₦airaland Forum

Conoil Plc on Thursday reported a growth of 176 percent in profit and announced a 200 percent rise in dividend for the year ended December 31, 2015.

The company recorded a pre-tax profit of N3.448 billion in 2015, an increase of 125 percent from N1.532 billion recorded in 2014.

Despite the challenging environment, the petroleum products marketing company recorded N2.307 billion profit after tax, a 176 percent increase from the N834 million recorded in 2014.

Earnings per share also jumped by 177 percent from 120 kobo in 2014 to 333 kobo in 2015.

The company attributed its success to efficient management of resources, effective cost control policy, as well as reaping from its huge investment in the expansion and upgrade of its facilities.

“For us, the downstream sector remains fundamentally attractive and viable today and the future. With our clarity of direction and focus, our company’s long-term success is assured. We will sustain this improved performance and vigorously pursue our aspiration to remain the nation’s leading petroleum products marketer and one of the most profitable quoted companies,” the company said.

Following this impressive performance, the company has proposed a dividend of N2.08 billion, translating to 300 kobo per share compared with the 100 kobo paid in 2014.

http://investorsking.com/conoil-grows-profit-by-176-to-n2-3bn/

owoademola:
He's not afraid to sack anybody he want them to convince him more, probably before the year runs out.
He believed in the principle that said, this fire wood is not good we removed it, another one, another one till when are we going to see the best one. so let give them more time.

So you are living with him to know that much?

cyrilamx:
Will you tell that to the average Nigerians even literate ones who blinded b unnatural bigotry that this recession isn't Buhari's fault rather crash in World oil prices and to some extent, years of unbridled corruption, wastages and now economic saboteurs from certain part of the country because of political leanings? Even the ousted political party are using it to campaign against the ruling party in Edo as if states under them ain't receiving bail outs. I weep for sheer gullibility of Nigerians who because of present challenges which the locust years of wicked administrations caused, want to return to "Egypt" for cucumber and lettuces against their foreseeable Canaan (brighter future).

It is from both party.

Two entrepreneurs to unveil Nigeria’s first ever online lender in New York on Thursday.

The digital bank, Lidya, will have no branches and will be based in Lagos, Nigeria’s commercial capital. According to a report from Bloomberg, the digital bank will focus on small and medium-sized businesses and offer loans between $500 and $15,000.

Tunde Kehinde, a co-founder said Lidya will initially focus on Nigerian customers, but will also target cities across the African continent.

“There are no real products catered to these customers today,” Kehinde said by phone from New York, where he’ll announce the formation of Lidya at a financial technology conference. “What we’re trying to do is introduce a lot of technology, algorithms and machine learning to industrialize the credit assessment process.”

Kehinde graduated from Harvard Business School and was a former managing director of Jumia, Nigeria’s biggest online retailer. Currently, he runs Africa Courier Express with Ercin Eksin, other co-founder.

The two majority owners will be looking to bring other shareholders on board to raise more than $1 million in the next few months from investors in the U.S., said Eksin.

Lidya will be opened officially next month for business and planned to partner Nigerian banks to allow them use it as a platform to reach small business.

“Because of how the banks are set up, with bricks and mortar networks, they’re more inclined to service multinationals and large government institutions,” Kehinde said. “Their cost structure isn’t favorable to servicing small businesses. Because we’re using technology and algorithms to assess the risk, it allows them to offer financial products to these customers at a low cost.”

http://investorsking.com/harvard-graduate-to-start-nigerias-first-online-lender/

989900:
Ain't all these guys from various departments in the CBN?

Bro I am not here to argue with you, but you can go to CBN website and read about it.

989900:
Monetary policies are primarily CBN -- this is one of the core mandates of the CBN; to control prices and inflation.

Why would Adeosun and others turn around to condemn raising rates?

If you have substantial contrary info, kindly share.

Bro you vote to raise rate. CBN can not alone

Monetary Policy Implementation Committee (MPIC)

The Monetary Policy Implementation Committee (MPIC) was established at the 192nd meeting of the Monetary Policy Committee (MPC) on 25th October, 2005. At inception, the membership of the Committee included the Deputy Governor (Economic Policy) as the Chairman, the Directors of Research and Statistics and Banking Operations Departments. The Monetary Policy Committee Secretariat which later in November, 2005, formed part of the new Monetary Policy Department serves as the Secretariat.

At its second meeting on 31/10/05, the membership was expanded to include the Directors of Banking Supervision, Trade &Exchange and Information Technology Departments. Also, at its 10th meeting, the MPIC decided that the Director, Currency and Branch Operations Department be invited to guide the Committee on decisions and developments affecting currency in circulation. T[b]he Director of Finance Department was later invited to join the committee.[/b]

Composition (current composition to be updated)

Deputy Governor (Economic Policy) - Chairman
Director, Monetary Policy Department - Member
Director, Research Department - Member
Statistics Department - Member
Director, Banking Operations Department - Member
Director, Finance Department - Member
Director, Trade & Exchange Department - Member
Director, Banking Supervision - Member
Director, Currency and Branch Operations Department - Member
Director, Information Technology Department - Member
Special Adviser to the Governor (Economic Matters) - Member

989900:
CBN controls interest rates -- watch the video where Adeosun ripped apart CBN raising rates.

CBN don't raise rates, monetary policy committee do and it comprises of FG, CBN, Finance Minister, etc

PassingShot:
I disagree. You can attack recurrent expenditure and still borrow but for capital projects; and there won't be any problems.

Over 40,000 (and counting) ghost workers have been removed from FG's payroll. Unnecessary travels and First Class travels have been pruned down drastically, and a host of others. All these steps will surely affect amount of money in circulation but investing more on capital projects can compesate very well for that.

Besides, focusing on unemployment challenge can be done independently of cutting spending on recurrent expenditures. One doesn't get in the way of the other.

You are mixing it up, that is reducing expenditure/leakages. It does not add much to our revenues. Borrowing for capital project, isn't that capital expenditure? Won't it reflect in the future budget? So why making noise on something we can't deal with now? We have more problem at hand than her usual example "Ethiopia".

We need to spend aggressively and encourage real entrepreneurs to invest and leave all these minor issues.

PassingShot:
I agree with that of interest rate but she's right saying recurrent expenditure is our problem. Her primary point when he made that statement was "salaries and emoluments" of office holders. High interest rate has actually been a major problem.

My issue with that method is we cannot attack recurrent expenditure while the nation is borrowing and just yesterday they planned to borrow 120 billion from local market, but reducing expenditure while diversifying the economy is key. One key factor is low interest rates and realistic market policies to encourage local manufacturers and investors to revamp the economy.

Once unemployment drop, earnings will go up and we will attack inflation, not chasing foreign investors because of capital importation needed to offset deficit created by dollar scarcity. We need rebuilding.

PassingShot:
The Finance minister is doing fine. Her proposal is to borrow to finance capital projects.

Emefiele has proved to be confused but Buhari is a man who obeys the laws/constitution of the land. The laws make it difficult (though not impossible) to sack Emefiele before expiration of his term.

The finance minister is even worst, imagine in her last speech widely shared across social media. She speaks at length on why recurrent expenditure is our problem yet interest rates is 14%, how do you create jobs when interest rates is at all time high and they are borrowing aggressively, won't that be recurrent in future budget? Why can't we stimulate our economy from within and empower our people?

Now is the time to diversify, since Nigerians do not have the money to meet high foreign exchange rates. So local substitute goods will sell but government must allow local manufacturers access to cheap loans.

PassingShot:
The current hardship occasioned by his tough but correct decisions are prerequisite to make Nigeria experience the real growth and development.

Gold only becomes very valuable and admirable after passing through very high temperature. The higher the temperature at which it's heated, the harder it becomes, not the softer.

The president needs support of patriotic Nigerians.

This hardship is not caused by him but global oil glut, I won't blame him. But I will blame his financial team for not providing US blueprint like every normal sovereign nation.

Read this https://www.nairaland.com/3329132/idiocy-nigerian-financial-team

PassingShot:
Buhari, the Indefatigable leader of our time.

Where others failed he has succeeded. Where other couldn't dare to venture into he has dared and venturing into.

Despite today's hardship, I have no doubt this man will eventually succeed. He doesn't shy away from taking tough decisions needed to put Nigeria back on track of progress and development.

The economy will turn around for the goods and soon our fate/destiny will not be decided by crude price anymore.

He is currently afraid to sack both CBN Governor and Finance Minister, they both lacked recession technical know-how and has failed to proffer tangible solution.

PassingShot:
Buhari, the Indefatigable leader of our time.

Where others failed or dared to venture, he has succeeded and also daring to

Hope he will succeed with the Economy

The Nigerian Stock Exchange declined by N70bn on Tuesday as stocks of 29 companies closed in the red, while just 10 companies recorded gains.

The market capitalization shrank from N9.517tn to N9.447tn, while the gauge (NSE All-Share Index) plunged from 27,707.12 basis points to 27,503.81 basis points.

The NSE All-Share Index rose as high as 28,419.92 during trading hours, but retreated to 27,797.31 before finally closing at 27,503.81.

A total of 176.772 million shares valued at N1.885bn were traded in 3,682 transactions.

The banking sector and oil and gas led market declines following negative closes in Union Bank of Nigeria Plc (5 percent), Zenith Bank Plc (2.34 percent loss), Forte Oil Plc (2.82 percent) and Total Nigeria Plc (0.37 percent).

http://investorsking.com/nigerian-stock-market-loses-n70bn-in-a-day/

barleeh:
thanks,but i'm going for masters, they would ask for my degree certificate and not my ssce result, are we suppose to stamp our degree at the ministry

Imagine you are telling me what I did. That was what they requested from me, maybe because my degree was UK.

barleeh:
@allhavesinned @ Truth234 , please I need to know abt d Eligibility letter from the Nigerian Embassy in malaysia, I heard my degree must be stamped in ministry of Education in nigeria before the would issue d letter of Eligibility over there

.

I collected it in 2012, nothing like stamp. But you will need WAEC/NECO scratch card.

Truth234:
Forex Weekly Outlook August 5 – 9

The U.S dollar was rattled last week by a series of weak economic data released towards the end of the week, the nonfarm payrolls report came out less than expected at 151,000 in August from 255,000 recorded in July, and this couple with weak productivity from the manufacturing sector (49.4) alerted the markets to the likelihood of the Federal Reserve relinquishing on its rate decision this year. This is because during the Jackson Hole speech, the Fed Chair Janet Yellen said if the economy continues to improve and productivity pick up that the Federal Open Market Committee will look into tightening interest rates, otherwise the FOMC will continue to monitor growth and acted only when necessary.

Nevertheless, the US trade deficit narrowed 11.6 percent in June to $39.47 billion in July, while imports dropped 0.8 percent and exports rose 1.9 percent. The improvement in exports was largely due to increased overseas orders of foods, feeds and beverages — especially soybeans. Meaning, it’s more likely to reverse going forward, but it will support third quarter overall growth. Read more..

http://investorsking.com/forex-weekly-outlook-august-5-9/

If you read this and follow it, not only would be in profit by now but the direction of top economies will be cleared.

Mynd44, OAM4J

OreMI22:
[size=14pt]Appointing incompetent people to run the economy purely out of sentiment of being APC party members is what rules Buhari's mindset & decisions, and what has ruined Nigerian economy.

When OBJ pleaded with NOI to help him boost Nigeria's economy, she was neither a PDP member nor even living in Nigeria. She was a top Nigerian technocrat at the world bank.

Anyhow, how does it concern me? Those that want every decision to be based on primordial party, tribal or religious sentiments should enjoy the Nigeria they are creating.[/size]

That is the problem, the current team have no experience. Check their CVs they are top managers with no clue as policy makers. This is recession, more than whatever they have experienced. Only Okechukwu Enelamah, Minister of Industry, Trade and Investment (MITI) has the experience.

Adesiji77:
Make I book space.

Truth234, how far now?

I dey Mr Adesiji, how that side?

In an economy as vibrant and fragile as Nigeria, financial team is pivotal to how the nation strike a balance between global and national economics, and use that as the basis for formulating both monetary and fiscal policies. This is something Nigeria's financial team has failed to do since the global oil glut started.

When global oil prices plunged and erased over 70 percent of Nigeria’s foreign revenue. Instead of the central bank to allay national fear by formulating monetary policy to stimulate the economy from within and assure the nation of its readiness to do whatever it takes to ensure things does not deteriorate further like the Bank of England governor Mark Carney did immediately the Britons voted to leave the European Union on June 23, the institution spent the first two months of this administration denying the impact of the shortfall on the economy, only to banned manufacturers of 40-items from accessing forex at official rate on June 23, 2015 as a measure to rescue itself from lack of forex, but end up weakening the manufacturing sector as most manufacturers had to lay off when they couldn’t source for raw materials, leading to high unemployment rate and even higher foreign exchange rates.

Subsequently, this created unnecessary fear and alerted foreign investors to the level of their technical know-how, hence the capital flights that follows and the persistent pressure from both the International Monetary Fund and analysts to devalue the Naira so as to accommodate the difference created by a drop in global oil prices. Again, the federal government, central bank, ministry of finance and monetary policy committee (financial team) refuted all plead to devalue the Nigerian Naira and instead increased interest rates by 100 basis points to 12 percent to boost capital importation, ease the liquidity issue unfolding at the interbank market as at the time and reduce capital flight simultaneously. Not only does this monetary policy fail, but it further exposed their lack of experience in managing financial crisis.

However, one would think the Nigerian Monetary Policy Committee that had voted severally on rates since then would thought it necessary to lower interest rates and allow real investors access to cheaper loans to create jobs needed to attack high unemployment rate, increase consumer spending and fight economic gridlock, while the CBN concentrate on how to increase forex into the country by going after institutions like PayPal Inc., that bar Nigerians from withdrawing funds yet declared Nigeria as the third highest mobile shopper in the world. But no, the Monetary Policy Committee led by the Governor of the Central Bank of Nigeria Godwin Emefiele left rates unchanged.

Again, on June 20 when the institution exhausted its external reserves and was forced to introduce forex flexibility policy, the institution failed to take into consideration global economics “the U.K. and the European Union referendum of June 23”. Even though, Nigeria is a petrol-dollar economy and grossly depend on the outcome of the referendum like every crude oil dependent economies, the CBN neglected the obvious and roll out forex policy three days to the referendum to attract global investors that were perturbed by the high global uncertainty created by the referendum, and in fact forced the “BIG” US Federal Reserve to rescind on its rate decision pending the outcome of the vote.

As expected that too failed, with nothing left in its arsenal to attack the situation, the CBN resolved to a more radical move by increasing interest rates by 200 basis points to 14 percent in an economy with pervasive layoff, low consumer spending and weak manufacturing sector -- all in an effort to lure same global investors that have refused to invest in Naira's risky assets, especially when global risks and uncertainty heightened by Brexit jumped to the level last seen in 2009. This was even made worse in Nigeria with the recurrent militant attacks that has reduced oil production by more than 600,000 barrels per day, high unemployment rate (13.3%), high inflation rate (17.1) and negative economic growth rate (-2.06).

The question is why chasing foreign investors? Why not stimulate the economy domestically by lowering interest rates and ensure commercial banks pass the difference to customers, then go after corporations like PayPal Inc., to complement the 11 newly licensed international money transfer operators? Here is the logic, if the lack of liquidity in the forex market is as a result of low business confidence and high uncertainty associated with Naira assets, why not restore business confidence by addressing the nation and the world on the situation of things and the steps the central bank planned to take to resolve these issues going forward? This does not merely work for the U.K after Brexit but it has restored the economy to almost normalcy barely two months after the referendum. Both global and local investors need a clear cut policy to make informed investment decisions. The CBN will not lure investors without a blueprint. If this is done, it will not only boost business confidence but also help lower high foreign exchange rates and revamp the manufacturing sector.

http://investorsking.com/the-idiocy-of-nigerian-financial-team/

Forex Weekly Outlook August 5 – 9

The U.S dollar was rattled last week by a series of weak economic data released towards the end of the week, the nonfarm payrolls report came out less than expected at 151,000 in August from 255,000 recorded in July, and this couple with weak productivity from the manufacturing sector (49.4) alerted the markets to the likelihood of the Federal Reserve relinquishing on its rate decision this year. This is because during the Jackson Hole speech, the Fed Chair Janet Yellen said if the economy continues to improve and productivity pick up that the Federal Open Market Committee will look into tightening interest rates, otherwise the FOMC will continue to monitor growth and acted only when necessary.

Nevertheless, the US trade deficit narrowed 11.6 percent in June to $39.47 billion in July, while imports dropped 0.8 percent and exports rose 1.9 percent. The improvement in exports was largely due to increased overseas orders of foods, feeds and beverages — especially soybeans. Meaning, it’s more likely to reverse going forward, but it will support third quarter overall growth. Read more..

http://investorsking.com/forex-weekly-outlook-august-5-9/

Puvour:
There is a difference. Galileo Galilee could not explain why all these phenomena are true. Einstein provided the ground breaking explanation to all the occurrences I mentioned. So it's safe to say it's Einsteins understanding of the concepts that revolutionalized our knowledge of the universe as we know it today.

Not at all, he clearly explained the part I quoted (same acceleration), while simultaneously disproving Aristotle's theory of gravity. So Einsteins only further what has been established by his predecessor. And so did Isaac Newton.

Puvour:
Einstein of course
Some people have given the reasons above by stating some of his achievements but let me simplify it as much as I can for non-science people.
Imagine being told that "time" as you know it is not constant but two different people will read different times on their clocks if they are both moving at different speeds that is large enough.
That time will also be slower for those of us that are on ground than those that are flying in an airplane for the same event. (gravitational time dilation). In other words, if your twin brother left the ground and was living far above on mountain everest (if it were possible), after so many years, he would have been older than you even if both of you time yourselves with the same accurate clock (say an atomic clock).
The application of these concepts is what makes it possible for your GPS to tell you what exact position that you are on earth accurately.
Another thing that may sound strange to you; When you drop a stone from a height, especially where there is no air to push against it as it falls, ordinarily you would expect the stone's speed to keep increasing until it hits the ground right? Well, that's not true. In fact, right from the moment it started dropping, its speed remains the same! And it never changes throughout it's fall. You only think it's increasing because it's you who is actually "moving" relative to the stone. [b]Any object moving in space ordinarily does so at a uniform speed including your stone. We always assumed that the earth has a force from within it that pulls us to herself and therefore makes our speed increase with time (acceleration by Newton's Idea), [/b]but it's not true. There is no force from within the earth. That's why when you fall freely in a lift for instance, you feel as if you have no weight, as if there is no force whatsoever acting on you. Because there is actually none. Now the reason might get a little confusing. Space and time bends around a massive object like the earth, so although your falling stone covers an equal distance in every second( constant speed) in the real sense, to you it's speed is increasing because you are judging it based on a curved/bent space and time.
These ideas have helped us understand better the nature of our universe, where it started from (big bang), where it will possibly lead to, the application of space technology in forecasting disease outbreaks on a farm, disaster management, solid mineral exploration, defence and security, weather forecast, even in public health as well as GIS/GPS.
Einsteins works are evolutionary!

Good job but that was first carried out by Galileo Galilei

Teempakguy:
They don't even use Thomas Edison's light bulb in advanced countries anymore.

This is not a contest. Thomas Edison is nothing compared to Einstein.

That wasn't the only thing he invented, he has more than 1,000 patents and Einstein applied some of those discoveries.

U.S. Manufacturing, A Drag On Rates Increase

Last week, when the odds of Fed raising rates later in the year jumped. I said it is unlikely the Fed will raise rates this September because of low productivity, especially from the manufacturing sector. Yesterday, the unemployment claims remained low for 77 consecutive weeks, but something never changed, that was the low factory output and oversea orders — a huge concern if the Fed planned to attack the surge in unemployment and low new job creation that usually accompany high interest rates.


http://investorsking.com/u-s-manufacturing-a-drag-on-rates-increase/

The Nigerian manufacturing sector declined in August, following a slowdown in business activities in the nation due to the global oil glut that crippled every facet of the economy.

The purchasing manager index that measures the activities of business managers in the manufacturing sector declined from 44.1 in July to 42.1 in August, the Central Bank of Nigeria report showed on Thursday. This indicated that the manufacturing sector is yet to rebound and fast declining if nothing is done.

According to the report, out of the total 16 manufacturing industries surveyed 15 recorded a decline in August. Only the electrical equipment industry remained unchanged in the month under review.

Also, the gauge showed that the productivity index fell to 40.5, making it the eight consecutive month the manufacturing output had declined this year.

Since the National Bureau of Statistics released its second quarter GDP report on Wednesday, many experts have called on the Central Bank to lower interest rates in order to create jobs and attack surging unemployment rate caused by the weak manufacturing sector that is weighed upon by high foreign exchange rate.

But few Bureau de Change operators have said the decision of the central bank to licensed 11 international money transfer agents will reduce the lack of liquidity substantially and compensate for whatever intervention the CBN has in place.

The Nigerian Naira plunged further to 425 against the United States dollar at the parallel market on Thursday, after trading at 420 on Wednesday.

http://investorsking.com/nigerias-manufacturing-output-falls-in-august/

The Nigerian economy continues to struggle amid falling oil prices, rising inflation, high unemployment and militant attacks that have seen the former largest African economy turn against itself in recent time.

The economy declined by 2.06 percent on a yearly basis in the second quarter, worse than a decline of 0.36 percent recorded in the first quarter of the year, the National Bureau of Statistics (NBS) said on Wednesday.

This was 4.41 percent lower than 2.35 percent growth rate recorded in the corresponding quarter of 2015.

On a quarterly basis, the economy increased by 0.82 percent, while nominal GDP stood at N23,483,954.78 million (in nominal terms) at basic prices. A 2.73 percent more than N22,859,153.01 million recorded in the second quarter of 2015.

Year-on-year, real growth in the oil sector declined 17.48 percent in the second quarter of the year. But when compared with the same period in 2015 growth declined by 10.68 percent, and 15.59 percent lower than first quarter of 2016.

Quarter-on-quarter, growth slowed by -19.11 percent.

Also, oil sector contribution to the economy drop from 9.8 percent in the first quarter to 8.26 percent in the second quarter.

The non-oil sector declined by 0.38 percent in the second quarter, lower than decline of 0.18 percent recorded in the first quarter and 3.84 percent worse than the corresponding quarter of 2015.

The non-oil sector contributed 91.74 percent to the total GDP, up from 89.71 percent in the first quarter and more than 90.20 percent recorded in the second quarter of 2015.

http://investorsking.com/nigerian-economy-contracts-2-06-in-second-quarter/

Cost of goods and services in Nigeria continued to rise after several measures by the Central Bank of Nigeria to ease the economic gridlock in the nation and boost capital importation needed to offset the shortfall created by forex scarcity.

The consumer price index which measures inflation rate increased by 17.1 percent year-on-year in July, the National Bureau of Statistics reported. This is 0.6 percent higher than 16.5 percent recorded in the preceding month, and the highest in over 11 years.

According to the National Bureau of Statistics, "increases were recorded in all COICOP divisions which contribute to the headline index reflecting higher prices across the economy. The pace of the increase in the headline index was however weighed upon by a slower increase in three divisions; Health, Transport, and Recreation and Culture divisions."

The gauge of food rose 15.8 percent on a yearly basis in July -- 0.5 percent lower from what was obtained in June.

"Prices however increased at a slower pace across a few groups within the Food sub-index namely Milk, Cheese and Eggs; Oils and Fats; and Fruits. In addition, imported foods as reflected by the Imported Food Sub-index increased by 0.4% points from June to 20.5% in July."

However, prices from the energy sector continue to be the largest increases reflected in the Core sub-index. In the month under review, the Core sub-index rose 0.7 percent to 16.9 percent from 16.2 percent recorded in June.

On a monthly basis, the headline index increased albeit, at a slower pace for the second consecutive month in July.

The index surged by 1.3 percent in July, 0.4 percent from 1.7 percent recorded in June.

http://investorsking.com/nigerias-inflation-jumps-17-1-percent-in-july/ Lalasticlala Mynd44 fresh from NBS

The Nigerian foreign exchange reserves increased by $595 million to $26.20 billion, according to the latest data from the Central Bank of Nigeria. This is its highest in a month.

This was after the Naira traded at a record low of 414 against the US dollar on Sunday at the parallel market before retreating to 412 on Monday.

According to Mr. Sewa Wusu, the Head of Research and Investment Advisory at SCM Capital Limited, a lot factors could lead to the increase in the external reserves.

He explained “The increase in international crude oil prices penultimate week on the heels of production freeze expectations from OPEC may have raised the external reserves position. Although we are currently witnessing production cut due to the militants’ vandalism, the lag effect of this crude price increases may have raised the reserves.”

External reserves which stood at $26.21 billion as of July 28, declined to $25.6 billion by August 24, the CBN data showed.

The decline was largely due to the efforts of the CBN to boost liquidity at the interbank market and support the ailing naira by selling dollar to ease the economic gridlock created by the forex scarcity.

However, the reserves had plunged by over 10 percent from a year ago when it was $29.7 billion.

http://investorsking.com/nigerias-external-reserves-rise-595m/

Lifestone:
Some will blame PMB for this but I won't.
So long our appetite for foreign goods consumption is high, Naira will continue to fall. I heard the story of a Nigerian family that buys their vegetables from stores in the UK.
Buhari must stand firm with steady hands and force a change of taste from Nigerians.This is our time to finally restructure how our FX are utilised.
We must eat Nigerian Rice, buy Nigeria made cars etc.

How do you import the raw materials for Nigerian made cars or the seeds for the said rice?

The Nigerian Naira plunged to a record low against the US dollar on Sunday at the parallel market.

The local currency was sold for 414 per dollar in Lagos and Abuja on Sunday.

Currency experts have said even though the CBN continued to intervene by selling dollars daily on the interbank market, its efforts were inadequate and considered weak.

“There is nothing in the policy environment that will arrest the decline unless the central bank has increased capacity to supply the market, which unfortunately it doesn’t have. So, we should expect the naira to remain under pressure in the coming week,” said Mr. Johnson Chukwu, the Chief Executive Officer, Cowry Asset Management Limited.

This is a liquidity issue, at this point, the Federal Government or CBN needs access to credit support either from a trading partner like China or the World Bank to stabilise the Naira.

“The decline of the naira against the dollar is beyond the recent suspension of some banks from the forex market. We have witnessed suspension of banks in the past, and it did not lead to any spike in exchange rate. The major challenge we have now is supply shortage. If that improves, naira will stabilise,” Chukwu added.

It should be recalled that some currency analysts interviewed by Bloomberg last week forecast 515 a dollar by the first half of 2017, and insisted the CBN needs to be more result oriented.

A currency analyst at Ecobank, Mr. Kunle Ezun, said “A lot of people in the official market will want to actually maximise the gains on their dollar holding by channelling it through the parallel market.”

“Sincerely, there is no major thing that one can expect in the parallel market. The only thing that could bring calm to the market is the supply of the US dollar. What we have in the market is basically demand and supply interplay,” Ezun added.

http://investorsking.com/naira-hits-record-low-of-414-a-dollar/