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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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Why rice price is decreasing in Nigeria – Millers

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The Association of Rice Millers has attributed the nationwide decline in rice prices to the reopening of the Nigeria-Niger border. Jonathan Joshua, the chairman of African Rice Millers in Nasarawa, conveyed this information in a statement.

Joshua, who also serves as the national president of the Association of Small-Scale Agro Producers in Nigeria, highlighted that the price of rice is anticipated to decrease even more in the next couple of months with the onset of harvest.

“Some mills that ceased operations due to a shortage of paddy last year and earlier this year are now resuming production as they can easily acquire the grain from neighboring countries following the reopening of the Nigeria-Niger border,” he stated.

“We anticipate further decreases in paddy prices when farmers begin harvesting in two months,” he added.

Despite the inflation rate rising to 33.20 percent in March 2024, rice prices have decreased by 19 percent.

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Dislodged criminals relocating to rural communities – Abia govt alerts citizens

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The Abia State government has reported that suspected criminals, who were previously displaced from their hideouts by the state’s joint security team, Operation Crush, are now relocating to other parts of the state, particularly rural communities, in order to evade detection by law enforcement.

This relocation, as stated by the state government, aims to avoid potential identification by security forces. The concern was raised over the weekend by Navy Commander Mac Donald Uba (Rtd), the Special Adviser on Security Matters to Governor Alex Otti, in a press release.

Uba urged residents of Abia State to remain vigilant regarding the movements of such criminal elements in their vicinity. He also appealed to traditional leaders, Presidents-General, village heads, and village chairmen to promptly report any suspected criminals or individuals with questionable backgrounds to the nearest police station or other security agencies.

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RUGA: South-East governors living in deceit, denial – Intersociety

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The International Society for Civil Liberties and Rule of Law (Intersociety), a non-profit organization dedicated to human rights and democracy advocacy through research and investigation, has accused South-East governors of proceeding with the establishment of Fulani herdsmen settlements across the region.

In a statement provided to DAILY POST on Monday, Intersociety alleged that many of these governors had their elections manipulated and were now executing the agenda of influential figures.

The statement, signed by Emeka Umeagbalasi, Chair of the Board; Chinwe Umeche, Head of Democracy and Good Governance Program; Obianuju Igboeli, Head of Civil Liberties and Rule of Law; Ndidiamaka Bernard, Head of International Justice and Human Rights; Ositadinma Agu, Head of International Contacts and Mobilization; and Chidinma Udegbunam, Head of Campaign and Publicity, warned of dire consequences if South-East lands were handed over to herdsmen.

Intersociety cautioned that the actions of the governors could potentially transform the South-East into a region prone to jihadist violence similar to Benue, Plateau, and Southern Kaduna. Despite previous warnings, evidence suggests a looming threat to the security and safety of the South-East and its inhabitants, particularly regarding freedom of religion, particularly Christianity.

The organization accused the governors of facilitating the influx of Fulani jihadists and their allies into the region, armed with illegal weapons and enjoying impunity. It suggested that the governors’ actions were motivated by their desire to maintain power, even at the cost of compromising the security and religious identity of their constituents.

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Intersociety highlighted a statement by the National Leadership of the Miyetti Allah Cattle Breeders Association of Nigeria as evidence of the governors’ complicity in ceding lands to herdsmen. It noted that communal lands, forests, and farmlands in indigenous Igbo areas had been invaded and seized by Fulani herdsmen, armed with illicit firearms.

Furthermore, the organization criticized the biased stance of the Anambra State Government and accused the Enugu State Government of coercing communities to surrender their lands for Fulani settlements.

Intersociety alleged that the Enugu State Government had issued veiled directives to communities, such as Elugwu-Akwu, to hand over their lands for settlement, demonstrating a disregard for the welfare and interests of their citizens.

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