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CBN Introduces N5 Rebate On Every $1 Remittance, Today

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The Central Bank of Nigeria (CBN) has introduced a rebate of N5 for every $1 of fund remitted to Nigeria, through International Money Transfer Organisations in its new forex policy.

The Central Bank Governor, Godwin Emefiele, disclosed this, last Saturday, during a virtual event organised by Fidelity Bank at its inaugural webinar on the impact of the new forex policy on Diaspora investments.

Emefiele said that this new policy takes effect, today.

He said, “Furthermore, in an effort to reduce the cost burden of remitting funds to Nigeria by working Nigerians in the Diaspora, the Central Bank of Nigeria has introduced a rebate of N5 for every $1 of fund remitted to Nigeria, through IMTOs licensed by the Central Bank of Nigeria.

“This rebate will be provided to the bank accounts of beneficiaries, following receipt of remittance inflows.

“We believe this new measure will help to make the process of sending remittance through formal bank channels cheaper and more convenient for Nigerians in the Diaspora. This new policy is expected to take effect on the 8th of March, 2021.”

According to him, efforts at driving remittance inflows into Nigeria would yield positive results as it continued to ensure formal banking channels offer cheaper, faster, and more convenient ways for remitters to send funds to beneficiaries.

The CBN governor said that reducing the cost of sending remittances was a significant way to boost remittance inflows to Nigeria.

In general, he said, the new policy was expected to enlarge the scope and scale of foreign exchange inflows into the country with a view to stabilising the exchange rate and supporting accretion to external reserves.

More importantly, it would provide an opportunity for Nigerians living abroad to make investments in their home country, he noted.

Emefiele said, “Yet, the introduction of the new policy presented new challenges as operators and remittance service providers were initially unable to integrate with the commercial banks.

“The CBN continues to work assiduously to resolve the few intermittent interface challenges that are remaining.”

He said that it was brokering meetings between the IMTOs and banks in order to ensure that they have a smooth transition and the Diaspora community has a more convenient way to remit funds to Nigeria.

According to him, efforts at driving remittance inflows into Nigeria would yield positive results as it continued to ensure formal banking channels offer cheaper, faster and more convenient ways for remitters to send funds to beneficiaries.

He added, “Today, the World Bank data shows that Nigeria, with a total flow of $21billion, was the seventh largest recipient of remittances in 2019.

“This is behind India, China, and even Egypt. Though official remittance flows declined in 2020 due largely to the undermining impact of the Covid-19 pandemic, it maintained its dominance over FDI inflows.”

Emefiele had earlier disclosed that remittances improved from a weekly average of about $5million to over $30million per week through its forex initiatives.

The CBN governor said reducing the cost of sending remittances was a significant way to boost remittance inflows to Nigeria.

More importantly, it would provide an opportunity for Nigerians living abroad to make investments in their home country, he noted.

However, it has been argued that the ‘Naira-for-Dollar’ policy may increase the country’s foreign remittances to $34.89billion by 2023.

Forecast by PricewaterhouseCoopers, one of the big four accounting firms, had suggested that Nigeria’s remittance flows could reach $34.89billion by 2023 if the policies were right.

PwC, in the forecast, noted that the growth in remittances was subject to global economic forces, which could spur or hinder growth of remittance flows, growth in emigration, economic conditions of residing countries and poor economic fundamentals in the Nigerian economy.

The forecast revealed that as of 2017, the highest remittance came from the United States, followed by the United Kingdom, Cameroon, Italy, Ghana, Spain, Germany, Benin Republic, Ireland and Canada.

It added, “Several countries across the globe, including Nigeria, have developed plans towards attracting investment from their Diaspora community for national development. Essentially, the extent to which the Diaspora contributes to the developmental affairs of a country will be determined largely by trust.

“In summary, what is required is a coherent policy framework to harness remittances into generating capital for productive investments for the growth and development of small and micro-enterprises, which will in turn, create employment. In addition, remittances can be deployed toward philanthropic activities, which can serve as solutions for specific deficiencies in the local infrastructure such as schools, hospitals and roads.”

Nigeria’s Diaspora remittance in 2019 was put at $21billion by the World Bank.

Even though the forecast showed that the remittance would have risen to $27.66billion in 2020, experts believe the projection couldn’t have been met due to the impact of the Covid-19 pandemic.

Reacting, a former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, said this latest move would encourage people to patronise government licensed money transfer operators as opposed to the agents that could not be easily monitored.

It would also ensure that more forex was remitted into the country, he noted.

A Professor of Economics at the Olabisi Onabanjo University, Sheriffdeen Tella, said, “It won’t have any major impact on Diaspora remittances.

“The first thing is that the amount (N5) is too small to attract those living abroad to start sending money home. Don’t forget that these people also have their plans.

“Secondly, it may not be able to save the naira from the current slide. The reason is that production is picking up now and most of production needs foreign inputs. So, people will spend dollars to do more imports. Also, we have not been able tackle illicit financial flows.”

Similarly, the Chairman of Foundation for Economic Research and Training, Prof Akpan Ekpo, said the new scheme introduced by the CBN was aimed at tackling dollar scarcity in the country by encouraging the inflow of the greenback.

Ekpo, a former director-general of the West African Institute for Financial and Economic Management, said, “I think it is just to encourage the inflow of dollars so that they can reduce the amount of naira needed to buy the dollar. Now, the naira has depreciated officially to 410/$1; it is about 480/$1 in the black market. That gap is still wide; so, the CBN is trying to narrow the gap.

“The only way we can boost forex supply is to diversify the economy – build a complex industrial economy where we earn forex outside of oil. That is the only way we can boost forex supply, not the way we are going.”

But he said while the impact of the CBN policy on the Nigerian economy would be marginal, it would not save the naira from sliding down further.

Ekpo explained, “That is the idea – to see whether they can stop the depreciation. Whether that will happen, I don’t think that will happen in the short term. The impact on the economy will be very marginal. The idea is that they want to bring in more dollars because if you stabilise the exchange rate, you will restore confidence in the economy and hopefully, if you restore confidence, you might encourage an inflow of foreign direct investment. That’s the whole idea.”

He said, “We don’t know (whether the new policy will increase Diaspora remittance); let’s see what happens before six months because the only way you can increase dollar supply is for the country to produce and export non-oil (commodities), not just crude oil only. If it’s crude oil alone, we are earning a lot of revenue from oil, but still we have a problem with the dollar.

“So, the only way is to be an economy that produces and exports non-oil to earn foreign currency, meaning that the economy has to be diversified to do that.”

An economist and Senior Lecturer, Lagos Business School, Dr Bongo Adi, applauded the policy, noting that it could leapfrog the economy.

He said this was part of the innovations and proactive incentives that was expected from the bank and cited India as an example of a country that leveraged Diaspora remittances to transform her economy and escape the poverty trap.

The Director-General, Lagos Chamber of Commerce and Industry, Dr Muda Yusuf, said the ‘CBN Naira 4 Dollar Scheme’ would increase the annual Diaspora remittance and save the naira from its current slide.

He, however, added that the apex bank should allow exporters free access to their export proceeds.

Also, a businessman, Mr Jimoh Ibrahim, described the policy as one that had the capacity to boost the value of naira against the dollar, given that there would be an increase in remittances from the Diaspora.

He however pointed out that there should be other ways of encouraging Nigerians abroad to remit forex, noting that the N5 incentive could only be significant when the volume is high.

Also, the Director-General, the Nigerian Association of Chamber of Commerce, Industry, Mines and Agriculture, Ambassador Ayo Olukanni, said the CBN must have taken the decision to harness the huge potential of foreign remittances.

He said if well implemented, the policy might boost foreign exchange and reduce the pressure on naira.

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Don Seeks Funding of Language Centres

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A professor of English linguistics at the Rivers State University (RSU) Nkpolu Oroworukwu Port Harcourt, Prof. Isaac Enyi Ngulube, has advocated for better and improved funding for language centres in Nigeria, such as NINLAN Aba and Nigeria French Language Village, Badagry, for optimum value and effective local languages development.

He also called for funded research on the development of orthographies and language documents across the country to rescue local languages from extinction, as well as having a well-planned and implemented mother tongue education in all institutions in the country, from primary to tertiary.

Prof. Ngulube made with these assertions while presenting his inaugural lecture at the university’s 121st inaugural lecture with the topic “The Career of Rough Beats: Language, Literature and the Development of our Common Humanity” held in Port Harcourt, Wednesday.

The erudite scholar, in the lecture, stressed that the study of English language, linguistics, and literature is very broad, large, and difficult, adding that he overcame the rough roads through resilience and determination.

He described language as “a purely human and non-instinctive means of communicating ideas and emotions,” noting that “the word is a fundamental need in language; you cannot study language without the use of language.”

He urged parents to be cautious with their utterances, warning that “what they refer to their children as is what they will automatically end up becoming.”

He recommended a branded English language for every profession or course of study, stressing that embedding oral literature in the teaching of students from primary to tertiary level will enable them to know their traditions and roots of origin.

“Tell them the folk stories and moonlight tales; you are sending them back to their people. You must be a human being first before becoming a medical doctor, engineer, or anything else,” Ngulube said.

He also called for better and improved production of quality language and literature teachers, provision of modern teaching/instructional materials, improved welfare packages for teachers, and provision of better infrastructure at both primary and secondary school levels.

He used the opportunity to appreciate the Vice Chancellor for the approval of the Department of English Language and Literature, adding that it had been his long-held dream for the university.

In his speech, the Vice Chancellor, Prof. Isaac Zeb-Obipi, while highlighting the lecture, opined that the lecturer x-rayed the lecturer’s journey into the study of English language, linguistics, and literature, describing the field as broad, large, and difficult, but with determination and focus, he was able to defeat the beasts he encountered on his way.

Zeb-Obipi agreed with the lecturer’s recommendations on ways to improve indigenous languages in the country and directed that modalities be worked out for the university to have the Department of English Language and Literature, among others.

He highlighted RSU’s recent victory in the Bilingual Community Project organized by the French Embassy, describing it as proof of the university’s rising excellence in language studies.

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HYPREP, Contributing To National Peace, Development- Zabbey

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The Federal Government through the implementation of the various projects of the Ogoni cleanup programme is demonstrating a strong commitment to national peace and the development of Ogoniland.

The Project Coordinator of the Hydrocarbon Pollution Remediation Project(HYPREP), Prof Nenibarini Zabbey, who made this assertion at a two-day training on Mechanism for Alternative Dispute Resolution(ADR) and other Peacebuilding Techniques for Community Leaders In Ogoni, held in Port Harcourt, said through the ongoing environmental restoration effort, potable water provision, livelihood restoration, public health interventions, and the Ogoni Power Project, HYPREP is contributing to national peace and development.

He explained that by improving the living conditions in communities and creating new opportunities for young people, the Project is also reducing the social pressure that often fuels conflict, stressing that the Project is proud of this service to the Ogoni people and the nation.

Describing traditional leaders and stakeholders as peacebuilders and guardians of community harmony, Zabbey noted that the workshop would strengthen their capacities and reinforce the Ogoni dialogue process, which HYPREP continues to support in line with its mandate on peacebuilding.

He said HYPREP is actively promoting ADR alongside other mechanisms across its project sites and other areas of operation aimed at fostering unity, fairness, mutual respect and faster dispute resolution, stressing that these are qualities necessary for the future of Ogoni people and their communities.

He further indicated that the Minister of Environment and Chairman of HYPREP’s Governing Council, Malam Balarabe Abbas Lawal is disposed to promoting peace and stability across Ogoni communities and HYPREP project sites.

The Project Coordinator, therefore, charged Ogoni leaders to be mindful of their actions, words and body language, as what they say or do can either promote peace or fan the embers of conflict.

Continuing, he stated thus,”We must always ask ourselves: Is my position on this matter in the people’s interest? Does it promote unity and progress? Will it enhance development?”

The Project Coordinator assured the participants that HYPREP is working tirelessly in line with the directive of President Bola Ahmed Tinubu’s Renewed Hope Agenda for the accelerated implementation of the Ogoni cleanup programme and ensure that its benefits reach the grassroots where they are needed most.

Stressing the need for Ogoni leaders and stakeholders to explore communication and trust options to prevent disputes from degenerating into violence, the Project Coordinator noted that it was time for all Ogonis to be united for development, leaving behind perceptions that do not serve collective progress.

Similarly, the Director of the Centre for Peace and Security Studies of the University of Port Harcourt, Prof Chioma Daisy Onyige, said the workshop is a strategic platform aimed at strengthening the capacity of traditional institutions and community leaders to sustain peace, foster dialogue and promote non-adversarial engagements in the implementation of the Ogoni cleanup programme.

Prof Onyige noted that the Ogoni leadership structure commands deep respect and legitimacy, and strengthening their capacity in ADR methods such as mediation, negotiation, dialogue, facilitation, and consensus building means strengthening the foundation of peace in the region.

Participants, comprising traditional rulers and key stakeholders in Ogoni, commended HYPREP for the initiative, and assured it of their continuous support to the Project by providing an enabling atmosphere for the smooth implementation of the cleanup project in Ogoniland.

Resource persons who presented thought-provoking lectures at the workshop included the Dean of the Faculty of Postgraduate Studies of the University of Port Harcourt, Prof Kinikanwo Anele; Prof Olariwanju Lawal; Prof Chioma Daisy Onyige; and Dr Gbenemene Kpae; among others.

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Ogoni Cleanup Programme, Enabling Pathways To Development Of Ogoni – Zabbey

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With significant achievements recorded across thematic areas of the Ogoni cleanup programme being executed by the Hydrocarbon Pollution Remediation Project (HYPREP), the Project Coordinator of the Project, Prof Nenibarini Zabbey, has said that all these are enabling pathways to the development of Ogoniland.

This is coming on the heels of milestone achievements in the following areas and their impact on Ogoni communities. They are mangrove restoration which is 94 percent complete; shoreline remediation which stands at 67.1 percent; and the phase 2 land remediation progressing to 36.55 percent.

Moreso, HYPREP has constructed 14 water facilities, providing potable water to 40 communities. With the commissioning of the water schemes in Bane and Gwara communities, the number of communities with access to clean and safe drinking water will be 45. The process of operationalising the Centre of Excellence for Environmental Restoration (CEER) which is at 92 percent complete, is ongoing. The same for the Ogoni Power Project which is progressing with wayleave compensation and construction works at Bodo and Wiiyaakaara substations ongoing

Similarly, the Ogoni Specialist Hospital and Buan Cottage Hospital are at 76.8 percent and 98.7 percent respectively.

This is alongside other public health interventions and the Human BioMonitoring Survey also in progress.

Under the livelihood
programme, over 7,000 direct jobs have been created for Ogoni women and youths, while over 5,000 have been trained in multiple skills and provided start-up kits, workshops, education grants, scholarships and other empowerment programmes. This quarter, training will commence in other demand-driven skill areas, such as cybersecurity, full-stack development, mud logging, software development, commercial diving, and underwater welding.

Zabbey had reeled out these achievements, during the third quarter interactive session between the Project Coordination Office engagement with Ogoni youths in Port Harcourt on Friday, in line with HYPREP’s strategic stakeholders policy to provide an interface opportunity to abreast Ogoni youths on the Project’s activities, while garnering their feedback.

Zabbey noted that, “This
quarterly engagement was,therefore, designed as an inclusive strategy to ensure that youth voices are heard, concerns are addressed, and progress updates are provided transparently. Also, it reflects our firm belief that a project of this magnitude must be people-centred, accountable, and participatory”.

” I am delighted to inform you that the Project remains on course to achieve its mandate as outlined in the UNEP Report on the Ogoni environment and the official gazette establishing HYPREP. HYPREP is committed to transparency and accountability in the implementation of the cleanup projects and activities”, he said.

He stressed that HYPREP’s achievements are pathways to a better Ogoniland, assuring that the Project’s goals are aimed at benefiting all categories of Ogoni youths, whether in business, farming, advocacy, education, entrepreneurship or community development.

”This Project belongs to all of you, and its success depends mainly on your participation, unity and constructive engagement. And with your support, we are confident that all challenges will be addressed in the overall public interest,” Zabbey said.

The Project Coordinator urged Ogoni youths to continue to support the Project by promoting peace, discouraging misinformation, and collaborating with project teams working in the communities, and address challenges through dialogue, rather than confrontation.

Prof Dinebari Badey, a Professor of Development Sociology in the University of Port Harcourt, delivered the keynote address, linking the nexus between HYPREP and youths in the development of Ogoniland through unity of purpose while Engr Solomon Akere, gave a talk on Ogoni youths in business.

Participants raised questions concerning the maintenance of the water projects, remediation efforts, and compensation for the Right of Way (RoW), among others.

In attendance were management staff of HYPREP who provided responses to the interventions.

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