Tag Archives: Further

Naira Further Weakens Against Dollars

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As a result of a crackdown in the parallel market, currency traders and the persistent scarcity of the greenback, naira is further weakening against the United States dollar, Reuters has reported.

The local currency fell 2.08 per cent week-on-week on Thursday to 480 to the dollar on the parallel market against 470 a dollar last week, while it was quoted by commercial lenders at 314.80 a dollar on the interbank market.

According to the reports, the foreign exchange demand by small businesses was set to surge ahead of holiday season sales.

The naira has, however, consistently closed around 305.5 a dollar level since August via the official window.

“The consistent clampdown on black market operators by security agents has driven some currency retailers underground, putting more pressure on available hard currency,” one dealer said.

But the Kenyan shilling could strengthen against the dollar in the coming week due to subdued importer demand and increased inflows from overseas remittances, traders said.

At 0742 GMT, commercial banks quoted the shilling at 101.80/102.00 to the dollar, the same as last Thursday’s close.

“From the data we’ve seen in the past, we normally tend to see an uptick in the Diaspora inflows during this month of December,” said a trader at a commercial bank.

Credit: dailytrust

Naira Weakens Further To N445/$

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The naira resumed its fall at the parallel market, declining by 1.1 percent to a record low of N445 to the dollar  as foreign exchange scarcity persist.

The value of the naira had begun depreciating last week from the N425 which it had maintained, declining to N440 as at last week Friday.

Traders said that speculators and strong demand from parents buying dollars to pay school fees abroad are putting pressure on the Nigerian currency, though the president of the association of bureau de change operators, Aminu Gwadabe, said the rate is not a true reflection of the market.

At the interbank market however, the naira sold at N305 to the dollar, stronger than N307.79 which it sold last week.

The gap between the value of the naira at the interbank and parallel market continued to widen giving room to speculators to take advantage of the market. The difference between the two rates currently stands at N140.

“The market is being driven by speculators who are taking advantage of the poor implementation of Central Bank of Nigeria policy requiring banks to sell dollars to bureau de change operators to ease pressure in the market.”

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http://leadership.ng/business/552134/naira-weakens-further-to-n445

AGF Seeks Further Evidence To Prosecute Saraki, Ekweremadu

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Three months after it charged Senate President Bukola Saraki, his deputy, Ike Ekweremadu, and two others with forging the Senate Standing Rules, the Office of the Attorney General of the Federation (AGF) and Minister of Justice has declared the investigation into the alleged offence inconclusive.
The AGF, Abubakar Malami, is now desperately seeking fresh investigations that will enable him convict the accused persons, even though he has not withdrawn the pending charges against them.
To get the court to accept the charges, the AGF had told the court that investigations into the alleged forgery had been concluded.
In June, when the case was first filed in court and before the arraignment of Saraki and other co-accused persons, the federal government deposed to an affidavit, which was attached to the case file at the time, attesting that investigations into the matter had been concluded.
In the charge sheet dated June 10, 2016 and signed by D.E Kaswe Esq., Principal State Counsel on behalf of the AGF, and which was backed by an Affidavit of Completion of Investigation deposed to at the Federal High Court Registry, Abuja, on the same date by Okara Neji Jonah, a litigation officer in the Federal Ministry of Justice, Abuja, attested that the police had concluded its investigations.
Okara swore that “the FCIID (Force Criminal Investigation and Intelligence Department) has concluded investigation of the case and has forwarded the file to the Honourable Attorney General of the Federation for Prosecution”.
Read More: thisdaylive

Naira Falls Further To 414/Dollar

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The naira fell to a new low of 414 against the United States dollar on Sunday amid the continued scarcity of foreign exchange in the country, with economic experts predicting further pressure in the forex market this week.

The development came five days after the Central Bank of Nigeria had banned nine commercial banks from the forex market for failing to remit the Nigerian National Petroleum Corporation’s $2.334bn into the Treasury Single Account in line with President Muhammadu Buhari’s directive last September.

The naira was sold for 414/dollar across some black market segments in Lagos and Abuja on Sunday. It hit an all-time low of 412 against the greenback at the parallel market on Friday, after closing at 409/dollar on Thursday.

On Wednesday, a day after the CBN banned the nine banks from the forex market, the local currency depreciated to 402/dollar, down from the 397 it closed against the greenback on Tuesday.

Forex dealers said the demand pressure on the dollar, mounted by summer travellers and parents paying schools fees of their children studying overseas, was exacerbated by the CBN’s forex ban on the nine lenders.

The currency dealers said the naira started falling after the CBN banned the lenders from forex transactions.

It first touched 400/dollar at the black market this month since the CBN floated the currency on the official interbank market in June.

At the interbank market, the naira closed at 314.95 on Friday, with traders saying interbank rates would ease this week when part of July’s budget allocation must have entered the banking system.

But experts said the naira would plunge further against the US dollar this week at the parallel market as forex supply remained a major challenge.

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http://punchng.com/naira-falls-414dollar/

Food, Energy Prices, Imported Items Push Inflation Further To 16.5%

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The Consumer Price Index (CPI), which measures inflation, rose by 0.9 percent to 16.5 per cent in June compared to 15.6 percent in May, according to the National Bureau of Statistics (NBS).

This is the fifth consecutive month that the headline index would increase relatively strong.

The increase in the month under review was attributed to energy prices, imported items and related products which continued to be persistent drivers of the core sub-index.

According to the CPI figures for June, which was released on Monday by the statistical agency,  the highest price increases were noticed in the electricity, liquid fuel (kerosene), furniture and furnishings, passenger transport by road, and fuels and lubricants for personal transport equipment.

Credit: Thisday

Power Generation Drops Further To 1075MW

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The nation’s electricity generation, yesterday, crashed further to 1075 Mega Watts, an indication that electricity consumers would experience more frequent power outages.

The generation statistics obtained by The Guardian yesterday showed that the generation level assumed a dwindling trend from 2,903MW recorded last week Thursday. It dropped to 1624MW on Sunday and further to 1075MW yesterday.

However, the daily operational report of the Transmission Company of Nigeria (TCN) issued at the weekend showed that many of the power plants are currently affected by gas shortage, water management and transmission problems. No fewer than 16 thermal plants were affected lack of gas supply, as the Niger Delta militants continued to attack gas facilities in the region. Among the thermal plants that have suffered from sabotage attacks were Olorunshogo NIPP which lost 480MW; Omotosho (228MW); Geregu (435MW); Delta lost 410MW; Olorunsogo Gas (228MW); Sapele (258MW) and Egbing lost 717MW among others.

This situation has triggered concerns from the consumers who believed that the privatization of the power sector would have done more good to the nation, if proper planning was in place.

Meanwhile, some aggrieved persons have continued to vent their anger on electricity workers who were on duty for disconnection exercise. Some staff members of Port Harcourt Electricity Distribution Company (PHED) and the security personnel attached to them were allegedly attacked by residents of Epie Community in Bayelsa State recently.

The attack, according to the company resulted in injury to three policemen, the Business Service Manager, Pere Alazigha, a linesman, Christian Umegbewe and other staff members involved in the disconnection exercise.

Credit: Guardian

Pipeline Vandals Vow Further Attacks

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A group that claimed responsibility for a major attack on a pipeline in Nigeria’s oil-producing Delta region said it will carry out more strikes, just days after President Muhammadu Buhari vowed to crack down on “vandals and saboteurs”.
The Niger Delta Avengers has said it carried out the attack on a Shell underwater pipeline in February which interrupted oil flows and forced the company to shut down its 250,000 barrel-a-day Forcados export terminal for weeks.

Pipeline attacks and violence have risen in the southern swampland of Africa’s biggest oil exporter since authorities issued an arrest warrant in January for a former militant leader on corruption charges.
Last week Buhari, a former military ruler, said the government would crack down on pipeline saboteurs.. And on Sunday the vice president’s office issued a statement that said a permanent pipeline security force was being considered.
“We are not deterred by such threats as we are highly spirited and shall continue blowing up pipelines until the Niger Delta people are no longer marginalized by the Nigerian actors,” said the Niger Delta Avengers in a statement.
The Delta’s oil provides 70 percent of state income in Africa’s biggest economy but, like much of Nigeria, the region has seen little development which has prompted militants to demand a greater share of crude revenues.
Niger Delta Avengers, unheard of before the Forcados attack, say they want to ensure that local people enjoy a quality of life which reflects the region’s contribution to the national purse.
The group said in its statement: “We take no pleasure in claiming innocent lives hence our struggle is geared toward attacking the oil installations in our region and not the people. And we shall stop at nothing until our goal is achieved.”

Credit: dailytrust

Naira Further Firms Up, Now 250/$

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The naira rose by 50 per cent yesterday against the dollar at the parallel market to N250 from N375, which it traded on Monday.

The naira had been on a free fall in the last two weeks, peaking at 391 against the greenback at the parallel market last Thursday. The local currency, however, began a gradual recovery on Friday. Bureau de Change (BDC) operators as well as street hawkers in Abuja sold the dollar between N250 and N255.

 Bureau de Change (BDC) operators as well as street hawkers in Abuja sold the dollar between N250 and N255.

A bureau de change operator, who simply identified himself as Ibrahim, said that he was very confused as the Naira continued to gain strength.

He said: “Earlier this morning, I bought dollars for N305, but now it is sold at N250, making me to lose N55 in less than 10 hours. I am very scared of buying dollars because of the continued instability.

“Although I am happy that the naira continued to gain strength at the parallel market as an overflow of dollars chased the local currency but we are losing greatly here.”

Forex dealers said the local currency was set to gain further momentum in coming days, arguing that most traders were rushing to reduce the amount of dollars in their holdings.

Currency strategist and experts have also stated that the depreciation the naira had recorded in the last two weeks was mainly artificial, arguing that it was part of the activities of currency speculators to force the Central Bank of Nigeria and the Presidency to devalue the naira.

Credit: Leadership

Nigeria Faces Further Revenue Slump As Iran Returns To Oil Market

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Nigeria’s dwindling oil revenue is expected to fall further as Iran is set to commence immediate exports of at least 500,00 barrels of crude oil per day (bpd) following the lifting of international sanctions against the country at the weekend, thus worsening the oil glut in the global market.

The federal government’s 2016 budget, which is predicated on an oil price of $38 per barrel, is already under threat as crude oil prices fell below $30 last week due to an estimated 1.5mbpd excess inventory in the oil market.

With the lifting of sanctions against Iran, the additional one million barrels per day that the country is expected to add to the global market this year will depress prices further, thus worsening Nigeria’s already precarious economic situation.
The United Nations Nuclear Agency on Saturday certified that Iran had met all of its commitments to curb its nuclear programme, and the United States immediately revoked sanctions that had slashed Iran’s oil exports by around 2mbpd since their pre-sanctions 2011 peak to a little more than 1mbpd.
There were strong feelers a month ago that the removal of sanctions would occur earlier than oil traders initially expected.
This fuelled a sell-off which sent the price of Brent crude tumbling 24 per cent since the beginning of the year, the biggest fall since the financial crisis of 2008.

Credit: ThisDay