Connect with us

NEWS

Naira Weakens By 16% Amid Soaring Demand In I&E Market

Published

on

 

Yesterday, there was a significant decline in the value of the Naira, as it depreciated by 16 percent to reach N770.38 per US dollar in the Investors and Exporters (I&E) window.

 

This depreciation was primarily driven by an increased demand for dollars, which was exacerbated by a severe shortage in supply.

 

According to data from the FMDQ, the indicative exchange rate in the Investors and Exporters (I&E) window surged to N770.38 per dollar, compared to N663.04 per dollar on the previous Friday.

 

This signifies a depreciation of N107.34 for the Naira. However, in the parallel market, the Naira experienced a slight appreciation, strengthening from N759 per dollar to N755 per dollar yesterday.

 

Consequently, the exchange rate in the Investors and Exporters (I&E) window exceeded the parallel market exchange rate for the first time since 2019.

 

Sources in the forex market have informed Vanguard that the depreciation of the Naira is primarily attributed to a surge in demand, driven by the maturity of over $3.7 billion worth of Letters of Credit (LCs).

 

This situation is further exacerbated by a shortage in the supply of foreign exchange, as the Investors and Exporters (I&E) window has yet to witness substantial inflows since the reintroduction of the willing seller, willing buyer model by the Central Bank of Nigeria (CBN).

 

According to one source, the volume of transactions in the market remains quite limited, involving individuals with urgent forex requirements who are willing to purchase at any exchange rate.

 

Some of these buyers were already accustomed to acquiring dollars at parallel market rates, and therefore, they are accustomed to paying above N700 per dollar for their purchases.

 

The development in the I&E window follows the new forex measures announced by the CBN on Wednesday.

 

Announcing the   new measures in a statement titled, “Operational Changes to the Foreign Exchange Market”, Director, Financial Markets, Dr. Angela Sere-Ejembi, said, “The Central Bank of Nigeria (CBN) wishes to inform all authorized dealers and the general public of the following immediate changes to operations in the Nigerian Foreign Exchange (FX) Market.

 

“Abolishment of segmentation. All segments are now collapsed into the Investors and Exporters (I&E) window. Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.

 

“Re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window. Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017 and referenced FMD/DIR/CIR/GEN/08/007. All eligible transactions are permitted to access foreign exchange at this window.

 

“The operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two (2) decimal places.

 

“Proscription of trading limits on oversold FX positions with permission to hedge short positions with Over-The Counter-futures. Limits on overbought positions shall be zero.

 

“Re-introduction of order-based two-way quotes, with bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).

 

“Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades. The operational hours of trades shall be from 9am to 4pm, Nigeria time.

 

“Cessation of RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30 June 2023. Further guidance on these matters shall be communicated in due course. All market participants and the general public are kindly enjoined to abide by these rules.”

NEWS

NUPRC Dispels Recruitment Rumours

Published

on

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has dispelled recruitment rumours, cautioning the public against fake and AI-generated employment letters being circulated in its name.

It went further to issue a caveat against fraudsters allegedly demanding money from unsuspecting members of the public under the guise of helping them secure jobs at the NUPRC.

The warning was contained in a statement issued by the NUPRC Head of Media and Corporate Communications, Eniola Akinkuotu, on X on Tuesday.

According to the commission, it had received reports of fake employment letters bearing the names of people unknown to the organisation.

READ ALSO: Africa Needs More Refineries to Complement DPRP — Lokpobiri

It also said some criminal elements had been extorting money from members of the public by falsely claiming to have connections that could secure employment at the commission.

The NUPRC said it had reported the activities of the suspected fraudsters to law enforcement agencies for investigation.

The commission urged members of the public to exercise caution and verify any employment-related information before taking action or making payments.

“The NUPRC wishes to inform the general public about the proliferation of fake and AI-generated employment letters bearing the names of persons unknown to the Commission,” the statement said.

The commission added that reports had also reached it that “some unscrupulous and criminal elements have been extorting money from unsuspecting members of the public under the pretext of helping them to secure employment at the Commission.”

The NUPRC said the activities of the suspected fraudsters had been reported to law enforcement agencies, with the commission awaiting the outcome of the investigation.

It, however, stated categorically that there was currently no recruitment exercise ongoing at the commission.

“The NUPRC states categorically that there is no ongoing recruitment exercise at the Commission,” it said.

The commission further explained that whenever it decides to recruit, the process would be conducted in accordance with applicable laws and government regulations.

“However, when the Commission does decide to recruit, it will be done strictly in line with the extant laws and government regulations,” it added.

The NUPRC therefore advised job seekers and other members of the public to be wary of individuals requesting money or presenting questionable employment documents purportedly issued by the commission.

Continue Reading

NEWS

NCDMB Embarks on Emergency Preparedness Awareness Campaign

Published

on

NCDMB Emerges Best MDA In Ease Of Doing Business Ranking

Following the rising cases of fire incidents, building collapses and accidents across the country, the Nigerian Content Development and Monitoring Board (NCDMB) has commenced a specialised Emergency Preparedness and Fire Prevention Awareness programme aimed at sensitising Nigerians on practical response to such incidents.

Speaking during the Lagos State edition of the training, Managing Director of Matosi Nigeria Limited, Mr. Tosan Bolorunfe, the consultant for the programme, said emergency preparedness had become a serious national issue requiring deliberate attention from both public and private sector stakeholders.

According to him, “Fire incidents, workplace accidents, panic during emergencies, poor response coordination and lack of basic safety awareness continue to cause avoidable losses across homes, offices, hotels, markets, public facilities and industrial sites.”

Bolorunfe stressed that a society that waits for disaster before discussing safety is already late, noting that the first few minutes of an emergency are often the most critical.

“Many lives are not lost because help does not exist. Many lives are lost because people do not know what to do in the first few critical minutes,” he said.

“When people are safer, businesses are stronger. When workplaces are prepared, productivity is protected. When communities understand emergency response, lives are preserved.”

READ ALSO: Africa Needs More Refineries to Complement DPRP — Lokpobiri

He observed that many Nigerians are often forced into panic and prayer during emergencies, not because they do not care about safety, but because they have not been adequately exposed to practical emergency response training.

“In many emergency situations, people resort to prayer because they genuinely do not know the next practical step to take. Prayer is important, but preparedness is also a responsibility. People need to know who should act, what to switch off, where to go, who to call, and how to evacuate safely,” he said.

Bolorunfe added that emergency preparedness training must go beyond classroom presentations, stressing that practical demonstrations and real-life scenarios are essential to effective learning.

“Training adults, especially on emergency subjects, requires more than reading slides. It requires experience, clarity, discipline and the ability to connect knowledge to real-life situations,” he said.

He commended NCDMB for supporting the initiative, describing the programme as a practical capacity-building intervention that aligns with the Board’s broader commitment to human capital development and safety awareness.

He also advised organisations and institutions not to wait for accidents before investing in emergency readiness.

“To government agencies, private sector operators and community leaders, safety training should not be optional. It should be deliberate, repeated and practical. All stakeholders must begin to treat emergency preparedness as a national productivity issue, a community protection issue, and a human responsibility,” Bolorunfe said.

The Lagos training featured classroom sessions, interactive discussions, practical demonstrations, controlled fire response exercises, fire extinguisher handling, first aid awareness and emergency response sensitisation for nominated participants.

Continue Reading

NEWS

Africa Needs More Refineries to Complement DPRP — Lokpobiri

Published

on

It has been observed that the Dangote Petroleum Refinery and Petrochemicals (DPRP) alone cannot meet Africa’s growing demand for refined petroleum products.

Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, expressed the view, urging local and international investors to pour more capital into Nigeria’s refining, midstream and downstream sectors.

He maintained that Nigeria must build on the success of the DPRP and attract additional investments, to demonstrate eagerness to move beyond supplying the West African market and become a major refined petroleum products hub for the African continent.

Lokpobiri spoke on Tuesday at the second West Africa Refined Fuel Market Conference in Abuja, where regulators, refiners, traders, financiers and other energy industry stakeholders gathered to advance plans for a transparent regional pricing system for refined petroleum products.

READ ALSO: Nigeria Can’t Achieve Electoral Reforms Without Effective Democracy Communication

The conference was jointly hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), S&P Global Commodity Insights and the West Africa Regulators Forum (WARF).

It was themed, “Funding West Africa Infrastructure & Distribution to Create a Transparent Market for Regional Price Benchmarks.”

The minister described the conference as a turning point in Africa’s pursuit of greater energy sovereignty, saying Nigeria must now build on the progress recorded in its refining and midstream sectors.

He said the DPRP had demonstrated what could be achieved through private-sector investment but stressed that its growing capacity would still not be sufficient.

“The Dangote Refinery is not enough. Despite the fact that the refinery is increasing its refining capacity to 1.4 million barrels. But it is not enough for the African continent.

“It’s the final capacity to open for middle buyers to be able to sell this entire African continent on top of the entire world,” Lokpobiri said.

The minister called on investors with capital to seize the opportunity presented by Nigeria’s expanding energy market, saying the country was strategically positioned to serve both regional and international markets.

He said Nigeria’s location also offered an advantage because the country was not directly dependent on the Strait of Hormuz for its crude and petroleum product supply routes.

The minister added, “It’s the best time for us to attract as many investors as we can. Not just into the upstream, but into the midstream, and then the downstream.”

He said Nigeria must move beyond the traditional model of exporting raw commodities and importing processed products, arguing that the country’s growing refining capacity provided an opportunity to change the pattern.

Lokpobiri urged stakeholders to replicate the success recorded by the DPRP by attracting more investment into domestic processing.

He said Nigeria should not be content with capturing the West African market but should position to serve the wider African market.

Lokpobiri recalled that European demand for the DPRP’s jet fuel had affected local market conditions, pointing out that the development is a great example of the need to deepen domestic refining capacity and develop pricing structures that could respond appropriately to market forces.

He assured stakeholders that the Federal Government would continue to support the development of a regional petroleum market and the institutions required to make it work.

He said the objective was not merely to increase Nigeria’s refining output but to develop the infrastructure, regulatory framework and pricing system required to turn the country into a major African energy hub.

Also speaking, the Special Adviser to the President on Energy, Olu Verheijen, said West Africa was not short of energy resources or demand but was constrained by fragmented markets and inadequate infrastructure.

She said Nigeria’s growing refining capacity and declining dependence on imported petrol had created an opportunity for the country to serve as an anchor for a more integrated regional petroleum market.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x