The Association of Bureau De Change Operators of Nigeria (ABCON) has shown its full support to the recent ‘CBN Naira 4 Dollar Scheme,’ noting that it is capable of ensuring a competitive diaspora remittance market space that would spur Naira stability.

This disclosure was made by the President of ABCON, Alhaji Aminu Gwadabe in an interview with the News Agency of Nigeria (NAN).

Alhaji Gwadabe’s reaction was sequel to the recent policy by CBN which instructed commercial banks and IMTOs to pay an incentive of N5 for every USD1 remitted by sender and collected by designated beneficiaries.

Reacting to the recent policy, Gwadabe opined that there was a need to break the monopoly of certain players in the remittances spaces by allowing other relevant stakeholders like BDCs. He cited examples of how Kenya, Ghana and a host of other African countries deepened their remittance space through a competitive market, and how it led to the stability of their domestic currencies.

In addition, Gwadabe cautioned against complacency, noting that more needed to be done for the policy to achieve its anticipated objective of shoring up the value of the Naira through liquidity boost.

Gwadabe said: “There is no doubt the incentive will be somehow attractive to the targeted beneficiaries of the remittances and therefore aimed to address concerns of one of the principal ally in the chain of remittances.

‘’This therefore suggests that it is a window, if well-articulated and includes all the principal allies in the remittances space, will help the Nigerian economy for the availability of FX liquidity,’’ he added.

What you should know

• Nairametrics had earlier reported the introduction of CBN ‘Naira 4 Dollar Scheme’ in a circular issued by the apex bank dated 5th of March, 2021.
• The new policy is expected to create an easier, flexible, and more transparent system of remittance administration that will accelerate investment and growth in Nigeria.
• The scheme became effective today and is expected to elapse by 8th of May, 2021.

Nigerian stocks ended the first trading session of the week bullish. The All Share Index rallied up by 0.17% to close at 39,396.57 index points as against the 0.08% drop recorded last Friday. Its Year-to-Date (YTD) returns currently stand at -2.17%.

• However, the Nigerian trading bourse turnover printed negative as volume dipped by 49.92% as against the 19.18% surge recorded last Friday.
• ZENITHBANK, FBNH, and MANSARD were the most active Nigerian Stocks that boosted the Nigerian Stock market turnover on Monday.
• The Market breadth closed positive as ARDOVA led 24 Gainers as against 14 Losers topped by DNMEYER at the end of today’s session – an improved performance when compared with the previous outlook.

Top gainers

1. ARDOVA up 10.00% to close at N14.85
2. LINKASSURE up 10.00% to close at N0.55
3. CHAMPION up 9.52% to close at N1.84
4. OANDO up 9.43% to close at N2.9
5. MORISON up 9.09% to close at N0.72

Top losers

1. MEYER down 10.00% to close at N0.45
2. LIVESTOCK down 9.87% to close at N2.01
3. SCOA down 9.85% to close at N2.38
4. IKEJAHOTEL down 9.48% to close at N1.05
5. NEM down 6.88% to close at N1.76

Outlook

Nigerian bourse ended Monday’s trading session on a bullish note amid price swings prevailing in the oil futures market.

• The performance of the market today was largely driven by price appreciation in Nigerian Oil stocks.
• Amidst such turnaround currently in play, Nairametrics envisages caution as recent price action reveals high selling pressures still prevail among a significant number of low and medium-capitalized stocks across the market spectrum.