Nigeria’s e-Naira Platform Goes Live Without Transactions

Ahead of the e-naira official launch on October 1st 2021, the Central Bank of Nigeria (CBN) has activated the e-naira portal. Although the platform has been activated, no transactions have been allowed on the platform.

The digital currency website, www e-naira.com was activated by the CBN on Monday.

The CBN Director Corporate Communications, Osita Nwanisobi confirmed the development to our Correspondent.

He also confirmed that although the platform has gone live, no transactions are permitted on the platform until the official launch on October 1, 2021.

Already the site has recorded over one million hits.

A cursory look at the website by our Correspondent shows that just information on the workability of the e-naira platform is on the website. However, visitors are told to download the app on the app stores on Android and iOS.

However, there are indications the official launch might happen October 4th based on what the CBN Governor, Godwin Emefiele told a gathering of foreign investors in New York, recently.

He had said that because of activities surrounding the country’s Independence celebration on October 1, the earlier planned launch of the e-Naira on the same date would likely be rescheduled to October 4, 2021. But this hasn’t been officially confirmed as at the time of filling this report..

“The central bank would not want the event to take the shine away from the Independence celebration,” he had said.

An estimated three million people are projected to be in need of humanitarian assistance in Zimbabwe between January and March 2022.

This is the assessment carried out by the UN’s Food and Agriculture Organisation (FAO) in its latest GIEWS – Global Information and Early Warning System on Food and Agriculture (GIEWS) report.

Zimbabwe joins 33 other countries in Africa seeking external humanitarian assistance. Most affected countries in Africa are in involved in internal armed conflicts.

However, according to FAO the number of vulnerable citizens in Zimbabwe is lower than the same period in 2021 due a large upturn in agriculture production.

The international aid organisation said countries in crisis requiring external assistance for food are expected to lack the resources to deal with reported critical problems of food insecurity.

FAO said the critical problems in Zimbabwe of food insecurity were due to high food prices and economic downturn.

“An estimated 3 million people are projected to be in need of humanitarian assistance between January and March 2022, largely on account of poor food access due to prevailing high prices and reduced incomes owing to the effects of the economic downturn,” FAO said in its report.

“However, this number is lower than the figure in the same period in 2021 due of the large upturn in agricultural production that boosted household food supplies.”

According to FAO, food price rises in Zimbabwe have remained relatively low, but price levels are still significantly higher-year-on-year.

“The official monthly food inflation rate was estimated at about 3% in August, generally unchanged compared to the previous month. The annual rate continued to fall and was estimated at 50% in August, still an exceptionally high level but significantly lower than the rates in 2020 when inflation peaked at more than 900%,” it said.

“With the recent issuance of the Special Drawing Rights by the International Monetary Fund (IMF), which the country is expected to partly use to shore up foreign currency reserves, this is expected to further bolster the stability of the currency.

“Additionally, the country harvested a large maize crop in 2021, estimated at 2.7 million tonnes, owing to supportive government policies and conducive weather conditions. The improved supply situation has also contributed to easing pressure on cereal prices.”

The GIEWS report is released four times annually. The GIEWS continuously monitors food supply and demand and other key indicators for assessing the overall food security situation in all countries of the world.

Indian farmers opposed to reforms they say threaten their livelihoods renewed their push against the changes with nationwide protests, a year after laws on the liberalization of the agriculture sector were introduced.

For 10 months, tens of thousands of farmers have camped out on major highways around the capital, New Delhi, to oppose the laws in the longest-running growers’ protest against Prime Minister Narendra Modi’s government.

Thousands of farmers have spread out to different districts to ensure a complete nationwide strike aimed at reminding the government to repeal the laws introduced to favor large private corporations,” Rakesh Tikait, a prominent farmers’ leader, told Reuters.

The Indian Parliament passed three agriculture acts—Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, Farmers (Empowerment and Protection) Agreement of Price Assurance, Farm Services Act, 2020, and the Essential Commodities (Amendment) Act, 2020—during its monsoon session culminating on 23 September.

The three farm acts: Key highlights

1. Farmer’s Produce Trade and Commerce (Promotion and Facilitation) Act, 2020

This act allows farmers to engage in trade of their agricultural produce outside the physical markets notified under various state Agricultural Produce Marketing Committee laws (APMC acts).

* Promotes barrier-free intra-state and inter-state trade of farmer’s produce.

* Proposes an electronic trading platform for direct and online trading of produce. Entities that can establish such platforms include companies, partnership firms, or societies.

* Allows farmers the freedom to trade anywhere outside state-notified APMC markets, and this includes allowing trade at farm gates, warehouses, cold storages, and so on.

2. Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020

The acts seeks to provide farmers with a framework to engage in contract farming, where farmers can enter into a direct agreement with a buyer (before sowing season) to sell the produce to them at pre-determined prices.

* Entities that may strike agreements with farmers to buy agricultural produce are defined as “sponsors’’ and can include individuals, companies, partnership firms, limited liability groups, and societies.

* The act provides for setting up farming agreements between farmers and sponsors. Any third parties involved in the transaction (like aggregators) will have to be explicitly mentioned in the agreement. Registration authorities can be established by state governments to provide for electronic registry of farming agreements.

* Agreements can cover mutually agreed terms between farmers and sponsors, and the terms can cover supply, quality, standards, price, as well as farm services. These include supply of seeds, feed, fodder, agro-chemicals, machinery and technology, non-chemical agro-inputs, and other farming inputs.

3. Essential Commodities (Amendment) Act, 2020

An amendment to the Essential Commodities Act, 1955, this act seeks to restrict the powers of the government with respect to production, supply, and distribution of certain key commodities.

* The act removes cereals, pulses, oilseeds, edible oils, onion, and potatoes from the list of essential commodities.

* Government can impose stock holding limits and regulate the prices for the above commodities—under the Essential Commodities, 1955—only under exceptional circumstances. These include war, famine, extraordinary price rise, and natural calamity of grave nature.

* Stock limits on farming produce to be based on price rise in the market.  They may be imposed only if there is: (i) a 100 percent increase in retail price of horticultural produce, and (ii) a 50 percent increase in the retail price of non-perishable agricultural food items.

The legislation, introduced in September last year, deregulates the agriculture sector and allows farmers to sell produce to buyers beyond government-regulated wholesale markets, where growers are assured of a minimum price.

Small farmers say the changes make them vulnerable to competition from big business, and that they could eventually lose price supports for staples such as wheat and rice. The government says the reforms mean new opportunities and better prices for farmers.

Global shoppers face possible shortages of smartphones and other goods ahead after power cuts to meet official energy use targets forced Chinese factories to shut down and left some households in the dark.

In the north-eastern city of Liaoyang, 23 people were hospitalised with gas poisoning after ventilation in a metal casting factory was shut off following a power outage, according to state broadcaster CCTV. No deaths were reported.

Factories were idled to avoid exceeding limits on energy use imposed by Beijing to promote efficiency.

Economists and an environmental group say manufacturers used up this year’s quota faster than planned as export demand rebounded from the coronavirus pandemic.

A components supplier for Apple’s iPhones said it suspended production at a factory west of Shanghai under orders from local authorities.

The disruption to China’s vast manufacturing industries during one of their busiest seasons reflects the ruling Communist Party’s struggle to balance economic growth with efforts to rein in pollution and emissions of climate-changing gases.

“Beijing’s unprecedented resolve in enforcing energy consumption limits could result in long-term benefits, but the short-term economic costs are substantial,” Nomura economists Ting Lu, Lisheng Wang and Jing Wang said in a report.

They said the impact might be so severe that they cut their economic growth forecast for China to 4.7 per cent from 5.1 per cent over a year earlier in the current quarter.

They cut their outlook for annual growth to 7.7 per cent from 8.2 per cent.

Global financial markets were already on edge about the possible collapse of one of China’s biggest real estate developers, Evergrande Group, which is struggling to avoid a default on billions of dollars of debt.

Manufacturers already face shortages of processor chips, disruptions in shipping and other lingering effects of the global shutdown of travel and trade.