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Naira Devaluation: External reserves fall by $1.65bn in six months

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In the midst of ongoing foreign exchange volatility, Nigeria’s foreign exchange reserves have decreased by $1.6 billion to $32.97 billion since the Central Bank of Nigeria initiated efforts to unify the country’s foreign exchange rates.

On June 14, the central bank introduced new forex regulations, instructing Deposit Money Banks to eliminate the rate cap on the naira at the official Investors’ and Exporters’ Window of the foreign exchange market, enabling the national currency to freely float against the dollar and other global currencies. Since this announcement, both the naira and foreign currency reserves have experienced a decline, with the country’s gross FX reserves standing at $34.62 billion as of June 15.

Recent data from the Central Bank of Nigeria reveals that the foreign exchange reserves further dropped to $32.97 billion as of December 1, 2023. Inadequate foreign exchange reserves have been partially attributed to the foreign exchange crisis in Nigeria, as highlighted in a recent Africa Outlook report by the Economist Intelligence Unit.

The report indicated that Nigeria lacks sufficient FX reserves to support its exchange rate unification policy. The unsupportive monetary policy suggests that the naira will face ongoing pressure, with the central bank unable to adequately supply the market or address a backlog of foreign exchange orders. This situation is expected to unsettle foreign investors, leading to challenges in maintaining the exchange rate regime and periodic devaluations due to high inflation and disparities with the parallel market.

Professor Godwin Oyedokun, a Lead City University academic, identified weak economic fundamentals, low foreign reserves, increased external debts, and a dual forex window as factors contributing to Nigeria’s forex crisis. JP Morgan estimated Nigeria’s net FX reserves at $3.7 billion, emphasizing continued pressures on the FX market, though the Central Bank of Nigeria may acquire FX at commercial and semi-commercial rates.

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Despite these challenges, the Governor of the Central Bank of Nigeria, Dr. Olayemi Cardoso, acknowledged the persistent fluctuation in the exchange rate during a recent event and pledged to ensure transparency and fairness in the bank’s operations. He expressed confidence in restoring macroeconomic stability and addressing fundamental flaws through appropriate corrective actions and strategic steps.

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Gov Yusuf reappoints Sanusi as Emir of Kano, orders ex-monarchs 48 hours to vacate seats

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Governor Abba Kabir Yusuf has approved the reappointment of Emir Muhammadu Sanusi II as Emir of Kano under the new laws.

The governor has given former emirs 48 hours to vacate their palaces and hand over Emirate Council properties to the Commissioner of Local Government, who also serves as State Deputy Governor.

Governor Abba Kabir Yusuf of Kano State has signed the Kano Emirates Bill 2024 into law, repealing the 2019 Emirate Councils Law that altered the state’s over 1000-year history.

By signing the bill, the governor declared that the 2019 law has been repealed and is now history.

The signing was attended by the Speaker of the State Assembly, Ismaila Falgore, Deputy Governor Aminu Abdussalam, Secretary to the State Government Abdullahi Baffa Bichi and others.

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The State Assembly has fulfilled one of its constitutional roles by signing the bill into law.

CREDIT: DAILY POST

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Europa League: Lookman nominated for Player of the Week

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Ademola Lookman has been nominated for the UEFA Europa League Player of the Week. The Nigerian international delivered an outstanding performance, scoring a hat-trick in Atalanta’s 3-0 win over Bayer Leverkusen on Wednesday night.

His teammates, Davide Zappacosta and Ederson, have also been nominated for the award.

Additionally, Bayer Leverkusen defender Piero Hincapie is in the running for the accolade.

Lookman previously won the Player of the Week award during Atalanta’s semi-final victory against Olympic Marseille, where he recorded a goal and an assist in the second leg of the match.

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National Council on Sports: Tinubu lauds Mbah over safe environment, support

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Nigeria’s President, Bola Tinubu, praised Enugu State Governor, Dr. Peter Mbah, for creating a safe and conducive environment for the country’s sports stakeholders to gather for a national sports council meeting. Tinubu commended Mbah’s commitment to promoting sports, highlighting his administration’s satisfaction with these efforts.

Governor Mbah announced that his administration has partnered with the private sector to develop a state-of-the-art sports park aimed at enhancing sports development and talent discovery in the state.

During the inaugural National Council on Sports (NCS) meeting held in Enugu on Wednesday, President Tinubu, represented by the Minister of Special Duties, Hon. Zaphaniah Jisalo, emphasized the significant role sports play in a nation’s development. He noted that sports are not only a form of entertainment and recreation but also a business that warrants substantial investment.

Speaking on the theme “Sports for National Unity and Socio-Economic Growth,” President Tinubu urged Nigerians to view sports as a means to foster unity, promote health, and drive economic growth. He highlighted the opportunities sports provide for young people to develop character, discipline, and leadership skills, and called for innovative approaches to enhance sporting potential, inclusivity, and equal opportunities for all Nigerians, regardless of gender, age, or physical ability.

Governor Peter Mbah emphasized that sports serve as a powerful unifying tool, transcending tribe, language, and creed. He highlighted Enugu’s rich sporting heritage, including the achievements of Rangers International Football Club, and urged stakeholders to invest in the sports industry through effective partnerships.

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Mbah stressed the significant economic impact of sports globally and encouraged both public and private sector investment in the industry. He noted that his administration’s partnership with private investors to build a state-of-the-art sports park would provide a platform for youth talent discovery and sports enthusiasm. The facilities at the sports park will include training areas, athlete housing, and a physical therapy and sports medicine center.

Minister of Sports Development, Senator John Owan Enoh, remarked that Enugu was chosen to host the inaugural National Council on Sports due to its strategic importance in the nation’s sporting landscape. He emphasized the need for investment in sports infrastructure, talent development, and grassroots programs to nurture athletic talent, stimulate local economies, create jobs, and promote healthier lifestyles among Nigerians.

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