locations within the FCT which were used for illegal trading and hawking of Nigerian currency, an act contrary to Section 20 and 21 of the CBN Act, 2007.

    Explaining why they embarked on the raid, the CP said it is part of the effort of the Committee to enforce provisions of sections of the CBN Act, 2007.

    He said: “The offence of selling, buying, spraying and squeezing of the Naira attracts six months imprisonment or an option of N50,000 fine or both as penalty upon conviction.”

    The police said it recovered the sum of N1,713,200 during the raid.

     The CP also said that the suspects and exhibits have been transferred to the Command Criminal Investigation and Intelligence Department for further investigation adding that the suspects would  be charged to court on completion of investigation.

    Also speaking, the Ag. Director on Corporate Communication, Isaac Okorafor said:

    “This is just the very first this year. The efforts are going to continue just to let Nigerians know that it is an offence and abuse of our national sovereignty to squeeze, hawk, spray, dance or write on the Naira. It is an offence and we are pleading to Nigerians that they should try to respect the Naira because it costs a lot of money to print and it is also an insult on our nation.

    The operation would also go to wedding halls and do not be surprised when couples will be arraigned. We will also extend it to other banks in the country because this is a battle we must win”.

     

  • NECA to CBN: obey N50 stamp duty ruling

    NECA to CBN: obey N50 stamp duty ruling

    The Nigeria Employers Consultative Association (NECA) has urged the Central Bank of Nigeria (CBN) to comply with the Court of Appeal’s ruling stopping the deduction of N50 stamp from deposits of N1000 and above.

    In January, last year, CBN directed banks to deduct duty from deposit of N1,000 and above into current account. Last April 21, the appeal court ordered that the deductions be stopped, because they were illegal.

    NECA Director-General Mr. Segun Oshinowo accused CBN of not complying with the ruling. He said the deduction affected corporate bodies, among others.

    “NECA and organised businesses had opposed attempts by the Nigeria Postal Service (NIPOST) to compel companies to affix N50 postal stamp on all receipts, invoices and documents evidencing transaction of N1,000 and above,” he said.

    Oshinowo said it was worrisome that CBN has refused to comply with the ruling on the matter between Kasmal International Services Ltd. and Access Ban and 23 others.

    He said: “NECA has expressed concern over the failure of the CBN to reverse its earlier directives to all Deposit Money Banks (DMB) to halt the charging of N50 per eligible transaction in accordance with the assumed provisions of the Stamp Duties Act and Federal Government Financial Regulations (2009). The CBN is, hereby, advised to do the needful without delay by directing cessation of further deductions and commence the refund of all accrued deductions in the past to their customers.

    “NECA urges the President Muhammadu Buhari administration to restrain its operatives from pursuing policies that will increase the burden on the citizenry, both corporate and individuals. It affirmed that stamp duty’s applicability is limited to purchases involving large sums like a house purchase or importation of goods as against the position of applying N50 postage stamp to all receipts given by any bank (or financial institution) in acknowledgement of services rendered in respect of electronic transfer and teller deposits.”

  • Forex ban on 41 items stays, says CBN

    Forex ban on 41 items stays, says CBN

    The Central Bank of Nigeria (CBN) has rejected calls by the Organised Private Sector (OPS) to reverse its foreign exchange (forex) ban on 41 goods, which the country can produce.

    The CBN said it would continue to support the real sector rather than lift the ban.

    CBN’s Acting Director, Corporate Communications, Mr. Isaac Okoroafor, said despite criticisms, CBN would not drop the policy nor bow to  “self-serving” interests.

    “We have observed with great concern the continued and unwarranted attack on our policies by a group of Nigerians, whose real interests, findings have shown, are anything near altruistic, but rather self-serving and unpatriotic,” Okoroafor said.

    He said while the CBN respected Nigerians’ or stakeholders’ views, it found it curious that some interests have remained persistent in misinforming the public, with the aim of discrediting the genuine management of the economy.

    Okoroafor said this could create  distrust and panic within the financial system. “Indeed, self-centered individuals, who have failed to assail our patriotic position, have resorted to the sponsorship of serial propaganda to misinform and mislead the public on the objectives of our policies,” he said.

    He said some unpatriotic elements were pushing for a reversal of the policy aimed at conserving forex, stimulating agriculture and manufacturing, and promoting exports.

    Okoroafor blamed the economic challenges on the past practice of frittering away huge oil earnings.

    “Our decisions on forex management are prompted by the challenge posed by the level of depletion of the country’s reserves, arising from issues, such as drastic reduction in oil earnings, speculative attacks and round tripping,” he explained.

    According to him, the pressure on the foreign reserves has persisted due to huge reduction in monthly foreign earnings, which fell from over $3.2 billion monthly in 2013 to below $500 million last year, when the demand for the US dollar, particularly by importers, continued to rise.

    Despite the challenges, the CBN has continued to ensure that there is liquidity and transparency in the forex market, while checking inflation, and promoting productivity in critical sectors of the economy, Okoroafor said.

    However, the Organised Private Sector (OPS) members are not swayed by CBN’s position. Describing the policy as worrisome, they insisted that the apex bank’s unorthodox forex allocation system would continue to hamper  growth.

    The Lagos Chamber of Commerce and Industry (LCCI) Direc-tor-General, Mr. Muda Yusuf, said, in Lagos, that it was worrisome that the CBN had remained silent on some forex-related issues that were affecting the economy.

    He listed them to include acute illiquidity,  inflow impediments and too tight regulations on movement of funds.

    Others, he said, were the effects of the forex policy on non-oil exports, its disincentive to foreign direct investments and the negative impact of the policy on portfolio inflows.

    “Others are adverse effects on remittances by airlines, foreign investors’ dividends and profits; adverse effects on Diaspora remittances and the effects on investors’ confidence,” Yusuf said.

  • CBN, AGF trade blame over oil bloc account

    CBN, AGF trade blame over oil bloc account

    • House summons Kupolokun

    WHO has the records of Oil Prospecting Licence (OPL) 257’s proceeds?

    At the public hearing on the investigation of $22billion OPLs and Oil Mining Leases (OMLs) conducted yesterday by the Gideon Gwani-led ad hoc Committee, the Central Bank of Nigeria ( CBN ) and the Office of the Accountant General of the Federation ( OAGF)  refused to take responsibility for the records.

    The CBN was given a seven-day ultimatum  to provide documents to ascertain whether the payment of application fees, royalties, signature bonuses and other fees were actually made by oil frms.

    Also, the committee resolved that the former Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Funsho Kupolokun, should appear before it over the ceding of marginal fields to oil and gas operators.

    The committee began investigation into the award of all OPLs and OMLs by the Federal Government to ascertain whether due process and guidelines for the acquisition of oil and gas  assets were complied with.

    In his opening remarks, Gwani said: “The meeting by the committee with relevant agencies would enable the commitee trace the accounts where fees have been lodged, how much have been paid and by whom, what company has paid and who has not , if such payment have actually been received by the government or not, as well as the balance if any.”

    According to a member of the Commitee, Diri Douye, contradictory documents from the Department of Petroleum Resources (DPR) and OAGF were a source of concern to the committee

    He said while DPR claimed  that ConOil (OPL 257) has paid $100million, the AGF claimed in its submission that the same money was missing.

    “There are several contradictions contained in the document submitted to us by DPR and AGF and we must get to the root of this matter; that is why we have asked the CBN to provide us with the statement of accounts of the DPR so we can be sure we got the right document from the DPR,”he said.

    CBN was also queried over its decline in providing the statement of account of monies paid into the DPR account since 2002.

    In his response, CBN’s Deputy Governor, Bayo Adelabu said discussions have been going on with JP Morgan to provide the statement needed.

    He said: “According to J.P Morgan Policy, any information on a particular account exceeding seven years is achieved and we are talking of information from 2002 which was done manually so getting these information is not easy.

  • CBN queries five banks for manipulating forex rates

    CBN queries five banks for manipulating forex rates

    Five commercial banks have been queried for manipulating foreign exchange (forex) transaction rates, The Nation learnt at the weekend.

    The Central Bank of Nigeria (CBN) detected the rate manipulations following the mandatory rendition of forex returns and compliance with anti-money laundering regulations. The identities of the banks were not clear as at press time.

    But a CBN statement yesterday admitted that some of the queried lenders manipulated forex rates. Others attributed the rate discrepancies to ‘formatting errors’.

    Although the statement was silent on the number of the affected banks, industry sources said five lenders were involved and may face sanctions.

    Round-tripping a serious financial crime, has become more rampant after the CBN introduced the flexible forex policy which devalued the naira by over 40 per cent against the dollar. The policy shift created a huge gap between the official and parallel market rates.

    About 20 to 25 per cent of the volume of forex traded in the country is from autonomous sources, usually diverted into the parallel market through round-tripping. The naira was on Friday trading at N306 to dollar in the official market and N498 to the dollar in the parallel market, raising the temptation of rate manipulation among banks desperately looking for free funds to boost their profits.

    The CBN statement said: “The commercial banks involved in providing inaccurate data has since been issued queries accordingly. Some have returned a response indicating that some of the figures were related to formatting errors which do not affect the true rates of the affected transactions.”

    The CBN said it neither allocates foreign exchange nor does it deal directly with bank customers adding that it also does not fix forex rates for transactions by individuals or companies.

    “In line with our principle of transparency, we directed Deposit Money Banks (DMBs) to forward to us evidence of forex sale to end users and to advertise same in national dailies. Since the introduction of the new forex policy in 2016, we have published, monthly, the evidence of sale from DMBs, as received from the banks and without any alteration by us in the spirit of transparency. We have recently observed, however, that some DMBs forwarded inaccurate data, which were erroneously published and gave a wrong impression of disparate rates,” the statement said.

    “As the constitutionally authorised industry regulator mandated to manage the forex market, maintain external reserves and to safeguard the international value of the legal tender currency, we wish to state unequivocally that the CBN has a duty to perform and would not indulge in acts capable of discrediting the forex market,” it added.

    The CBN said the forex sale under the new policy was most transparent and not intended to benefit any individual or corporate body in anyway. “While we appreciate the concerns of stakeholders, we urge all concerned to verify information on matters relating to the bank and use our available channels to lodge their complaints,” it said.

    There have been several allegations against the CBN on irregularities in the rates at which forex were obtained by some individuals and companies from banks under the new 60:40 foreign exchange policy, which prioritises forex sales to manufacturers, agriculture, plant and machinery and critical raw materials, among others.

    The CBN’s report on forex utilisation showed last week that it disbursed $1.07 billion to 4,328 manufacturers, power and other real sector operators for the procurement of raw materials, plants and machinery.

    Playing prominently in the funding are FirstBank, Zenith Bank, Access Bank, Unity Bank, Union Bank, Wema Bank, and Sterling Bank.

    Others are Diamond Bank, GTBank, Fidelity Bank, Jaiz Bank and FBN Merchant Bank.

    The report, which was for November, listed some of the beneficiaries as Dana Motors, Dangote Industries, Eat N Go Limited, Flour Mills Nigeria, GX Foods Limited and PZ Cussons.

    Others are Indorama Eleme Petrochemicals Limited, Fidson Healthcare Limited, Okomu Oil Palm, MTN Nigeria Communications, Nestle Nigeria Plc, Nigerian Breweries Plc and Nigerian Bottling Company Limited among others.

    The forex utilisation report was meant to promote transparency and accountability on the side of the lenders which act as a link between the regulator and the forex users.

    The CBN said providing forex to the manufacturers and other key players in the economy was meant to enable it keep its promise to strengthen the real sector of the economy by ensuring that 60 per cent of available forex is used to procure industrial inputs, such as raw materials, machine spare-parts, telecom equipment, plastic raw materials, agricultural machines and pre-payment meters, amongst others.

    The CBN has also expressed its commitment to ensuring that manufacturers of goods for which Nigeria does not enjoy comparative advantage are able to get LCs to import materials for their businesses.

    The exercise, the CBN insists, will provide a new lease of life in the manufacturing sub-sector, and also boost industrial output and employment.

    The regulator said it will continue to support and facilitate hitch-free procurement of industrial inputs to sustain production in the manufacturing sector. The gesture, the CBN said, buttresses its commitment to rejuvenate and sustain industrial activities and keeping jobs.

  • CBN defends forex policies, faults criticisms

    CBN defends forex policies, faults criticisms

    The Central Bank of Nigeria (CBN) has defended its foreign exchange policies, and faulted the continued and unwarranted attack on its policies by a group of Nigerians, whose real interests, it said were self-serving and unpatriotic.

    In a statement, CBN spokesman, Isaac Okorafor, said: “While we respect the rights of every Nigerian or stakeholder to their respective views, we find it curious that certain interests have remained persistent in their move to misinform the larger public, with the intention of discrediting genuine efforts at managing the economy, thereby creating public distrust and panic within the financial system.”

    Continuing, he said the self-centered individuals, who have failed to assail our patriotic position, have resorted to the sponsorship of serial propaganda to misinform and mislead the public on the objectives of our policies.

    “Intelligence reports at the disposal of the bank reveal the involvement of some unpatriotic elements funding the push to have the CBN and the Federal Government reverse its forex policy, which is aimed at conserving foreign exchange, stimulating agriculture and manufacturing and also promoting exports.

    “The present economic challenges that we face have been worsened by our past practice of frittering away huge earnings made from oil sales, over the years. As we have explained severally, our decisions on forex management are prompted by the challenge posed by the level of depletion of the country’s reserves, arising from issues such as a drastic reduction in oil earnings, speculative attacks and round tripping.

    “It is pertinent to note that pressures on the country’s foreign reserves have persisted due to a huge fall in the monthly foreign earnings, which fell from over $3.2 billion sometime in 2013 to below $500 million per month sometime in 2016, when the demand for the US dollar, particularly by importers, continued to rise considerably. In spite of the challenges and the basic economic fact that countries earn dollars from international trade, we have ensured we meet the genuine demand of importers to pay for eligible imports and other transactions within available resources,” he said.

    Okorafor said the CBN will continue to ensure monetary and price stability as well as maintain external reserves to safeguard the international value of the naira.

    “While leaving our doors open for genuine partnership with all our stakeholders, we will only take economic decisions that will impact positively on the lives of all Nigerians. We therefore urge all concerned to be more patriotic and contribute to the soundness of the Nigerian economy; rather than engage in acts capable of undermining the efforts being made at moving the country out of the current economic situation,” he said.

  • ‘How CBN, NDIC rendered us hopeless’

    ‘How CBN, NDIC rendered us hopeless’

    Mr. Chuks Vincent Elelegwu is 1st Vice Chairman, Association of Ex-Staff of Non-Consolidated Banks, an umbrella body championing the cause of the over 10, 000 ex-bankers who lost their jobs as a result of the consolidation policy introduced by the then Central Bank governor, Prof. Chukwuma Soludo in 2005. In this interview with Ibrahim Apekhade Yusuf he shares the agonies of his colleagues who have remained in dire straits even while still waiting for their severance packages 11 years after their exit from the system. Excerpts:

    Your association has been in the forefront of agitation for the payment of gratuities to your members. Can you bring us up to speed on what has transpired thus far?

    First of all, let me say that we had to set up the Association of Ex-Staff of Non-Consolidated Banks and registered it with the Corporate Affairs Commission (CAC) in order to pursue our case since all entreaties to the concerned authorities didn’t yield any fruits. Having said that, all I can say is that it’s so sad. It might shock you to know that life has been very unfair to many of us. I can tell you for a fact that we have been at the receiving end. Among the affected banks, we have lost over 100 members as a result of imposed poverty. Some committed suicide while others died as a result of brief illnesses which persisted because they couldn’t raise money to take proper medical care. Don’t forget, many of those affected were earning well over N150-N200, 000 monthly and suddenly became bankrupt as a result of loss of jobs. The job loss was a trigger for most of the frustrations many of us have experienced and still experiencing till date.

    The fact is that we were forced out of our jobs. It is not as if we lost our jobs as a result of redundancy or what have you. No. We lost our jobs because of the CBN policy that introduced the N25billion minimum capital base for banks. As we speak, the over 10, 000 ex-bankers whose banks couldn’t meet the requirement of the consolidation exercise are yet to get their benefits 11 years after the policy was introduced.

    Apart from those who have lost their lives, I can tell you without mincing any words that majority of us are hanging on life support of some sort. Today, a lot more are terribly sick. In fact, I just heard from a wife’s friend last week that one of our staff, Peter Ebogu developed stroke overnight. When I pressed his wife for answers, she said it was a result of the frustration his husband was facing, especially of not been able to take care of the family upkeep like paying school fees and other bills. I’m particularly sad for the fellow because he is a young man of about 45 years as such, I’m sad that he is facing such a trauma so early in life. Majority have also been forced to retire to our villages because they couldn’t cope with the rents in town and cities, especially those who didn’t erect a house before the sad episode of the job.

    But is it that the authorities concerned are saying you guys do not have a case or what?

    That is exactly my point. One question that I keep asking is this: is the CBN and the NDIC saying that we are not justified to pursue our claims or gratuities?  I can bet you that somebody like Soludo, after his stint at the CBN collected all his gratuities and other entitlements when he left the CBN, likewise Sanusi. The question then is, why are they denying us our own rights? Ordinarily, if our banks were not forced out of business by the CBN policy, we would still be in business today and most of us would be in service and looking forward to retiring with good benefits. I know this for certain because at AllStates Trust Bank we had a very robust package for our staff. The condition of service was par excellence in the industry. I recall at the time that if you retired as a staff with us you became a millionaire overnight. At least some of those who left before the consolidation exercise earned as much. That I know. But all that has remained a mirage now.

    Are you optimistic that your prayers will be answered by the court?

    Of course, we decided to take our matter to court because we think it is the appropriate place we can seek redress having explored every other avenue to no avail. And it’s our collective prayers that we will get justice at the end of it all because we believe we are fighting a just cause and the good Lord will see us through. I also recalled that the former Managing Director of the NDIC, Ganiyu Ogunleye advised the former CBN governor, Sanusi Lamido to pay us our gratuities but he chose not to comply. We’re certain that the court will prevail on the concerned authorities this time around.

  • CBN disburses $1.07b forex to 4,328 manufacturers

    CBN disburses $1.07b forex to 4,328 manufacturers

    •21 DMBs, mortgage, merchant banks involved

    The Central Bank of Nigeria (CBN) has disbursed $1.07 billion to 4,328 manufacturers, power and other real sector operators for the procurement of raw materials, plants and machinery, the foreign exchange (forex) utilisation report by apex bank has shown.

    The fund sourced from the CBN and sold to the beneficiaries at the official rate of about N305.5 to a dollar, was handled by commercial, merchants and non-interest banks using the interbank market.

    Playing prominently in the funding are FirstBank, Zenith Bank, Access Bank, Unity Bank, Union Bank, Wema Bank, and Sterling Bank. Others are Diamond Bank, GTBank, Fidelity Bank, Jaiz Bank and FBN Merchant Bank among others.

    The report, which was for November, listed some of the beneficiaries as Dana Motors, Dangote Industries, Eat N Go Limited, Flour Mills Nigeria, GX Foods Limited and PZ Cussons.

    Others are Indorama Eleme Petrochemicals Limited, Fidson Healthcare Limited, Okomu Oil Palm, MTN Nigeria Communications, Nestle Nigeria Plc, Nigerian Breweries Plc and Nigerian Bottling Company Limited among others.

    The funds were specifically used for the procurement of raw materials, plants and machinery as specified in the Letters of Credit (LCs) under which they were sourced, and in-line with the CBN-stipulated import approval list.

    The forex utilisation report was meant to promote transparency and accountability on the side of the lenders which act as a link between the regulator and the forex users.

    The CBN said providing forex to the manufacturers and other key players in the economy was meant to enable it keep its promise to strengthen the real sector of the economy by ensuring that 60 per cent of available forex are used to procure industrial inputs, such as raw materials, machine spare-parts, telecom equipment, plastic raw materials, agricultural machines and pre-payment meters, amongst others.

    The CBN has also expressed its commitment to ensuring that manufacturers of goods for which Nigeria does not enjoy comparative advantage, are able to get LCs to import the required materials for their businesses.

    The exercise, the CBN insists, would provide a new lease of life in the manufacturing sub-sector, and also boost industrial output and employment.

    The regulator said it will continue to support and facilitate hitch-free procurement of necessary industrial inputs to sustain productive activities in the manufacturing sector. The gesture, it said, buttresses its commitment to rejuvenate and sustain industrial activities and retention of jobs.