Business
CIS, ASHON Voice Concerns Over Proposed Central Bank Amendment
Stakeholders in the capital market have voiced reservations over the proposed amendments to the Central Bank of Nigeria (CBN) Act No. 7 of 2007, pointing to potential adverse economic consequences.
Biztllers reports that the Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON) are among notable bodies to have raised concerns that the bill could undermine the independence of the Central Bank of Nigeria (CBN).
The legislation, which has passed its second reading and is scheduled for a public hearing on May 30th, seeks to modify the CBN’s autonomy by subjecting its budget to the National Assembly’s approval, while also establishing a new Coordinating Committee for Monetary and Fiscal Policies.
Those versed in economic and fiscal policies opine that these changes could introduce political interference in monetary policy decisions, hampering the central bank’s ability to manage the economy effectively and objectively.
President and Chairman of the Council of CIS, Oluropo Dada, pointed out that the pivotal role of the central bank in maintaining economic stability and preserving international credibility cannot be overemphasised.
Dada said, “Safeguarding the independence of the Central Bank of Nigeria is crucial for aligning with global economic best practices and ensuring decisions are driven by sound financial principles, free from undue influence.”
On his part, Chairman of ASHON, Sam Onukwue, highlighted the potential negative impact on investor confidence.
“An independent central bank is a cornerstone for maintaining the country’s standing in the global financial community, which directly affects investor confidence, credit ratings, and the overall economic outlook,” Onukwue cautioned.
While both organizations acknowledged the merit of some proposed amendments aimed at enhancing corporate governance and compliance, they stressed the importance of considering the broader ramifications.
“It is imperative to ensure that fiscal authorities do not encroach upon the central bank’s operational independence, as this is vital for effective and timely monetary policy responses,” Dada added.
As the public hearing approaches, financial market participants, economists, and analysts will closely monitor the proceedings and subsequent legislative actions. The outcome will have far-reaching implications for Nigeria’s economic policy framework and its position in the global economic landscape.
In a sudden turn of events, Bitcoin (BTC), the world’s oldest and most valued cryptocurrency, fell below the $59,000 mark early Thursday, erasing weeks of gains.
The sharp decline was attributed to remarks from US Federal Reserve Chair, Jerome Powell on inflation reduction and intensified selling pressure following a $9-billion release from Mt. Gox.
The market downturn also affected other major cryptocurrencies.
Ether experienced a significant drop, losing over 4% to fall below $3,200. Other leading cryptocurrencies, including Binance’s BNB, Solana, and Dogecoin, saw declines of 5.8%, 9%, and 6.5%, respectively.
The overall Market Fear & Greed Index, as reported by CoinMarketCap, stood at 45, indicating a neutral sentiment.
Despite the widespread downturn, Worldcoin (WLD), led by Sam Altman, defied the trend, emerging as the biggest gainer with a nearly 6 percent increase over 24 hours.
Conversely, Akash Network (AKT) suffered the most significant loss, plunging almost 13 percent in the same period.
After consistently trading above $60,000, Bitcoin fell to under $59,000, down more than 3.8% in the last 24 hours.
The decline is attributed to concerns over the Mt. Gox exchange’s payout process. Administrators of the now-defunct platform are set to distribute more than 137,000 Bitcoins, valued at around $8 billion, to creditors.
This substantial payout, which will occur in phases, has sparked fears that creditors might sell off their returned crypto assets, leading to further price drops as creditors of Mt. Gox will receive their repayments in Bitcoin (BTC) and Bitcoin Cash (BCH).
Starting July 8, 2024, the Nigerian government will implement a 7.5 percent Value Added Tax (VAT) on cryptocurrency transactions for users registered in the country.
This move was announced by the popular cryptocurrency platform, KuCoin, in an email to its Nigerian users.
KuCoin stated in the notice: “We are writing to inform you of an important regulatory update that impacts out users from the Republic of Nigeria.
“Beginning July 8th, 2024, we will collect a Value-Added Tax (VAT) at a rate of 7.5 percent on transaction fees for users whose KYC information is registered in Nigeria.”
Nigeria’s cryptocurrency market is substantial, with official data indicating an annual transaction volume of $59 billion.
Additionally, Ray Youssef, director of the cryptocurrency platform NoOnes, reported that peer-to-peer trading in Nigeria is valued at $500 billion annually.
This announcement comes on the heels of concerns raised by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, who in February 2024 flagged a suspicious $26 billion that had been funneled through Binance without a trace.
The Nigerian National Petroleum Company Limited (NNPC Ltd) has declared its audacious presence at the ongoing Energy week in Abuja, Nigeria.
This was contained in message on its official X handle, where it gave details of its exhibition booth and invited to visit so as “to learn how we drive investments and meet energy demand while ensuring”.
It stated, “We are excited to announce our participation in the @NOGEnergyWeek holding in Abuja, Nigeria, from June 30 to July 4, 2024.
“Visit our exhibition booth (E04) to learn how we drive investments and meet energy demand while ensuring #EnergyForToday and securing #EnergyForTomorrow.”
Rivers Political Turmoil: Pendulum Swings In Favour Wike’s Camp
Mbah Opens Enugu To Herders, Inks Ranch Mgt Law
Davido Responds To Viral Video Of Alleged Incident At Wedding
Olamide Rejected My N100m Offer For Song Collaboration – Tiwa Savage
BREAKING: Court Invalidates Ighodalo’s Nomination
NDLEA’s Public Education Takes On Substance Abuse In Pregnancy
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
Adeosun: We are investing in infrastructure to grow the private sector
Shell launches Nigeria campaign on energy efficiency
