Connect with us
nairametrics
UBA ads

Business News

This is when I will devalue the naira – Emefiele

The Governor of the Central Bank of Nigeria, Godwin Emefiele, has listed the conditions under that could warrant the devaluation of naira.

Published

on

The Governor of the Central Bank of Nigeria, Godwin Emefiele, has listed the conditions that could warrant him to devalue naira. He made this disclosure at the African Investors’ Conference (AIC) which took place in London from June 25 to 27.

The event presented an opportunity for Mr. Emefiele to convince dismayed foreign investors to return to Nigeria. As expected, investors wanted to know if the exchange rate between the naira and the dollar would be devalued. Most investors believed the naira was somewhat overvalued against the dollar and called for corrective measures.

UBA ADS

Emefiele’s reaction: The Emperor as he is often called responded to the question in his typical uncanny fashion.

[READ: CBN rolls out plans to stop smuggling, vows to block several bank accounts]

According to him, the CBN could consider devaluing the exchange rate if the the price of crude falls to between $50-$45 (currently $75).

GTBank 728 x 90

He also mentioned that if this happens and the external drops to between $30 billion and $25 billion, they could consider moving on the exchange rate.

He, however, stressed that even if they were to devalue the naira, it would be a rather slow adjustment rather than a sudden movement.

Mr. Emefiele also voiced his concern about the threat of Shale, claiming that this could be a factor to consider in deciding whether to devalue the naira or not.

onebank728 x 90

[READ ALSO: Foreign Reserves drop by $1.1 billion in 2 weeks, now $43 billion]

What this means: Market analysts have for weeks mooted plans of an impending devaluation of the naira. They often point to the rising inflation rate, declining oil revenues and lower non-oil dollar inflows as a possible factor. But with Emefiele’s laying out his consideration for a likely devaluation, the market now has a clear path to hedging their bets against holding the naira.

  • For the average Nigerian, the message here is to watch the price of oil, Nigeria’s external reserves (currently at $45 billion) as an indication of when exchange rate could be devalued.
  • Once these numbers hit this benchmark, you are probably better off selling down fast.
  • This information could also dissuade speculators from short term hoarding of Forex in anticipation of a devaluation.

One more question: The Governor also touched on other exchange rate issues such as the operation of the Investor Exporter Window.

app

He was asked why we have multiple exchange rates but he begged the question by claiming that what exist in Nigeria are multiple windows and not multiple rates. The investor further explained his point that all market participants should be using the same rates and said the oil companies have different rates.

Finally, Emefiele responded to the recent report about the CBN “floating the naira” after mentioning on its website that the exchange rate was “market-determined”. According to him, he wanted the market to gravitate towards the I&E window, encouraging anyone who wanted to buy dollars at market-determined rates to go there.

[YOU SHOULD READ: Forte Oil Plc appoints new CEO and CFO after acquisition]

devland

 

app
Patricia

Nairametrics Research team tracks, collates, maintains and manages a rich database of macro-economic and micro-economic data from Nigeria and Africa. Our analysts share some of the data collated on Nairametrics, using formats such as docs, tables and charts etc. The team also publishes research based analysis as articles on a regular basis.

1 Comment

1 Comment

  1. Anodebenze

    July 3, 2019 at 1:11 pm

    We shall see,this article is cretinous,for a start NIGERIA IS NOT FOR SALE FOR FOREIGNER,OR A TROPHY,WHERE ANY FOREIGNER WILL COME TO NIGERIA AND CARVE NIGERIA AND TAKE HIS CARCASS.firstly if you ask any Nigerian, will the cbn can devalue the naira in any any circumstances,either through any fall in oil revenue or not ?,the answer is no.life is about power,if you gives power to yourself,you do not give any shit to another person opinion.
    Nigeria’s oil revenue reserve hover an average of 2 billion annually for many years,During Gen.Abacha Nigerian’s oil reserves did hit above 8 billion,and that was the highest.nigeria attained,During obasanjo administration oil prices futures hit 100 dollar per barrel,and the country had a reserve of about 70 billion dollar in reserve.
    Now oil revenue is not the main sources of how of how Nigerian banks get it’s forex.THE SYSTEM HAVE CHANGED VERY DRASTICALLY.my opinion is that the cbn should pushes Nigeria banks to sources their forex need,without going to the cbn,and it going to happen within 10 yrs or 15 yrs in future.MEANING WITHIN THIS PERIOD NIGERIA WILL NOT USES OIL REVENUE/FOREX AS IT’S SOURCES OF OIL..
    This article is out of date if you like it or not

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Financial Services

NEXIM Bank issues rebuttal following explosive N50 billion fraud allegation

NEXIM Bank was established in 1991 and is devoted to diversifying Nigeria’s non-oil export base.

Published

on

Nexim Bank

Following numerous claims accusing Abba Bello, the Managing Director of Nigerian Export-Import Bank (NEXIM Bank) of diverting the whopping sum of N50 billion, the organisation finally issued a rebuttal yesterday in an attempt to clear its name.

A detailed statement that was signed by NEXIM Bank’s Corporate Communications Department described the accusations as false. The statement also noted that ‘a faceless organisation’ known as Citizens Committee for Corruption Free Nigeria (CCCN) had been the one behind the fraud claims.

UBA ADS

The statement further noted that Nexim Bank initially ignored the accusations, but felt the need to respond after those leveling accusations against the organisation showed no sign of stopping.

READ MORE: NEXIM Bank set to disburse ₦25bn loan to non-oil exporters

The intrigues: In an obvious attempt to absolve the Abba Bello-led management of these fraud allegations, the statement had attacked NEXIM Bank’s immediate past management team. The erstwhile management was dissolved in 2017 by President Muhammadu Buhari due to gross incompetence. Apparently, Abba Bello was brought on board to help rescue Nexim Bank from its huge non-performing loan problem which was worsened by what the statement described as “reckless abuse of process” which led to insider related loans and an absolute breakdown of professionalism in bank’s loan administration processes.

GTBank 728 x 90

The statement then praised Bello for successfully re-tooling NEXIM Bank and bringing it back from the brink of failure within the 3-year period he had been in charge. The statement also noted that NEXIM Bank reported profits of N2.03 billion and N1.09 billion in full-year 2019 and 2018 respectively, as against losses of N569 million and N8.03 billion in 2017 and 2016, respectively.

“We have noted recent incessant attacks on the Nigerian Export-Import Bank (NEXIM Bank) and its management in a section of the media, predominantly the social media. Most recently, a report has been trending on the social media claiming that a petition has been forwarded to the Economic and Financial Crimes Commission (EFCC), calling for a probe of the Managing Director/Chief Executive of Nexim Bank, Mr Abba Bello, over alleged corruption and mismanagement of the N50 billion Rediscounting and Refinancing Facility (RRF), provided by the Federal Government…

READ MORE: Buhari orders probe of past administrations over $9 billion U.K judgment

onebank728 x 90

“The current management of the bank, led by Mr Abba Bello, resumed office in April 2017 to replace the erstwhile government, which was removed by President Muhammadu Buhari, GCFR, over issues relating to gross incompetence, which had made the bank almost insolvent, with huge non-performing loans, exacerbated by reckless abuse of process, insider related loans and lack of professionalism in loans administration, amongst other issues,” some parts of the statement said.

More details: Citizens Committee for Corruption Free Nigeria (CCCN) had started a petition with the Economic and Financial Crimes Commission (EFCC), calling for Bello’s probe over the alleged diversion of N50 billion from Nexim Bank’s coffers. Specifically, the petition had accused Abba Bello of diverting and mismanaging the N50 billion Rediscounting and Refinancing Facility which was availed by the Federal Government to assist commercial and merchant banks to provide short-term finance in support of exports.

NEXIM Bank also clarified on the N50 billion Rediscounting and Refinancing Facility, noting that the money has been used to fund about 60 projects since it was released by the Federal Government in 2018. The bank said the track records of the fund’s beneficiaries are verifiable, and that the loans were adequately secured.

app

Note that NEXIM Bank was established in 1991 and is devoted to diversifying Nigeria’s non-oil export base through the provision of adequate financing.

Patricia
Continue Reading

Tech News

Gokada Founder, Fahim Saleh murdered in New York apartment

Mr. Fahim Saleh’s body was found decapitated and dismembered with an electric saw.

Published

on

Gokada Founder Fahim Saleh murdered in New York apartment

Fahim Saleh, the entrepreneur who founded Gokada, has been murdered in his luxury New York City apartment, according to the New York Times.

Police detectives in New York disclosed that Mr Saleh’s body was found decapitated and dismembered with an electric saw. His head, limbs, and torso were said to have been found in different parts of the apartment after whoever murdered him tried to clean up the crime scene.

UBA ADS

The police also revealed that plastic bags were found on the scene of the murder, which they say could have been an effort to “clean up” evidence of the murder.

The casualty was identified as 33 years old, Fahim Saleh, tech entrepreneur and Gokada founder who owned the apartment. His body was found by his sister, 3:30 pm New York time after she went to check on him after not hearing from him in 24 hours, calling the police immediately after finding the body.

Police also believe his sister’s arrival may have interrupted the evidence clean up, as the electric saw was still plugged in. Police are investigating it as a case of homicide.

GTBank 728 x 90

READ MORE: Bike-hailing firms in talks with Lagos State to resume operations

Surveillance video showed Mr. Saleh entering the elevator with someone else in a black mask and suit, the person also follows Saleh as he enters his apartment, and a fight began between the two. Police say there is a second exit through a service entrance in the apartment.

onebank728 x 90

Fahim Saleh was born in Saudi Arabia to Bangladeshi parents before settling in New York with his family and started coding as a teenager. He founded PrankDial after graduating from Bentley University where he recorded his first success in tech.

READ ALSO: Gokada returns amidst price war, market expansion and government regulations 

He founded the bike hailing company Gokada, which began operations in Lagos 2 years ago. Gokada has raised $12.4 million according to Startup listing site Crunchbase. During their venture capital raise of $5.3 million in 2019, Saleh announced plans to expand Gokada services into a club with restaurants, letting drivers relax and get things they need from a  Gokada shop such as food.

app

Gokada had to reduce operations in Lagos after the February Okada ban. The Lagos Sate Government had banned okada services in Apapa LGA, Apapa Iganmu LCDA, Lagos Mainland LGA, Yaba LCDA, Surulere LGA, Itire-Ikate LCDA, Coker-Aguda LCDA,  Ikeja LGA, Onigbongbo LCDA, Ojodu LCDA, Eti-Osa LGA, Ikoyi-Obalende LCDA, Iru-Victoria Island LCDA, Lagos Island LGA and Lagos Island East LCDA.

Patricia
Continue Reading

Coronavirus

Moderna’s shares gain over 16% as COVID-19 vaccine passes first human trial

Participants received two doses of the potential vaccine.

Published

on

Moderna COVID-19 vaccine passes safety test on animals

Moderna’s share price gained over 16% on Tuesday after the U.S drugmaker disclosed that its potential vaccine in containing the COVID-19 virus had produced a “robust” immune response in all the 45 patients in its first phase of the human trial, according to data released yesterday night in the peer-reviewed New England Journal of Medicine.

In a report credited to CNBC, about 45 patients produced neutralizing antibodies, which scientists believe is important for building immunity. It also provided more promising data that the vaccine may give some protection against the coronavirus. In the trial, each participant received a 25, 100 or 250 microgram dose, with 15 people in each dose group. Participants received two doses of the potential vaccine.

UBA ADS

READ ALSO: Remdesivir has received FDA’s emergency approval to treat COVID-19, according to Trump

“After two vaccinations, the COVID-19 vaccine generated a “robust” immune response in all participants in all dose cohorts,” Moderna said. The company also disclosed that the levels of neutralizing antibodies in patients in the high dose group were fourfold higher than in recovered COVID-19 patients.

“These Phase 1 data demonstrate that vaccination with mRNA-1273 elicits a robust immune response across all dose levels and clearly support the choice of 100 µg in a prime and boost regimen as the optimal dose for the Phase 3 study,” Moderna’s chief medical officer, Tal Zaks, said in a statement. “We look forward to beginning our Phase 3 study of mRNA-1273 this month to demonstrate our vaccine’s ability to significantly reduce the risk of COVID-19 disease.”

GTBank 728 x 90

Quick fact about COVID-19: Although for some individuals, the COVID-19 virus causes only mild illness, it can make other individuals seriously ill. The disease can be very fatal, especially among older individuals, and those with compromised immunities (such as diabetes, high blood pressure, or heart problems) appear to be more susceptible.

Recall that about a month ago, Nairametrics reported news of a series of tests carried on laboratory mice with Moderna Inc’s COVID-19 vaccine showing hope that it might not increase the risk of more serious diseases and that one dose might provide protection against the COVID-19 virus.

Moderna also disclosed that the COVID-19 vaccine was generally well-tolerated, though more than half of the participants reported mild or moderate symptoms such as fatigue, muscle aches, or pain at the injection site.

onebank728 x 90

Patricia
Continue Reading
Advertisement
Wealth.ng
Advertisement
Advertisement
Patricia
Advertisement
Advertisement
devland
Advertisement
devland
Advertisement
devland
Advertisement
Advertisement
financial calculator
Advertisement
devland
Advertisement
app
Advertisement