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Trans-Border Traders Reject Naira Over Depreciation 

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Following the depreciation of the Nigerian currency (Naira) in the past few months, trans-border traders have started rejecting the currency, thereby constituting further trade setbacks.
The Tide’s source’s findings across the Seme border revealed that the traders on both sides now prefer either the CFA or the domestic currency of the non-francophone countries.
Until now, Naira ruled the sub-region as the dominant currency accepted as a medium of exchange by traders across the borders due to the high volume of trade between those countries and Nigeria.
The Nigerian currency traded in the status of convertibility in the unofficial payment systems of the countries.
However, the source’s findings indicated that the Naira began sliding from that status in February, hitting the point of outright rejection in March 2024.
Some of the traders interviewed included Nigerians, who lamented that holding Naira has become a huge risk as the value keeps depreciating since last year with the worst rate of depreciation recorded last month.
Official reports indicate that Naira, which traded above N1/1.5CFA in the first quarter of 2023 dropped sharply to N1/0.9CFA in the second quarter and N1/0.8CFA in the third quarter of 2023.
After a moderate stability through the fourth quarter of 2023, it opened 2024 at N1/ 0.66067CFA in January 2024.
However, following a second wave of depreciation in February, the sub-regional fortune went down drastically to N1/0.38308CFA before hitting a new low of N1/0.37595CFA last week.
The traders are already hedging against further depreciation although there’s a slight improvement in the last few days.
However, the Naira is still not close to what it used to be in the subregion some years ago.
The development is adversely affecting the cost of goods imported into Nigeria through the West African economies.
Consequently, the traders are recording a lull in business activities on both sides of the border towns in Nigeria and the Benin Republic.
Some border markets in Benin-Nigeria visited showed that most of the money changers or Bureau De Change, do not display the Nigerian currency like they did last year.

Even transporters and bike riders otherwise known as Okada in Nigeria, across the borders declined payment in Naira, saying that by the time they return to convert Naira to CFA, they would have lost some fraction of their earnings. Consequently, they said CFA was safer to hold.

A bike rider, Ibrahim Yakubu, who took the source from the Seme border into the ‘Misebo’ market (about 45 kilometres from the border) refused to accept Naira and insisted on collecting his payment in CFA.

Yakubu also said before now, the Naira was strong, adding that it was easily accepted as a means of payment for goods and services.

A money changer, Taiye Ekiti, blamed the development on the United States Dollar, adding that the cost of Dollar was the reason for the depreciation of the Naira in Benin Republic and other countries including Togo and Ghana.

He added that they as Bureau De Change are equally as helpless as other business people.

A Nigerian trader who deals in fairly used clothing, Mr. Achi Collins, said most traders do not accept Naira anymore, adding “that is how much the Naira has lost value over time”.

Collins also said most traders would tell their customers to change their money to CFA before they can accept it as payment for goods.

He, however, added that around the border town of Seme, there could be few traders that still accept Naira for payment but their goods cost more.

He also noted that inside the cities of Benin Republic, Naira is not acceptable because of the value when compared to the strengthening of the CFA.

He further stated: “If you want to buy something here you will go and change your Naira to CFA before you buy whatever you want”.

Before now, Naira was accepted on the west coast, up to Ivory Coast and Senegal. Traders freely spent Naira in many countries of West Africa.
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Maritime

Shippers’ Council Registers 160 Port Operators

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The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”,  Akutah said.
He said  that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said  port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu

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Business

Chivita, Hollandia Reward Outstanding Trade Partners At Annual Conference

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Chivita| Hollandia (CHI Limited) leading fruit juice and value-added dairy manufacturer in Nigeria has rewarded its long standing distributors at the recently held 2024 Distributor Conference. The event with the theme, “Break Boundaries Exceed Expectations” served as a platform to recognise and reward the exceptional contribution of the distributors and wholesalers who play a critical role in Chivita|Hollandia (CHI Limited) success and business goals for the year.
The Distributor Conference was held in two sessions. While the morning session featured keynote addresses, industry insights and brand immersion experience, the evening session was a cultural display of elegance and funfair that culminated in the award presentation and recognition of the contribution the trade partners made to the company in the 2023 year under review.
A key highlight of the event was the award ceremony which acknowledged outstanding trade partners in various regions across the country. The awards recognized commitment, dedication, and outstanding performance in areas of sales growth, brand promotion, and market expansion.
Eelco Weber, Managing Director, Chivita|Hollandia (CHI Limited), stated that the company’s success story is incomplete without the strong partnerships it has built with trade partners. “Today, we celebrate not only the achievements, but the collaborative spirit that has made our growth possible” he said.
Bola Arotiowa, Chief Commercial Officer, Chivita|Hollandia (CHI Limited), in his statement revealed that, the event which was first of its kind will continue to be an annual meeting to enable the company work more closely with its distributors, share insights and action points, help the trade partners familiarize themselves with the company’s goals and objectives for each year, and serve as a driver for mutual success.
“Our distributors are the backbone of Chivita|Hollandia (CHI Limited). Their relentless efforts in distributing our products, promoting our brands, and expanding our reach across the nation is truly commendable. As the bridge between us and our valued consumers, it is very important to reward their hard work and dedication for being an essential part of the Chivita|Hollandia (CHI Limited) family. Together, we will continue to deliver great products to our conusmers which in turn will deliver value to them”, Mr. Arotiowa added.
Speaking at the conference, HajiyaBilikisuSaida, Chief Executive Officer of Smabirm Nigeria Limited, who won the Outstanding Distributor of the Year in North 1 region, and got a reward of two million Naira worth of Chivita|Hollandia (CHI Limited) products expressed delight at the company’s recognition, and stated that the awards served as a way to inspire distributors to do more and put in more effort, which in turn would help both the distributors and the company to grow.
Other outstanding performance distributors of the year rewarded with a two million Naira worth of Chivita|Hollandia (CHI Limited) stock include, Sunny Chuks Limited for East 1 region, MRS FA & Sons Limited for East 2 region, Hussakas Ventures for North 2 region, Rookee 1388 Ventures for Lagos 1 region, Pik N Pil Ventures for Lagos 2 region, FaithJoe Event Management Limited for West 1 region, and Progress Family Nigeria Enterprise for West 2 region.
The annual Distributors Conference aims to strengthen the bond between Chivita|Hollandia (CHI Limited) and its trade partners. This collaborative approach fosters mutual growth and ensures the continued success of the brands in the Nigerian market.
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Business

AXA Mansard Backs Female-Owned MSMEs With N1.4m Grant

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A global leader in insurance and asset management, AXA Mansard, has supported three female-owned MSMEs with business grants totaling 1.4 million to boost their operations.
This, the company said, is part of its commitment to women and the Medium, Small, and Medium-scale Enterprise (MSME) sector in the country.
The three businesses were successful at the International Women’s Day Pitch Competition, organised in partnership with SME 100 Africa in Lagos.
According to the Head of Marketing, AXA Mansard, Olusesan Ogunyooye, the competition, which is aimed at supporting female entrepreneurs in Nigeria, “is another way AXA is demonstrating its commitment to the causes of women and stimulating the MSME sector in Nigeria”.
The business pitch competition received numerous entries from women across different sectors, but after a rigorous selection process, shortlisted participants were selected to participate in the competition.
Ogunyooye said “the programme provided a unique opportunity for women from various works and socio-economic classes to showcase their innovative ideas and solutions in sectors such as food, tech, fashion, and fragrance, creating an atmosphere filled with excitement, enthusiasm, and a strong sense of community”.
He stressed the importance of investing in women, saying it is not just the right thing to do, but also aligns with AXA’s purpose of acting for human progress.
He explained that AXA believes the future of women should not be at risk, hence investing in their economic empowerment is a crucial part

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