Business

Restriction ’ll Check Arbitrary Activities In Forex -Experts

Published

10 years ago

January 13, 2016

Some financial experts have said that the new directive to stop sales of dollars by Central Bank of Nigeria (CBN) to bureau de change operators would check illegal activities in the market.
They told newsmen in Lagos that the decision might be due to some suggestions by IMF Managing Director, Ms Christine Largarde, during her visit to Nigeria.
The country’s external reserves dropped to 28.19 billion dollars on Jan. 8 from 29.07 billion dollars on Dec. 31, 2015, a reduction of 88 million dollars in the first week of 2016.
Largarde, during a four-day visit to the country, had directed the CBN to be flexible in its foreign exchange operations.
Mr Sewa Wusu, Head, Research and Investment Advisory at Sterling Capital, said the CBN decision was part of the measures to reduce the pressure on the nation’s foreign reserves.
Wusu said although the new decision was a big task, the overall health of the economy was important.
He said that the country could not afford to remain in the current situation.
On the directive on deposit of dollar into domiciliary accounts, the economist said the development would increase the level of dollar deposits in banks.
He said that the directive would also put an end to round-tripping and rent seeking as dollar demand from the system would reduce.
Wusu said the liberalisation of the interbank market was necessary to stabilise the foreign exchange market.
“The CBN has to rationalise the foreign exchange to ensure that the reserves do not continue to deplete further due to decline in revenue earnings from crude oil.
“Although, there might be slight pressure on the parallel market, but this will reduce later as the market stabilises.
“We are moving towards a regime of flexibility where the demand and supply would determine the value of the naira,” he said.
Mr Samuel Nzekwe, a former President of Association of National Accountants of Nigeria (ANAN), said the decision was long over-due.
Nzekwe said that Bureau de Change operators (BDCs) all over the world were not sourcing their foreign exchange from their central banks.
He said that BDCs in many countries were only allowed to attend to foreign exchange demands of light travelers which they got from visitors into the country.
Nzekwe said some Nigerians were jailed in the past for patronising BDCs before their activities were legalised.
Mr Kunle Ezun , a currency analyst at EcoBank Nigeria, said the actions of the CBN were aimed at reducing the pressure on the naira at the foreign exchange market.
“The naira has depreciated steadily at the parallel market in the last two months.
“It weakened to a new low level of N282 to the dollar on Jan. 11 due to the new directive of the CBN on foreign exchange sales to the BDC.
“By removing the restriction on foreign currency and cash deposits, the CBN has provided a platform for Deposit Money Banks (DMBs) to re-engage forex customers.
“The aim of mopping up foreign currency cash outside the banking system is for effective monetary policy operations”.
Ezun, however, said the foreign exchange inflow remained a big issue that the CBN needed to address in order to consolidate its efforts on foreign exchange management.
“The BDC market represents a small component of the forex market, but has high distribution network that cannot be wished away by the regulator.
“Instead of an outright stoppage of forex sale, perhaps the CBN could have identified the erring BDCs for appropriate sanctions, while others are monitored real-time for compliance with the extant law’’.
The analyst, however, added that the lack of any comment on telegraphic transfers, foreign cash notes and the two way quote market could further limit the positive impact of the new policies.

Transport

Nigeria Rates 7th For Visa Application To France —–Schengen Visa

Published

2 days ago

January 28, 2026

The Tide

Nigeria was the 7th country in 2024, which filed the most schenghen visa to France, with a total of 111,201 of schenghen visa applications made in 2025, out of which 55,833, about 50.2 percent submitted to France

Although 2025 data is unavailable, these figures from Schengen Visa Info implies that France is not merely a preferred destination, but has been a dominant access point for Nigerian short-stay travel into Europe.

France itself has received more than three million Schengen visa applications, making it the most sought-after Schengen destination globally and a leading gateway for long-haul and third-country travellers. It was the top destination for applicants from 51 countries that same year, including many without visa-exemption arrangements with the Schengen Zone, and the sole destination for applicants from seven countries.

Alison Reed, a senior analyst at the European Migration Observatory said, “France’s administrative reach shapes applicant strategy, but it also concentrates risk. If processing times lengthen or documentation standards tighten in Paris, the effects ripple quickly back to capitals such as Abuja.”

The figures underline that this pattern is not unique to Nigeria. In neighbouring West and Central African states such as Gabon, Benin, Togo and Madagascar, more than 90 per cent of Schengen visas were sought via French authorities in 2024, with Chad, Djibouti, the Central African Republic and Comoros submitting applications exclusively to France.

“France acts as the central enumeration point for many African and Asian applicants,” said Manish Khandelwal, founder of Travelobiz.com, which reported the consolidated statistics. “Historical ties, language networks and established diaspora communities all play into that concentration. But volume inevitably invites scrutiny, and that affects refusal rates and processing rigour.”

That scrutiny is visible in the rejection statistics. Of the more than three million French applications in 2024, approximately 481,139 were denied, a rejection rate of about 15.7 per cent. While this rate is lower than in some smaller Schengen states, the sheer volume of applications means France contributes significantly to the total number of refusals within the zone.

For Nigerian applicants and policymakers, one implication is the need to broaden engagement with other Schengen consular hubs. “Over-reliance on a single consulate creates what one might call administrative bottleneck effects,” said Jean-Luc Martin, a professor and expert in European integration and mobility law at Leiden University. “If applicants from Nigeria default to France without exploring legitimate alternatives in countries like Spain, Germany or the Netherlands, they expose themselves to systemic risk

Martin added that the broader context of Schengen visa policy is evolving, with the European Commission’s preparing roll-out of the European Travel Information and Authorisation System (ETIAS) aimed at harmonising pre-travel screening across member states.

For Nigerians seeking leisure, business or educational travel to Europe, these trends suggest that strategic planning and consular diversification could become as important as the completeness of documentation and financial proof. Governments and travel consultancies in Abuja, Lagos and beyond are already advising clients to explore alternative consular pathways and to prepare for more rigorous screening criteria across all Schengen states

By: Enoch Epelle

Transport

West Zone Aviation: Adibade Olaleye Sets For NANTA President

Published

2 days ago

January 28, 2026

The Tide

Prince Abiodun Ajibade Olaleye, a former Welfare Officer and Public Relations Officer of the National Association of Nigeria Travel Agencies (NANTA), has formally declared his intention to contest for the position of Vice President of NANTA Western Zone, ahead of the zonal elections scheduled for Thursday, February 26, 2026.

In a New Year message to members of the association, Olaleye expressed optimism about the prospects of the travel and tourism industry in 2026, despite the economic headwinds and migration policy challenges that affected operations in the previous year.

He acknowledged that reduced patronage and declining trade volumes had placed significant financial pressure on many travel agencies, but urged members to remain resilient and forward-looking.

According to him, the challenges confronting the industry should be seen as opportunities for growth, innovation and institutional strengthening.

He stressed the need for unity and collective action among members of the association, noting that collaboration remains critical to navigating the evolving global travel environment.

Unveiling his vision for the NANTA Western Zone, Olaleye said his aspiration is to consolidate on the achievements of past leaders while expanding the zone’s relevance, influence and impact “beyond imagination.” He promised a leadership focused on commanding excellence, improved member welfare and stronger stakeholder engagement.

Drawing from his experience in previous executive roles within NANTA, the vice-presidential aspirant said he is well-positioned to make meaningful contributions to the association, particularly in areas of member support, public engagement and institutional growth.

“I believe that together, we can take our association to greater heights and build a stronger, more prosperous NANTA Western Zone that benefits all members,” he said, while appealing to delegates for their support and votes.

Olaleye concluded by offering prayers for good health, peace and prosperity for members in 2026, expressing confidence that the new year would usher in renewed opportunities for the travel industry and the association at large.

By: Enoch Epelle

Business

Sugar Tax ‘ll Threaten Manufacturing Sector, Says CPPE

Published

2 days ago

January 28, 2026

The Tide

The Centre for the Promotion of Private Enterprise (CPPE) has warned that renewed calls for a sugar tax on non-alcoholic beverages could hurt Nigeria’s manufacturing sector, threaten jobs and slow the country’s fragile economic recovery.

In a statement, the Chief Executive Officer, CPPE, Muda Yusuf, said while public health concerns such as diabetes and cardiovascular diseases deserve attention, imposing an additional sugar-specific tax was economically risky and poorly suited to Nigeria’s current realities of high inflation, weak consumer purchasing power and rising production costs.

Yusuf who insisted that the food and beverage sector remains the backbone of Nigeria’s manufacturing industry, said the industry supports millions of livelihoods across farming, processing, packaging, logistics, wholesale and retail trade, and hospitality.

He remarked that any policy that weakens this ecosystem could have far-reaching consequences, including job losses, lower household incomes and reduced investment.

Yusuf argued that proposals for sugar taxation in Nigeria are often influenced by global policy templates that do not adequately reflect local conditions.

According to him, manufacturers in the non-alcoholic beverage segment are already facing heavy fiscal and cost pressures.

“The proposition of a sugar-specific tax is misplaced, economically risky, and weakly supported by empirical evidence, especially when viewed against Nigeria’s prevailing structural and macroeconomic realities.

“Existing obligations include company income tax, value-added tax, excise duties, levies on profits and imports, and multiple state and local government charges. These are compounded by high energy costs, exchange-rate volatility, elevated interest rates and expensive logistics,” he said.

The CPPE boss noted that retail prices of many non-alcoholic beverages have risen by about 50 per cent over the past two years, even without the introduction of new taxes, further squeezing consumers.

Yusuf further expressed reservation on the effectiveness of sugar taxes in addressing the root causes of non-communicable diseases in Nigeria.

By: Lady Godknows Ogbulu