Tag: cbn

  • Low funding,  ageing tools … and now CBN’s policy: Cancer  patients’ fate hangs in the balance

    Low funding, ageing tools … and now CBN’s policy: Cancer patients’ fate hangs in the balance

    With the country’s estimated cancer rate standing at about 100,000 new cases yearly, all hands should be on deck. But this has not been the case. Now, the Central Bank of Nigeria’s (CBN’s) policy on foreign exchange has worsened the situation. The Centre for Nuclear Medicine, University College Hospital (UCH), in Ibadan and its sister in Abuja  are hard-hit by the CBN’s decision mandating forex users to deposit fund 48 hours ahead. OLUKOREDE YISHAU examines how this policy has worsened an already bad situation. 

    On normal days, the nuclear medicine centres at the University College Hospital (UCH), Ibadan and the National Hospital, Abuja are overwhelmed. The bulk of their patients have one form of cancer or the other. Some are there for one diagnosis or the other. With the country recording about 100,000 new cases of cancer annually and some 2 million existing cases, it is not surprising that these centres are like mad houses. It actually used to be crazier at the UCH centre when it was the only one in the country and patients have to travel from all over the country to see the experts.

    The Ibadan, Oyo State centre was established in 2006 by the International Atomic Energy Agency based in Vienna, Austria. Its medical equipment are financed and supplied by the International Atomic Energy Agency. Its premises are paid for by the agency. Its main purpose: offer radio-active treatment at next-to-nothing rates to patients suffering from various forms of cancer. In 2008, an Abuja centre was opened to ease the pressure on the Ibadan centre.

    When working at optimal levels, the two centres are unable to meet the medical needs of the people. Now, their activities are hampered by the Central Bank of Nigeria (CBN). And for the patients, it is to your tent o Israel!

    The CBN last week directed commercial banks to pay for their dollar purchases at the official forex window 48 hours ahead of the bid date. The policy requires banks and other forex dealers to deposit the naira equivalent of the forex bids to the apex bank 48 hours in advance.

    This policy is bad news to importers of radiopharmaceuticals used in treatment of cancer patients and others with serious ailments. The two centres in Ibadan and Abuja, which are funded by the International Atomic Energy Agency (IAEA), are now in dilemma.

    The Ibadan, which banks with Guaranty Trust Bank Plc, has been unable to meet the new demand because its access to cash is limited since it is a charity. The policy shift means more pains for its cancer patients. Since it is unable to meet this demand, less patients have access to the cancer drugs. An already difficult situation has thus been aggravated.

    The centres have had to put importation of drugs for the patients on hold. Yet, CBN Director of Corporate Communications Ibrahim Mu’azu said the apex bank could not give exemptions because it would not know where to draw the line. He added that the centres should plan ahead.

    For centres, which do not have loads of cash, planning ahead can be difficult, said a source. “Both the CBN and the banks do not understand the harm they are doing to the health of cancer patients who need these drugs to stay alive. Why can’t they give a waiver to providers of medical services. For us, the drugs used in UCH are not produced in Nigeria or even West Africa. They are imported from France and Hungary,” the source said.

    GTBank CEO Segun Agbaje said: “I think the policy will help the CBN a lot to determine what the real demand for forex is or what spurious demand is. It is going to ensure that what we operate is effective demand backed by cash. So, that way, it is easy for the Central Bank to actually determine what the demand is and ensure it is a proper demand.”

    The centres are looking up to President Muhammadu Buhari to save them. When this is done, it will be the umpteenth time, the Presidency and other stakeholders have had to come to its rescue.

    The NNRA debacle

    In December of 2013, the Nigeria Nuclear Regulatory Authority (NNRA), an agency under the Ministry of Petroleum saddled with the responsibility of managing radioactivity in the country, decided to hike the licence fees for the importation of radioactive materials. From N250,000, the renewal cash was jerked up to N2 million, representing a 700 per cent increment. Without the licence, the centres would not be given clearance by the International Atomic Energy Agency (IAEA) to import radioactive nuclear materials used for diagnoses and treatment of cancer patients .

    The National Coordinator of National Nuclear Medicine Project, Prof Bola Osifo, who oversees the two centres, was alarmed. The centres could not afford the money and between December 2013 and March of last year or thereabout, they could not practise.

    The National Coordinator of Nuclear Medicine project in a letter dated December 13, 2013 to the NNRA, expressed bewilderment over the arbitrary increase of license fees , declaring that the centres been a non-profit making body could not afford to pay N2million every year for licence.

    The letter reads:” It is difficult for me to understand your review of fees after I had applied for licence for 2014 since November 8, 2013. The fact is that no department of Nuclear Medicine in this country can afford to pay your fees. Your Commission is already ruining our 2014 practice as our suppliers have written to us to submit our licences latest December 23, 2013. Please remember that we are practicing in a hospital which is not a profitable business venture , rather it is to help millions of Nigerians who are very sick and cannot afford to go anywhere else for their medical care unlike the elites of this country . We would like to remind you that we are running an IAEA project where all the equipment are given free of charge by the agency.”

    The then Deputy Leader of the Senate, Abdul Ningi, last year, raised a Point of Order on a matter of urgent public importance, calling on the Senate to investigate the licence fee increase.

    He said: “Bureaucratic bottleneck has stopped the treatment of cancer patients in the country, resulting in the death of many people, which is avoidable. Since last December, no single cancer patient has been treated by the Nuclear Department of UCH and the National Hospital, Abuja, because they were not licensed.

    “With this ugly development, most cancer patients in Nigeria will die because of lack of treatment, except those who can afford to travel abroad. It’s very wrong for them to review upward the licence fee because it is critical to the treatment of cancer patients.”

    The Senate invited the then NNRA chief Dr Martin Ogharandukun, who was not convincing about the reason for the hike. The matter was eventually resolved in the interest of the centres and Ogharandukun was relieved of his job by the Presidency.

    At other times, Customs have also seized the centres’ drugs over duties. These are drugs that are time-bound and should not be kept at the ports for long.

    Other woes

    The centres also face other avoidable challenges. Unlike other types of medicine, nuclear medicine depends on radioactive materials. The radio-pharmaceutical materials it uses in the treatment of cancer patients are not available in Nigeria and have to be imported.  This means bureaucratic hitches with the Customs have to be surmounted each time importation is done.

    For every consignment imported every month, it pays anti-bomb personnel to escort them because the contents have radioactive agents. Importation, clearance and local transportation costs are passed to the patients thereby increasing their woes.

    In a paper titled ‘Avoidable challenges of a nuclear medicine facility in a developing nation’ in the Indian journal of Nuclear Medicine by Kayode Solomon Adedapo,Yetunde Ajoke Onimode, John Enyi Ejeh, and Adewale Oluwaseun Adepoju, these nuclear experts identified other challenges to include poor electricity supply, short life span of radioactivity materials and so on. They also identified the shortage of a vital tool known as the 99Mo/99mTc generators.

    They said: “It is desirable that imported radioisotopes should have relatively long half-lives. Thus, cyclotron products such as fluorine-18 (18F), carbon-11 (11C) and iodine-123 (123I) (with half-lives of 110 min, 20 min and 13 h, respectively) will not be available in these countries except at enormous cost to patients by ordering additional quantities of radioactivity (higher activity) to compensate for the short half-lives. This precludes the option of positron emission tomography (PET) imaging, as PET radiotracers are notoriously short-lived. A shortage of 99Mo/99mTc generators has been experienced in recent times. Understandably, countries which produce these generators would then reduce their exports in order to satisfy local demands. This shortfall in exports in turn adversely affects their foreign clients.

    “These challenges might be overcome if radiopharmaceutical production facilities were made available in these developing countries as obtains in the advanced world. This will also lead to saving of the foreign exchange for the importation of radiopharmaceuticals. Amendments of unnecessary aspects of government bureaucracy would also help.

    “In Nigeria, the Nigeria Atomic Energy Commission (NAEC) has begun plans for a new nuclear reactor. Although it is meant to help boost electric power generation, it is hoped that radioisotopes will also be produced from the reactor for use in nuclear medicine. Provision of small cyclotrons to provide nuclear medicine centers with desired radioisotopes is another way that this challenge might be overcome.”

    On electricity supply, they said: “The national power supply is not dependable, erratic and prone to surges. There are frequent interruptions in power supply, necessitating the need for uninterruptible power supplies and fuel generator back-up. As such, establishments rely on alternate sources of power. These activities once again increase the cost of service delivery. Power cuts also have an adverse effect on equipment, leading to a shortened lifespan of these machines. Their maintenance and replacement subsequently become more frequent than obtains in environments with constant, reliable and adequate power supplies. Power cuts also interrupt air-conditioning, which is essential in order to maintain the optimal temperature of equipment and components of the gamma camera such as the sodium iodide crystal; this affects the performance of these equipments. In a ripple effect, camera down-time also delays and suspends availability of services to patients and the necessary changes in patient management that these procedures might have provoked. Such delays, especially in cancer patients, have grave consequences. Improvement in public power supply in countries such as ours would go a long way in overcoming these challenges.”

    The researchers also identified aged equipment as a major challenge contributing to patients woes.

    “A recent survey published in 2011 by the International Atomic Energy Agency (IAEA) indicated that most gamma cameras in developing countries were over 6-year-old, with some even over 30-year-old. In the authors’ own country, the two available gamma cameras have been in use since 2006, with these centres performing between 600 and 700 studies per annum. Aged equipment functions sub-optimally and spare part production for these machines have often been discontinued. Coupled with the issues addressed in the section under electricity, this factor is another cause of poor service in nuclear medicine units in some developing countries. Regular replacement of equipment and their parts in these developing countries through government support or a revolving fund system is recommended,” the researchers said.

    They also emphasized the need for local customer service for the equipment. Adedapo, Onimode, Ejeh, and Adepoju said the manufacturers of gamma cameras and other nuclear medicine equipment do not provide adequate local services.

    This, they said, creates difficulty in maintenance of equipment and results in substantial dependence on external technical support which takes more time and money. They suggested that locally trained personnel must be available for preventive and first-line maintenance. That way, they argued that equipment downtime would be curtailed and patients’ suffering addressed. “We have experienced situations whereby the service engineer for the gamma camera in use had to be contacted to come in from overseas several times to repair the gamma camera when it breaks down. The fees for such consultations by the engineer are usually huge. The cost is borne by the host department and ultimately increases the cost of service delivery to patients,” they said.

    What is nuclear medicine?

    Adedapo, Onimode, Ejeh, and Adepoju said the benefits of nuclear medicine outweighs its perceived negative sides.

    In their words: “Nuclear medicine is the branch of medicine that uses the tracer principle, most often with radiopharmaceuticals, to evaluate molecular, metabolic, physiologic and pathologic conditions of the body for the purposes of diagnosis, therapy and research. It involves the use of suitable pharmaceuticals labeled with radioisotopes to form radiopharmaceuticals. This enables imaging of the body using a special device known as a gamma camera. Depending on the type of examination required, the radiotracer may be administered by injection, ingestion or inhalation. The resulting gamma emissions from the patient are captured by the gamma camera detector and the image is displayed on the acquisition computer. This process enables the study of physiological processes and diagnosis of abnormal conditions. Radioisotopes are used because of the penetrating and ionizing characteristics of the radiations emitted from their decaying atoms. In comparison to conventional radiology, diagnostic nuclear medicine is essentially a functional imaging process reflecting physiological processes, whereas conventional radiology aims predominantly at obtaining anatomical images reflecting form and structure.

    “Apprehensions about radiation exposure are common among the general public, but nuclear medicine procedures are relatively safe. Effective doses from 99mTc based procedures are said to be within range of the values for plain film X-ray procedures. They are generally less than the range for computed tomography and do not exceed twice the average dose to the general population from natural background radiation. Moreover, these procedures are relatively painless and free of side effects. Benefits derived definitely outweigh the risks.

    “Penetrating radiation can produce physiological images of internal structures for the purpose of diagnosis. For therapeutic purposes on the other hand, radiation delivered to diseased cells disrupts normal cells moderately as the radiation delivered is mostly from â-particles which have quite a short range in tissue.

    “The practice of nuclear medicine has clinical applications in virtually all systems of the body, for example, the skeletal, cardiac, endocrine, oncologic, gastrointestinal and renal systems. The commoner nuclear medicine procedures in developing countries are the bone scan, thyroid scan and the renal scan respectively. Some nuclear medicine techniques are also performed in vitro. Examples of these are glomerular filtration rate estimation, the C-14 urea breath test, detection of occult blood loss and the Schilling’s test.”

    They continued: “Another clinical application of nuclear medicine is in the field of oncology. Cancer is a major public health concern in our country. From observations at our nuclear medicine center, breast cancer is the most common malignancy observed in oncology referrals among Nigerian women. It is often associated with a poor prognosis for a variety of reasons especially late presentation. Prostate cancer remains the most common malignancy among oncology referrals for men in the country. These observations are in agreement with those of other authors. The authors’ country has an estimated cancer incidence rate of about 100,000 new cases yearly, but presently has only two functional public nuclear medicine facilities. These centres are inadequate to match the rising demand for nuclear medicine services especially in the management of cancer, cardiovascular and other non-communicable diseases in the country. To this end, factors which impede the smooth running of nuclear medicine services at these centres are discussed.”

    What next?

    All eyes are on the Presidency to get the CBN to exclude these centres from this policy, which is doing harm to cancer patients across the country.

  • CBN urges Buhari to sign FSS2020 bills into law

    CBN urges Buhari to sign FSS2020 bills into law

    The Central Bank of Nigeria (CBN) has appealed to President Muhammadu Buhari to urgently give presidential assent to three  bills passed by the National Assembly concerning Financial Sector Strategy 2020 (FSS 2020).

    The CBN is particularly worried that the bills may be given less attention than they deserve because they were passed during the last days of the last National Assembly.

    CBN Governor, Mr Godwin Emefiele who amde the appeal during the e-Government Summit 2015 in Abuja, lamented that the bills had over-stayed their welcome on the floor of the National Assembly.

    Represented by the apex bank’s Deputy Governor (Operations), Alhaji Suleiman Barau  on the occasion, he said the bills had for seven years been at the National Assembly, adding that the president’s quick assent to the bills will “pave the way for the establishment of the Nigerian International Financial Centre and other ancillary requirements in line with international best practice.”

    Emefiele said the CBN was ready “to support the e-governance project in Nigeria as way of deepening payment system in the country as well, as help enthrone transparency and accountability. It is in this light that the CBN has been supportive of the FSS2020 project as a way of establishing an international financial centre in Abuja with all the benefits accruable from the establishment like the Dubai model.”

    The CBN described the three bills as unique because of the number of years they had spent at the National Assembly, saying  the CBN therefore ”plead with Mr. President to take time out and look at the bills and give them his assent because they will help to move this country forward.”

    Also at the ceremony, Anambra State Governor, Mr. Willy Obiano said the deployment of information communication technology (ICT) in the state’s governance structure had boosted its internally generated revenue (IGR) from N500 million monthly to N1.4 billion. He urged the Federal Government and states of the federation to borrow a leaf from the Anambra experiment.

    He said the move has also helped the state to fight crime, improve its security network and manage workforce by building a comprehensive data bank for the state.

  • BVN registration: Senate urges CBN, others to sensitise Nigerians

    The Senate yesterday urged the Central Bank of Nigeria (CBN) and commercial banks to conduct intensive awareness  campaign  on the Bank Verification Number (BVN).

    The resolution followed a motion by Senate Deputy Minority Whip, Senator  Biodun Olujimi entitled “Danger posed to rural bank customers by the Bank Verification exercise.”

    Mrs Olujimi said: “We appreciate the fact that the Bank Verification Number will help the banking system to track transactions across banks in Nigeria.

    “ There is however the concern that the people in the rural areas are not carried along due to the inability to access print and electronic media.’’

    Senate President Bukola Saraki described the motion as timely in view of the October 31 deadline.

    He said while the exercise was a laudable, the CBN and other stakeholders should ensure that no Nigerian irrespective of location is negatively affected.

    Saraki said: “It is a laudable project but it should be inclusive and there should be more awareness particularly in the rural areas. They should go the extra mile to ensure their customers participate in the exercise.“

    Senator Philip  Gyunka  (Nassarawa North)  said the CBN ought to make provisions to accommodate rural dwellers.

    He said farmers in his community had complained that their finger prints could not be captured in the exercise.

    Senator Enyinaya Abaribe (Abia South) called for a unification of data from agencies saddled with the responsibility of collating data.

    Abaribe said: “I support this motion because it is difficult to  register to vote,  go through the rigour of another biometric  data capturing for  drivers licence and also  dragged into registering for national identity card.

    “We are carrying all manner of identifications  that are not linked in any way and we are concerned.

    “This has to be part of what we will discuss with the CBN governor when he comes.

    “We will discuss how to make life pleasurable for an average Nigerian,’’ he said.

    Senator Shehu  Sani(Kaduna  Central)  expressed concern over the poor state of banking in the rural areas.

    Sani said attempts to promote banking in the villages had not been successful and something urgent should be done to carry them along.

     

  • CBN directs banks to prioritise forex demand for fees, others

    CBN directs banks to prioritise forex demand for fees, others

    The Central Bank of Nigeria (CBN) has directed authorised foreign exchange dealers to give priority to customers seeking foreign currency for payment of school fees and personal allowances for overseas travels.

    The apex bank said this in a statement by the Director, Corporate Communications Department, Alhaji Muazu Ibrahim, yesterday in Abuja.

    The bank assured forex users that it would continue to meet their demand so long such demands were for legitimate purposes.

    “All legitimate requests for foreign currency for eligible transactions such as remittances for school fees, Business Travel Allowance, medical and other eligible transactions shall be fully met at the official exchange rate.

    “Already, all the legitimate demand for such transactions through recognised channels have so far been fully met by the CBN.

    “The CBN hereby directs all authorised dealers in foreign exchange in Nigeria to henceforth treat as top priority all legitimate demand for foreign exchange for eligible transactions,” it said.

    It stated also that holders of Naira denominated debit and credit cards would continue to have access to the use of their cards at Automated Teller Machines in any part of the world.

    It stated that the amount was subject to an annual limit of 50,000 dollars, noting that ATM withdrawals would continue to be at a maximum of 300 dollars per day.

  • CBN directs banks to prioritise forex demand  for fees, others

    CBN directs banks to prioritise forex demand for fees, others

    The Central Bank of Nigeria (CBN) has directed authorised foreign exchange dealers to give priority to customers seeking foreign currency for payment of school fees and personal allowances for overseas travels.

    The apex bank said this in a statement by the Director, Corporate Communications Department, Alhaji Muazu Ibrahim, yesterday in Abuja.

    The bank assured forex users that it would continue to meet their demand so long such demands were for legitimate purposes.

    “All legitimate requests for foreign currency for eligible transactions such as remittances for school fees, Business Travel Allowance, medical and other eligible transactions shall be fully met at the official exchange rate.

    “Already, all the legitimate demand for such transactions through recognised channels have so far been fully met by the CBN.

    “The CBN hereby directs all authorised dealers in foreign exchange in Nigeria to henceforth treat as top priority all legitimate demand for foreign exchange for eligible transactions,” it said.

    It stated also that holders of Naira denominated debit and credit cards would continue to have access to the use of their cards at Automated Teller Machines in any part of the world.

    It stated that the amount was subject to an annual limit of 50,000 dollars, noting that ATM withdrawals would continue to be at a maximum of 300 dollars per day.

  • CBN to resuscitate textile industry

    The Central Bank of Nigeria (CBN) disclosed on Friday that it is working out modalities to provide funding under the Real Sector Support Facility (RSSF) for the revitalisation of the ailing Cotton Textile and Garment (CTG) industry.

    CBN Governor, Godwin Emefiele, who made this known during a meeting with CTG industry stakeholders in Lagos, hinted that the apex bank will partner with stakeholders in the textile sector to develop a blueprint on the development of the industry.

    He lamented that the industry that previously had over 150 textile mills and employed over  one million people is dominated by imports from Asia.

    He noted that the industry was suffering from huge capital flight as a result of the huge importation worth  millions of dollars of textile products into the country.

    “India alone was estimated  to export textile products worth over $140 million into Nigeria, while imports from China, Indonesia and Taiwan are more likely to be even much higher. The challenge for us as stakeholders is how to prevent further dumping of the product into the country with the implementation of the Common External Tariff,” Emefiele said.

    The CBN boss explained that the relationship between banks and the textile companies was thorny because the former was suddenly left with huge non-performing loans after the bubble burst.

    He said though CBN has no mandate to ban the importation of any product, it recently included textiles as one of the 41 items excluded from foreign exchange sales from the Nigerian forex market.

    On smuggling, he noted that CBN and the textile stakeholders would continue to work with relevant government agencies such as the Nigerian Customs Service and Standards Organisation of Nigeria (SON) to combat the menace and ensure that importers pay the right duties for products.

    On the challenges facing the industry, the Chairman of Textile Industry, Mrs. Grace Adereti, lamented that the industry which created over 18 million employment with over 150 vibrant mills in the past, could only boost of no fewer than 20 textile firms, that are managing to stay afloat.

    She said the industry was in coma  because 95 per cent of textile products were imports as 150 containers of textile materials are smuggled into the country in one night on daily basis, even when the country has can produce 1.5 billion metres of cotton.

     

     

  • Ebonyi Assembly approves Umahi’s N8.4bn CBN loans request

    Ebonyi State House of Assembly yesterday gave the state government the nod to take three loans from the Central Bank of Nigeria for various purposes.

    This followed the letters written to the House by the governor, Dave Umahi, urging the House to approve the request.

    The letters were read during plenary.

    The loans include a N4.4 billion salary arrears bailout from the apex bank. Others included a N2bn loan for micro and medium scale enterprises development fund and a N2bn loan for rice production.

    The letters were read by the Leader of the House, Joseph Nwaobasi, and accepted as a working document, after which the House dissolved into committees of the whole House to deliberate on the requests.

    The Minority Leader of the House, Mrs Maria Ude Nwachi (PPA), representing Afikpo North West, in her contribution, urged the state government to ensure that the loans are utilized for the purposes they are given and not end up in private pockets of a few individuals.

    She said: “My mind skips when I hear about these loans for agriculture, my mind skips. The reason is that most times, the money will end up in private pockets and the people that need the money will not be able to access it”

    “The people will still be poor and the people who have access to it will plunder it. I am hoping that this present government will deviate from the norm by making sure the real farmers benefit from the loan.”

     

    The chairman of the House Committee on Agriculture, Mrs Augusta Ude, promised that the committee will monitor the funds when procured to ensure they are not diverted.

     

    Speaker of the House, Hon Ogbonnaya Nwifuru, put the requests of the governor to vote after the members spoke in favor and it was unanimously affirmed.

     

  • El-Rufai directs banks to close all state accounts

    El-Rufai directs banks to close all state accounts

    Kaduna State Governor, Malam Nasir Ahmad El-Rufai has directed all banks with Kaduna State Government accounts to close them and remit its balances to the Central Bank of Nigeria (CBN).

    The governor said the state will now commence implementation of the Treasury Single Account (TSA) framework by September 1, 2015.

    According to the Governor in a statement by his Special Assistant on Media and Publicity, Mr. Samuel Aruwan, “All banks that maintain the accounts of the government have been put on notice to close them and remit the balances to the Central Bank of Nigeria which will host the state’s TSA.

    Aruwan said, the governor gave the directive at a meeting with officials of all the banks hosting the state government’s many revenue and expenditure accounts.

    “The meeting was also attended by the Kaduna State Branch Controller of the CBN. Malam El-Rufai explained that after the establishment of the TSA, the state government will open specified sub-accounts with the CBN and the commercial banks.

    “The banks present assured the governor that within five working days of receiving the formal instructions from the state government; they will close the accounts and remit the balances to the TSA.

    “While thanking the banks for their continued support, the governor assured them that a future session will be organized to explain to the banks how the new TSA and the sub-accounts will work,” it read.

    The statement also disclosed that selected revenue-holding accounts will be excluded from this directive as government will publish needed Treasury Circulars and other instructions to give effect to the decision.

     

  • Senate summons CBN governor over state of economy

    Senate summons CBN governor over state of economy

    The Senate yesterday invited the Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, to provide an update on the state of the economy.

    The Upper Chamber said  it needed the CBN chief to explain the implications of the free fall of the naira.

    The legislators noted that the CBN governor  should be invited to “brief the Senate on this matter to be enlightened  as to what the situation really is.”

    This followed a motion by Senator Nazif Suleiman (Bauchi North) titled The State of the Economy: Naira depreciation and its implications.

    The Senate also urged the Federal Government to step up efforts in diversifying the  economy from oil-depent on taxation, agriculture, manufacturing, international tourism and solid minerals prospecting.

    Suleiman in his lead debate noted with concern the parlous state of the Nigerian economy as it affects the growing rate of the depreciation of the naira.

    The lawmaker expressed worries that the naira has depreciated in the last few months at a much faster rate than it had appreciated over the last two years.

    The cause of the depreciation, he said, is the consequence of the negative cash flow as a result of the downward trend oil price, which is further worsened by speculations in the foreign exchange market.

    He lamented that the foreign exchange needs of the various sectors of the economy are now not being made available.

    Suleiman said the banking industry may be currently defaulting in the global economy which may be sending wrong signal and creating bad image about the Nigerian economy.

    He noted that the resultant speculation is leading to  huge capital flight with its attendant inflationary consequence which is affecting the common man on the street.

    Suleiman further noted that illicit fund flows and money laundering going through the country’s financial system contributes in weakening the value of the naira. This he said has led to recent decision of the CBN to increase it vigilance to ensure that Nigerian banks are not used as conduit for illicit funds flow and money laundering in foreign currencies.

    He said the procedure for processing demand and supply of foreign exchange by the CBN should be reviewed and various options considered to stem the precipitous depreciation of the naira as well as discourage speculators.

    Senator Joseph Gbolahan Dada (Ogun West) in his contribution said there was no doubt that the country is at a cross roads.

    He said the country must define its economic policies and be firm to punish fraud no matter who is involved.

    The lawmaker said it is lamentable that “we produce nothing yet we ride the finest cars in the world. We must begin to create wealth.” The senator said the banking industry must monitor those engaged in forex round tripping with dollar in the country.

    Senator Olaka Nwogu (Rivers East) in his contribution said the economic crisis is an opportunity for the Senate to support President Muhammadu Buhari to solve the problem.

    He added that the beginning of the solution of the country’s economic downturn should start by stopping total dependence on oil.

    He noted that a situation where most states in the country wait for their share of the oil proceeds before they can pay salary should be a thing of the past.

    Senate President, Abubakar Bukola Saraki who summed contributions from senators described the motion as timely.

    He said the Senate must always be seen to defend the naira saying it is clear that the naira is being subjected to speculators.

    He said 15 years ago, nobody would ever have imagine that the country could stop massive importation of cement.

    He said some thing could still be done about the importation of rice.

    He said: “We as the Senate will give the government all the support to defend the naira. Government has to be firm and consistent and I think the government has taken the right step. It is not going to easy.”

  • Naira to back foreign exchange demand, says CBN

    Naira to back foreign exchange demand, says CBN

    •Demands 48hrs advance payment 

    The Central Bank of Nigeria (CBN), in its sustained drive to defend the local currency, has directed that all foreign exchange demand must now be backed by naira cover 48 hours before the request is sent to the apex bank’s intervention window.

    The order which was communicated to the Deposit Money Banks yesterday, The Nation investigation revealed, is to take effect from today.

    Consequently, some of the banks, in implementing the directive, have notified their  customers who intend to purchase foreign exchange through the CBN intervention window, “to make funds available in their accounts two working days before each intervention day.”

    In a document obtained by The Nation, one of the banks said: “Given the effective date of 6th August for this new arrangement, collation for intervention window of  10th August 2015 will be done on 6th August, 2015 when the bank will be expected to move funds to the CBN position.

    “Kindly ensure that all customers’ requests are received in Trade Services  on or before 12noon two days preceding their intended CBN intervention window,” the financial house stated, adding that ”in case of matured obligations that will require the booking of naira IFF (Import Finance Facility) to fund account, booking may be deferred until successful FX (foreign exchange) allocation in which case, Trade will debit customer’s account naira equivalent of FX sold, whether or not the account is adequately funded, while the Branch/Relationship Managers will be required to follow up with the relevant department, or unit for regularisation with same value date as original debit.”

    The document clearly stated that bids supported with incomplete documentation will not be processed.

    It said apart from the exception earlier highlighted for matured obligations,  bids presented on unfunded account will not be attended, it stressed.