Business
Confusion: Naira Redesign Dislocates Economy
With four days to the January 31 cut-off date for the new currency notes introduced by the Central Bank of Nigeria (CBN), the Nigerian economy appears headed for a major dislocation.
Findings in Lagos and Abuja show that the new currency is in short supply at Deposit Money Banks (DMB), while PoS operators were already rejecting the old notes as at Friday, January 27, 2023.
Biztellers reports that the scarcity of the new currency notes might not be unconnected with the CBN’s quest to foist its much touted cashless policy on Nigerians.
The apex bank, through several public awareness campaigns including bulk short message services to across telecommunications networks to physical market-storms had made it clear that there would be no shift in the set timeline.
While almost every telephone line got the SMS from the CBN, Biztellers also reports that the awareness campaigns took top officials of the apex to Kano and Kwara States, as well as the Federal Capital Territory, on January 19.
With the deadline looming, the public appears to have swung into panic mode with embracing the directives of the CBN. And with top political actors still indulging in mind games over the matter, the common man has taken his fate into his own hands by ‘shopping for the new notes’.
A media personality, Emma Anya took to his Facebook page to decry that the new naira notes appear set to rub-shoulders with the US Dollar by being auctioned on the streets.
He said, “I am scared…, that we have to start buying the news notes to be able to buy things.”
Similarly, another media personality, Olumide Iyanda took to his Facebook page to alert that while the new naira notes might not be available at the official channels – banks and ATMs, they are available at a popular bus stop in Lagos.
And for those who think the design was conceived to control political flow towards the coming general elections, Anthony Odedengbe warned that ‘politicians control bankers’.
“Anyone that believes that redesigning naira notes will affect politician is a joker. Politicians control bankers,” Odedengbe wrote on his Facebook page.
However, the major dislocation is on the streets, where bus conductors were seen in Lagos warning commuters to board with the new notes or stay away from their buses.
It is yet to be know if the CBN will yield to public outcry by making the new notes available or shift the set cut-off date.
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
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