The Nation Newspaper

Tag: MARKET

  • Banks seek buyers as CBN floods market with forex

    Banks seek buyers as CBN floods market with forex

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Naira inches up against dollar at parallel market

    Naira inches up against dollar at parallel market

    The Naira on Thursday marginally appreciated against the dollar at the parallel market, the News Agency of Nigeria (NAN) reports.

    The Nigerian currency gained three points to exchange at N462 to a dollar, after it closed at N465 on Wednesday, while the Pound Sterling and the Euro closed at N550 and N477, respectively.

    At the Bureau De Change (BDC) window, the Naira was sold at N399 to a dollar CBN controlled rate, while the Pound Sterling and the Euro closed at N550 and N500, respectively.

    The Naira exchanged at N305.80 at the interbank market.

    Currency traders expressed optimism that liquidity boost in the market would help to shore up the Naira rate.

    However, An economist, Mr Harrison Owoh has attributed the instability in the exchange rate in spite of liquidity boost in the FOREX market to excessive demand for dollars.

    Owoh said that the injection of 1.14 billion dollars by the Central Bank of Nigeria (CBN) to the interbank market were majorly at the service of letters of credits and invisibles.

    According to him, it is the cash at hand that brings down the exchange rate not mere letters of credit.

    He explained that China, which is the seat of importation business, was on holiday for a full month, adding that the vacation slowed than importation activities by Nigerian importers.

    The economist said that since the resumption in importation, the demand for FOREX had outstripped its supply. (NAN)

  • Dollar crashes again at parallel market

    Dollar crashes again at parallel market

    The greenback on Monday crashed against the Naira, as the Nigerian currency gained five points at the parallel market.
    The News Agency of Nigeria (NAN) reports that the Naira traded at N460 to a dollar, after speculators had forced it 3 points down amid liquidity boost on Friday.
    However, the Naira weakened against the Pound Sterling but maintained its Euro rate as it traded at N560 and N480, respectively.
    At the Bureau De Change (BDC) window, the Naira was sold at N399 to a dollar, while the Pound Sterling and the Euro closed at N580 and N525, respectively.
    The Nigerian currency also traded at N305.50 at the interbank window.
    In other segments of the market, Deposit Money Banks (DMBs) and Travelex, an International Money Transfer Services Operator, sold the Naira at N370 to a dollar.
    Traders expressed the hope that the strengthening of the Naira would reposition the economy for greater productivity.
    They, however, appealed to the CBN to sustain the liquidity boost in the market so that the Naira could sustain its gains against the dollar.
    NAN reports that some Nigerians, however, expressed worry that the gains of the Naira against the dollar had not translated in the reduction in the prices of goods and services. (NAN)

  • Explosion Kills three in Niger

    Three people have been confirmed dead and four others injured in a bomb explosion in Kontagora, Niger state.

    The explosion occurred in Gari market, a few kilometers from Kontagora town on Saturday when a man in military uniform detonated the bomb and died in the process.

    The Police Public Relations officer, DSP Bala Elkana who confirmed the explosion said it was as a result of wrong handling of explosives device by a newly recruited soldier identified as private Tanko Damina who just came back from Maiduguri.

    According to Elkana, Tanko Damina was in the habit of showing explosives to the villagers to prove that he was involved in the Maiduguri operation against the Boko Haram terrorists.

    “Tanko Damina used to carry the explosives on his body around the village to show off to the villagers. The explosion was as a result of wrong handling of the explosives. We thank God that it was not a market day, the casualty would have been very high”.

    Elkana assured that there is no need for panic because the incident was not caused by a suicide bomber, adding that “it was an accident like I told you”.

    The police spokesman said the force and the army have despatched anti-bomb experts to the home of the deceased to check if there were other IEDs in the residence.

  • Why we are building Rumuokoro Market, by Wike

    Why we are building Rumuokoro Market, by Wike

    Rivers State Governor Nyesom Wike has said the state government  embarked  on the  construction of the Rumuokoro Market and bus station to resolve the traffic congestion  in the area.

    Speaking  when he granted audience to the Nyeweli Rumuokoro, Eze Allwell Ohwonda and Leaders of Rumuokoro  Clan at the Government House, Port Harcourt on Wednesday, Wike stated  that the Rumuokoro Market and Bus Station  is a step towards stopping street trading in that axis.

    He said  after the completion  of the two facilities, nobody would be allowed  to trade on the  major road; illegal parking of commercial  vehicles on the road would be  discouraged.

    He noted that criminals operating on the  road would also be dislodged and the Rumuokoro clan made more secure  for business  and residential  purposes.

    He said: “Once we complete the Rumuokoro Market and Bus Station, those trading  on the road will be relocated to the market. We shall therefore  no longer allow people to trade on the  streets.

    “The community will be accomodated in the market as well. We will  also a community health centre for Rumuokoro  clan. ”

    The governor  noted  that his administration  would  continue  to  promote  community  development  across the state, pointing  out  project execution  was one of the  ways to appreciate  the people  for their loyalty  and support.

    The Nyeweli Rumuokoro, Eze Allwell Ohwonda, lauded the governor  for  several  development  projects  in Rumuokoro clan.

    The paramount ruler whose address  was read by a former National President of NBA, Chief Onueze Okocha, thanked the governor for the  recognition and classification  of the traditional stool of the area.

    The traditional ruler assured  Wike  of the continued support of the Rumuokoro people, pointing out that the people were looking forward to Wike’s second term in office.

  • Naira slides to N500/$ at parallel market

    Naira slides to N500/$ at parallel market

    The Naira on Friday depreciated further to N500 to a dollar at the parallel market after it had remained stable for nearly three weeks, the News Agency of Nigeria (NAN) reports.
    The Pound Sterling and the Euro traded at N616 and N530 respectively at the open market.
    The Nigerian currency, however, remained stable at the Bureau De Change (BDC) segment of the market exchanging at N399 to a dollar, while the Pound Sterling and the Euro closed at N617 and N527, respectively.
    The Naira also remained stable at the interbank window exchanging at N305.25 to a dollar.
    Traders at the market said that the scarcity of the greenback was far from being over.
    NAN reports that in spite of the weekly sale of forex to BDCs by the apex bank, the Naira could not resist the temptation to fall. (NAN)

  • Team to kill rats in 465 markets in Lagos

    Team to kill rats in 465 markets in Lagos

    The Lagos State Vector Control Programme is to employ more graduates of the state’s College of Health Technology  (LASCOHET), Yaba, to eliminate Lassa Fever virus  by killing rats from  465 markets in the state.

    Mr Oluwasegun Benson, the Chief Executive Officer (CEO) of Phosgard Fumigants Nigeria Ltd., and the programme’s coordinator, disclosed this to the News Agency of Nigeria (NAN) on Thursday.

    NAN reports that the state government established the programme to eliminate Lassa Fever virus transmitted to humans by killing rats especially in markets and public places in what is called deratting.

    The coordinator spoke shortly after inspecting markets in Ijeh Barracks and Obalande in Eti-Osa Local Government and seven others in Ijora, Apapa Local Government.

    Benson said that Gov. Akinwunmi Ambode of Lagos State had given his approval for automatic employment of 233 graduates of the college from 2012/2013 academic session with effect from July 2, 2016.

    He said the team’s planned employment of more graduates of LASCOHET would further enhance curbing the spread of Lassa fever in the state by ridding it of rats.

    NAN reports that LASCOHET, formerly known as the School of Hygiene, was established by Dr Oladipo Oluwole, the first Nigerian Medical Officer of Health, in 1920.

    Benson explained that under the programme, his members would cover over 465 markets, beginning from next month.

    “The deratisation of the markets will be done every month. We will visit all the markets in each local government in the state once a month.

    “Some markets are big while some are small, the biggest market in Eti-Osa Local Government is Obalende and it won’t take us more than 45 minutes to finish.’’

    Benson also said that his team had taken possession of the equipment to be used for the exercise.

    He said that they would do the exercise at night when they would have less distraction from the public and when the traffic would be light.

    Benson said that before then, his team’s advocacy group would have sensitised the public on the need to cover their foodstuffs.

    “Our team will visit the markets at nights, and we hope we will be able to cover no less than 10 markets and as the project goes on, we will purchase more equipment and employ more people.

    “We will also station some of our equipment within bigger markets for our team to carry out the exercise,’’ he said.

    Benson said that the project would afford the members of the public that killed rats to earn more money because the team would be buying such dead rats from them.

    This is part of the team’s plan to keep their environment free of vector-borne diseases, he said.

    NAN reports that the slogan for the vector control programme is “Kill rats, make More Money in Lagos’’.(NAN)

  • NLNG boosts supply of cooking gas for market stability

    NLNG boosts supply of cooking gas for market stability

    The Nigeria Liquefied Natural Gas Limited (NLNG) has increased the supply of liquefied petroleum gas (LPG), commonly called cooking gas, to ensure market stability and reduce the commodity’s price.

    NLNG General Manager, External Relations, Kudo Eresia-Eke, said the commodity’s availibility   would bring down price and also enhance energy security. “Energy is important to Nigerians and the economy. Bringing stability to the product Nigerians use is important to us as a company. We are passionate about what concerns Nigerians,” he noted.

    Eresia-Eke noted that the price of the product has started coming down and assured that with more supplies the price will further drop. A survey by The Nation also confirmed that the price has gone down by N500 and more, per a 12.5 kg, depending on the area of purchase. In some LPG filling plants in Ikeja, a 12.5kg cylinder sells for N4,500 or less as against N5,000. In some NNPC retail outlets, however, a 12.5kg cylinder still goes for N4,800.

    Nevertheless, Eresia-Eke said NLNG has chartered a vessel dedicated to bringing the product from its Bonny Island plant in Rivers State to terminals in Lagos until it floods the market with the product.

    The chartered vessel, Gaz Providence, has the capacity of 13,126.6 metric tons, which equals 1,000,040 of 12.5kg cooking gas cylinders. “The vessels discharged in January and could have done more if not for delays at the terminals in Lagos,” the NLNG spokesman said.

    He continued: “The delays to vessel discharges at the receiving facilities (terminals) in Apapa, Lagos, is as a result of its multi-use nature with berthing priority accorded to vessels discharging other oil products such as petrol, kerosene and diesel.

    “For instance, NLNG’s dedicated LPG vessel was unable to discharge LPG at Apapa port between December 29, 2016 and second weekend in January 2017 due to jetty unavailability. This was what resulted in the temporary product shortages in the market and consequent high price.

    “We are, however, glad that the media took the opportunity of the scarcity period to stress the need for the provision of enabling facilities such as landing jetties in other parts of the country like Port Harcourt and Calabar, among others, to support NLNG’s commitment to supply of LPG to domestic market.”

    Eresia-Eke noted that on their part as a company, they are also working with relevant stakeholders to eliminate bottlenecks and improve operational efficiencies to ensure product availability and help correct market price distortions.

    He stressed that while NLNG was committed to the supply of LPG, it was instructive to note that the issue of pricing was based on an international price index plus 50 per cent of the shipping cost of delivering the product to receiving facilities in Apapa, Lagos. That price was invoiced in naira at the prevailing official interbank exchange rates.

    “The reality is that LPG is produced and consumed locally, but like crude oil, it is an internationally traded commodity with an international price benchmark that is open to global demand and supply pressures.

    “NLNG has, however, over the years, made efforts to soften the impact of price variations by subsidising the cost of transporting about 40 per cent of total domestic market share, which it supplies from its production facility on Bonny Island and increased supply from 250,000mt to 350,000mt,” he added.

  • Equities lose N15b in tight market

    Nigerian equities traded yesterday on a tight rope of bargain-hunting and selloff with every advancer matched with a decliner. Losses recorded by large-cap stocks however overshadowed the overall market position, leaving the market with a net capital loss of N15 billion.

    A running selloff in the fast moving consumer goods sector and the industrial goods sector counterbalanced increased demand for the oil and gas stocks, pushing equities to their third straight negative session.

    The All Share Index (ASI)-the benchmark index for the Nigerian Stock Exchange (NSE), declined by 0.17 per cent to close at 26,201.60 points as against its opening index of 26,245.34 points. Aggregate market value of all quoted equities also dropped from N9.030 trillion to close at N9.015 trillion, representing a loss of N15 billion. The decline yesterday pushed the negative average year-to-date return to -2.50 per cent.

    With 19 advancers to 19 decliners, sectoral indices showed a tight market situation. The NSE Industrial Goods Index declined by 0.3 per cent while the NSE Consumer Goods Index dropped by 0.2 per cent. However, the NSE Insurance index rose by 0.42 per cent. The NSE Banking Index gained 0.4 per cent while the NSE Oil and Gas Index appreciated by 0.10 per cent.

    Nestle Nigeria, Nigeria’s highest-priced company, led the losers with a loss of N3 to close at N752. Forte Oil followed with a loss of N2 to close at N67. Dangote Cement, Nigeria’s most capitalised company, declined by N1 to close at N167. Nigerian Breweries, the second most capitalised company, dropped by 60 kobo to close at N142 while International Breweries declined by 48 kobo to close at N17.50.

    On the positive side, Total Nigeria led the gainers with a gain of N9.52 to close at N294.97. Mobil Oil Nigeria followed with a gain of N3.50 to close at N264. Ecobank Transnational Incorporated chalked up 41 kobo to close at N10.10. Guinness Nigeria added 40 kobo to close at N64.05 while Dangote Sugar Refinery rose by 27 kobo to close at N6.35 per share.

    Total turnover stood at 196.46 million shares valued at N2.61 billion in 3,317 deals. Access Bank was the most active with 31.99 million shares valued at N224.09 million. Diamond Bank followed with 28.4 million shares worth N31.5 million while United Capital traded 24.1 million shares valued at N80.9 million.

    “With current macroeconomic realities dampening investor sentiment, we expect market volatility to persist as performance of the benchmark index remains dictated by short term speculative trading,” analysts at Afrinvest Securities stated.

  • ABCON: BDCs not parallel market operators

    ABCON: BDCs not parallel market operators

    The Association of Bureaux De Change Operators of Nigeria (ABCON) yesterday defended Bureaux De Change (BDCs) licensed by the Central Bank of Nigeria (CBN) saying they operate within set rules and are not part of parallel market operators.

    Its President, Aminu Gwadabe, in a statement, distanced ABCON members from the activities of BDC parallel market operators, which he said have constituted major setback to naira’s stability. He insisted that the CBN-licensed BDCs are not parallel market operators as misconstrued by a large section of the public and even top government officials.

    Gwadabe said CBN-licensed BDCs, which are 3,147 operators at present, are key partners of the apex bank in ensuring the stability and competiveness of the naira against world currencies, including the dollar.

    He said licensed operators have been given up to December 31 by the CBN to renew their annual licensing fee of N250,000. He added that they are registered with the Corporate Affairs Commission (CAC)  and with each operator meeting the mandatory N35 million capital base stipulated by the apex bank.

    Gwadabe said Finance Minster, Mrs. Kemi Adeosun severally accused the BDC parallel market operators of contributing to the continuous depreciation of the naira, but insisted the CBN-lisensed BDCs do not fall within the category being described by the minister because they operate based on set guidelines.

    The ABCON chief said the licensed BDCs, not only have their operational offices, they file reports with the Federal Inland Revenue Services (FIRS) and belong to ABCON, which is recognised by the apex bank as the umbrella body for licensed BDCs.

    Gwadabe said his members are committed to naira’s stability at both official and parallel markets, and have consistently partnered with the CBN to achieve this objective.

    “The CBN-licensed BDCs have always played collaborative and positive roles for the regulator in achieving exchange rate stability.

    Besides, CBN’s admission of licensed BDCs into the International Money Transfer Operators- IMTOs-Window foiled analysts forecast for the naira to cross N500 to dollar rate by last December. The licensed BDCs have weekly rate quoted on the Uniform Weekly Exchange Rate for Licensed Bureaux De Change portal.

    He said the rate for this week was N399 to dollar, adding that ABCON has continued to ensure that licensed operators abide by the rate while defaulting members will be sanctioned.

    Gwadabe however, described the BDC parallel market operators or unlicensed BDCs as underground operators, without offices, and which do not render returns to the CBN.

    He said these operators, seen mostly in major streets because they do not have offices, remain the major problem facing the naira.

    “The transactions done by unofficial BDC operators are highly exploitative and lucrative given that they are not bound by any regulation. These set of operators are invisible, and are the ones causing the rising gap between official and parallel market rates,” he said.

    According to Gwadabe, the transactions done by these underground operators are bigger in volume than those of the CBN-licensed operators, and therefore have constituted major roadblock to naira’s stability. He said unlicensed BDCs do not render returns to the CBN, are not registered with the CAC and do not file reports at the FIRS.