Connect with us

Business

CBN Refutes Currency Redenomination; Committee Promises Naira Stability by December

Avatar

Published

on

The Central Bank of Nigeria (CBN) has confirmed that it does not have any plans to redenominate the Nigerian currency, the Naira. CBN’s Director of Corporate Communications, Isa AbdulMumin, made this statement in Abuja and urged Nigerians to disregard a text message circulating that suggests the bank intends to introduce a new currency in January 2024.

The CBN expressed concern that this false narrative is gaining traction and causing debates about its implications for the Nigerian economy. The bank emphasized that the contents of the message are misleading and clarified that there are no plans to restructure or redenominate the Naira. Any reforms being considered will follow established procedures in accordance with the CBN Act of 2007.

The CBN urged the public to ignore the speculative news report, which is intended to create panic. In the meantime, the Naira’s unofficial exchange rate stood at N1,162 to one US dollar, with varying rates against other foreign currencies. Additionally, the Federal Government is taking steps to stabilize the foreign exchange market to determine the Naira’s true value by the end of the year.

The government is focusing on implementing transparent rules for the official market and addressing a backlog of dollar demand, estimated at $6.7 billion, while introducing new foreign exchange rules, including measures against illicit currency trading. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, sees these measures as effective in improving forex supply but emphasizes the need for more sustainable solutions, including boosting exports and addressing domestic production issues related to petroleum products.

Advertisement
Click to comment

Leave a Reply

Business

Shallow, insignificant – NLC, CSO, others knock Nigerian Govt over N18 electricity tariff reduction

Avatar

Published

on

Nigerians, the organised labour, Civil Society Organisations and power sector experts have knocked the Nigerian Federal Government and Nigerian Electricity Regulatory Commission, NERC, over the N18 downward review of electricity tariff for end-users under Band A.

DAILY POST reports that NERC announced a tariff decrease for customers under Band A feeders on Monday.

The Commission slashed electricity to N200.6 per Kilowatt-hour from N225.

Ikeja Electric, Abuja, Kaduna, Ibadan, Enugu, and other discos effected the new tariff implementation on Monday.

The development comes a month after NERC approved a 240 per cent tariff hike for electricity customers getting between 20-24 hours of supply.

Advertisement

However, Nigerians, organised labour and other organisations have kicked against the hike, insisting on its reversal amid Nigeria’s economic hardship.

Recall that on Sunday, TUC issued a two-week ultimatum to NERC to reverse April tariff hike.

But, contrary to Nigerians and Organized Labour’s demand for an immediate electricity hike reversal, NERC settled for a downward tariff review.

NERC sighted Improved macroeconomic parameters as the reason for the downward review.

The Naira appreciated N1353.21 per Dollar on Monday at the foreign exchange market, up from N1400.4 on Friday last week.

Advertisement

Explaining the decision, NERC said, “The Commission has considered changes in the macroeconomic parameters over the preceding month of April 2024 and especially the appreciation of exchange rates – consequently, the Commission has approved a downward review of end-user tariffs for Band “A” customers from NGN225/kWh to NGN206.8/kWh”.

Barr Dafe Akpeneye, Commissioner of Legal, Licensing and Compliance at NERC, stressed that, “It is based on other macroeconomic variables that the tariff was reduced”.

Meanwhile, the development did not go down well with NLC, Civil Society Organisations and many other Nigerians.

They described the reduction as silly, insignificant, tokenism, and shallow.

In an exclusive interview with DAILY POST on Monday, Benson Upah, the spokesperson of NLC, described the development as tokenism, stressing that it would not positively impact consumers.

Advertisement

He said the downward review of electricity tariff for end-users under Band A fell short of Nigerian workers’ demands and expectations.

He called for a total reversal of April’s tariff hike and a review of Nigeria’s power sector privatisation.

“This is tokenistic. It falls far below our demand or expectations. Doubtful if this will make a positive impact on consumers.

“A total reversal and a review of the privatisation of the power sector is our demand”, he told DAILY POST.

On his part, the national secretary of the Network for Electricity Consumers Advocacy of Nigeria, Uket Obonga, said NERC was confused and was making a mockery of the sector.

Advertisement

“NERC is confused. You wake up to issue electricity price hike. Is that the methodology of tariff fixing? NERC should not mock themselves.

“A methodology designed by the Commission has yet to be followed. All their claims about the benefit of electricity subsidy removal are scams,” he noted.

According to the 2023 Electricity Act, Section 116(6) provides that the proposed tariff will be published in Newspapers and the official gazette to enable stakeholders to raise concerns and representation to the Commission.

Additionally, it provides that the Commission shall issue notice to relevant stakeholders to submit their input within the timeframe determined by the Commission for consideration before the Commission updates the tariff methodology, which is why Obonga alleged that NERC failed to follow due process in issuing May’s tariff order.

Also, Ewetumo A A, a retired staff member of the defunct Power Holding Company of Nigeria, PHCN, formerly the National Electric Power Authority, NEPA, said the recent review shows how shallow and misdirected NERC personnel have become.

Advertisement

“It only shows how shallow and misdirected our bureaucrats and technocrats in NERC headquarters are.

“They refused to condemn a Gas-to-Power Policy denominated in US Dollar but are quick to pass on to hapless Nigerians the Forex fluctuations.

“NERC has no feasibility studies on Load Demand or a blueprint for building Power Plants to meet citizens’ energy needs nationwide but only to ration and price the little Megawatts remaining on the Grid”, he stated.

Similarly, the Lead Director of the Centre for Social Justice, Eze Onyekpere, said the tariff reduction is a silly manoeuvre by NERC.

He urged for a reverse to status quo before April’s tariff hike.

Advertisement

“It is a silly manoeuvre. It is above the market cost of electricity. How sustainable is the Naira appreciation?

“If the Naira slumps tomorrow, will the tariff be increased? That is why I call it a silly manoeuvre.

“They should go back to the status quo. Nigerians should know the actual cost of electricity. I am not impressed”, he told DAILY POST.

CREDIT: DAILY POST

Advertisement
Continue Reading

Business

FX crisis: Nigerian Govt to delist Naira from peer-to-peer platforms

Avatar

Published

on

The Federal Government has announced intentions to remove the Naira from all peer-to-peer (P2P) platforms. Emomotimi Agama, the Director General of the Securities and Exchange Commission, revealed this during a virtual meeting with blockchain stakeholders on Monday. The objective is to address the manipulation of the Naira’s value in the foreign exchange market.

In recent months, regulatory authorities in the country have been closely examining cryptocurrency exchanges. On March 8, the largest cryptocurrency exchange, Binance, ceased its Naira services.

Continue Reading

Business

Türkiye stopped trade with Israel to compel ceasefire – President Erdogan

Avatar

Published

on

Turkish President Recep Tayyip Erdogan stated that the country’s recent decision to cease trade with Israel was aimed at pressuring the Israeli government to implement a ceasefire in the Gaza Strip.

Erdogan made these remarks during a meeting with the board of directors of the Independent Industrialists and Businessmen Association in Istanbul, as reported on the presidency’s website.

He further clarified that the government would collaborate with and seek input from the business community to address the repercussions of discontinuing trade with Israel.

The Turkish Trade Ministry announced on Thursday the suspension of all trade activities with Israel, citing the latter’s ongoing violence against Palestinians in the Gaza Strip.

Erdogan also noted that this move could serve as a model for other nations concerned about the current situation in the region.

Advertisement
Continue Reading

Trending