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Jan 31 Deadline For Old Naira Notes Remains, CBN Insists …Raises Interest Rate To 17.5%

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The Central Bank of Nigeria (CBN) has said that its January 31, 2023 deadline for the validity of the old N200, N500 and N1,000 notes remains.
The CBN Governor, Godwin Emefiele, announced this after the apex bank’s Monetary Policy Committee (MPC) meeting in Abuja, yesterday.
The CBN also raised the Monetary Policy Rate (MPR), which measures interest rate, to 17.5percent.
According to him, kidnapping and ransom-taking have reduced since the three banknotes were redesigned.
He also said the time given for the swap of the old naira notes with new ones were enough for Nigerians to go to commercial banks and get new notes.
The CBN on October 26, 2022 had announced its plan to redesign the three banknotes. President Muhammadu Buhari subsequently unveiled the redesigned N200, N500 and N1,000 notes on November 23, 2022, while the apex bank fixed January 31 deadline for the validity of the old notes.
There have been concerns from many Nigerians over the slow spread of the three new naira notes as the January 31, 2023 deadline approaches but the apex bank has insisted that the date stands.
The CBN also recently directed commercial banks to halt over-the-counter payment of the new notes and load their Automated Teller Machines (ATMs) with the redesigned naira notes to boost circulation.
The apex bank also launched a cash swap programme nationwide to enable those in the unbanked areas to exchange their old notes for new notes before the deadline.
On the wide clamour for the extension of the deadline for old currency usage, the CBN Governor said: “Unfortunately, I don’t have good news for them. My apologies. We can’t shift the deadline. Just like Mr President has said on some occasions, 90 days is enough for people to get their money into the bank. We ensured the banks extended banking hours and opened on Saturdays to accept the old notes. But they did not see the rush. Only the same normal deposits. So, no need for a shift”.
On the scarcity of the new naira, Emefiele said the CBN holds three meetings with the banks every week to address the challenge.
“We saw that the banks were paying the new notes to their close customers and we stopped it and said, feed it to the ATMs. It has worked. In the initial stages, they were seeing old notes and after a week, we said that only needed notes should be in ATMs and we increased the volume of new notes.
“We told the banks that we want to have zero old notes in your vaults by the 1st of February. There are adequate new notes available. Our mint is producing and we are supplying.
“I held a meeting with state governors and some said no banks in riverine areas and upland areas. But we have 1.4million super agents for cash exchanges.
“We’ve put this in place. A week ago, we told our directors and deputies to go around the country for mass sensitisation in markets, churches and mosques for weeks running. We remain focused on the weak and vulnerable even after the 31, we shall ensure new naira permeates every nook and cranny of Nigeria.
“In 2015, there was N1.42trillion currency in circulation and $3.2trillion in 2022. More than double! N2.7trillion of that is outside the banks. People are keeping vaults in their homes. They can’t be banks in their homes. We can’t allow that. They should release it back to the CBN. Ransom and kidnapping are reducing. I could be wrong.
“We have N1.5trillion back in banks and perhaps this week, we hope to get N2trillion in.
“Just bring it, no one will harass you. We’ve begged EFCC and ICPC to let us do our job. And nothing will happen to you. I promise you that on my honour,” he stated.
On the MPC decisions, Emefiele said the committee agreed to raise the interest rate from 16.5percent to 17.5percent, in a move towards taming the raging inflation in Nigeria, currently pegged at 21percent.
The MPC kept the asymmetric corridor at +100/-700 basis points around the MPR.
It also retained the Cash Reserve Ratio (CRR) by 32.5percent while the liquidity ratio was kept at 30percent.
“Tightening was the way to go. Our inflation target is 7-10percent and so we can’t rejoice at 21percent.
“We can hold or loosen when the inflation rate goes down. But right now, we remain aggressive on rates”, Emefiele explained.
However, the House of Representatives, the Senate and the Nigeria Governors’ Forum have asked the CBN to extend the date to enable more Nigerians get the new notes.
The Senate, yesterday, urged the Central Bank of Nigeria, to extend the mop-up of old Naira notes to July 31, 2023.
The upper legislative chamber, through an adopted resolution, arrived at the new deadline after a thorough debate.
This was against the backdrop of the earlier resolution in December, 2022, which the lawmakers said, was jettisoned by the apex bank.
The denominations of N200, N500 and N1000 notes have been redesigned and are already in circulation.
The redesign has been trailed by heavy criticisms, citing the timing as insensitive as a result of the general election coming up next month.
Meanwhile, the call for fresh extension was fallout of a motion sponsored by Senator Sadiq Suleiman Umar representing Kwara North Senatorial District, in which he said: “the new notes were not enough in circulation”, warning that if the deadline was not extended, there would be chaos in many parts of the country.
The House of Representatives hasalso asked the Central Bank of Nigeria to extend the deadline for acceptance of the old naira notes by six months.
The House also resolved to invite some managing directors of some banks and the CBN to brief the leadership of the House on the availability of the notes.
The decision was sequel to a motion of urgent public importance moved by Sada Soli, a lawmaker from Katsina State.
He stated that the January 31 deadline set by the CBN was not feasible as traders have started rejecting the old notes in his constituency.
He stated that banks and other financial institutions do not have the capacity to deal with the rush.
Speaking in support of the motion, Ahmed Jaha from Borno State informed the House that CBN officials were in his constituency to help, however, the measure was not enough.
“The CBN are in my constituency helping people to swap the old notes. The amount taken to my constituency, the amount is not enough. For 10 years, my constituents have not had access to banks.
“We have a lot to lose if the deadline is allowed to stand,” Jaha said.
The Speaker of the House, Hon Femi Gbajabiamila, in his reaction to the motion, said there was a need for an investigation into what was stalling the disbursement of the new notes.
“CBN is making spirited efforts. They were at the central mosques in Lagos. I am not sure if it is enough. As they say, the road to hell is paved with good intentions. The timing is what we have problems with.
“There is a need to review the policy. I think there is a need to add another prayer. The bank is saying they don’t have the money but the CBN is saying they have the money. We should invite the bank MDs to brief either the leadership or a small committee,” he said.
The House consequently resolved that an ad-hoc committee headed by the Majority Leader, Hassan Doguwa, should meet with the invited MDs.

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FG Targets Production Of Locally Made Vehicles By Dec

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The Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, has affirmed that Nigeria now has the capacity and materials to manufacture Made-In-Nigeria cars for local use and export.
With the enabling environment being provided by the government, she said manufacturers should be held responsible if the cars are not rolling out by December 2024.
Currently, Nigeria produces less than 10 per cent of the vehicles used in the country.
Last year, Nigeria’s vehicle assembling industry, estimated to be worth around N302billion, tanked to a new low due to increasing production costs and weakened demand for locally assembled automobiles.
According to the Manufacturers CEOs Confidence Index, activities of motor vehicles and miscellaneous assembly deteriorated further below the benchmark (50 points) from 48.6 to 46.7 points.
But speaking at the Automotive Component Manufacturers meeting in Abuja, she noted that the automobile industry is faced with both challenges and opportunities.
A statement issued last Friday by the Director of Information and Public Relations, Adebayo Thomas, said, “In a significant move aimed at fostering sustainable growth and development in Nigeria’s automobile industry, the Federal Government has issued a clarion call to all stakeholders, including manufacturers, dealers, regulatory bodies, and other players in the automobile ecosystem.
“The call comes as part of a broader strategy to enhance the sector’s contribution to the nation’s economy.”
Encouraging the stakeholders to key into the Nigerian Automotive Development Policy, the Minister said, “As far as we are concerned, the auto industry is now set to go.
“We are counting on all stakeholders to make that happen. If we do not produce made-in-Nigeria cars before the end of this year (December), it will be your fault, because I am sitting down here giving you all the assurances that this administration has created the enabling environment to make sure that the auto policy kicks off.”
Anite emphasised the need for collaboration among manufacturers, dealers, regulatory bodies, and other players in the automobile ecosystem, saying by working together, they can address challenges, streamline processes, and drive innovation.
She also urged stakeholders to maintain high-quality standards across the board, including vehicle manufacturing, safety features, emissions control, and after-sales services.
Stringent adherence to quality, she said, will boost consumer confidence and attract investment.
The minister assured all that the government would continue to encourage increased investment in research and development, adding that, innovations in electric vehicles, fuel efficiency, and alternative energy sources are critical for long-term sustainability.
On local content, she also emphasised the importance of promoting local content by sourcing materials and components locally.
By doing this, she said, the sector can create jobs, reduce import dependency, and contribute to economic diversification
In his introductory comments, the ministry’s Permanent Secretary, Nura Rimi, emphasised the significance of team action and shared vision as outlined in the Nigerian Automotive Development Policy.
He also urged stakeholders that the country “will overcome obstacles and unleash the full potential of Nigeria’s automotive component sector.”
He encouraged NADDC and other stakeholders to use the chance to form alliances, explore new areas of collaboration, and devise ways to catapult the automotive components manufacturing industry to new heights of success.
The statement added, “The government’s charge underscores the pivotal role stakeholders play in shaping its trajectory. Their commitment to sustainable practices will drive Nigeria’s automotive sector towards a brighter and more prosperous future.
“Environmental Responsibility: Stakeholders are reminded of their environmental responsibilities. Sustainable practices, recycling, and eco-friendly manufacturing processes are essential for a greener future.”

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Waive Tax On Electronic Imports, Women Engineers Appeal To Tinubu

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The Association of Professional Women Engineers of Nigeria (APWEN), Lagos Chapter, has called on President Bola Tinubu to exempt the importation of electronic components from taxation for inventive engineers.
Chairman of APWEN, Ms Atinuke Owolabi, said this a in statement yesterday in Lagos, in commenration of the 2024 World Creativity and Innovation Day, with the theme: “Step Out and Innovate”.
The Tide source reports that World Creativity and Innovation Day is a global UN Day, celebrated on April 21, to raise awareness about the importance of creativity and innovation in problem solving.
This is with respect to advancing the United Nations’ sustainable development goals, also known as the global goal.
Owolabi explained that such a measure would significantly enhance technological progress, support local innovators, and elevate Nigeria as a leading hub for innovation globally.
She stated that in a world marked by dynamic challenges and unprecedented opportunities, creativity and innovation stand as the driving forces behind progress and transformation.
According to her, women engineers recognise the critical role that innovation plays in shaping our societies and driving sustainable development.
”On this occasion, we affirm our commitment to fostering a culture of creativity and innovation within our organisation and the broader engineering community.
”Together, let us step out, innovate, and inspire the next generation of women engineers to reach even greater heights of achievement and impact.
”We believe that by stepping out of our comfort zones and embracing new ideas, technologies, and approaches, we can unlock innovative solutions to the complex challenges facing our world today,” she said.
According to her, the theme: ‘step out and innovate’, serves as a call to action for women engineers everywhere to break barriers, challenge conventions.
She noted that it would also pioneer groundbreaking solutions that would propel them toward a brighter and more sustainable future.
Owolabi disclosed that in celebration of the World Creativity Day, APWEN Lagos had inaugurated an artificial intelligence club tailored for female engineering students and young engineers.
She said that the proactive initiative aimed to inspire and equip young engineers with cutting-edge technological insights.
Th chairman said, “Additionally, we already have a 200-capacity hall to set up a resource, technology, and innovation hub to empower women and girls in engineering.
”This endeavour serves as a catalyst for encouraging aspiring female engineers to embrace innovation and stay abreast of emerging trends in the field.
”APWEN Lagos stands united in its dedication to promoting diversity, inclusivity, and excellence in engineering.
“We encourage all female engineers to seize this opportunity to unleash their creativity, explore new frontiers, and make an indelible mark on the world.”

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Pan-Igbo Group Hails Dangote Group For Reducing Diesel Price

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A pan-Igbo group, Ndigbo Unity Forum (NUF), has commended the Chairman of the Dangote Group, Alhaji Aliko Dangote, and his management for reducing the price of diesel from N1,600 to N,1000 per litre.
The Tide’s source reports that diesel is the major fuel used by heavy duty vehicles and generating sets to transport goods as well as run industries across the country.
The President of NUF, Mr Augustine Chukwudum, told The Tide’s source in Enugu, yesterday, that Dangote’s timely response to suffering masses of Nigerians, going through hell to get a meal a day, “is highly commendable”.
According to Chukwudum, Nigerians need to appreciate the patriotism of Dangote since what he has done will go a long way in reducing prices of goods, especially food stuff which has gone out of the reach of the poor.
He called on Nigerians, who wish and pray always for the betterment of the country, to appreciate and thank God for answering their prayer through Dangote’s move.
“It is clear that if Dangote Refinery starts fully and gets all the crude oil needed from Nigeria, the prices of petrol, kerosene and diesel will further reduce.
“We commend President Bola Tinubu for being a listening President and supporting the Dangote Group on our crude oil needs.
“We appeal to Tinubu to encourage Dangote by providing the company with crude oil at a reduced rate as we have been demanding,” he said.
Chukwudum said that this move and subsequent further reduction, would bring industries in comatose back to life, jobs created for unemployed youths and reduction in crime as well.
“We call on governors of oil-producing Anambra, Imo and Abia States to bring investors, who shall build refineries in each of the states to refine thousands of barrels of crude in commercial quantities,” he said.

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