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Experts predict inflation as naira devalues further to 410.25/$

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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.

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FG To Lift Twitter Suspension Soon

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FG To Lift Twitter Suspension Soon-Crystal News

The Federal Government of Nigeria has announced that the ban on Twitter will soon be lifted.

Minister of Information and Culture, Alhaji Lai Mohammed, confirmed this development when he fielded questions from State House correspondents on Wednesday in Abuja.

According to him, a lot of progress has been made in the ongoing dialogue with Twitter.

“I think even Twitter itself two days ago gave what I will call a progress report on our talks with them, and I think if I want to quote them rightly `it has been productive and quite respectful’.

“And as to the qualifying word for when or how soon, I want to assure you that the time that Twitter operation has been suspended, (I meant) between the time it has been suspended, and when it will be restored is by far, much, much shorter.

“That I can assure you that it is by far in other words, if the operation has been suspended for about 100 days now, I can tell that we’re just actually talking about a few, just a few more days now.”

The minister stressed that both parties were focused on reaching a conclusion on the matter.

“What we’re trying to do is the changes that have been going on, but we need to dot the ‘i’s’ and cross the ‘t’s’, but I can assure us that we’re not unmindful of the anxiety of Nigerians and both parties are working very hard to put a closure on the matter.

“And like Twitter itself said the changes have been very, very productive on both parties. It has not been advisory at all. And it’s quite respectful,’’ he said.

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Our Director Not On Terrorist Financier List — 9mobile

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9mobile-Crystal News

The Management of 9mobile has reacted to media reports that one of its directors is on the United Arab Emirates (UAE} list of terrorist (Boko Haram) sponsors.

According to a press statement cited by Crystal News, 9mobile said that one Abdurrahman Ado Musa, who is on that list is not a director of the mobile telecommunications company.

Some Nigerians were included on the list said to have been ratified by the Emirate Federal Capital. One of the names on the list and that the media has latched on is Abdurrahaman Ado Musa.

In its clarification, 9mobile said “We, however, wish to clarify that the so-named individual is not 9mobile’s Executive Director, Regulatory & Corporate Affairs, Abdulrahman Ado. The resemblance in names is purely coincidental, and our Director does not bear ‘Musa’.

“Our Director, Abdulrahman Ado, is a respectable law-abiding Nigerian. He served the country diligently in public service for over three decades before transferring his services to the private sector.

“He served in various capacities and was Pioneer Vice-Chairman of the Nigerian Electricity Regulatory Commission and Executive Commissioner, Licensing and Consumer Affairs, Nigerian Communications Commission.

“As a law-abiding company that believes in the greatness of Nigeria, and the well-being of all its citizens, 9mobile would never accommodate any undesirable element within its management and staff.

“We urge the general public to kindly disregard the mistaken identify media reports making the rounds”

ICYM: High Profiled Nigerians Enlisted As Terrorist Sponsors- UAE Report

UAE authorities named 6 Nigerians as financiers of terrorist organizations including the Boko Haram sect and other criminal activities.

The 6 persons mentioned had been previously tried and sentenced in UAE with various prison terms after a federal appeals court upheld their convictions for funding the terrorist groups.

The decision was taken when the UAE federal cabinet met in Abu Dhabi on Monday after which they issued Resolution No. 83 of 2021, designating a total of 38 individuals and 15 corporate sponsors on its approved list of persons and organizations supporting Boko Haram and other terrorist causes.

The 6 Nigerians who are part of the list include Abdurrahaman Ado Musa, Salihu Yusuf Adamu, Bashir Ali Yusuf, Muhammed Ibrahim Isa, Ibrahim Ali Alhassan and Surajo Abubakar Muhammad.

The 38 names on the list are mostly Arabs from the Middle East.

UAE news agency reported that the resolution underscored the country’s commitment to target and dismantle networks that finance terrorism and its related activities.

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IGP’s Wife Empowers 50 POWA Members in Edo State

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50 POWA members in Edo by the IGP’s wife empowerment scheme

The wife of the Inspector General of Police, Hajia Hajara Alkali on Tuesday empowered 50 members of the association in Edo with Small and Medium Scale Enterprise (SMSE) tools.

Alkali, who is the National President of the Police Officers Wives Association (POWA), in her remarks in Benin, said that the exercise was in line with one of her three points agenda.

She noted that it was important that every woman or mother has a means of survival and could contribute to the running of the family.

She added that it was in view of this that empowerment of POWA members was included in her three points agenda.

The POWA president, who charged the beneficiaries to make judicious use of the items, disclosed that a monitoring team would be set up to guide against beneficiaries’ selling off the items.

She also said that as owners of the SMSE tools, the beneficiaries, which include widows of fallen officers as well as retired female officers, were now self employed.

Tools presented to the beneficiaries include mini industrial oven, gas cookers and cylinders, sewing machines, grinding machines, as well as coolers.

Earlier the POWA president had graced the graduation ceremony of some POWA members in Edo from the Amena Academy.

In her remarks at the event, she noted the the two weeks training of 23 members of the association on small scale snack and food production was facilitated by the association, but sponsored by AFEDOSA Catering Services.

She added that all members graduated would be given starter packs.

 

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