The Nation Newspaper

Tag: Naira

  • Naira appreciates against Dollar

    Naira appreciates against Dollar

    The Naira on Monday appreciated against the Dollar at both the official and parallel markets.

    A survey conducted by the News Agency of Nigeria (NAN) in Lagos revealed that the Naira against the Dollar was traded at between N191 and N190 respectively at both markets.

    Naira gained N2 to the Dollar from the N193 and N192 it sold on December 24.

    The Naira was sold at N191 to the Dollar at the Bureau De Change (BDCs) from N193 on December 24.

    It was traded at N190 to the Dollar at the black market since last week.

    The Naira, however, remained stable at N168 in the Central Bank of Nigeria (CBN) since December 24.

    It equally remained firm against the Pound Sterling at the official market of N260.36k.

    The Nigerian currency also appreciated against the Pound Sterling at the BDCs, trading at N292, or a gain of N2 from the N294 it sold earlier on.

    It was also sold at N293 to the Pound Sterling at the parallel market since the said date.

    At the official market, it was sold against the Euro at N204.48k, while exchanging against the Euro at the BDCs for N235 compared with N238 or gain of N3 from.

    Naira also sold at N233 to one Euro at the parallel market as against the N235 traded on same date mentioned earlier.

  • Naira devaluation, insurgency take toll on trade

    Naira devaluation, insurgency take toll on trade

    The chickens are finally coming home to roost.

    The devaluation of the naira and insurgency in the Northeast part of Nigeria are begining to bite commerce.

    At one of Nigeria’s busiest markets, Ndubuisi Benjamin Nweke complains about the toughest business environment Africa’s biggest economy has faced in years.

    “Customers are not coming the way they’re supposed to,” said the 46-year-old, whose trade in Chinese-made fabrics at the Idumota market in the commercial capital, Lagos, like many Nigerian importers, is being squeezed by a plunge in the naira. “Everyone is crying for money.”

    Nigeria is being hammered on two fronts as it heads toward general elections in February. In the face of plummeting crude prices, the central bank devalued the naira and the government proposed budget cuts. At the same time, Islamist militants of the Boko Haram group have stepped up attacks in their five-year insurgency, and the security forces in Africa’s top crude producer are struggling to stop them.

    Northern Nigeria is faring even worse than the south. Cosmetics seller Madu Masa Fantami has witnessed a drop in business after suicide bombers killed dozens at the Monday Market in the Northeastern city of Maiduguri last month.

    “Before these two attacks we have been making a lot of sales but now the situation worsens, sometimes we make very little,” Fantami, 35, said by phone from Maiduguri. “People don’t come like before for fear of being attacked by Boko Haram.”

    Election violence will probably intensify, with the elections in February expected to be disputed, Brussels-based International Crisis Group said in report last month.

    President Goodluck Jonathan’s ruling People’s Democratic Party (PDP) will face an opposition led by former military leader Major General Muhammadu Buhari (rtd) in the tightest contest since the PDP came to power at the end of military rule in 1999. Both Jonathan and Buhari have pledged to stop the Islamist rebellion that’s killed more than 13,000 since 2009.

    “There will be some form of struggle for quite a number of businesses,” Adedayo Idowu, an economist at Lagos-based Vetiva Capital Management Ltd., said by phone. “Between the security crisis and the severe austerity going on in the economy, because it’s not just the exchange rate, it’s also the austerity, the sense is this is just the beginning of it.”

    Finance Minister and Coordinator Minister of the Economy, Ngozi Okonjo-Iweala proposed an eight per cent spending cut in next year’s budget in reaction to the 45 per cent decline in oil prices this year. Nigeria, which gets about 70 per cent of government revenue and almost all of its export earnings from crude, is expecting prices to stabilise at about $65 to $70 a barrel next year, from $60.75 currently.

    The CBN responded with currency devaluation and by raising interest rates to a record 13 per cent to address capital outflows. The actions were a bid to stem capital outflows and stabilise the currency, which has retreated nine per cent this quarter against the dollar, the worst performer in Africa after Malawi’s kwacha.

    “The devaluation of the official exchange rate and depreciation pressures will quickly push up import prices and lift headline inflation into double digits in early 2015,” David Faulkner, a Johannesburg-based sub-Saharan Africa economist at HSBC Holdings Plc, wrote in a report. The inflation rate was 7.9 per cent in November.

    Nigeria’s fiscal and external “buffers” are low and need to be rebuilt, with the West African nation’s oil savings, the Excess Crude Account (ECA), depleted to $3 billion from $21 billion in 2008, the International Monetary Fund (IMF’s) country representative Gene Leon said in a statement.  Nigeria also faces domestic risks including security before the elections, he said.

    Even in the southern coastal hub of Lagos, Nweke’s fabric business is feeling the strain of the country’s security challenges. Goods that used to take three to four days to clear at the ports can now be held up by about three weeks as authorities search for shipments bringing in weapons and ammunition, he said.

    “Things are hard,” Nweke said. “We’re still hoping that after the elections in 2015, things will be better.”

  • Defending naira hasn’t been easy, says Emefiele

    Defending naira hasn’t been easy, says Emefiele

    The Central Bank of Nigeria (CBN) has listed some of the challenges it is facing defending the naira. CBN Governor, Godwin Emefiele said at  the Annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos that the naira/dollar exchange rate has been under pressure over the last couple of months.

    He said in the days leading up to last month’s Meeting of the Monetary Policy Committee (MPC), the interbank rate closed at N173 to the dollar, and at the Bureau De Change, it was N176 to the dollar. But, he said, the CBN managed to keep the official Retail Dutch Auction System (RDAS) rate at slightly above N160 to the dollar.

    In explaining the difficulties in managing exchange rate stability, the CBN boss raised a poser: “What then can a Central Bank do to react to such a situation of falling reserves and pressurised exchange rates? One course of action would be to continue to deplete the foreign exchange reserves in trying to keep the official rate at a stable level. But there are several difficulties with this option.”

    Firstly, he said regardless of its critical nature in an import-dependent country such asNigeria, the exchange rate operates like any other ‘price’ in the market.

    The dollar/naira exchange rate is simply the ‘price’ of dollars in naira. The forces of demand and supply, he said, determine its movement. “When demand rises, the price rises. When supply falls, the price also rises as well. In recent times, Nigeria has faced a perfect storm of simultaneous dwindling supply of dollars and rise in demand. Both forces have led to a rise in the price of dollars, that is, significant reduction in supply of dollars to the market, even with constant output of crude oil production,” he said.

    The other global factor, which has significantly reduced the supply of dollars in the market, is related to the end of Quantitative Easing by the U.S Federal Reserve. At the height of the programme, the Federal Reserve was supplying a total of about $85 billion into the United States (U.S) economy on a monthly basis, through asset purchases. This programme came to an end in October this year, thereby significantly reducing the supply of U.S dollars in the global economy.

    The third difficulty, which has contributed to the continuing depletion of Nigeria’s foreign reserves, and its capacity to defend the naira is that the combination of a fall in oil prices and the end of the Quantitative Easing programme by the U.S Federal Reserve have led to a depreciation of most currencies in the world against the dollar.

    Emefiele said an analysis of the year-on-year change in the exchange rate of 26 Emerging Market countries (including Brazil, China, India, South Africa, Turkey, Mexico, and Nigeria) indicates that their currencies have depreciated by about 8.1 per cent on average against the dollar.

    Also, he said the current U.S-led sanctions against Russia for its alleged role in the ongoing Ukrainian crisis do not appear to be abating anytime soon. More also, current negotiations between Western powers and Iran could end in a deal that may open up Iranian oil supply lines to more parts of the global economy, a development that is likely to depress prices even further.

    He explained that it was on the basis of these analyses and realities, the CBN reached the decision that it would be sub-optimal to indefinitely continue to deplete the country’s foreign reserves in defending the naira.

    Speaking further, the CBN boss said in addition to the decision to allow some flexibility in the dollar/naira exchange rate, the bank has also taken other associated policy actions that are in line with its mandate for price and financial system stability.

    “As we know, one of the bank’s major mandates is to ensure price stability and we believe that without complementary policy actions, developments in the foreign exchange market would reverse the fragile gains we have recorded recently in our fight against inflation,” he said.

    Emefiele said the decision to tighten monetary policy is to moderate the expected inflationary pressures that may result from exchange rate pass through to domestic prices, and ensure that inflation expectations are well anchored.

    Also, the decision to raise the Monetary Policy Rate (MPR) is expected to increase capital inflows into the country, which should improve accretion to reserves while the increase in Cash Reserve Requirement (CRR) will reduce the amount of excess liquidity available for speculative and arbitrage activities and moderate the pressure in the foreign exchange market.

    He said the new value of the naira naturally provides a critical opportunity for entrepreneurs to take steps toward replacing costly imports with cheaper locally made goods and services.

  • Oil price drops below $70

    Nigeria currency, the naira yesterday fell to record low against the dollar as it depreciated 2.9 per cent to N184.5 to $1 after crashing to N184.51 due to sliding oil prices.

    Russian currency, the Rouble too suffered its biggest one-day decline since 1998 as oil prices continued to fall, escalating fears about the its economy.

    Rouble slid almost nine per cent against the dollar before rallying after suspected central bank intervention.

    Russia, like Nigeria,  is heavily dependent on revenues from oil exports, making its currency vulnerable to falling prices.

    Brent crude hit $67.53 a barrel, the lowest it has been since October 2009, before regaining some ground.

    It was just above $70 in late trading yesterday, while United State (U.S) crude was at $66.34 a barrel, having hit an intraday low of $63.72 – the lowest since July 2009.

    Russia is the world’s second-largest oil exporter, with oil and gas accounting for 70 per cent of its exports and half of government revenues.

    Nigeria, Africa’s second highest producer, depended on oil for more than 90 per cent of its revenue.

    Oil prices have fallen by more than a third since the summer, while the rouble is down nearly 40 per cent against the dollar since January.

  • ‘CBN committed to protecting Naira against counterfeiting’

    ‘CBN committed to protecting Naira against counterfeiting’

    The Central Bank of Nigeria (CBN), says it remains committed to safeguarding the value of the Naira by ensuring that banknotes are not susceptible to counterfeiting.

    A statement from the CBN said the apex bank Governor, Mr. Godwin Emefiele gave the assurance Wednesday in Abuja while declaring open the maiden temporary exhibitions of the Currency Museum on “Counterfeit Money: Who Pays?” and “Non-Interest Banking in Nigeria”

    Mr. Emefiele, who was represented at the event by the Deputy Governor in charge of the Operations Directorate, Alhaji Suleiman Barau, noted that educating the public would enable them identify counterfeited notes should they encounter such.

    In his opening remarks, the Director, Currency Operations Department of the CBN, Mr. Olufemi Fabamwo, observed that technological advancement posed a serious threat for national currencies to be counterfeited.

    He, however, stressed that the CBN was alive to its role of protecting the country’s legal tender from counterfeiting by putting in place appropriate policies relating to preventing and minimizing currency counterfeiting as well as providing the public with basis for easy identification of fake notes.

    On the second subject of the exhibitions, Fabamwo noted that the concept of non-interest banking was largely still being misunderstood in Nigeria.

    He stated that the activities of non-interest banks are duly regulated by the CBN, and urged stakeholders to embrace the products offered by non-interest banking, which he noted are universally accepted and profitable to customers.

     

  • FG unveils new N100 Centenary note

    The new N100 centenary banknote was formally presented to the Federal Executive Council (FEC) meeting presided by President Goodluck Jonathan at the State House on Wednesday.

    Governor of the Central Bank of Nigeria (CBN), Godwin Emefuele, who presented the note, said that the note is to commemorate 100 years amalgamation of the northern and southern protectorates in 1914.

    Stressing that it was produced with the most advanced technology in the world, he said that the note retained the picture of late Chief Obafemi Awolowo on the front side.

    He said that the new note has security features against counterfeiting and with special durability tolerance.

    The Zuma Rock at the back of the current note has been replaced by Q.R. code and other pictures.

    Speaking on the Q.R. code, the CBN governor said that with telephone set and iPad having QR code scanner and the application to be released by the bank, Nigerian will be able to scan and read historical facts about Nigeria.

    The Minister of Finance, Dr. Ngozi Okonjo-Iweala who wondered  how much it will cost to print the notes, noted that the Q.R. code features will be useful for students to catch up with the history of Nigeria.

    From the leaflets circulated showed various programmes leading to issuance of the note to Nigerians.

    While the launch of the partnership programme aimed at banknote equipment manufacturers and other machine suppliers will hold next Wednesday, the new notes will be issued into circulation on Friday 19th December

    END

  • Naira devaluation: Controversy rages

    Naira devaluation: Controversy rages

    Analysts expect a naira devaluation of about 15 per cent in the weeks ahead, which would be around half the scale of the 27 per cent devaluation that occurred in November 2008. But the Central Bank of Nigeria (CBN) seems determined to protect the currency against all odds, including a sharp drop in oil prices and foreign exchange reserves. Will it succeed in this elusive task? COLLINS NWEZE writes.

    The naira is under pressure in the interbank market, owing to strong dollar demand, the recent sharp fall in Brent oil prices (down by 23 per cent since late June), and uncertainty over the effect of the normalisation of United States’ monetary policy.

    The currency has continued to depreciate against the dollar since November 2008. From N118 per dollar in November 2008 to about N172 last week, the naira has, no doubt, fallen from Olympic heights. It has, so far, lost close to seven per cent of its value this year.

    Currencies Analyst at Ecobank Nigeria Olakunle Ezun said recent developments suggest an implicit devaluation has taken place but this needs to be confirmed based on developments this week.

    He explained that due to the bearish outlook for oil prices, the CBN is under pressure to continue supplying dollar to support the plus or minus three per cent N155 exchange rate band.

    Until recently, market participants were confident the CBN would step in to strengthen the naira if it weakened much below 165 against the dollar, Ezun said.

    “In the last couple of weeks, once the naira got to 166, we were sure they’d come in and calm the market to send it back to about 165,” he said. “They seemed comfortable around 165.”

    The naira was last devalued in November 2011 by lowering the midpoint of the target band to 155 per dollar from 150 to support growth in the economy.

    Since mid-September this year, the CBN has used reserves to sell dollars outside of regular auctions held Mondays and Wednesdays, according to the Standard Chartered Plc. The absence of CBN intervention last Friday exacerbated the currency’s decline.

    “They seem to be trying to tiptoe through this period. I expect they will be back in the market when conditions are more favorable for them and it looks less like they’re panic selling. The market would soak up every last dollar if they did that,” an analyst at Johannesburg-based ETM Analytics, Gareth Brickman, said.

    Also, the Chief Investment Officer at Global Evolution AS, Morten Bugge, said the CBN has enough foreign reserves to defend the naira and will probably avoid devaluation before the general election in February. While foreign-currency reserves dropped to a three-month low of $38.3 billion, it is still enough to cover about seven months of imports, according to data compiled by Bloomberg.

    “The chance of devaluing it now is close to none,” said Bugge, who oversees $2.3 billion emerging-market assets, including naira-denominated bonds. “The market is testing the central bank. The ball is in their court.”

    The CBN, last week, banned paying for some imports, including electronics, generators and telecommunications equipment, using foreign-exchange bought at biweekly auctions. It also issued rules to lenders on accessing its standing deposit facility, according to a separate notice.

    “We’re seeing more foreign-exchange flexibility. Perhaps they do not want to burn FX reserves unnecessarily. It’s a risky strategy though as the market will now look for the topside of dollar-naira and also because the lower rates will reduce the incentive to hold naira fixed-income assets,” head of Africa strategy at Standard Chartered in London,” Samir Gadio said.

     

    Investors’ apathy persists

     Foreign portfolio investors fearing heavy losses on the currency have pulled out with the Nigeria Stock Exchange Index hitting a 16-month low and the yield on government bonds rose 10 basis points last Wednesday.

    Foreign reserves fell rapidly from a peak of $48.9 billion in May 2013 to just $36 billion in June. They have since rebounded slightly and are currently around $38.3 billion.

    Despite these losses, analysts say that devaluation before the elections, when President Goodluck Jonathan will seek a second term, would be so unpopular that it’s unlikely unless oil prices, now at $82 a barrel, tumble further and force the bank’s hand.

    “It will take some time of relatively low prices … before you see foreign reserves really being gobbled up,” Matthew Searle, senior African analyst at Business Monitor International, said.

    “If oil prices fall further to the $60s or $70s a barrel, then the central bank will become the main source of dollars,” and will have to decide for how long it can keep up the fight.

    Alan Cameron, London-based economist at Nigeria’s First City Monument Bank, thinks reserves would likely have to slide to close to $30 billion before a “last resort” devaluation would be considered.

     

    Complex crises get worse

    The misfortune of the naira seems complex. The thinking is that massive inflow of forex from surging oil prices and the boom in the capital market were responsible for the appreciation of the naira in the past few years. Unfortunately, oil prices have nosedived and Nigeria capital market is in shambles. The fall in the price of oil has major consequences on government revenue, aggregate output, capital formation investment, employment, trade and fiscal balance.

    The 2008 global financial meltdown also contributed to the naira’s freefall. Bismarck Rewane, chief executive officer, Financial Derivatives said that Nigeria was unprepared for the shock. “The Nigerian economy believed to be one of the most resilient in the world was caught unawares by the global crisis,” he said.

    Analysts said that a gradual appreciation of the currency will require building confidence in the financial system and price of crude oil in international market. “This is what is going to drive the exchange rate now and beyond. We cannot isolate what is happening in the global economy like the issue of diversification of energy sources”, they said.

     

    Failed promises?

     The misfortune of the naira began early November 2008, when it first crashed to N120 to the dollar, down from N118. By the middle of the month, it fell to about N134 to the dollar. The free fall continued in the New Year. By the end of the first week of January 2009, the naira had fallen to about N144 to the dollar and the inter-bank foreign exchange market.

    The situation became even worse at the parallel market as the currency exchanged for N147 to the dollar. It later fell to N160 to the dollar, causing greater shocks for international trade.

    In its assessment of the Nigerian situation, Goldman Sachs described January 2006 to December 2008 as a period dominated by a stable trading and appreciation of the naira. It, however, warned that past performance does not guarantee future returns.

    Against all odds, former CBN Governor, Prof. Charles Soludo, said he was taking full charge to bring stability to the economy and restore the glory of the naira. “I can tell you that those who have bought up dollars and are stock-pilling them in anticipation for profit will regret because it will soon bounce back,” he said.

    His successor, Sanusi Lamido Sanusi, believed strongly on exchange the stability. Under his leadership, the apex bank consistently pursued a policy aimed at achieving exchange rate stability, banking sector stability and single digit inflation target.

    The CBN supported the naira by selling foreign currency at twice-weekly Retail Dutch Auction System (RDAS) to keep the naira within a range of three per cent around 155 per dollar. An average of $600 million is used weekly to support the naira.

    Sanusi’s successor, Godwin Emefiele, also promised to sustain his legacy on exchange rate stability. He said his administration’s key goal would be to maintain exchange rate stability. “In view of the high import-dependent nature of the economy and significant exchange rate pass-through, a systematic depreciation of the Naira would literarily translate to considerable inflationary pressure with attendant effect on macroeconomic stability.

    “Therefore, under my leadership, the CBN will continue to focus on maintaining exchange rate stability and preserve the value of the domestic currency,” he said in his inaugural speech in June.

    Emefiele said he would sustain the float regime in the management of the exchange rate, as this would allow the CBN to intervene when necessary to offset pressures on the exchange rate. To support this strategy, we will strive to build-up and maintain a healthy external reserves position and ensure external balance.

    He admitted that reducing the interest rate and maintaining the exchange rate were very daunting twin goals. However, he said the CBN would work assiduously with all stakeholders to device countervailing measures that would ensure that these goals are mutually achieved.

    So far, successive CBN regimes seem to have failed to protect the local currency from the value erosion, and this portends grave danger for the economy.

     

     

     

     

  • ‘Naira slide could trigger emergency MPC meeting’

    ‘Naira slide could trigger emergency MPC meeting’

    The naira which has come under undue pressure in recent months over the sharp fall in Brent oil prices, may cause the Monetary Policy Committee (MPC) to convene an emergency meeting, analysts have predicted.

    Currencies Analyst at Ecobank Nigeria, Olakunle Ezun, said should the naira weaken in the interbank market to N170 or more, and oil prices drop below $80 per barrel, an emergency MPC meeting could raise the Monitory Policy Rate by 50 to 100 basis points and increase the Cash Reserve Ratio (CRR).

    This, he said, would undermine the naira, given that hydrocarbons account for 98 per cent of export revenues and around 75 per cent of fiscal revenues.

    Ezun explained that without a large cushion of foreign exchange reserves, the CBN, would remain under pressure from the fall in oil prices to tighten policy as a means of underpinning the naira.

    “Yields on government securities rose steadily around 100 to 150 basis points since early October. It is clear that a tightening cycle is developing, with a strong possibility of further direct tightening,” he said.

    The analyst explained that the Monetary Policy Rate (MPR), the benchmark lending rate for banks, could remain above 12 per cent for the weeks ahead, with the possibility of indirect tightening at the next MPC meeting.

    “CBN would likely decide to tighten policy in its next meeting. Although a rise in the MPR is currently unlikely, tightening could be made by raising the Cash Reserve Requirement (CRR) on private sector deposits. Currently it stands at 15 per cent (it was last raised from 12 per cent in March),” he said.

    He explained that another risk facing the CBN is the possibility of increased government spending in the run-up to the February 2015 election.

    “Any injection of liquidity above target would undermine macroeconomic stability by pushing inflation up above the most recent level of 8.3 per cent in September (inflation has been largely stable around this level for more than one year. The CBN considers the inflation outlook is good with single digit inflation likely by yearend,” he predicted.

    He said the tight monetary policy stance was adopted in order to ensure exchange rate stability (given the managed float exchange rate regime), and help contain inflationary pressures. Indirectly, the tight policy has helped underpin real returns on fixed income securities investments by attracting foreign investors into naira denominated assets, thereby helping strengthen demand for the naira.

    However, demand for Federal Government bonds issued across all maturities remains strong. Increased supply of securities would help temper some of the high levels of oversubscription, however, demand remains strong despite uncertainties related to inflation, exchange rate risk, and the macroeconomic policy environment.

    The authorities, he said, have continued to stimulate interest via liquidity management and indirect monetary tightening to boost confidence in the market and at the same time provide forward guidance on monetary policy directions, which has helped realign the yield curve with monetary policy expectations.

    Meanwhile, the CBN has pledged to keep supporting its currency after the naira approached a record low amid declining oil prices and the end of US monetary stimulus that bolstered emerging-market assets.

    “We will continue to defend the naira,” CBN Deputy Governor, Economic Policy, Dr. Sarah Alade said. Since mid-September, the CBN has used the reserves to sell dollars outside of regular auctions held Mondays and Wednesdays, according to Standard Chartered Plc.

    It will keep using the auctions and direct dollar sales to banks to preserve the value of the currency, Alade said. The currency strengthened 0.2 per cent to 164.90 per dollar. It earlier weakened as much as 0.8 per cent to 166.42, a record low on a closing basis.

  • Political risk, others put pressure on Naira

    Political risk, others put pressure on Naira

    Ahead of next year’s general elections, increased political risk and dwindling appetite among emerging markets investors for frontier assets have put the Nigeria’s currency (the naira) under pressure.

    According to Bloomberg Africa FX report, the situation has depleted the country’s foreign exchange (forex) reserves, with policy makers now left with a difficult decision to make on either to allow the currency to move in a wider range against the dollar or raise interest rates.

    But the Central Bank of Nigeria (CBN) Governor Godwin Emefiele had promised to stabilise the naira without plying either routes.

    Forex reserves fell to $37.8 billion from $43.6 billion over the first quarter of this year, according to CBN data. Leading Emerging Markets & Frontiers investment bank, Renaissance Capital (RenCap) had in a February report this year forecast an $8 billion dip in foreign reserves this year to $35 billion.

    Africa economist at Capital Economics. Shilan Shah said: “Forex reserves are down 20 per cent year-on-year and there have been heavier interventions, which suggest it is unsustainable.

    “You can’t keep defending the currency at its current peg indefinitely.”

    In June, Emefiele promised to work towards reducing interest rates. “We shall pursue a gradual reduction in interest rates,” the former CEO of Zenith Bank – one of the country’s largest banks – said at the time. The plan, according to him had atenure of five years, but noted that nothing concrete would happen until after next year’s elections.

    Emefiele acknowledged that “reducing the interest rate and maintaining the exchange rate are very daunting twin goals,” but said the CBN was determined to achieve the goals. He said he would continue holding onto the exchange rate and ensure the Naira is not devalued. The currency was last devalued in 2011 following an $11 billion drop in foreign reserves.

    “If forex reserves fall to $30 billion, ceteris paribus, our naira econometric model forecasts a sharper depreciation to NGN168/$1 at YE 14…the new CBN governor may be compelled to adjust the naira exchange rate band to NGN160-170/$1,” RenCap said in its report. The current exchange rate is N165.68/$1.

    The CBN governor is facing his first real test since assumption of office, with the possibility of significantly increasing Nigeria’s forex reserves very low.

  • The million naira husband (2)

    Give this to Lara when she returns from the bank. We are running out of these drugs,” my sister said when one evening at the pharmacy, handing me a piece of paper. Lara was the business manager cum account executive of the store who handled most of the purchases of items. I scanned the list, noting with the little knowledge of medicines I had acquired since my time at the pharmacy that a lot of the drugs were for cold, cartarrh and other respiratory conditions. Not surprising considering the weather. It rained nearly everyday and that evening, it had been pouring heavily when I arrived at the store. I put the piece of paper in my bag to give Lara later.

    “Good evening. Please I need a good cough syrup for a young boy. Can you recommend one for me?” said a customer a short while latter. My sister who usually made recommendations was at the little cubicle that served as her office at the back of the store. I went and gave her the order and shortly after, I came back with a small bottle of cough syrup from a reputable drug company.

    “He needs to take it with another drug which we don’t have in stock at the moment. Check back this time tomorrow and it will be available,” I told the man as I wrote out his bill for payment at the cashier.

    “Ok. Thanks. Will stop by on my way from work tomorrow,” the man said before leaving.Some days later, on a Saturday morning, I was at the store when the same man came in with a little boy of about five in tow. The boy immediately headed towards the fridges by the entrance that were stocked full with cold beverages.

    “I want a black berry juice,” he stated, pointing towards a chilled canned drink.

    “No, Benjy. It’s too cold,” the man said. Turning to me, he added: “He just recovered from the bad cold and cough he had recently and the first thing he wants is a cold drink!”

    I smiled down at the boy and offered him some toffees.

    “Thank you, Aunty!” he stated, popping one into his mouth.

    “Your son is so cute and polite too,” I said, patting him on the head.

    The man smiled.

    “Don’t be fooled by his angelic looks. He can be quite a handful!”

    He made his purchases and before leaving, he stood chatting for a while. I found out his name was Syl and the little boy whom I assumed was his son was actually his nephew.

    After that day, he became a regular customer at the pharmacy which also had a section for general goods like cosmetics, food, wines and other products. With time, I got to know more about him. An accountant, he had worked for one of the new generation banks for some years before the consolidation exercise a few years ago, that saw a lot of the banks going under. His bank had been among the unlucky ones and he had consequently lost his job.

    After seeking employment for sometime without success, he had decided to go solo, strike out on his own.

    “I set up an accounting firm which I run with a former colleague of mine at the bank. It was tough at the beginning but it’s getting better now as our client base has improved,” he had told me. By this time, we had become quite friendly and would often chat on phone. I could see he liked me but at that stage, I just saw him as a friend and a customer.

    Then about two months later, he asked me out. It was a house warming party of partner’s elder brother and he needed ‘a date for the evening’ as he put it.

    “What about your girlfriend?” I asked.

    “Don’t have one,” he stated.

    I wondered why a young and handsome guy like him would be without a girlfriend and he said:

    “It’s a personal choice.” It seemed he had had a nasty experience with the last lady he dated and he had decided to stay single till now.

    “Meeting you has made me realize that not all women are bitches,” he stated bluntly.

    Before accepting to go on the outing with him, I discussed it with my big Sister, Barbie.

    She had seen him in the store a couple of times though I had not introduced them. Her only condition for accepting the offer was to formally meet him.

    “I need to know the young man that is taking my baby sister out,” she stated firmly. So, a few days later, when Syl stopped by at the store, I took him to my sister’s little office and did the introductions.

    “A pleasure meeting you. Your sister has told me so much about you,” were his first words to her.

    Big Sis smiled and replied:

    “Good things, I hope.”

    “Yes. But she didn’t tell me how beautiful you are. I thought she was pretty but you are simply stunning. I wish I had met you before her…” he said, eyeing my sister who was dressed in a doctor’s white coat.

    “And what would have happened then?” my sister said a little coquettishly.

    He shrugged.

    “Anything!” he said.

    I turned and hit him playfully on the arm.

    “Syl!” I exclaimed and both of them laughed.

    I could tell that my sister liked and approved of him and that made me warm up to him more.

     

    An ancient tradition

    After that first date, Syl and I began to see each other regularly. He was fun to be with and quite caring too. With time, I met other members of his family such as Benjy’s mother who lived with him in his apartment. She was separated from her husband, a violent man who used to beat her a lot especially after drinking, Syl had told me.

    “It’s better she stays here where she’s safe than be beaten to death by that beast of a husband,” he had said when he was telling me the story of his younger sister’s unhappy marriage.

    His sister, Peggy and I were about the same age and after the initial coolness between us the first day we met, we began to get along with each other.

    Syl and I had been dating for some months when my Mum wondered when I was going to bring the ‘young man who had been taking up all my spare time’ home.

    I sighed at her words. I had not told my parents about Syl so it could only be one person who had done so: big Sis!

    “Yes,I did. And what’s wrong with that? It’s time they met him,” she pointed out.

    “Ah, Sister. You know how our parents are. The moment they see him and like him, they will start planning our wedding! I’m not ready for all that stress yet,” I stated.

    “Why not? I know you like him a lot, I can even say you are in love from the look on your face whenever he comes looking for you,” she pointed out. I could not deny that. I always felt this warm glow within me whenever I was with Syl; it was a long time I had had that feeling for any man. I felt secure with him and wanted him to be by my side always, to never leave me.

    “But he has not proposed,” I said.

    “Don’t worry about that. From the way he looks at you, I see a proposal coming soon,”she said assuringly.

    It was nearly six months later that her words came to pass. Syl proposed to me one evening after we had gone out to see some friends of his. If I had known what would come after, I would never have accepted to marry him. For things began to happen to us that I never envisaged even in my wildest dream.

    While my Dad liked Syl and was in support of the engagement, my Mum preferred I got married to one of her friend’s sons, a silver spoon kid with ‘more money than sense’ as my big Sis used to refer to him.

    “What matters is not the young man’s pocket, it’s his character we should consider. Syl seems a decent and hardworking man who will take care of our daughter. Afterall, when I married you all those years ago, we had nothing and were living in two rooms in a ‘face-me-I face you’ type building! But here we are today! Nobody knows what the future holds for him,” my Dad had argued when my mother raised objections to Syl because he was not rich like us.

    After that, we began making plans for our future. Things went smoothly until one weekend when some relatives of ours came from the village and told my Dad about an old tradition of our family, a tradition that threatened our well laid out plans…

     

    To be continued

    What is this ancient family tradition that may affect Emily’s marriage plans? Join us next Saturday for the sizzling details!

     

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