Nation
CBN Introduces N5 Rebate On Every $1 Remittance, Today
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.
Nation
Ogoni Mangrove Wetlands Gain International Recognition As Ramsar Site
The Hydrocarbon Pollution Remediation Project (HYPREP) has announced that the mangrove wetlands in Ogoniland have been officially designated a Ramsar Site of International Importance by the Secretariat of the Ramsar Convention on Wetlands.
The designation, according to HYPREP, underscores the global ecological significance of Ogoniland’s mangrove wetlands and highlights ongoing restoration efforts aimed at addressing environmental degradation in the area.
In a press statement issued by the Project Coordinator of HYPREP, Prof Nenibarini Zabbey, the recognition was described as a major milestone for the agency, the people of Ogoni and other stakeholders working towards environmental restoration in the region.
Zabbey explained that the mangrove wetlands, which cover more than 31,700 hectares, consist of islands, tidal creeks, mudflats and mangrove forests that support a wide range of biodiversity. The ecosystem provides habitat for several species including fin fish, shellfish, crustaceans, crocodiles, turtles and the endangered grey parrot.
He noted that beyond biodiversity conservation, the wetland also provides essential ecosystem services such as fisheries production, flood control, water purification and carbon storage. According to him, the international recognition will further support local livelihoods, promote ecotourism and bring global attention to the region.
The HYPREP coordinator disclosed that the designation followed a meticulous process that began in 2024 when the project submitted a memorandum to the National Council on Environment seeking support for the recognition of the Ogoni wetlands as a Ramsar site.
Following the council’s review and approval, the Honourable Minister of Environment and Chairman of HYPREP’s Governing Council, Balarabe Abbas Lawal, formally wrote to the Ramsar Convention Secretariat requesting international recognition of the wetlands.
After a comprehensive ecological assessment, the Ramsar Secretariat granted the designation, officially recognising the Ogoniland wetlands as one of the world’s sites of international importance.
Zabbey said the recognition would strengthen ongoing environmental restoration efforts in the area and encourage stronger conservation measures and sustainable management of the wetlands for the benefit of present and future generations.
He added that the designation also fulfils a key recommendation of the United Nations Environment Programme (UNEP) Environmental Assessment Report on Ogoniland, marking another significant step in the implementation of the report’s recommendations.
The HYPREP project coordinator reaffirmed the agency’s commitment to restoring the Ogoni environment through the remediation of oil-polluted land, shorelines and mangrove ecosystems.
He also called for collective responsibility and stakeholder support to sustain the progress of the Ogoni cleanup programme and facilitate the development of a comprehensive and sustainable management plan for the Ogoni mangrove wetlands.
Nation
Perm Sec Explains Success Of FGM Elimination Programme In Rivers
The Permanent Secretary, Rivers State Ministry of Social Welfare and Rehabilitation, Mrs Lauretta Davies-Dimkpa, has attributed the successes of the 12-day programme organised for adolescent girls aimed at eliminating Female Genital Mutilation(FGM) in some parts of the State to the ability of the respective stakeholders to take ownership of the programme.
Mrs Davies-Dimkpa, who dropped the hint in an interview at the end of the programme in Elele-Alimini Community in Emohua Local Government Area on Saturday, said the event had a buy-in component, an ownership mentality, whereby facilitators, staff, and everyone involved took ownership of the project.
She explained that the Rivers State Ministry of Social Welfare and Rehabilitation, in collaboration with the United Nations Children’s Fund (UNICEF) and the United Nations Population Fund (UNFPA) had packaged a series of training sessions for adolescent girls aimed at ending the practice of Female Genital Mutilation (FGM) in some communities across the State.
According to her, the initiative was designed to educate young girls on the harmful effects of the practice and empower them to become advocates against it within their communities.
She noted that the programme, which lasted for several weeks, targeted adolescent girls from different local government areas where the practice is still prevalent, stressing that
data collected by UNICEF and the Ministry revealed that Female Genital Mutilation is still practised in some parts of the State, prompting the need for intensified sensitisation and community engagement.
Mrs Davies-Dimkpa explained that the programme adopted a “train-the-trainer” approach where adolescent girls were educated on the dangers of the practice and encouraged to share the knowledge with their peers, families and communities.
“This is a programme by the Rivers State Ministry of Social Welfare and Rehabilitation with support from UNICEF and UNFPA to train adolescent girls towards ending Female Genital Mutilation, which is still practised in some local government areas,” she said.
She further explained that each participating local government area had a three-day training session, with the exercise running for a total of 12 days.
The local government areas, where the programme took place, she noted, included Ahoada West, Abua-Odual, and Emohua, adding that the initiative is part of broader efforts by the state government and development partners to eliminate harmful traditional practices and protect the rights and wellbeing of girls.
She revealed that prior to the training of the adolescent girls, the Ministry and its partners had also engaged community facilitators, including older women and men, to sensitise them on the dangers associated with Female Genital Mutilation.
According to her, the involvement of community leaders and adults is essential in addressing the cultural and social factors that sustain the practice.
Speaking on the response of the participants, the permanent secretary expressed satisfaction with the level of engagement and enthusiasm shown by the girls throughout the training sessions.
She noted that many of the participants said they were learning about the harmful effects of Female Genital Mutilation for the first time.
“The girls are between the ages of 12 and 17 and from the interactions we had with them, they were very excited. Some of them are hearing these things for the first time and never knew that the practice is harmful,” she said.
She expressed optimism that the knowledge gained from the training would enable the girls to serve as advocates for change within their communities.
She added that the Rivers State Government, alongside its partners, would continue to intensify efforts and expand community-based interventions aimed at ending the practice across the State.
Meanwhile, the participants for Emohua Local Government Area were drawn from Elele-Alimini, Egbeda, Rumuji, Ibaa, Rumuekpe, Rumuakunde, Eligbarada, and Ogbakiri Communities.
The participants,who spoke in separate interviews described the training as eye-opening, noting that it helped them better understand issues surrounding adolescent health, personal hygiene, reproductive health, and the harmful consequences of Female Genital Mutilation.
Favour Azukwu from Rumuekpe community, said the programme provided a deeper understanding of the dangers associated with the practice, particularly its impact on the health and wellbeing of girls and women.
She explained that the training sessions exposed participants to the medical, social and psychological effects of Female Genital Mutilation, including severe bleeding, infections and complications during childbirth.
She revealed that she personally experienced the practice at the age of 12 and suffered heavy bleeding afterwards, an experience that has strengthened her determination to advocate for its eradication.
According to her, many communities still practise Female Genital Mutilation because it is perceived as a cultural tradition, despite the dangers associated with it.
“I do not support Female Genital Mutilation because there are many dangers involved. I experienced severe bleeding when it was done to me as a child.
Another participant, Glory Ken, a 16-year-old secondary school student from Rumuji community, said the programme broadened her understanding of several important topics affecting adolescents.
She explained that beyond the discussion on Female Genital Mutilation, the training also focused on issues such as personal hygiene, reproductive health, peer education, and self-care.
According to her, the sessions helped participants understand the importance of making informed health decisions and supporting one another as peer educators.
“I learned about many things that affect young people in society and how to take care of myself. I also learned that Female Genital Mutilation is harmful to our health. The message I am taking back to my community is that this practice should stop,” she said.
Also speaking, Goodness Kenjika Nyeche described the programme as very impactful.
She noted that the training equipped participants with the skills and confidence to educate others about the harmful effects of Female Genital Mutilation.
She said she plans to organise sensitisation among adolescents in her community, particularly girls between the ages of 10 and 19, to ensure they understand the dangers associated with the practice.
“I learned many things from this programme and I feel very good about it. I will educate other young girls in my community and help them understand why Female Genital Mutilation should not continue,” she said.
For Queen Dike from Ibaa community, the programme helped clarify misconceptions surrounding the practice.
She explained that in some communities, the practice is still referred to as circumcision and is viewed as part of cultural identity.
She said the training helped participants understand that Female Genital Mutilation involves the cutting or removal of parts of the female genital organs and that it has serious health consequences.
She stressed that awareness and education are key to ending the practice, especially among communities that continue to uphold it as tradition.
“I think the programme is very helpful because many people still believe it is part of culture. More awareness is needed so people can understand why it should stop,” she said.
Another participant, MyJoy Echika Amadi, said the programme provided critical information about adolescent health and the dangers associated with Female Genital Mutilation.
She described the initiative as enlightening and said it encouraged young people to become advocates for change in their communities.
According to her, participants were encouraged to use various platforms such as churches, peer groups, schools and community gatherings to spread awareness about the harmful effects of the practice.
“This programme has enlightened us about the dangers of Female Genital Mutilation. I will do my best to create awareness in my community and encourage people to stop the practice,” she said.
Many of the participants emphasised that the knowledge gained during the programme has empowered them to challenge harmful traditions and promote healthier practices among young people.
They also called on the Rivers State Government, development partners and civil society organisations to sustain the sensitisation campaigns and extend the training to more communities across the State.
According to them, empowering young people with the right information will play a critical role in eliminating Female Genital Mutilation and protecting the rights, health and dignity of girls in Rivers State.
The participants expressed appreciation to the Rivers State Ministry of Social Welfare and Rehabilitation, UNICEF and UNFPA for organising the programme and for investing in the wellbeing and future of adolescent girls in the State.
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