Experts have issued warning to the Central Bank of Nigeria for devaluing naira to 410.25/$ after the country’s currency defied all odds to retain its value.
In addition, the experts added that the last resort employed by the financial institution to adopt the NAFEX Investor & Exporter forex window rate of N410.25 as its official exchange rate to the dollar would lead to inflation and increase the poverty level in the country.
It was gathered by our correspondent that the CBN confirmed the new official rate on its website after it had removed N379/$ earlier in May.
Recall that recent media reports that naira officially depreciated to 410/$, quoting the Central Bank Governor, Godwin Emefiele.
Emefiele had said that the drop in crude oil earnings and the associated reduction in foreign portfolio inflows significantly affected the supply of foreign exchange into Nigeria.
“In order to adjust for the decrease in supply of foreign exchange, the naira depreciated at the official window from 305/$ to 360/$ and now hovers around N410/$,” he had said.
A former Director-General, Chartered Insurance Institute of Nigeria, Mr Richard Borokini, said this move was part of efforts to unify the exchange rates.
According to him, as long as some sectors such as the Bureau de Change got the dollar at differential rates, the unification would not be achieved.
A former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, said the move would lead to imported inflation because importers would get more expensive forex from the Bureau de Change.
He said, “Prices of goods and services will keep on going up; inflation will keep on going up because anyone who is importing, either raw material or finished goods, the prices will be very high.
“The agric sector that is supposed to be cushioning the situation, the people cannot do anything because of the insecurity issues. They cannot go to farm; so we are unable to take advantage of the comparative advantage in agriculture because of activities of bandits.”
Ordinarily, he said, the devaluation would not have made any difference, but now the BDCs would further increase their own rates because of shortage of forex for importation.
A professor of economics, Babcock University and past President, Chartered Institute of Bankers of Nigeria, Prof. Segun Ajibola, noted that the CBN had been trying to defend the value of the naira to achieve some stability.
However, he said, there was little the CBN could do because of the exposure to the foreign market.
Ajibola said, “The implication is, we are likely to witness cost push inflation because inflation will rise and they will pass that to the end users that are consumers, so the overall impact is that it will likely worsen poverty. The poverty index is likely to rise.”
He observed that the issues causing dislocations could not be fixed overnight because dealers would start to review the prices of replacement of the goods.
According to him, it is important to continue to use locally produced goods because continuous reliance on imported items would put more stress on the exchange rate.
The CBN had in April 2017 established the I&E forex window as part of efforts to deepen the foreign exchange market and accommodate all forex obligations.
The purpose of the window was to boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions.
Oyetola To Aregbesola: We’re Proud Of You, You Performed Well As Gov, You’re Doing Well As Minister; Those Calling For Nigeria Break-up Ignorant, Says Aregbe
The Governor of Osun State, Adegboyega Oyetola has stated that the state is proud of its former Governor and Minister of Interior, Ogbeni Rauf Aregbesola.
Oyetola spoke in Ilesa on Saturday, 5 June, 2021 at an event marking the 64th birthday celebration of the Minister.
He noted that the former Governor of the state performed very well while ruling the state and still performing as the Minister Of Interior.
Oyetola who was represented at the event by the state Commissioner for Political Affairs and Inter-governmental Relations, Mr Taiwo Akeju, said: “You performed very well in the State of Osun and you are performing well as the Minister of Interior. We are very proud of you.”
The events celebrating the 64th birthday of the Minister included the presentation of a book titled “The Rauf I Know “, written by a journalist, Mr Dayo Olanipekun. Mr Olanipekun covered him as state house correspondent for the Broadcasting Corporation of Osun State (OSBC) in his two terms as governor.
Speaking later, Ogbeni Aregbesola warned that it would take 50 years for Nigeria to recover from another civil war.
He therfore warned Nigerians to desist from any act capable of threatening Nigeria’s unity, describing those calling for the separation of the country as ignorant.
Ogbeni Aregbesola said: “Those calling for Nigeria’s break-up are ignorant. Every Nigerian should work for Nigeria’s unity and development.
“It will take Nigeria 50 years to recover from civil war. Whoever likes women and children should not support, but rather condemn any call of separation and conduct capable of threatening Nigeria’s unity.
“Nigeria is a country created by God for us and for the black race.
“I am not saying everything that is happening in Nigeria is good. We should treat the problems and challenges facing Nigerians, not calling for her break-up. Decapitation is not the antidote for headache”.
Aregbesola also declared support for a new caucus of the All Progressives Congress (APC), The Osun Progressives (TOP), saying that he is in support of any move to consolidate progressives legacies in the State of Osun, strengthen the party from the polling units, wards and local government levels and strengthen internal democracy in the party, which are clearly stated in the objectives and mission of TOP.
In his address, the Ooni of Ife, Oba Adeyeye Enitan Ogunwusi, Ojaja II, said that Aregbesola’s legacy in the development of the State will forever linger in the sands of time.
The Ooni of Ife who spoke via Zoom noted that the State of Osun and its people cannot forget Aregbesola as his achievements are beyond what anyone can rubbish.
“We will forever remember him. Your work will never cease to reflect in the sands of time. It is during his tenure that landmark achievements occurred in Osun which we cannot forget.
“We can never forget you. Your achievements are beyond what anyone can rubbish. We are proud of you and what you represent.”
The Registrar of the Joint Admission Matriculation Board (JAMB), Prof Ishaq Oloyede, who delivered a lecture titled “Power is responsibility” at the event, urged Nigerian political leaders to be responsible with power.
Oloyede who was represented by Dr Wahab Oyedokun, tasked politicians to operate with ideology that address people’s yearnings.
Speaking at the event, Chief Mrs Tokunbo-Awolowo Dosumu, daughter of the late sage, Chief Obafemi Awolowo, said Aregbesola is among the few Nigerian politicians that identify with and promote Awolowo’s legacy.
According to Dosumu, Aregbesola has always been committed to all the activities of Awolowo Foundation, describing him as an exemplary leader.
Politicians, traditional rulers, trade union groups and people from all walks of life from the state and across the country graced the occasion, while others spoke via zoom.
UPDATED: NECO Registrar died of heart failure, not assassinated – says Official
The Registrar of National Examinations Council (NECO), Prof. Godswill Obioma has been confirmed dead.
The late NECO Registrar reportedly died on Monday night in his sleep in his Minna residence.
The Director, Human resources of the examination body, Abdul Mustapha confirmed the death of the NECO boss, he dismissed viral media reports that Prof. Godswill Obioma was assassinated, says he died in his sleep as a result of heart failure.
Mr. Mustapha disclosed communication from Obioma’s second son, Prince Godswill Obioma, informing him of the death of his father thus:
“Mustapha K. Abdul (Director Human Resource Management, NECO),
“Dear Sir, this is to formally inform you that my father, Prof. Godswill Obioma, the Registrar/Chief Executive of NECO passed to eternal glory yesterday 31/5/2021 after a brief illness.
“We request that you kindly notify the Board, Management and the entire staff of the Council of this development.
“We shall keep you duly informed.
“Prince Godswill Obioma the 2nd, for the family.”
The release of the conversation between the deceased son and Mustapha contradicted some reports in some online and social media platforms alleging that the NECO boss was assassinated in his Minna residence by some unknown gunmen.
INSECURITY: Arewa Consultative Forum directs Northerners to boycott Southeast
The Arewa Consultative Forum (ACF) has directed Northerners to boycott traveling to Southeast as a result of the level of insecurity in the region.
The warning under the guise of a statement was issued by the National Chairman of ACF, Audu Ogbe, on Monday, May 31. He expressed concern over increasing attacks and killings of northern residents in the southeast or those visiting the zone. He said the travel advisory was issued while taking into cognizance the killings of northern leaders in 1966, which he said triggered the events that led to the civil war.
“ACF issues a very strong advisory to all northerners who may wish to travel to the southeast. Northerners should weigh the importance and necessity of such travels. Unless such trips are absolutely necessary and of compelling nature, like matters of life and death, they should not be made.”the statement in part read
The travel advisory comes barely 24 hours after former presidential aide, Ahmed Gulak, was murdered by IPOB members in Imo state.
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