CBN Begins Sales of Dollars To BDCs Operators

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February 27, 2024

The Central Bank of Nigeria has announced its decision to sell foreign exchange worth $20,000 to each eligible Bureau De Change operator across the country.

This is coming more than two years after the suspended former CBN governor, Godwin Emefiele, stopped the sales of foreign exchange to BDC operators in that segment of the forex market.

The apex bank disclosed this in a new circular issued and signed by the Director, Trade and Exchange Department, Hassan Mahmud, on Tuesday.

World Bank Warns CBN Against FX Control, Others

The circular titled, “Sale of Foreign Exchange to Bureau de Change Operators to meet retail demand for eligible invisible transactions” said the move aimed at rectifying the persisting distortions in the retail segment of Nigeria’s foreign exchange market and bridging the widening gap in the exchange rate.

It said the allocation will be sold at a rate of N1,301/$, reflecting the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market as of the previous trading day, dated February 27, 2024.

The circular read, “Following the ongoing reforms in the foreign exchange market, aimed at achieving an appropriate market-determined exchange rate for the Naira, the Central Bank of Nigeria has observed the continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium.

“To this end, the CBN has approved the sale of foreign exchange to eligible Bureau De Change to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1,301/$- (representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as of today, 27th February 2024).

“All BDCs are allowed to sell to end-users at a margin NOT MORE THAN one per cent (1 per cent) above the purchase rate from CBN.”

It further directed eligible BDCs to make Naira payments to the designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentation.

“All eligible BDCs are directed to make the Naira payment to the designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentation, for disbursement at the appropriate CBN Branches ABUJA, AWKA, LAGOS and KANO,” it added.

The CBN in frantic efforts to save the free fall of the naira has made a number of significant reforms towards addressing Naira depreciation, such as probing and clearing FX backlog, limiting forex for foreign education and medical tourism, increasing BDCs’ minimum share capital, and curbing FX speculators, among others.

CBN Raises Interest Rate to 22.75%

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Rhoda Onuzulike

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February 27, 2024

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The Monetary Policy Committee of the Central Bank of Nigeria has increased the benchmark interest rate by 400 basis points to a record 22.75%.

CBN Governor, Olayemi Cardoso, disclosed this while reading the communiqué of the first MPC meeting of the year on Tuesday in Abuja.

Addressing journalists at the end of the two-day meeting in Abuja, Cardoso said the committee voted to adjust the asymmetric corridor around the MPR to +100 to -700 from plus 100 to -300 basis points and raised the cash reserve ratio from 32.5 percent to 45 percent.

CBN Adopts New Cash Reserve Measure

“All 12 members of the committee decided to further tighten monetary policy by raising the MPR by 400 basis points to 22.75 per cent from 18.75 per cent. Adjust the asymmetric corridor around the MPR to +100 to -700 from plus 100 to -300 basis points, He said.

“The committee also raised the cash reserve ratio from 32.5 per cent to 45 per cent while retaining the liquidity ratio at 30 per cent.”

At the last meeting in July 2023, the MPC, headed by the former acting governor of the apex bank, Folashodun Shonubi, increased the monetary policy rate by 25 basis points to 18.75 per cent, from 18.5 per cent in May last year.

The capital requirement ratio was retained at 32.5 per cent while the liquidity ratio stood at 30 per cent.

Since then, the MPR has risen from 13 per cent in May 2022 to 18.75 per cent in July 2023 when the last MPC was held.

Years-Long Legal Battle Between Former U.S. Ambassador, French Auction House Leader Continues

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Koko Lawrence

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February 27, 2024

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New details have emerged in a protracted legal battle between a former US Ambassador to France and the leader of France’s Tajan auction house.

The lawsuit was initially filed in France by the ambassador, Craig Stapleton, against Seward in the Judicial Court of Paris, alleges Rodica Seward, president and chief executive of Tajan and an art collector. The suit claims that Rodica failed to fulfill her obligations under a handshake agreement to select and sell artworks on his behalf, with the two sharing the profits of the sales.

According to legal documents filed in 2022, Seward was entrusted in 2010 with procuring artworks for resale, all of which Stapleton paid for. She never sold the works, the suit claims, and subsequently refused to return the them or disclose their location.

The works were allegedly bought between 2011 and 2016, and were invoiced by Seward via Tajan or a British company called RBS Art Limited, of which she owns a 25 percent stake. The remaining 75 percent is held by a Samoan company called Rocks Capital Limited, owned by the wealth manager Charles de la Baume, who, according to the International Committee of Investigative Journalists, was listed in the Panama Papers and is reportedly under investigation for “aggravated money laundering.” In the 2022 filing, de la Baume is named director of Tajan.

Since then, according to people familiar with case, Seward has returned 23 of the 32 paintings. An appraisal conducted for the remaining nine pieces, among which are works by Richard Aldrich, Katherine Bernhardt, and Farah Atassi, values them at more than $1 million.

The crux of the disagreement lies in the terms of the agreement between Stapleton and Seward. While Stapleton claims that Seward was supposed to sell the artworks and share the profits, Seward contends that she incurred expenses related to storage, framing, and insurance for the artworks, and is now seeking reimbursement. The particulars of the case rest on the common art world practice of handshake deals and verbal agreements in lieu of contracts, which contain clearer, more defined terms.

Nigerian Entertainment Industry Gets Major Boost With New 12,000 Capacity Arena

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Koko Lawrence

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February 27, 2024

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Stakeholders in the Nigerian music industry have over the years restated the need for a world-class arena that can host music concerts and entertainment festivals.

Lagos State is set to get its first world-class infrastructure with work commencing at the 12,000 capacity Arena backed by Live Nation and Oak View Group.

The project is a partnership between Live Nation, OVG Persianas Group, and the Nigerian Sovereign Investment Authority (NSIA). The Lagos State governor Babajide Sanwoolu was present at the groundbreaking ceremony that was held on Saturday, February 24, 2024.

Excess of $100m is expected to go into the Arena which is slated for completion in December 2025.

The arena is expected to be capable of hosting 200 events annually including UFC, WWE, boxing and basketball events, music concerts, festivals, and award ceremonies.

“Nigerian artists are some of the most influential in the world right now and yet they have nowhere to play in their home market,” said Tim Leiweke, chairman and chief executive of OVG. “We want to change that. This consortium, headed by Tayo Amusan, has shown enormous tenacity and entrepreneurial spirit in getting this project off the ground and we are proud to be their partner,” he added.

Enyimba FC To Get $750,000 For African Football League Participation

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Emenike Agu

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February 26, 2024

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Nigeria Premier Football League (NPFL) club, Enyimba FC may have faced an early departure from the inaugural African Football League (AFL) season, but their participation has proven to be financially rewarding.

Despite being eliminated by Moroccan giants Wydad Casablanca, Enyimba received a substantial windfall of $750,000, a testament to the lucrative nature of their involvement in the tournament.

The People’s Elephant, as Enyimba is fondly called, was among the eight prominent clubs in African football that participated in the maiden edition of the CAF and FIFA tournament for African clubs.

While their journey in the AFL was cut short with a 4-0 aggregate defeat by Wydad Casablanca in the first round, the financial gains from their participation are significant.

The Confederation of African Football (CAF), the governing body behind the AFL, allocated generous prize funds to all participating clubs, totaling $4 million.

Enyimba’s share of this largesse is expected to be utilized to reinvest in the club’s development, focusing on enhancing facilities and infrastructure. This strategic investment aims to inspire the next generation of football stars and elevate the club’s status both domestically and continentally.

Despite their on-field challenges against Wydad Casablanca, Enyimba’s financial success in the AFL underscores the potential for future growth and development.

The influx of funds not only provides a financial cushion but also lays the groundwork for long-term sustainability and competitiveness.

With CAF’s generosity, Enyimba FC is poised to emerge stronger and more resilient, signaling a promising future for Nigerian football on the continental stage.

Nigeria’s Super Falcons Defeat Cameroon To Reach Paris Olympic Games Final Qualifying Round

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Emenike Agu

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February 26, 2024

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The Super Falcons of Nigeria defeated Cameroon 1-0 to reach the final qualifying round for the 2024 Paris Olympic Games women’s football event.

Both teams entered the second leg of their 3rd qualifying round clash level on aggregate following a 0-0 first-leg result at the Stade de la Reunification in Douala, Cameroon, on February 23.

At the Moshood Abiola Stadium, Abuja, Nigeria’s Super Falcons got the job done to move a step closer to the 2024 Paris Olympic Games.

Nigeria coach Randy Waldrum made a significant decision by naming reigning CAF Women’s Player of the Year, Asisat Oshoala, on the bench for the all-important game.

It took 14 minutes for Nigeria to take the lead in Abuja. Esther Okoronkwo finished off a great move by Juventus star Echegini to put the Super Falcons 1-0 up.

Super falcons of Nigeria — Esther Okoronkwo celebrates her goal for Nigeria vs Cameroon.

The Falcons created a flurry of chances to add to the scoreline, but their efforts yielded no fruit against the compact Indomitable Lionesses.

Cameroon finished the contest with ten players following a stoppage-time red card, with the Falcons holding on to seal a 1-0 victory.

Randy Waldrum tutored Nigerian Falcons will now face either South Africa or Tanzania in the final qualifying round scheduled for April 1-9, 2024.

Africa is allotted two slots for the Women’s Football event of the 2024 Paris Olympics Games.

Ghana, Zambia, Morocco, and Tunisia are the other countries in contention for the slots.

NLC Protest: Niger Police Set to Forestall Hijack

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Rhoda Onuzulike

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February 26, 2024

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Niger State Commissioner of Police, CP, Shawulu Ebenezer Danmamman has announced that adequate measures have been put in place ahead of the Nigeria Labour Congress, NLC, proposed nationwide protest to avert its hijack by miscreants in the state.

The protest is slated for February 27th and 28th, 2024, across the country.

In a statement signed by the Police Public Relations Officer, DSP Wasiu Abiodun, the CP directed the Department of Operations of the Command, Area Commanders, Tactical Commanders and Division Police Officers (DPOs) to ensure visibility policing during the protest.

NLC Protest: NPF Deploy Officers, Warn Against Hijack

He also ordered deployment of adequate police personnel and operational assets to dominate public places and monitor situations through intelligence-led/visibility policing.

The CP also directed that critical infrastructures, government offices, banks, police stations and other public assets must be adequately protected for public safety.

“The CP had admonished the intended protesters during an interface in his office today that despite having the citizen’s right of peaceful protest, which the Police must protect, they must ensure that all processions are conducted within the ambit of the law.

“In the process of exercising their rights, other people’s rights must not be violated and conduct themselves in a very civilized manner devoid of unruly character, as the Police will be on ground to provide security and subdue anyone or group of persons who may want to use such avenue to cause breach of public peace,” the statement said.

The CP further admonished parents and guardians to warn their wards against any act of violence during the protest, while also urging members of the public to be law-abiding and go about their lawful businesses.

NLC Protest: NPF Deploy Officers, Warn Against Hijack

By

Rhoda Onuzulike

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February 26, 2024

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The Nigeria Police Force, on the heels of the proposed nationwide protest by the Nigeria Labour Congress (NLC), has affirmed the fundamental right of all citizens of the country to engage in peaceful protest in line with extant laws.

As such, the NPF reiterated its commitment to ensuring the rights and freedom of all protesters are protected.

In line with its lawful duty to maintain law and order, the Nigeria Police Force has deployed personnel nationwide and placed them on red alert to monitor the planned protest.

NLC Protest Faces Warning From Attorney-General

All Commissioners of Police and their respective supervising officers have been briefed and instructed to coordinate the officers on ground in ensuring the safety and security of all participants if the protests hold as planned.

While recognizing the importance of peaceful protest, the Nigeria Police Force remains vigilant against any attempts to hijack such protests by individuals or groups of persons with sinister intents.

Emphatically, the force, therefore, is fully prepared to respond swiftly and decisively to any unlawful activities or acts of violence that may threaten peace, public safety, and security in the event of such.

It is vital to state that the Police has spread its tentacles nationwide to curb any attempt by some individuals who might want to leverage on the nationwide protests, to create brouhaha, and such will be met with an approved legal and proportional force as the Police will not allow wanton break down of law and order, loss of lives and property like we had experienced, in some instances, in the past, in any part of the country.

The Inspector-General of Police urges all participants at the proposed protest to conduct themselves peacefully and responsibly, adhering to the principles of non-violence and respect for the rights of others.

He also calls on the organizers to cooperate with the Police and other relevant security agencies in ensuring that their protests remain peaceful and orderly even as the NPF works tirelessly to ensure that protests are conducted in a safe environment, conducive to the promotion of democracy and the rule of law in Nigeria.

Maritime Workers to Shut Seaports for NLC Protest

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Rhoda Onuzulike

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February 26, 2024

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The Maritime Workers Union of Nigeria said it will join the two-day nationwide protest being organised by the Nigeria Labour Congress.

This was contained in a statement on Monday by the union’s Head of Media, Kennedy Ikemefuna who said the move was necessary following the directive of NLC that its affiliate members across the nation should strictly comply.

On February 16, the NLC announced the nationwide protest scheduled for Tuesday and Wednesday over the alleged government’s failure to implement agreements reached between both parties on October 2, 2023, following the removal of the fuel subsidy.

NLC Protest Faces Warning From Attorney-General

The decision followed the conclusion of a 14-day ultimatum issued to the Federal Government to implement measures against the widespread hardship.

According to Ikemefuna, “The MWUN would join the Nigeria Labour Congress’s two-day nationwide protest holding on the 27-28th of February 2024, as directed by the congress after its NEC-in-session meeting held on Monday, in Abuja, directing all its affiliate members across the nation to strictly comply.”

He added that the protest is coming against the backdrop of the Federal Government’s refusal to honour the October 2023 agreement signed with the congress.

“The congress believes that if the agreement had been honoured and implemented, it would have gone a long way to ameliorate the sufferings and hardships of the ill-conceived and ill- ill-implemented policies have brought upon Nigerian Workers and the citizenry of the country.”

He also added that the Maritime Workers Union of Nigeria as an affiliate of the NLC would comply with the NLC directive.

46 Abandoned Housing Projects Set To Come Alive

By

Rhoda Onuzulike

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February 26, 2024

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The Federal Mortgage Bank of Nigeria has initiated a rehabilitation process to revive about 46 abandoned housing projects nationwide.

The bank said this would be achieved through a partnership with Shelter Afrique Development Bank, a pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa.

The FMBN Managing Director, Shehu Usman Osidi, stated this while hosting the management of Shelter Afrique Development Bank recently in Abuja, noting that the bank had made reviving the housing estates a priority.

Retirement Plan To Reduce Nigeria’s Housing Deficit

According to him, the intensified collaboration will help provide construction and mortgage financing to developers in Nigeria.

“Nigeria has over 46 abandoned projects in the 36 states and the FMBN is determined to revive them”.

“Our findings show that banks have entered into a housing financing agreement with states where the state governments are expected to provide infrastructure for these estates, but unfortunately many states reneged and the projects were abandoned.

“We have explored the product offerings of Shelter Afrique Development Bank and found out that they offer infrastructure financing, so we want to bring them on board to offer this financing so we can finish up the projects and hand them over to many Nigerians who need shelter.”

Osidi further noted that Nigeria, the second largest shareholder in the bank with about 15 per cent holding, will explore areas of funding to achieve its target of delivering 100,000 housing units to Nigerians this year.

He mentioned that the FMBN is currently reviewing previously abandoned memoranda of understanding that were signed with the organisation. This review aims to explore the benefits that Nigerians could gain from this renewed partnership.

Also speaking, the CEO of Shelter Afrique, Thierno-Habib Hann, said the organisation was in Nigeria to promote its development financing agenda and identify Nigeria as a destination for investments with over $25bn in Diaspora remittances each year.

He said, “We are ready to collaborate with FMBN and other institutions across Nigeria to address the housing gap. The challenges are there and the opportunities are also there. As a development finance institution, we are very well positioned to collaborate with the government of Nigeria and in this trip, we met all the leadership including the vice president of the Federal Republic of Nigeria who is fully committed to driving the growth of the sector and invest more in the sector knowing that housing creates jobs.”

Meanwhile, the bank has said it collected about N100bn in remittances through the National Housing Fund in 2023.

The NHF scheme was established by the Federal Mortgage Bank of Nigeria to facilitate the continuous flow of low-cost funds for long-term investment in housing, through 2.5 per cent monthly deductions from employees earning a basic salary.

The former FMBN Managing Director, Madu Hamman, stated this in his handover document obtained by our correspondent.

He said, “The highlight of our achievements in the last 22 months includes that for the first time, in 2023 the National Housing Fund collection for the bank exceeded the N100bn mark. This is the first time in the history of the bank that the annual collection exceeded N100bn.”

“You have to think deeply about how you’re going to be able to satisfy the demands of the numerous contributors to the scheme through various innovative ways of raising finance, which should include going outside the NHF because if we continue to rely on the NHF that would not be achievable.”