Business
CBN Explains Depreciation In Naira’s Value
The Deputy Governor, Corporate Services Department of the Central Bank of Nigeria (CBN), Mr Edward Adamu, has attributed the depreciation in the value of the Naira to the effects of the Covid-19 pandemic on the economy.
Adamu stated this at an interactive session with the House Committee on Finance on the 2022-2024 Medium-Term Expenditure Framework/Fiscal Strategy Paper (MTEF/FSP) in Abuja on Monday.
He explained that the exchange rate was determined by the forces of demand and supply and that there were three main avenues by which Nigeria got its foreign exchange.
“We have proceeds from the sale of crude oil, we have foreign portfolio inflows and remittances; those are the three major ways that we get forex.
“Crude oil sale has not been as high as we all will want it to be and obviously in the aftermath of Covid-19, the global economy grounded to a halt and the use of crude oil was also halted.
“To the extent that sometimes in April last year, we had crude oil selling at a negative, which means that people were being paid to store what they bought and so that the avenue for forex inflows was significantly reduced.
“You go on to foreign portfolio inflows, you notice that investors also settled their affairs on the side of caution and so, once Covid-19 outbreak occurred, they moved out about $120 billion dollars from emerging markets to safe havens in America and Nigeria is one of those countries from where monies were withdrawn.
“On the side of remittances, once our brothers and sisters abroad were not working because of the situation they found themselves; they had very little to send to us here and so, we also saw remittances reduced.
“On the demand side, we saw speculative demand on the side of Nigerians, if you needed a truck of goods, because you are not sure of the uncertainties of Covid, you wanted to get three trucks.
“All these pressures on both the demand and supply side, the availability of dollar became more difficult and we had a decline or depreciation in the value of the naira,’’ he said.
Adamu, however, said that a lot of efforts within the CBN and the recovering global economy were helping oil prices and remittances to recover.
“This is why we are happy that the exchange rate has stabilised somewhat; it is a moving target, but it has stabilised in the import and export window for a while”, he added.
However, the Chairman of the committee, Rep. James Faleke (APC-Lagos) directed the CBN to present its audited account to the Office of the Accountant General of the Federation (OAGF) for scrutiny.
Faleke said that information available to the committee showed that the apex bank was yet to turn in its audited accounts since 2010 and about N800 billion was yet to be remitted to the Federal Government.
Adamu responded by saying the apex bank would interface with the OAGF and reconcile any difference there was and report to the committee in two weeks, through the Minister of Finance.
The Nigeria Customs Service (NCS) has intensified its anti-smuggling operations in Nigeria’s northeastern corridor, intercepting Premium Motor Spirit (PMS) and vehicles with a total Duty Paid Value (DPV) of over N63 million.
This success was recorded through Operation Whirlwind, a targeted enforcement drive against the smuggling of PMS outside Nigeria.
Disclosing the seizure in a statement at the Customs House in Yola, the Adamawa State Capital, last Friday, the National Coordinator of the operation, Assistant Comptroller-General of Customs (ACG), Hussein Ejibunu, who represented the Comptroller-General of Customs, Adewale Adeniyi, described the outcome as a clear result of intelligence-led and coordinated enforcement within Zone ‘D’.
He disclosed that 1,959 jerry cans, amounting to nearly 49,000 litres of PMS, were intercepted along with five vehicles used in their conveyance.
The seizures were made along well-known smuggling routes, including Dasin-Fufore, Belel-Farang, Mubi-Sahuda, Maiha, and Girei-Wuro Bokki.
“Smugglers fled upon sighting Customs operatives, abandoning their illicit consignments in their desperate bid to evade arrest”, ACG Ejibunu said.
He added that the operation aligns with the Federal Government’s broader economic protection goals under the guidance of the Comptroller-General of Customs, Adewale Adeniyi, and the leadership of President Bola Tinubu.
He emphasised that dismantling illegal fuel supply chains curbs scarcity, stabilises market prices, and strengthens national security.
“This is our contribution to safeguarding national resources and fostering economic resilience”, he said.
In line with Section 245 of the Nigeria Customs Service Act, 2023, the flammable petroleum products will be auctioned immediately, and the proceeds will be paid into the Federation Account.
By: Nkpemenyie Mcdominic, Lagos
Towards advancing President Bola Tinubu’s vision of achieving a $1trillion economy, the Minister of State for Industry, John Owan, has emphasised the strategic importance of Nigeria’s sugar sector.
A statement obtained by The Tide’s source said Enoh stated this during a public hearing organised by the House of Representatives Committee on Industry, held as part of efforts to amend the Establishment Act of the National Sugar Development Council.
The Minister, while addressing stakeholders, shared insights from a recent Federal Executive Council (FEC) meeting, which disclosed President Tinubu’s recognition of the potential in the sugar sector.
He said, “about two weeks ago, the President spoke about sugar at the FEC meeting.
“That in itself reflects the importance of sugar as a strategic industrial and domestic product that no country should take lightly, and Nigeria should be no exception.
“The sugar sector has a significant role to play in the President’s commitment to a $1 trillion economy.
“Our approach must ensure it contributes effectively to job creation and rural economic development.”
Commenting on it, the Executive Secretary of the NSDC, Mr. Kamar Bakrin, said full implementation of the Nigeria Sugar Master Plan could save the nation over $1 billion in foreign exchange annually.
The NSDC scribe noted the plan’s potential to drive employment, attract large-scale investment, and stimulate rural development.
Bakrin explained that the proposed legislative amendments aim to redefine the council’s powers and align its financial structure with the 1999 Constitution.
Stressing the necessity of robust investor confidence to realise the NSMP’s vision, Bakrin said “We require about $4.5 billion in investments to fully achieve the NSMP’s objectives.
“Investor confidence is therefore crucial, and this can only be attained through transparent and rule-based policies.”
He, however, expressed concern over a recent government directive mandating that 50 per cent of the sugar levy be paid into the Consolidated Revenue Fund, warning that such a move could undermine sectoral progress.
“The sugar levy was not intended as a general revenue-generating mechanism but as a dedicated fund to support the sector’s growth.
“Redirecting it threatens to defeat its original purpose”, Bakrin stated.
The National Agency for Food and Drug Administration and Control, represented by Iba Edward, acknowledged the bill’s intent but cautioned against regulatory overlaps.
She said, “Some proposed provisions encroach on NAFDAC’s core responsibilities under Section 5 of our Act. We urge lawmakers to clearly define roles to avoid duplication”.
A former Minister, Aliyu Idi Hong, who represented BUA Group, highlighted the company’s commitment to sugar development, citing a 50,000-hectare plantation, with 20,000 hectares currently under cultivation.
He stressed the importance of policy stability to sustain investor interest.
Speaking, the Head of Government and Community Relations at Flour Mills of Nigeria, owners of the Golden Sugar Company in Sunti, Niger State, Mr. Onome Okurah, shared ongoing efforts to boost local production.
He noted that GSC cultivates over 6,000 hectares and currently sustains sugar production for four months each year.
“With stronger partnerships, we expect tangible results in the coming years”, he stated.
On his part, Chairman of the House Committee, Enitan Dolapo Badru, assured all stakeholders that the amendment process would be inclusive and aimed at empowering the NSDC to fulfil its mandate effectively.
Former Nigerian President, Dr. Goodluck Jonathan, has been awarded the “Lifetime Achievement Award” of the Nigerian Content Development and Monitoring Board (NCDMB).
Jonathan was bestowed the award at the maiden edition of the “Champions of Nigerian Content Awards”,recently, as part of events for the 5th edition of the NCDMB’S Nigerian Oil and Gas Opportunities Fair (NOGOF), which took place at the content tower, headquarters of the Board in Yenagoa, the Bayelsa State capital.
Receiving the award, the ex-President commended the management and staff of the Board for the milestones achieved by the Board in the implementation of the Nigerian Content in the Oil and Gas industry.
He noted that prior to the enactment of the Nigeria Oil and Gas Industry Development Act (NOGIC-D Act), there were no better laws regulating operations in the hydrocarbon industry in the nation, save for a few that post- existed the discovery of oil in commercial quantity in the Niger Delta region.
The ex-Nigerian leader also lauded former Senator Lee Maeba of Rivers State, who he said sponsored the NOGIC-D Act as a private member bill, noting that the Nigerian National Assembly then was made up of people of integrity and honesty.
“Before the NOGIC-D Act was enacted by the Nigerian National Assembly when I was President, there wasn’t any good law guiding the operations in the oil and gas industry in this nation.
“As Deputy Governor of Bayelsa State under the late Chief DSP Alamieyeseigha’s administration, I led a state business delegation to China to understudy certain things in that nation, especially the oil industry.
“So, when we came back, Alamieyeseigha asked me to interface with President Obasanjo, the then President. I met him in the State House and discussed our findings with him, but there wasn’t any enabling law to save the situation.
“As God may have it, in 2010 when I became Acting President, the bill, which established the Nigerian Content Development and Monitoring Board, was sponsored as a private member bill by Senator Lee Maeba and upon its passage, I hurriedly, but meticulously assented to it to create the NCDMB.
“I’m happy with the milestone achievements of the NCDMB under various Executive Secretaries. The Board is doing tremendously well. I’m happy to hear that the Board has implemented the Local Content policy to about 56 percent”, he said.
The Tide reports that some firms and other individual stakeholders in the oil and gas industry also received awards in various categories.
They include, Dangote Refinery and Petrochemical Company, which received the award of the “Nigerian Content Downstream Operator of the year”, Dorman Long Engineering Limited, was awarded the “Nigerian Content Indigenous Service Company of the year”, while TechnipFMC clinched the “Nigerian Content International Service Company of the year” award.
Others are: This Day Newspapers, which received the award of the “Nigerian Content Media Organisation of the year”; Bank of Industry (BOI), which got the award of the “Nigerian Content Financial Service Provider of the year”; the Nigerian Liquified Natural Gas (NLNG) took the “Nigerian Content Midstream Operator of the year” award; Aradel Holdings Plc clinched the “Nigerian Content Independent Upstream Operator of the year” award; while Shell Petroleum Development Company (SPDC), now Renaissance Africa Energy Company Ltd., was given the “Nigerian Content International Upstream Operator of the year” award.
In other categories, Mr. Tony Attah of Renaissance Africa Energy Company Ltd, won the “Nigerian Content Icon of the year” award; Professor Emenike of the University of Nigeria (UNN) clinched the “Nigerian Content Innovator of the year” award; while Mrs. Iroghama Ogbeifun of Starzs Gas Ltd. won the “Nigerian Content Women in Leadership” award for promoting Women Empowerment in the oil and gas industry.
Earlier in their separate remarks, the duo of the Executive Secretary, NCDMB, Engr. Felix Omatshola-Ogbe, and the Chairman of the NCDMB award advisory committee, one time Executive Secretary of the Board, Engr. Ernest Nwapa, underscored the need for the award.
The NCDMB’S Scribe, Ogbe, who reiterated his desire to improve on the gains of the Board, promised a continued implementation of the NOGIC-D Act within its guidelines, saying the new Presidential executive orders has also strengthened the Board under his stewardship.
By: Ariwera Ibibo-Howells, Yenagoa