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Forex Crisis: Reps Demand 2024 Budget Review

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Sequel to the crisis in the foreign exchange market, the House of Representatives has called for a review of the 2024 budget projections owing to the free fall of the naira in the past few months.
The lawmakers, in their recent planery, adopted a motion on matter of public urgent importance titled, “Need to evaluate the implications of the current exchange rates on the 2024 national budget implementation to ensure a balanced budget and increase in the standard of living of Nigerians”.
The motion, moved by a member of the All Progressives Congress (APC) representing Kosofe Federal Constituency, Lagos State, Kafilat Ogbara, drew the attention of the House to the fluctuating exchange rate of the naira to the dollar since the passage of the N28.7trn 2024 budget by the National Assembly and the subsequent assent by President Bola Tinubu.
Moving the motion, Ogbara, who doubles as the House Committee Chairman on Women Affairs and Social Development, noted that the initial proposal of the Federal Government on the 2024 budget based on a projected N800 to the dollar was no longer fissile.
The Tide’s source reports that though the naira has witnessed improvement in value in the past few days, it exchanged for N1,488 to $1 in the official market on Thursday.
The lawmaker told his colleagues that there is a causal relationship between the exchange rate movements and macroeconomic aggregates such as inflation, fiscal deficits and economic growth, adding that the persistent fluctuation of the exchange rate trended with major economic variables such as inflation, Gross Domestic Product and fiscal deficit in Nigeria, presently.
She also stated that when exchange rates change, the prices of imported goods will change in value, including domestic products that rely on imported parts and raw materials, stressing that “Exchange rates also impact investment performance, interest rates, and inflation, and can even extend to influence the job market and real estate sector”.

She further said, “The House is worried that the weighted Average Rate Nigerian Foreign Exchange Market hovers an average of $1 at N1, 488. 90, Pound at N1, 880. 1779, Euro at NI, 609. 35 and Swiss Franc at N1, 691.35 respectively.

“The House is worried that with the distortionary impact of the foreign exchange regime, the 2024 Appropriation Act would be difficult to implement due to foreign exchange volatility.

“Definitely, the exchange rates have already caused a major wide variance in personnel cost, recurrent expenditures and capital costs appropriated to the various Ministries, Departments and Agencies”.

Given these market fluctuations, Ogbara said it was incumbent on the National Assembly to review (amendments to) all the items that make up the 2024 Appropriation Act, Medium Term Expenditure Framework/Fiscal Strategy Paper, external borrowing plan, foreign exchange  market, and role of bureaucracy in budget implementation.

Following the adoption of the motion, the House mandated its Committees on National Planning and Economic Development, Appropriation and Finance to “Carry out a comprehensive assessment of the implications of the foreign exchange on the 2024 Appropriation Act and determine the method of alignment of the current foreign exchange with the approved national budget”.

It also tasked the committees to evaluate the prevailing exchange rates to understand the value of the foreign exchange in the local currency and how fluctuations.

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Adeniyi’s Impersonator Faces Trial, Knows Fate, July 3

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The Federal High Court sitting in the Central Business District of the Federal Capital Territory, Abuja, has conducted a hearing of one Ibrahim Shu’aibu, a 50-year-old man, for assuming the character of the Comptroller-General of Customs (CGC), Bashir Adewale Adeniyi, among other distinguished personalities in Nigeria, to commit fraudulent activities.
The Nigeria Customs Service (NCS) had in January addressed the media about the suspect’s apprehension by the Service’s Police Unit following his involvement in fraudulent activities, which included luring numerous citizens to pay him money for the issuance of job appointment letters.
During the court hearing, the lead Counsel of the NCS, Abidemi Adewumi-Aluko, said the accused was arraigned on a nine-count charge to which the defendant pleaded not guilty.
Justice Binta Nyako, the Presiding judge, adjourned the hearing to Wednesday, 3 July 2024, and ordered that the accused be remanded with the Nigerian Correctional Service pending the fulfillment of bail requirements.

By: Nkpemenyie Mcdominic, Lagos

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Trans-Border Trade Setback: Shippers’ Council Pledges Support For ITC 

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The Nigerian Shippers’ Council (NSC) has expressed readiness to support the International Trade Centre (ITC) as part of measures toward resolving challenges faced by trans-border traders and trade facilitation.
Executive Secretary, Nigerian Shippers’ Council, Barr. Pius Akutah, disclosed this in Lagos last Friday, when  delegates of ITC, paid a working visit on a fact finding mission.
While harping on the role of the Council as an ombudsmen in port operations, Akutah emphasized that trade facilitation is a major initiative of the NSC, pledging to provide the necessary support to ensure the success of the study brought forward by the ITC team.
He noted that the study will strengthen the Council’s ability to formalize informal trade at border areas, gather statistics, and plan for trade volumes.
Akutah stated that the focus of the study is on agricultural products, as a significant area of potential for Nigeria, not only in the African region, but also globally.
He expressed optimism that the study will help develop skills and improve operations at the Border Information Centre (BIC) managed by the Council.
“Trade facilitation is one of the major aspect of what we do so we are going to give you the necessary support to achieve the success that is desired.
“The study will help us to plan and develop more skills in terms of what we do at the Border Information Centre. Shippers Council is a partner and I want us to take our partnership to the next level that will focus on engagement with our stakeholders”, Akutah noted.
Speaking earlier during the courtesy visit to the NSC headquarters, Associate Programme Officer, ITC, Richard Eke- Metoho, who led the delegation, said the visit to the Council was part of the team’s ongoing study to identify areas for improvement in trade facilitation, particularly at border crossing points.
He stated the importance of collecting data from the Nigerian Shippers’ Council, which manages a border information center at Seme-Krake border.
According to him, some of the identified challenges faced by traders and truck drivers using the Seme-Krake border, a key trade route is the number of checkpoints and lack of scanners.
He said information collected by the team will not only identify existing trade facilitation measures that are working effectively, but also lead to the development of new trade facilitation measures that address the challenges faced by traders
He said, “We are here to collect experience from the Nigerian Shippers Council.
“From our interactions with the Shippers Council, we keep finding similar problem faced by traders, most especially on the number of checkpoints and scanners that are really needed especially for transporters and truck drivers.
“It is still an ongoing study. The more information we collect right now, the more it will help us to make more informed decision process. At the end of the study, we will be able to develop a report that will pinpoint all the main obstacles that traders are facing”.

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Customs Condemns Attack On Officers In Katsina

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The Nigeria Customs Service (NCS) has condemned the brutal attack on its officers and men at the Gamji Makaho checkpoint in the Dankama area of Katsina State on April 17, 2024, which claimed the life of Customs Assistant II Auwal Haruna.
The Service vowed that it would stop at nothing in securing justice for the victims of the attack.
NCS also said it would rejig its anti-smuggling operations while strengthening collaborations with other sister security agencies as part of measures to reinforce the fight against smuggling.
Speaking on the resolve of the management to pursue the matter to its logical conclusion, Comptroller General of Customs, Bashir Adewale Adeniyi extended his heartfelt condolences to the family and colleagues of CA II Auwal Haruna.
He disclosed that the service, in close collaboration with other security agencies, is tirelessly working towards “apprehending the perpetrators of this reprehensible act and ensure they face the full consequences of the law.
“Violence against our officers is utterly unacceptable, and we will pursue every avenue to bring those responsible to justice.
“The safety of our personnel and the security of our borders remain paramount. We are committed to working with traditional rulers, government bodies, and sister agencies to combat this heinous crime against our personnel”.
He further reaffirmed the unwavering commitment of the service under his watch to combating smuggling and other cross-border crimes, adding that the Service will not falter in its mission to uphold the laws of the land and protect the interests of the Nigerian people.
The CGC said: “Intelligence available to us indicates that certain unpatriotic community members are harbouring suspected accomplices involved in this heinous crime.
“We implore these individuals to embrace patriotism by aligning with the laws and refraining from condoning illegality. It is in the best interest of our communities and nation to collaborate with law enforcement agencies to root out criminal elements and ensure that justice prevails”.

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