The Nation Newspaper

Tag: Central Bank of Nigeria

  • Falana urges ASUU to facilitate collection of N463 billion from TETFUND

    Human rights activist, Mr. Femi Falana SAN has urged the Academic Staff Union of Universities (ASUU) to ensure that the sum of N463 billion education intervention fund lying fallow at the Central Bank of Nigeria is immediately disbursed by the TETFUND to the universities, polytechnics and colleges of education owned by the federal and state governments.

    While addressing the 20th Delegates Conference of ASUU taking place at the Tafawa Balewa University in Bauchi State on Tuesday,  Mr. Falana commended the union for the initiative which led to the enactment of the TETFUND Act in 1992. The law  has made it compulsory for all companies operating in Nigeria to contribute education tax of  2 percent from their annual profits to the funding of publicly owned tertiary institutions in the country.

    However, the Senior Advocate stunned participants at the conference when he disclosed that the tertiary institutions did not access N250  billion from the account of TETFUND from 2011-2016 and that the sum of N213.4  billion is outstanding for 2017. Mr. Falana said that the 78 public universities are entitled to about 50 percent of the total sum of N463 billion in the TETFUND Account.

    While urging the TETFUND board to urgently review the cumbersome guidelines for accessing the fund Mr. Falana  called on the ASUU and other campus unions to monitor the collection of the education tax, the disbursement and management of the intervention fund by the authorities of tertiary institutions.

    He informed the ASUU leaders that due to the failure of the staff and student unions to monitor the fund over the years not less than N250 billion has been criminally diverted from the TETFUND by some unscrupulous school administrators with the connivance of the former board members of the TETFUND. Mr. Falana assured that the bulk of the stolen fund would be recovered by the anti graft agencies which are currently probing the fraud.

    Mr. Falana advised TETFUND to stop imposing a ban on institutions from accessing the fund because some past administrators  failed to render account of the monies collected by them. Instead of imposing collective punishment on the innocent staff and students of such institutions Mr. Falana suggested to TETFUND to submit the names of such administrators to the police and the anti graft agencies for investigation and possible prosecution.

    Since successive governments have paid lip service to the funding of education Mr. Falana said that without the intervention of TETFUND the public tertiary institutions would have collapsed. As the various governments have failed to make provision for capital projects in public schools TETFUND has become the only source of funding infrastructural development and research in all the public tertiary institutions.

    Mr Falana believes that if TETFUND can make available N213 in 2017 alone the body  has the capability to make a greater impact on the public tertiary institutions if the education tax is effectively collected and monitored. Mr. Falana made a strong case for the involvement of all stakeholders in the collection of the education tax.

    He particularly taxed ASUU to deploy its intellectual resources to collate information of all companies that are liable to pay the education tax as less than 50 percent of all companies operating in the country are currently  paying the tax. The human rights activist also advised ASUU to collaborate with the Federal Inland Revenue Service for effective collection of the education tax.  “Having fought for the enactment ASUU has a legitimate right and moral duty to ensure that the law is well implemented” Mr. Falana concluded.

  • Banks must repay excess charges with interest – CBN

    Since banks have refused to heed warning against illegal charges, the Central Bank of Nigeria (CBN) has resolved that banks that deduct monies illegally from their customer’s account for products and services would be made to refund the money to the customer with interest.

    Mr Fada David, Consumer Complaints Manager, Consumer Protection Department, CBN, made this disclosure in Abuja on Tuesday.

    The apex bank’s new stand is coming on heels of sustained complaints from bank customers of excessive charges by their banks for withdrawals from Automated Teller Machine (ATM).

    According to Mr. Fada David, “the Monetary Policy Circular of the CBN gives certain guidelines as to how much should be refunded to customers if excess charges are discovered. Part of the punitive measures is that if excess charges are discovered, they are refunded to consumers with interest,” he said.

    He also encouraged customers to read the CBN’s Guide to Bank Charges circular to know those charges that their banks were allowed to charge and the correct amount.

    According to him, “bank costumers should consult this document to know how much they are expected to pay for services. When you go through it and in a situation where you see charges that you do not understand, you have the right to write your bank and get them to explain what the charges are.”

    He added that “in a situation where it is clear that the customer was charged excessively, the customer should get them to reverse it. You have the right to know how much you are charged from operating your account and make sure that the bank only charges the specified amount,” he said.

    Also, Mr Oludamola Atanda of the Consumer Education Division, Consumer Protection Department, CBN, urged bank customers to demand for their statement of account monthly, this he said will help customers to monitor their accounts closely.

    Atanda noted that bank customers “have the right to demand for the right product and services. The banks cannot force you to go for a specific product or loan facility. You have the right to choose. If they give you a product you do not like, you do not have to take it. Its important for us to understand this.”

    “There is also the issue of right to privacy. My bank should not share my details with just anybody. For instance, a wife cannot come and say she wants details of her husband’s account.

    “Only by court order can an account details by revealed to a third party,” he said.

    Atanda said at times, customers complain about certain bank products because they were not properly informed about the products.

    “If I am taking a product, my bank has the responsibility to educate me on that product.

    “If it is a savings product, a customer should know how it works, how many times to withdraw in a month, how much interest to expect and the minimum deposit on the account.

    “We are saying that you have the right to demand good service. Those are the things we want to let customers know,” he said.

    In recent times across the Federal Capital Territory (FCT), bank customers have lamented that they now dreaded making withdrawals using other banks ATMs because of the continued charge of N65 for every transaction.

    The customers complained that most banks within the city centre have rigged their ATMs to dispense only N10,000 or less per transaction, thus ripping off customers withdrawing more than that amount.

    The customers complained that if they had to withdraw N100,000 or more through other banks ATM, it meant they would lose so much money.

    They, however, called on the CBN and other relevant authorities to look into the matter so as to help poor Nigerians.

  • CBN: $2.5b currency swap to boost naira liquidity

    Apex bank injects $349.34m into retail SMIS

    The Central Bank of Nigeria (CBN) on Friday said the $2.5 billion (16 billion Renminbi (RMB) currency swap deal with Chinese government would provide adequate local currency liquidity to Nigerian and Chinese industrialists and other businesses.

    CBN Spokesman, Isaac Okorafor, disclosed that the deal would protect Nigerian business men and women from the harsh effects of third currency fluctuations.

    The CBN spokesman also disclosed that the apex bank also in its last intervention for the week, injected the total sum of $349.34 million in the Retail Secondary Market Intervention Sales (SMIS) segment of the forex market.

    Figures obtained from the CBN, indicated that the interventions were meant to meet obligations in the agricultural, airlines, petroleum products and raw materials and machinery sectors.

    Okorafor, who confirmed the releases, reiterated that the bank continued to intervene in the foreign exchange market owing mainly to its commitment to guarantee liquidity in the foreign exchange market and boost the production sector.

    According to him, the continued interventions by the CBN in the forex market in addition to the recent currency swap with the People’s Bank of China (PBoC) would ease pressure on the country’s reserves.

    Speaking further, he explained that the Bank, in injecting funds into the market, was playing its role of safeguarding the international value of the legal tender currency through exchange rate stability. He said the Bank was also committed to diversifying the Nigerian economy from oil.

    The CBN also, last week injected $339.89 into the SMIS while also intervening in the inter-bank Foreign Exchange Market to the tune of $210,000,000, comprising $100 million for the wholesale segment and $55 million for both the Small and Medium Enterprises (SMEs) and invisibles segment on Wednesday, May 2, 2018.

  • Mixed reactions trail CBN’s move to sanction bank CEOs

    Shareholders have expressed mixed reactions to plans by the Central Bank of Nigeria (CBN) to sanction Chief Executive Officers (CEOs) of banks that fail to submit audited results of their banks after 12 months.

    The shareholders expressed their view in separate interviews with the our reporters in Lagos on Friday, while reacting to the apex bank’s Monetary, Credit, Foreign Trade and Exchange Policy released recently.

    The Banks and Other Financial Institutions Act (BOFIA) require banks to publish their audited financial accounts not later than four months after the end of each financial year.

    The CBN had in the Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2018/2019 also directed banks to publish their audited financial statements not later than four months after the end of each financial year.

    The CBN said it would hold the board chairman and CEO of any defaulting bank directly responsible for any breach.

    Diamond and Unity Banks had notified the Nigeria Stock Exchange (NSE) that their results would be delayed.

    Skye Bank, however, is yet to publish its 2016 and 2017 results.

    Mr Moses Igbrude, the Publicity Secretary, Independent Shareholders Association of Nigeria (ISAN), said sanctioning banks CEOs after four months of not releasing their accounts was too short a time.

    Igbrude said policies were instituted to correct and strengthen institutions not for revenue generation at the detriment of the affected institutions and the shareholders.

    “What we see in Nigeria from regulators is impunity, using directives and policies for revenue generation at the detriment of institutions and the shareholders, he said.

    Igbrude said CBN should first engage the banks to find out the challenges to ascertain if they need assistance.

    According to him, the apex bank should warn the affected banks after the engagement before the option of sanctions.

    “I don’t think management will deliberately delay the release of their accounts without issues.

    “I am appealing that CBN should look at this issue critically on one-on-one basis with the intention to assist and strengthen these institutions for the sake of all stakeholders.

    “Sanctions should be the last resort when all efforts fail, such officers should be sanctioned personally, not the banks bearing the cost of their wrong decisions and behaviour,’’ Igbrude said.

    However, Mr Bayo Adeleke, the immediate past Secretary, ISAN, said the CBN pronouncement was in the interest of the investing public.

    Adeleke said companies should render their stewardship yearly within a certain time frame.

    “It is the duty of regulators to enforce such compliance. Skye Bank is, however, an exception. The present bank’s management was put in place by CBN.

    They are battling with legacy issues which CBN is fully aware,’’ he said.

    Sheriffdeen Tella, a Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun said the law had always been there but ignored.

    Tella said every bank was expected to present quarterly report of its activities to the CBN, noting that at the end of every operating year, an annual report should reach the apex bank before the end of the first quarter.

    He said many banks, particularly those in or approaching distress, keeps their books away from the regulatory authority.

    Tella alleged that the apex bank also sometimes covers up for them depending on the relationship with the head of such bank.

    He said punitive action needed to be taken to prevent disaster because the number of banks involved was rising.

    “This is the situation now and the CBN is only trying to enforce the regulation. Many of the banks have not held Annual General Meeting (AGM) nor sent their annual report to shareholders for some years and the CBN is aware.
    “There is no transparency and accountability in the operations of these banks but probably with the connivance of the CBN.

    “Of course, the value of shares of the banks continues to fall or remains low and static,’’ Tella said.

    Meanwhile, Mr Boniface Okezie, the National Coordinator, Progressive Shareholders Association of Nigeria (PSAN), blamed the apex bank and the Financial Reporting Council of Nigeria (FRCN) for the delay witnessed by some banks in publishing their accounts.

    Okezie attributed the delay to lots of provisions being demanded by the Financial Reporting Council of Nigeria (FRCN) and CBN.

    “Some of the banks are battling to see how they can overcome that until they are cleared by the apex bank and FRCN, their accounts cannot be published,’’ he said.

    Okezie said the apex bank had not done anything to Skye Bank over delay in the publication of 2017 accounts because the management was instituted by the CBN.

    “Skye Bank is on CBN life line and CBN will do everything to protect them from being penalised,’’ he said.

    NAN

  • CBN boosts forex market with $210m

    The Central Bank of Nigeria (CBN) yesterday injected  $210 million into the inter-bank foreign exchange market in continuation of its efforts to sustain liquidity in the market.

    The apex bank offered $100 million to authorised dealers in the wholesale segment of the market. The Small and Medium Scale Enterprises (SMEs) segment received the sum of $55 million while the sum of $55 million was apportioned to invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA)

    A statement from the bank’s Acting Director, Corporate Communications Department, Mr. Isaac Okorafor, confirmed the figures and reiterated CBN’s capacity to continue to sustain the foreign exchange intervention.

    Okorafor urged Deposit Money Banks to continue to honour requests from customers with genuine needs, noting that the Bank will continue to sustain liquidity in the foreign exchange market.

    Meanwhile, the nation’s currency continued on Wednesday, May 2 to maintain its stability in the forex market, exchanging at an average of N362/$1 in the BDC segment of the market.

  • MPC predicts fragile but promising economic growth

    …urges Govt to freeze growth in FAAC distribution to create savings

     

    The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has predicted a fragile economic growth for the nation in 2018.

    To achieve this fragile but promising growth, the Committee urged “the Government to initiate strong stabilization programmes and to freeze the growth in its aggregate expenditure and Federation Account Allocation Committee (FAAC) distributions in order to create savings; needed to stabilize the economy against future oil price related shocks.”

    The Monetary Policy Committee lamented that it has “observed increasing monetization of oil proceeds as evident in the growing FAAC distribution, relative to the 2017 level of disbursements.

    Addressing journalists at the end of the first MPC meeting for the year which also saw in attendance the new Deputy Governors and members of the MPC recently cleared by the Senate in Abuja, CBN Governor, Mr Godwin Emefiele noted that “forecasts of key macroeconomic indicators give a positive outlook for the Nigerian economy in 2018.”

    This he said “is predicated on the quick passage and effective implementation of the 2018 budget, improved security, foreign exchange market stability as well as favourable crude oil prices.”

    However on the downside, the Committee Emefiele said “noted the potential impact of the 2019 election- related spending, against the weak backdrop of tax revenue efforts, herdsmen related violence and rising yields in the advanced economies. Indications in the US and the UK point to higher interest rates in the short to medium term.”

    The Committee he said noted with satisfaction “the gradual return to macroeconomic stability as reflected in the third consecutive quarterly growth in real GDP in the fourth quarter of 2017. It also noted the continued moderation in all measures of inflation as well as sustained stability in the naira exchange rate and urged the CBN to sustain the stability to avoid a mission drift.”

    Overall, the MPC noted that the recovery of the economy was strengthening, in view of the return to growth of the Services Sector.

    With regards to the fiscal side, Emefiele praised the fiscal sector for continuing to settle its outstanding liabilities, reducing its domestic debt profile, thus increasing the liquidity of the banking system.

    The Committee noted that at 14 per cent, the policy rate was tight enough to rein-in current inflationary pressures. The Committee, therefore, reaffirmed its commitment to price stability conducive to sustainable and inclusive growth.

    Members of the MPC were happy TA what they described as the “relatively strong balance sheets of the deposit money banks’ and the stable outlook. This is in spite of the concentration of non-performing loans in a few sectors, which the Committee observed was satisfactorily being addressed by adequate mechanisms established by the CBN to address the phenomenon.”

    The MPC also noted that as Government pays off its huge contractor debts, a sizeable portion of these non-performing loans will be addressed. The Committee “urged the CBN to strengthen its supervisory oversight and early warning systems to promptly identify, monitor compliance with extant prudential regulations, sustain macro-prudential policy and manage emerging vulnerabilities in the banking system.”

    The MPC then reiterated the CBN’s “commitment to delivery of low interest credit as evidenced in its bold steps to adopt unconventional monetary policy to aid credit flow to vulnerable and growth enhancing sectors of the Nigerian economy.”

    The MPC then enjoined the CBN “to continue to support and encourage credit delivery at single digit interest rate through other mechanisms in the interim, while encouraging the banking system to establish frameworks to increase credit delivery to the employment generating sectors of the economy.”

    At the end of the meeting, the Committee decided unanimously by a vote of all members present to retain the Monetary Policy Rate (MPR) at 14.0 per cent alongside all other policy parameters.

    Consequently, the MPC voted unanimously to retain the MPR at 14.0 per cent; Cash Reserve Ratio (CRR) at 22.5 per cent; Liquidity Ratio at 30.0 per cent; and Asymmetric corridor at +200 and -500 basis points around the MPR.

    Before answering questions from journalists the CBN governor thanked President Muhammadu Buhari and the National Assembly for appointing and clearing two Deputy Governors and other MPC members.

    Emefiele said the new MPC members were subjected to rigorous induction processes stressing that “they are very qualified individuals with no preconceived notion as to what expect or demand of the committee but individuals who are given data to analyze and make objective decisions in the nation’s interest.”

  • Nigerian banks lose 2m customers in 2 years – Statistics

    Despite Central Bank of Nigeria’s (CBN) effort to promote financial inclusion, Nigerian banks lost over 2 million customers between 2016 and 2017.

    According to statistics from the Nigeria Inter-Bank Settlement System (NIBSS), the number of active bank accounts also reduced by 1.5 million, dropping from 65 million to 63.5 million.

    The statistics obtained by the News Agency of Nigeria (NAN) from the NIBSS website on Sunday, showed that the total number of bank customers dropped from 61 million in 2016 to 59 million in 2017.

    According to NIBSS, the banking sector, however, made great strides in linking customers’ account using the Bank Verification Number (BVN).

    The report showed that linked BVN accounts grew from 26 million in 2016, to 41.3 million in 2017.

    According to a banking industry source, the reduction in banking customers is not unconnected to the Federal Government’s declaration to fight against corruption.

    “When Buhari assumed office, many people abandoned their accounts, especially civil servants because of fear of investigation.

    “While some out rightly closed down their accounts, others opted for gradual withdrawal so as not to raise alarm,’’ the source said.

    The source, who works at one of the top five banks in the country, blamed the BVN for the low patronage of banking products, especially in the rural areas, where awareness was already very low.

    A bank customer, Mr Olaitan Alagbe told NAN that she closed some of her accounts due to unnecessary and illegal charges by banks.

    “First of all, the interest rate is next to nothing, so there is little reason to keep your money at the bank when you can turn it over doing other businesses,” she said.

    Another customer, who preferred to remain anonymous said he opened several accounts during the Ponzi scheme boom in the country, but was forced to abandon them after the schemes crashed in late 2016 and early 2017.

    However, a source at the CBN told NAN that the reduction in the number of banking customers was caused mainly by the introduction of BVN.

    “The reduction may not necessarily be a bad thing. For example, many people opened accounts using different variations of their names.

    “A person bearing Musa Salisu Mohammed, may have other accounts as Salisu Mohammed or Musa Salisu.

    “So with the introduction of BVN, such customers were forced to regularise their names, however, some opted to close down their accounts, which resulted in the reduction of active bank accounts and customers,’’ the source said.

    Statistics of bank accounts

    The CBN source was, however, optimistic that the financial inclusion strategy of the bank would succeed in bringing in more people into the formal banking system.

    The Financial Inclusion strategy aims to ensure that major bulk of the money in the economy remains within the banking sector.

    A major challenge in the financial inclusion process is how to ensure that the poor rural dwellers are carried along considering the lack of financial sophistication among this segment.

    The CBN, Money Deposit Banks, Micro Finance Banks and other stakeholders are curre implementing different policies designed to enhance financial inclusion in the country.

  • Agriculture: Kaduna targets 10,000 youth, releases 50,000 fertiliser

    The Kaduna State Government says 10,000 young farmers in the state would be empowered to boost production in Maize, Rice, Soybeans and Poultry in the 2018 crop season.

    Gov Nasiru El-Rufai made the disclosure in a message to the flag-off of the 2018 fertilizer sales, held on Thursday in Turunku, Igabi Local Government area.

    The Newsmen reports that the state in partnership with Flour Mills of Nigeria and TAK Agricultural Solution would offer 50,000 metric tons of NPK fertiliser to farmers at  N5, 500 per bag this season.

    El-Rufai represented was at the event by the Commissioner for Agriculture and Forestry, Daniel Manzo-Maigari.

    “The state is collaborating with Central Bank of Nigeria ( CBN ) in the implementation of Accelerated Agricultural Development Scheme, where more than 10,000 farmers mostly youth are targeted to be empowered in production of maize, rice, soybeans and poultry.

    “The state is also working closely with multinational agencies and the private partners such as DFID,  Synergos,FAO, OCP Africa,  GIZ,  USAID, TAK Agro,  and WACOT to revolutionize agriculture  in the state,” he said.

    El-Rufai noted that although the state has comparative advantage in agriculture, the sector had been neglected with very little or no investment, especially in the provision of vital inputs to farmers.

    “The present government has made the issue of providing quality and affordable inputs to the state farmers a top priority.

    “The subsector is dominated mostly by wet season farming and some irrigation based production.

    “Most farmers currently produce cereal crops such as maize, sorghum, millet and rice during the rainy season.

    Read Also:  Agriculture living up to our expectation as jobs creator – Buhari

    “Also not in doubt is the fact that Kaduna state is the largest producer of maize, ginger and tomato in Nigeria, exporting substantial quantities to other states.

    “Therefore any intervention aimed at enhancing production and to arrest post harvest losses will ultimately increase farmers’ productivity and income,” the governor said.

    According to him, the government would continue to facilitate availability and accessibility of fertilizer across the state.

    “The state government will continue to support the growth of the agricultural sector which is the mainstay of our economy through the provision of inputs such as fertilizer, improved seeds, agrochemicals and machineries.’’

    He disclosed that the state Fertilizer Blending Plant set up in collaboration with OCP Africa, a Moroccan company, will be inaugurated on May 1.

    The governor said his administration had established a 350km shelter belt across five local governments of Ikara, Makarfi, Kudan, Giwa and Birnin Gwari to arrest desertification.

    He assured farmers of adequate security during the farming season, as of recent the farmers were forced to abandon their farms due to incessant kidnapping.

    Earlier, the Speaker of the House of Assembly, Aminu Shagali, represented by the Chairman, House Committee on Agriculture, Kasimu Iliyasawa said the committee would monitor the fertiliser sales in their constituencies to ensure that the commodity gets to actual farmers.

    The speaker urged administrators of local councils to ensure that the fertiliser get to farmers in good time.

    NAN

  • IAAF grant: Reps to probe alleged missing $150,000

    The House of Representatives on Thursday resolved to to probe alleged missing 150,000 dollars paid to the Athletics Federation of Nigeria ( AFN ) by the International Amateur Athletics Federation ( IAAF ).

    The House will also look into the threat of banning the country from IAAF activities if the money was not recovered.

    This followed a motion under Matters of Urgent National Importance by Rep. Douye Diri (PDP-Bayelsa) during plenary.

    Moving the motion, Diri said that media reports had it that IAAF paid 150,000 dollars to AFN instead of 15,000 dollars which was its annual grant to member-Federation for 2017.

    He said that it was reported that IAAF accountants discovered the error and asked AFN to refund the excess payment, but that the money seemed to have disappeared into thin air.

    The lawmaker said that he was aware that some AFN Board were calling for an emergency congress to look into the scandal.

    He said that the members had faulted the Sport Minister, Solomon Dalung, who was said to have set up a committee to probe the circumstances surrounding the missing grant.

    He expressed worry over allegations that the recipient of the money may have used his private account to collect it from IAAF.

    According to Diri, this happened when the minister dissolved boards of sports federations.

    He wondered how money could be received and spent with approval from relevant authorities contrary to extant laws, and in this era of Treasury Single Account ( TSA ) operation by Ministries, Departments and Agencies (MDAs).

    He pointed out that Nigeria’s image was not only being tarnished by the failure of AFN to refund the money, but that the country ran the risk of being banned from international competitions.

    The legislator expressed concern over the effect such a ban would have on the youth of the country, who saw sports as a viable means of livelihood.

    The motion was unanimously adopted by members when it was put to voice vote by the Speaker, Mr Yakubu Dogara.

    The House, therefore, mandated its Committee on Sports to carry out forensic audit on the issue and determine steps to be taken to recover the money and prevent Nigeria from being banned.

    The committee would also determine measures to be put in place to prevent such infractions in future.

    The members also resolved to invite Dalung, AFN and Central Bank of Nigeria and any other connected party to explain their roles in the matter.

    NAN

  • Nigeria’s external reserve hits $46bn – CBN

    Nigeria’s External Reserves now stands at $46 billion as at the close of business on Friday, March 9, 2018 steadily heading towards the $50 billion mark.

    Figures released by the Central Bank of Nigeria (CBN) at the weekend indicate that the reserves grew by about $3.2 billion between February and March 2018.

    The reserves at the beginning of 2018 stood at $39.3 billion, then rose to $42.8 in February before hitting the new high of $46 billion.

    Confirming the figures, the CBN Acting Director, Corporate Communications Department, Isaac Okorafor attributed the continued accretion to the country’s reserves to “the Bank’s effort at vigorously discouraging unnecessary importation and reducing the nation’s import Bill; inflow from oil and non-oil exports, as well as the huge inflows through the investors and exporters window of the foreign exchange market,” which he said had attracted over $33 billion since April 2017, when it was created.

    At the close of commodities trading on Friday, March 9, 2018, Brent Crude, sold at $65.49 a barrel up by 2.54%.

    According to him, “the Bank’s interventions in the foreign exchange window had also helped to moderate the pressure on the FOREX reserves by sustaining liquidity in the market and boosting production and trade.”

    Okorafor also noted that the CBN policy restricting access to FOREX from Nigeria’s foreign exchange market to importers of some 41 items had made a huge impact on the status of Nigeria’s reserves and boosted the supply of local substitutes for imported goods, created jobs at home and enhanced the incomes of farmers and local manufacturers.

    It will be recalled that the CBN Governor, Godwin Emefiele, at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) held in Lagos in November 2017, had projected that Nigeria’s external reserves would hit the $40 billion mark in 2018. That conservative projection has since been surpassed.