Edo people are courageous, bold and independently minded.....they value and hold strongly the principles of equity, justice and fairness; and beyond this, Asue Ighodalo is the most qualified and better experienced to lead Edo State

By Goodluck Osaretin

Ighodalo has today, emerged as the consensus aspirant of Edo Central Senatorial District for the Edo 2024 governorship election.

This was disclosed by the Special Screening Committee in a report at a Press Conference held at the PDP Senatorial District Secretariat in Uromi, Edo State.

The committee, headed by High Chief Tom Ikimi, was set up to screen all the party's aspirants from the zone with the possibility of presenting a much-reduced number of aspirants going into the primaries.

Giving the details of the exercise, Ikimi stressed that the committed carried out extensive consultations with Stakeholders, Leaders and Elders of thoughts from the region. He stated that his-led committee also met with the aspirants three(3) consecutive times for the screening exercise.

According to the report, five (5) aspirants; Kenneth Abhulime, Friday Itulah, Sen Ordia Clifford, Hon Marcus Onobun and Hon John Yakubu stepped down for Ighodalo while the duo of Barr Anselm Ojezua and Felix Akhabue pleaded for their unavoidable absence from the third and last meeting.

Buttressing the committee chairman's words, Archbishop Okosun, a senior member of the committee said that the committee did not stop any aspirant who felt he could not subscribe to the consensus arrangement, stating further that they would plead with the party to ensure a free, fair and level playground for all at the primaries.

The motion to adopt the committee's report was moved by Hon Richard Okosun and seconded by Hon Emma Okoduwa.

The committee concluded by promising to take their resolutions to other senatorial regions and plead for their support to produce a Governor of Edo Central extraction come 2024.

Ahead of the Peoples' Democratic Party, PDP, primaries for the Edo 2024 gubernatorial election, a frontline runner, Dr Asue Ighodalo has continued to harp on unity among the party's stakeholders, members and supporters.
Ighodalo said this at a crucial meeting with a block of aggrieved stakeholders of the party in Edo South Senatorial District on Friday in Benin City, in furtherance of his wide range of consultations for his aspirations to become the Governor of Edo State come 2024.
Ighodalo, who had earlier taken his message of unity to the Edo Central and Edo North Senatorial Districts respectively, reiterated the need for the party stakeholders to reposition the party for victory ahead. He pleaded that grievances, no matter who was responsible, be set aside and embrace a truce if the party must achieve the much-needed victory at the poll come 2024.
Mr Nosa Okunbor Ogieva, the PDP Edo South Leader, who led other prominent stakeholders including Pa Owere Dickson Imasogie, thanked Ighodalo for taking a very important and responsible step for reaching out to them seeking unity in the party that has been fractured and enshrined in factional crisis. Having keenly and painstakingly listened to the grandiloquent Ighodalo for more than 1hr, the aggrieved stakeholders agreed to put aside their grievances in the interest of the party and collaborate to re-engineer the party for the path of victory.
They commended Ighodalo for coming to consult them about his aspiration to seek their support to become the State Governor. His career achievements and wealth of experience across private, public and corporate sectors were applauded by the party faithful.
His words, "I passionately appealed to my fellow party members to unite and look towards a shared future. We decided to set aside past grievances and work together harmoniously. I am eager to collaborate with all members of our great party to create a stronger Edo state where economic prosperity will be a reality for all."
Addressing newsmen after the meeting, Ighodalo emphasised that he had a fruitful family meeting with his party men. "it was a fruitful family meeting, and I am glad it went well," he said. On his plans to govern Edo State, he said, " I want to build more on the economic prosperity of the state by putting in the best with my experience."

Goodluck Osaretin

Asue Ighodalo is a hardworking man who believes that courage, confidence and hard work, are what he needs to achieve his ambition

He has toured, more than any other aspirants, the entire senatorial districts meeting stakeholders and party faithfuls

Dr Asue Ighodalo the man wey sabi

The man wey sabi...joining in seekig truce to ensure a united PDP for a smooth victory come 2024
#AIRising

This is yet another laudable feat by Gov Obaseki

Edo moving forward

Kudos to Gov Obaseki for positively taking Edo to the global stage

Sen Akpakomiza is trying to divert his people's attention from his early signs of failure as a senator

Gov Obaseki is too big for this cheap blackmail

Gov Obaseki runs an economical and most transparent government in Nigeria

Again, Gov Obaseki has spoken like the man who saw today from yester-days!

This is another brilliant, courageous, bold and factual submission

I hope the reckless apc APC-led FG wakes up and take this as a challenge

This is a statement of fact... Edo Tech Hub has trained a lot of our youths who are now self employed and internet solution providers

Kudos to the Digital Gov Obaseki

@article1,

Stop showing ignorance
Partnership works by entering into an MoU

Gov Obaseki has distinguished himself by building a world-class studio in Benin City

First of its kind in South South, the 4th in the country
Kudos to him

This is a remarkable achievement by Gov Godwin Obaseki

This has ultimately increased Edo IGR and provides jobs to the locals

Join us, please!

Creating Shared Opportunities Into The Future

#Àlaghodaro2023
#TheEdoSummit
#BeninCity
#ObasekiFinishingStrong

The Central Bank of Nigeria, CBN, has challenged the legal standing of human rights lawyer, Mr. Femi Falana SAN seeking the prayers of the Federal High Court compelling it to stop the worrisome depreciation of the Naira.

The apex bank filed a preliminary objection against Falana’s suit on the falling rate of the Naira and dollarisation of the economy, wherein it questioned Falana’s locus standi and also challenged the jurisdiction of the Federal High Court to entertain the case. In addition, it prayed the court to dismiss the case on the ground that it is statute barred.

In his reliefs in the originating summons, Falana in the suit number : FHC/L/CS/470/23  is seeking the order of the Court to stop the CBN from allowing market forces to fix and determine the exchange rate of the Naira vis a vis other currencies in line with Section 16 of the Central Bank Act.  In addition, the senior advocate prays the Court to compel the CBN to stop the dollarisation of the economy since Section 20(1) of the Act stipulates that the Naira is the only legal tender in Nigeria.

The plaintiff has prayed the Court for a declaration that by virtue of Section 16 of the Central Bank Act,  the legal tender acceptable in Nigeria is Naira and kobo and that by the combined effect of Sections 15 and 20 (1) of the Central Bank Act, the currency notes issued by the Defendant shall be legal tender in Nigeria

Falana also prayed the Court for a  declaration that by virtue of Section 16 of the Central Bank Act the exchange rate of the Naira shall be determined, from time to time, by a suitable mechanism devised by the Defendant for that purpose, as well as declaring that the Defendant is not competent to allow multiple exchange rates of the Naira vis a vis the Dollars and other foreign currencies.
The Plaintiff further pray for a declaration that by virtue of Section 20(5) of the Central Bank Act the Defendant is under a legal obligation to prosecute any person who refuses to accept the Naira as a means of payment in Nigeria.

He therefore want the Court to hold that in line with the CBN Act the exchange rate of the Naira shall be determined, from time to time, by a suitable mechanism devised by the Bank for that purpose.

However in the preliminary objections filed on behalf of the bank by Mr Adeleke Agboola, SAN, the CBN contended that Falana has not in any way shown that he  stands to suffer more than other citizens of Nigeria concerning the exchange rate policy of the CBN, adding  that Falana has no locus standi to institute the case and that he has not reported those who are trading in dollars in Nigeria.

Other objections include the fact that Falana has not shown that the CBN acted in bad faith and that the plaintiff has not disclosed a reasonable cause of action against the CBN.

The Bank argued that the Honourable Court lacks the requisite jurisdiction to entertain the suit and that the Plaintiff has not disclosed a reasonable cause of action against the CBN.

The Bank further submits that the action is statute barred and that the action is not competent and maintainable against the Defendant.
In addition it submitted that the substantive reliefs sought for by the Plaintiff has been overtaken by events,  following the Central Bank announcement of unification of all segments of foreign exchange market in its Circular of 14 June, 2023.

This is very commendable

Having political foot soldiers who will serve as effective watch guard mechanism between the govt and the people at the ward level is very important

The Central Bank of Nigeria has lifted the restrictions of 43 items that were now allowed to access the official foreign exchange market in the country. In a statement signed by Isa AbdulMumin, PhD, the Ag. Director, Corporate Communications, CBN, the importers restricted by the 2015 Circular referenced TED/FEM/FPC/GEN/01/010, and its addendums can now purchase foreign exchange in the Nigerian foreign exchange market.



The CBN also informed stakeholders that as part of its responsibility to ensure price stability, it will boost liquidity in the Nigerian foreign exchange market through periodic interventions. It further stated that these CBN interventions will gradually decrease as market liquidity improves.



According to the statement, “The Central Bank of Nigeria, CBN, will continue to promote orderliness and professional conduct by all participants in the Foreign exchange market to ensure market forces determine exchange rates on the Willing Buyer-Willing Seller Principle.”



The CBN reiterated that the Foreign Exchange rates should be referenced from platforms such as the CBN website. FMDQ, and other recognized or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates.



It added that it is committed to accelerating efforts to clear the FX backlog with existing participants and will continue dialogue with stakeholders to address the issue.



“The CBN has set as one of its goals the attainment of a single FX market. Consultation is ongoing with market participants to achieve this goal.”



Below is the press release from the Central Bank of Nigeria on the commitment to boost liquidity in the foreign exchange market and lifting restrictions on the 43 banned items.

No Gov in Edo state has made Edo pensioners smiled like this

Obaseki has distinguished himself as the best

Olayemi Cardoso has assumed his role as the Acting Governor of the Central Bank of Nigeria, CBN.

This was disclosed on Friday by the apex bank in a Press Release signed by the Director of Corporate Communications, Dr Isa AbdulMumin.

The statement reads, “[b]Dr. Olayemi Michael Cardoso, recently nominated by President Bola Ahmed Tinubu, has on
Friday, September 22, 2023, formally assumed duty, in an acting capacity, as the Governor
of the Central Bank of Nigeria (CBN), pending his confirmation by the Senate. This follows
the resignation of Mr Godwin Emefiele as Governor of the Central Bank of Nigeria (CBN)
Similarly, the Deputy-Governors-Designate have also assumed duty, in acting capacities,
sequel to the formal resignation oMrr. Folashodun ShonubiMrss. Aishah AhmadMrr. Edward
Lametek Adamu, and Dr. Kingsley Obiora as Deputy Governors of the CBN.
Dr. Cardoso and his colleagues subscribed to the relevant oaths of office at a brief ceremony
held at the Bank’s Head Office in Abuja, on Friday, September 2023, and have since settled
down to the task of administering monetary and financial sector policies of the Federal
Government.
An Economic and Development Policy Advisor, Financial Sector Leader, former Chairman
Citi Nigeria and Commissioner for Economic Planning and Budget in Lagos, Cardoso brings
over three decades of managerial experience on board. He is an alumnus of Aston University,
Birmingham, United Kingdom, where he studied managerial and administrative studies. He
also holds a Master’s degree in Public Administration from the Harvard Kennedy School,
United States of America.
It will be recalled that Dr. Cardoso and his colleagues were appointed to their respective positions at the Bank on September 15, 2023, subject to their confirmation by the Senate.[/b]”

The Central Bank of Nigeria, CBN, has today announced the postponement of its 293RD Meeting of The Monetary Policy Committee

This was contained in a Press Release titled, “CBN Defers September 2023 MPC meeting”, signed by the Director of Corporate Communications, Dr Isa AbdulMumin, on Thursday in Abuja.

The apex bank had earlier scheduled the meeting for the 25th and 26th of September. However, no new date has been fixed as they said they would communicate when it is ready.

The notice reads, “The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has deferred its 293rd meeting scheduled for Monday and Tuesday, September 25 and 26, 2023, respectively. A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public,” Dr Isa said.

The Central Bank of Nigeria, CBN, has announced the unveiling of a new online platform for submission of Microfinanance Bank Licensing.

This was contained in a Press Statement titled, "[b]CBN Unveils Licensing, Approvals And Other Requests Portal (LARP)", today in Abuja by Dr Isa AbdulMumin, Director of Corporate Communications.

The statement reads, "Central Bank of Nigeria (CBN) is pleased to announce the unveiling of a new online platform for submission of microfinance bank (MFB) licence applications, known as the CBN Licensing, Approval and Other Requests Portal (CBN LARP).

The new online platform will eventually replace the current manual process wherein prospective applicants for MFB licence physically submit their applications to the CBN. In due course, the Bank will extend the platform to other categories of licences.

The online application system offers numerous benefits, including a simplified process, time savings, enhanced communication, and robust security measures. By digitising the application process, the Bank aims to improve accessibility, reduce paperwork, and expedite licence approvals, benefiting both applicants and the economy.

Consequently, with effect from September 25, 2023, MFB licence applicants are required to submit both hardcopy and online applications (via the CBN LARP) as part of a parallel run.

The cover letter submitting the hardcopy application must also note a valid application reference from the online submission to be accepted.

The parallel run will end on December 31, 2023. Thereafter, manual submissions of hardcopy MFB licence applications will no longer be required and accepted.
From September 25, 2023, prospective MFB applicants are urged to log on to www.larp.cbn.gov.ng to submit their respective MFB licence applications. Help and detailed guidance are available within CBN LARP to assist users in navigating the new platform. A user guide can also be downloaded from the platform.
Applicants may contact the dedicated helpdesk via email at cbnlarp-helpdesk@cbn.gov.ng for further information.

Meanwhile, please note that the Bank shall continue to accept manual applications for all other licence types until further notice", he concluded.

1. Olayemi Cardoso, a Lagosian, grew up in Lagos and attended Corona School Ikoyi and St. Gregory’s College all in Lagos for his primary and secondary education, respectively.
2. His father, Felix Bankole Cardoso, was the first indigenous Accountant-General of the Federation of Nigeria in 1963; and, the first indigenous Vice Chairman and Managing Director of Barclays Bank of Nigeria shortly after joining the bank in 1972. Under his leadership, Barclays successfully transformed into Union Bank of Nigeria, a wholly-owned Nigerian entity
Yemi Cardoso completed his undergraduate studies upon obtaining a Bachelor’s degree in Managerial and Administrative Studies from Aston University in 1980.
3. He later furthered his education at the Harvard Kennedy School of Government, earning a Master’s degree in Public Administration in 2005 as a Mason Fellow.
4. In recognition of his outstanding achievements in the private and public sectors, Cardoso was granted a Doctorate in Business Administration (DBA) (honoris causa) by Aston University in 2017. He is also esteemed as a Fellow of the Chartered Institute of Stockbrokers.
5. Olayemi Michael Cardoso is a Nigerian banker, chartered stockbroker and public policy expert.
6. He has served for over four decades in the public, private and development sectors as a leader and innovator.
7. Among his most impactful roles are: Commissioner in the Lagos State Ministry of Economic Planning and Budget; Chairman of the board of the African Venture Philanthropy Alliance and, most recently, Chairman of Citibank Nigeria Ltd for 12 years, until his resignation in 2022.
8. Cardoso is a dedicated family man. He is married with five children and three grandchildren. His parents were descendants of Brazilian returnees and came from prominent families from Popo Aguda.

President Bola Tinubu has approved the nomination of Dr Olayemi Cardoso as the new Governor of the Central Bank of Nigeria, CBN.

This was disclosed on Friday by Ngelale Ajuri, the presidential Spokesman, in a statement titled ‘President Tinubu nominates new CBN governor and management team for senate screening and confirmation’.

According to Ajuri, “President Bola Tinubu has approved the nomination of Dr. Olayemi Michael Cardoso to serve as the new Governor of the Central Bank of Nigeria (CBN), for a term of five (5) years at the first instance, pending his confirmation by the Nigerian Senate. This directive is in conformity with Section 8 (1) of the Central Bank of Nigeria Act, 2007, which vests in the President of the Federal Republic of Nigeria, the authority to appoint the Governor and Four (4) Deputy Governors for the Central Bank of Nigeria (CBN), subject to confirmation by the Senate of the Federal Republic of Nigeria. Furthermore, President Bola Tinubu has approved the nomination of four new Deputy Governors of the Central Bank of Nigeria (CBN), for a term of five (5) years at the first instance, pending their confirmation by the Nigerian Senate, as listed below: (1) Mrs. Emem Nnana Usoro (2) Mr Muhammad Sani Abdullahi Dattijo (3) Mr Philip Ikeazor (4) Dr Bala M. Bello In line with President Bola Tinubu's Renewed Hope agenda, the President expects the above-listed nominees to successfully implement critical reforms at the Central Bank of Nigeria, which will enhance the confidence of Nigerians and international partners in the restructuring of the Nigerian economy toward sustainable growth and prosperity for all.”

If scaled through Nigeria’s Senate confirmation, Cardoso and his Deputies will begin to serve the apex bank for a fixed period of 5 years.

Cardoso will now take over from Folashodun Adebisi Shonubi who has been in charge of the apex bank in an acting capacity after his appointment by President
Bola Tinubu following the suspension of Dr Godwin Emefiele who is under the custody of the DSS facing an investigation for financial mismanagement since June 2023.

Emefiele knows No Fate Yet

Following his suspension, Eefiele was on July 25th on a two-count charge bordering on “illegal possession” of firearms at a federal high court in Ikoyi, Lagos, and was granted bail in the sum of N20 million.
Nicholas Oweibo, the judge, had ordered that Emefiele be kept in the custody of the Nigeria Correctional Service (NCoS) pending the fulfilment of his bail conditions.
But the DSS insisted that Emefiele must return to its custody — a development that led to a face-off between the secret police and prison officials.
After the face-off, DSS rearrested Emefiele on the court premises.
On August 3, the federal government filed an application seeking leave to appeal against the order granting bail to Emefiele.
However, on August 15, the federal government made an oral application to withdraw the charge of “illegal possession of firearms”.
Mohammed Abubakar, the director of public prosecution (DPP) of the federation, had said the decision to withdraw the charge is backed by sections 174 (1) and (3) of the 1999 constitution and sections 108 (1), (2) and (4) of the Administration of Criminal Justice Act (ACJA) 2015.
On August 17, the court granted the federal government’s application and struck out the charge.

The management of Obafemi Awolowo University, Ile-Ife, has announced adjustments to the fees payable by students for the upcoming academic year.

This was disclosed by the institution on their twitter handle few minutes ago.

“The adjustments, according to the management, were considered and approved at an emergency meeting of the University Senate held on Tuesday, 12th September 2023.

The new fee structure for the various Faculties is as follows:
- Faculties of Arts, Law, and Humanities: Freshers: N151,200 Returning students: N89,200 - Faculties of Technology and Science: Freshers: N163,200 Returning students: N101,200
- Faculties in the College of Health Sciences and Faculty of Pharmacy: Freshers: N190,200 Returning students: N128,200 The University management wishes to reiterate that these adjusted fees are applicable for an academic session.
We extend our best wishes to all students for a successful academic journey”, the statement reads.
Recall that the Federal Government had recently withdrawn funding of higher institutions. To cushion the effects, it granted a student loan of N500,000 for poor students with stringent guidelines.

It should be noted OAU Ile-Ife used to be one of the most sought after institutions in Nigeria not only for its academic prestige but affordability.

The Nigerian Customs Service, NCS, has entered an agreement with its Benin Republic counterpart to enable importers to clear their goods from the port in Cotonou.

This was disclosed by the Acting Comptroller-General of the NCS, Adewale Adeniyi, in Abuja on Tuesday at the end of a two-day working visit by the director-general and senior officials of the customs service of Benin Republic.

Adeniyi said the meeting was aimed at boosting trade relations between Nigeria and the Benin Republic, as well as curbing smuggling.

Answering questions from reporters on the opening of the port, Adeniyi said the customs would ensure that due process is being followed.

“We are building confidence in the system offered by the Republic of Benin, our importers are using their ports and vice-versa,” he said.

“If there are people in the Benin Republic who want to use our ports, we try to build trust in our systems.

“And by virtue of this agreement, what it means is that Nigerian importers willing to use the ports in Cotonou can have their goods cleared in those ports because there would be an opportunity for them to pay duties on goods that are liable for payment of duties.

The Central Bank of Nigeria has debunked as false, the news currently circulating on social media platforms with the caption, "CBN to Introduce New Naira Policy".

A statement released by the apex bank reads in part, "the Central Bank of Nigeria would like to bring to your attention that the attached message currently circulating on social media is false and should be disregarded."

The fake news currently going viral on social media has it that the "CBN to Introduce New Naira by November that would make USDollar Exchange at N1.25".

A fast-leading Fintech, Flutterwave has launched Swap, a new product that will digitise the process of getting foreign exchange for Nigerians with the backing of the CBN.

The fintech is leveraging a partnership with a leading commercial bank, Wema Bank, and Kadavra BDC, a bureau de change (BDC), to provide liquidity and foreign exchange for the product.

CBN Backs Product Swap
Mr Folashodun Shonubi, the acting governor of the CBN, told reporters at a press conference last week that Swap could solve two major problems facing Nigeria’s foreign exchange market: the lack of collaboration between institutions and the dependence on cash.

“No new licenses were issued, and we believe (Swap) will help moderate the rates for the BDCs and at the same time differentiate BDCs from black market transactions,” Shonubi said. Flutterwave will leverage its International Money Transfer Operator license from the CBN to bring in the foreign currency, Kadavar will use its BDC license to sell it, and Wema Bank will support the entire process.

Shonubi added that BDCs that refuse to go digital would be phased out of the system as the CBN tries to make the FX market cashless.

“This helps us to differentiate between what is a regulated market, which is a BDC, as opposed to the ones which the central bank does not regulate.” He shared that the apex bank would monitor all transactions on Swap and unregulated foreign transactions would stop “because of what we’re doing here today.”

The launch of Swap comes a week after the CBN acting governor said the apex bank would clear all FX backlogs within two weeks. While previous attempts to clear the backlog, such as a publicised $ 3 billion AFREXIM loan, have not yielded any results, CBN is keeping its new plans to clear years’ worth of FX backlog close to its chest. A failure to clear these backlogs will keep significant demand flowing to the parallel market and limit the CBN’s ability to offer price stability.

“We understand the FX access challenges individuals and businesses face. Swap is our answer to those pain points, providing a seamless and efficient platform for currency exchange,” said Olugbenga Agboola, the CEO and co-founder of Flutterwave.

How to get Swap and Users' Procedures
1. Swap is only available on Flutterwave’s web app and for registered Nigerian users. Users can only access dollars, euros, and pounds with the product. Flutterwave will also issue cards from October for Nigerians who require swift access to Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).
2. Users must pass multiple identity verification phases and submit documentation online before accessing Swap.
3. They would have to submit their bank verification number, a selfie, the reason they want to get FX, and documentation to support their reason.
4. After submitting all the information, users can input the account numbers they want the money deposited into and get it instantly. The swap will also be available via API for banks.

The Central Bank of Nigeria has released the Communique of its 292nd Meeting of Monetary Policy Committee held on Monday 24th and 25th Tuesday July, 2023 with Personal Statements of Members.

Please, get the copy here - /3Euekum

The CBN has said that Foreign firms repatriated $5.86bn from the Nigerian economy between October 2022 and March 2023. This was disclosed in its "Economic Report, First Quarter 2023."

Deficit Payment Widens

The apex bank disclosed that higher dividend payments to residents further widened the deficit in its primary income account. It stated that this deficit widened to $2.69bn in Q1, 2023 from $2.26bn in Q4 2022.

According to the CBN, the primary income account covers the compensation of employees and investment income.

In its Quarterly Statistical Bulletin (Volume 11, Number 3, September 2022), it said, “The investment income component refers to accrued income on existing foreign financial assets and liabilities. This income may be profits, interest, dividends, and royalties received by or paid to direct and portfolio investors. It may also be interest and commitment charges on loans (Other Investment Income).”

Dividend Payments to Foreign Investors hike

Dividend payments to foreign investors amounted to $5.13bn in the six months under review.

Giving a breakdown of payments, the bank stated, “The deficit in the primary income account widened by 18.7 per cent to $2.69bn in 2023Q1, due, primarily to the 34.9 per cent increase in investment income payments, which amounted to $3.09bn, from $2.77bn in 2022Q4.

“Income on direct investment in the form of dividends rose by 12.1 per cent to $2.71bn, relative to $2.42bn in 2022Q4. Similarly, interest payments on portfolio investments rose to $0.09bn, from $0.05bn in 2022Q4. Interest earnings on reserve assets increased by 35.7 per cent to $0.20bn, from $0.15bn in 2022Q4. Conversely, interest payments on loans declined by 0.7 per cent to $0.30bn.

“The compensation of employees’ account maintained a surplus position, increasing by 6.2 per cent to $0.06bn, relative to the level in 2022Q4.”

It stated that the outflow from the account was undermining the productivity of the real sector as foreign exchange resources that ought to have been used to develop the economy were being used to service external debt.

It added, “In addition, the profit, which ought to have been ploughed back to generate increased economic activities, is being remitted to overseas countries by foreign-owned companies in Nigeria.”

The report further noted that the net deficit in the income account has declined in recent years due to lower outpayments of dividends distributed branch profit and other interest payments.

The CBN’s Q1 economic report further disclosed that foreigners redeemed matured investments in Q1, 2023 as their claim on the economy reduced.

It said, “A capital reversal of $0.78billion was recorded in 2023Q1, in contrast to an inflow of US$1.94billion in 2022Q4.”
This development, the bank explained, was due to reversals of portfolio investments and withdrawal of foreign currency and deposits from domestic money banks.

It also noted that uncertainties surrounding the 2023 general elections and the quest for a safer haven by investors contributed to the divestment.

It further stated, “A portfolio investment reversal of $1.17bn was recorded, in contrast to an inflow of $0.34bn in 2022Q4, occasioned by the redemption of investments in short-term debt securities by non-resident investors.”

The Central Bank of Nigeria (CBN) claims to have repaid the sum of 5.10 billion Chinese yuan (CNY) out of the 6 billion utilized from the Nigeria-China currency swap agreement, expected to be renewed next year.

The apex bank disclosed this in a response note to Femi Falana, a human rights lawyer, who, in June 2023, sent a Freedom of Information (FOI) request to the CBN to disclose the details of the currency swap agreement.

Deal Background

According to the CBN, the currency swap agreement commenced in July 2018. It expired and was renewed in April 2021. CNY 15.00 billion was the overdraft amount usable within the year.

The apex bank said the swap deal is renewable every three years.
Since its renewal, CNY9.00 billion had been drawn, CNY6.00 billion utilized and CNY3.00 billion outstanding, and out of the CNY6.00 billion utilized, the sum of CNY5.10 billion had been repaid, while the sum of CNY2.10 billion had not been utilized, leaving the sum of CNY900.00 million yet to be repaid. Furthermore, the next renewal is expected to take place in 2024,” the CBN said in response to Falana, as reported by the Cable.

Falana had expressed concern that despite the currency swap agreement, the federal and state governments and business community have been “prevented from transacting business in naira and yuan”.

The CBN team was led by the suspended governor of the CBN, Godwin Emefiele while Yi Gang, PBoC governor, led the Chinese team at the official signing ceremony in Beijing, China, on April 27, 2018, a culmination of over two years of painstaking negotiations by both central banks.

AIMS
The deal aimed to provide adequate local currency liquidity to Nigerian and Chinese industrialists and other businesses, thereby reducing the difficulties encountered in the search for third currencies.
The agreement provides naira liquidity to Chinese businesses and renminbi liquidity to Nigerian companies, improving the speed, convenience and volume of transactions between the two countries. It also assists both countries in their foreign exchange reserves management, enhances financial stability and promotes broader economic cooperation between the two countries.
With the operationalization of this agreement, it is easier for most Nigerian manufacturers, tiny and medium enterprises and cottage industries in manufacturing and export businesses to import raw materials, spare parts and simple machinery to undertake their businesses by taking advantage of available renminbi liquidity from Nigerian banks without being exposed to the difficulties of seeking other scarce foreign currencies.
It should be noted that Nigeria became the third African country to have such an agreement with the PBoC.

CBN announces "International Financial Inclusion Conference 2023."
Global leaders and industry experts will convene to tackle the pressing challenges of financial inclusion through dynamic brainstorming sessions and immersive workshops. #CBN
 #IFIC2023