Business

ICAN Identifies Five Challenges Of CBN’s Naira Redesign

Published

3 years ago

December 16, 2022

The Institute of Chartered Accountants of Nigeria (ICAN) has identified five challenges that the Central Bank of Nigeria (CBN) needs to consider following the apex bank’s naira redesign policy.
The Tide source reports that on October 26, 2022, the CBN Governor, Godwin Emefiele, announced the redesign of the N1000, N500 and N200 notes, for which it got the approval of the President, Major General Muhammadu Buhari (rtd.).
The new notes are due for circulation this month (December). ICAN, in a publication by its 58th President, Tijjani Isa, on Monday, noted foreign exchange challenges, inflation and timing of the policy as some of the major issues the CBN might need to face.
The challenges, the policy might face, according to ICAN, are: firstly, the CBN asserts that 85 percent of currency in circulation is outside the banking system.
Given this background, ICAN would expect the CBN to perform a thorough root-cause analysis of this statistic as it appears inconsistent with recent initiatives to promote a cashless economy.
Such initiatives include the eNaira, which was launched In October 2021. In addition, there are numerous payment solutions provided by fintech companies.
It would therefore be proper for the CBN to understand why such schemes have not achieved the desired impact and link the underlying issues therein to the currency redesign policy.
That way, it would be possible to monitor and evaluate the impact of the policy on the volume of currency in circulation.
Coincidentally, the CBN issued the Exposure Draft of the Guidelines for Contactless Payments in Nigeria. On October 17, 2022, ICA, and indeed all stakeholders, would require the assurances of the CBN that the proposed guidelines on contactless payments would indeed make significant complementary impact to the cashless economy drive.
Secondly, the currency redesign policy would potentially negatively affect the exchange rate of the naira. The official exchange rate remained relatively stable at a range of N437.66/$1 to N443.26/$1 between October 26 and November 22, 2022.
This seeming appearance of stability does not provide much cheer, due to the significant illiquidity in the official forex channels.
However, and unsurprisingly, the impact on the parallel market has been more profound. The naira has depreciated by approximately 10.8% from N740/$1 on October 26, 2022 to about N840/$1 on November 1, 2022 and N880/$1 on November 14, 2022.
ICAN noted that two issues were plausibly responsible for the above: Businesses and individuals are reported to be searching unsuccessfully to access the US dollar for genuine needs, including the importation of critical raw materials and machinery.
Even where available, the high exchange rate is already leading to increased cost of production, and hence increase in prices of goods and services.
The second issue is that it is likely that perhaps, holders of the currency notes generated from illicit business and stored outside of the banking system are in a race to convert them to foreign currency in the parallel market. These will still avoid the banking system, but also put further pressure on the exchange rate.
The third challenges is that year-on-year inflation rate has been on a steady rise since January 2022 to date. The all-item inflation rate rose from 15.6% in January 2022 to 20.77% as at September 2022”.
The food inflation rate similarly rose from 17.13% to 23.34% within the same period. ICAN is concerned about further rise in inflation rate and the cost of living.
The fourth challenge, ICAN soad, is to note that the CBN is yet to disclose some pertinent details of the currency redesign policy, such as the cost of designing and printing the new currency notes.
“We acknowledge, however, that the CBN Governor has subsequently confirmed that the printing of the new currency notes will be done locally. In addition, we welcome the early launch of the redesigned currency notes by President Buhari on November 23, 2022.
Another area where Nigerians are apprehensive, ICAN continued, “is the timing of the implementation of the policy. The existing currency notes cease to be legal tender by the end of January 2023, while the general election is scheduled to hold in February 2023.
“Considering the economics of our recent electoral cycles, money in circulation typically increases during the general election. There is some level of uncertainty, therefore, as to what impact, if any, the currency policy will have on liquidity during the general election”.

Business

NSC Sensitises Cross-Border Traders, Business Community Use Of Border Information Centre

Published

12 minutes ago

February 27, 2026

The Tide

The Nigerian Shippers’ Council (NSC), in collaboration with the Economic Community of West African States (ECOWAS) Commission, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Nigeria Customs Service (NCS) on Wednesday carried out a sensitization exercise for traders and farmers around the Seme border axis on the need to make use of its Border Information Centre (BIC) located at the border.

The BIC according to the agency was established in 2014 to encourage cross border trade. It is to solve challenges faced by traders at the borders who are not aware of what is required of them in getting goods across the border.

Speaking at the event theme: “Trade Now: Empowering Cross-Border Traders through the Trade Information Desk (TID),” the Executive Secretary of NSC, Dr. Akutah Pius expressed satisfaction at the recent surge in the use of the BIC

“We are encouraging you all to start using the BIC, we are happy that the use of the facility has increased” he said

Akutah thanked the GIZ and ECOWAS Commission for their strategic roles in organising the event, even as he also appreciated their efforts at the Seme Border to simplify cross-border business.

Earlier, the Director of Consumer Affairs Department of the ShippersCouncil, Mrs. Ify Okolue, said the mandate of the Council goes beyond seaport, and covers the border posts.

She noted that the BIC initiative aligns with the Council’s mandate as Port Economic Regulator and complements other interventions, including Inland Dry Ports, Vehicle Transit Areas, and dispute resolution platforms.

According to her, the Council’s Border Information Centre (BIC) at Seme Border provides traders with accurate information on tariffs, documentation, standards, and dispute resolution, reducing delays and trade costs.

Noting that BICs are already operational at Seme-Krake, Jibia-Maradi, Illela-Birnin Koni, and Mfum-Nkot borders, she observed that Idiroko BIC will become operational before the end of the second quarter of 2026.

She urged traders, especially women and youth, to utilise the centres to enhance transparency, compliance, and regional trade efficiency.

“The BIC serves as a structured platform for transparency, guidance, and dispute resolution. It provides traders with accurate information on tariffs, documentation requirements, import and export procedures, standards, sanitary and phytosanitary measures, and other regulatory obligations. By reducing information gaps, the Centre directly addresses one of the key barriers to trade formalisation and competitiveness” she said

Meanwhile, the Director of Trade, ECOWAS Commission, Mr. Kolawole Sofola, stressed the need for regular sensitisation and awareness campaigns on the best approaches, documentation and dispute resolution at the Seme Border area.

Sofola, who was represented by Sarah Okporufe, also observed that the role of e-Commerce, gender-inclusive trade and sustainable practices should be prioritised in the sensitisation campaigns.

The ECOWAS team observed that a lot of traders at the Seme border corridor aren’t exploring the ECOWAS Trade Liberalization Scheme (ETLS) to enjoy the export or import of goods that are devoid of Customs tariffs, especially goods that originate from the subregion.

“Another right that traders have is that as soon as they have a valid passport, they can move to any ECOWAS country to reside or transact businesses.

There is a process to have a biometric ECOWAS identity card that we expect will be adopted by Nigeria to allow traders and residents enjoy better access for businesses and other purposes,” the ECOWAS Commission representative said.

Speaking on behalf of the Comptroller-General of Nigeria Customs Service (NCS), Dr. Bashir Adewale Adeniyi, the Customs Area Controller, Seme Border Command, Comptroller Wale Adenuga, assured a maximum of 40 hours for the processing of legitimate imports and exports via the Seme Border.

According to him, farmers are particularly given consideration because of their perishable items.

While observing that trade facilitation is the core philosophy of the NCS under Adeniyi’s leadership, Comptroller Adenuga pledged the NCS’s continuous support at the Seme Border towards facilitating legitimate trade.

He encouraged traders to visit Seme Customs and the BICs to seek information about their trade in order to be informed about the requisite documentation, duties and goods that are prohibited.

“At Seme Customs, we will give you adequate information and adequate support.

By: Nkpemenyie mcdominic, Lagos

Business

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance … Seeks PIA Review

Published

25 minutes ago

February 27, 2026

The Tide

The Natural Gas Senior Staff Association of Nigeria (PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).

President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.

Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.

The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.

In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.

He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.

Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.

He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.

Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.

“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.

He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.

“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..

According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.

“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.

Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.

“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.

Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.

“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.

According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”

Business

Nigeria’s ETF correction deepens as STANBICETF30, VETGRIF30 see 50% decline in a week

Published

4 days ago

February 23, 2026

The Tide

Nigeria directs all oil, gas revenues to federation account in sweeping reform

Nigerian President Bola Tinubu has signed an order directing that all oil and gas revenues owed to the government be paid directly into the federation account, in sweeping reforms aimed at boosting public finances, the presidency said on Wednesday.

Under the law, the Nigerian National Petroleum Corporation keeps 30% of oil and gas profits for frontier exploration in inland basins. The presidency said those funds will now be paid into the federation account and appropriated by the government.

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NNPC also retains 30% of oil and gas sales as operational costs and receives 30% of proceeds from Production Sharing Contracts. Under the new directive, all revenues under these arrangements will flow directly to the federation account, while the company will instead receive appropriated management fees.

Royalty payments, petroleum profit taxes and other statutory revenues previously collected and retained by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will also be paid directly into the Federation Account. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will likewise remit its revenues in full, with its cost of collection to be funded through appropriation.

Tinubu’s office said deductions enabled by the law had sharply reduced net oil inflows and contributed to fiscal strain across federal, state and local governments. The president also ordered a review of the law and established an implementation committee to enforce the changes.