The Central Bank of Nigeria (CBN) is allegedly planning to collapse the multiple exchange rate policy of the CBN moving to a single exchange rate policy. This is according to sources from the bank.
Some inside sources who want to remain anonymous disclosed that the country will merge the official rate, the rate for bureau de change (BDC) operators, the rate for importers and exporters, and some others.
A senior central bank official who does not want to be identified, said, ‘Today we allowed the rate at the importer and exporters (I&E) window to adjust in response to market developments’
The CBN official admitted that in today’s transaction, that it had adjusted the rate at the I&E window for foreign investors from N366 per dollar to N380 per dollar.
Some economic and financial experts including global financial institutions like the International Monetary Fund (IMF) have been very critical of the multiple exchange rate system which has been operational in Nigeria. The country has been operating this system which pegged the official rate at about N305 per dollar, in a bid to control demand for dollars.
Government businesses and some selected priority companies like importers of petrol usually benefit from the supply of cheap foreign exchange. However, the CBN created an importer and exporter window in 2017 as a reaction to the economic recession in 2016, providing a market where forex can be traded at market-determined prices.
The single exchange rate has been identified as a very effective tool for resource allocation. Analysts are of the opinion that the multiple exchange rate can be subject to abuse and manipulation, possibly aiding corruption.
CBN gives approval for Stirling Trust to start offering cash-in-transit services
Stirling Trust Company Limited specialises in financial services, investment, logistics & human capital management services.
The Central Bank of Nigeria (CBN) has approved Stirling Trust Company Limited’s bid to commence cash-in-transit operations in the country.
The approval, which became effective in April this year, was just recently announced by the apex bank in a circular that was signed by the Director of Currency Operations Department, Ahmed B Umar, and addressed to all deposit money banks as well as all licensed CITs and CPCs in the country.
The circular also encouraged all respective stakeholders to “assist” Stirling Trust Company Limited in the discharge of their new duty. The circular said:
“Please be informed that Stirling Trust Company Limited has been granted approval by the Central Bank of Nigeria (CBN) to commence Cash-in-Transit operations in Nigeria with effect from April 23, 2020.
“kindly accord Stirling Trust Company Limited all necessary assistance in the discharge of their functions as Cash-in-Transit service provider.”
Stirling Trust Company Limited, which is a Lagos-based company incorporated in 1989, specialises in financial services, investment, logistics & human capital management services. Following its newest license, the company will now utilise its state-of-the-art armored vehicles (bullion vans) to transport cash across the country. Already, Stirling Trust Company Limited has a notable list of clientele which include First Bank of Nigeria Limited.
It should be noted that cash-in-transit operation is very critical to the Nigerian economy, as cash needs to be constantly moved around in order to keep the economy running.
Segun Agbaje elected into PepsiCo Board of directors
Segun Agbaje, the Managing Director of Guaranty Trust Bank of Nigeria has been elected as an independent member of the Board of Directors of PepsiCo, the American owners of popular beverage Pepsi and Moutain Dew.
According to the press release seen by Nairametrics, the Board of Directors elected Segun Agbaje as an independent member of the Board. Mr. Agbaje, 56, will join the Board and the Audit Committee effective July 15, 2020.
In his remark, Pepsico Chairman and CEO Ramon Laguarta expressed delight in welcoming Mr. Agbaje to the Pepsico Board.
“Segun is a well-respected and proven business leader with a deep understanding of complex businesses and fast-growing markets, particularly Sub-Saharan Africa where we recently acquired Pioneer Foods as part of our strategy to expand in the region. His experience in business transformation and passion for delivering consumer value will serve PepsiCo well as we continue our journey to be the global leader in convenient foods and beverages by winning with purpose.”
PepsiCo recently acquired Pioneer Foods, makers of Butterfield Bread. Pioneer Foods also acquired a major stake in Food ConceptPioneer, a leading baked goods company. Food Concepts are also the owners of the popular Chicken Republic quick-service restaurant chain in Nigeria.
The Chair of PepsiCo’s Board’s Nominating and Corporate Governance Committee, Daniel Vasells remarked,
“We look forward to Segun joining the PepsiCo Board and to the valued global perspective he will add to our team..His knowledge and experience of embracing and scaling new technologies and critical capabilities will be valuable as we continue to invest in opportunities that create shareholder value and deliver long-term sustainable growth.”
Segun Agbaje also currently serves as a director of MasterCard Advisory Board Middle East and Africa. He holds a Bachelor of Science in Accounting and a Masters in Business Administration from the University of San Francisco.
NCC creates digital economy department to harness technology in Nigeria
The commission announced that its Governing Board had approved the creation of the new department.
The Nigerian Communications Commission (NCC) has approved the creation of a Digital Economy Department, which will be responsible for promoting the digital economic agenda of the federal government.
Among other things, this department will renew the commission’s strategy for delivering its programmes and policies, and give the necessary push to promote the national digital economy.
In a press release signed by the Director, Public Affairs, Dr. Ikechukwu Adinde, and published by NCC on Tuesday evening, the commission announced that its Governing Board had approved the creation of the new department which would be structurally under the Office of the Executive Vice Chairman/CEO of NCC.
According to the Executive Vice Chairman, Prof. Umar Danbatta, the decision to place the newly-created department under the Office of the EVC also underscores the “importance the Commission places on the need to successfully drive the overall national digital economy strategy of the government through ensuring its effective monitoring and supervision.”
All staff members of the Special Duties Department are to move to the newly-created Digital Economy Department. which will be headed by Engr. Babagana Digima, an Assistant Director in the Special Duties Department who will now serve as pioneer Head of the new department.
Danbatta noted that the department would be guided by the eight pillars of the National Digital Economy Policy and Strategy (NDEPS) document, the Broadband Implementation Unit in the Commission.
The eight pillars contained include: Developmental Regulation; Digital Literacy and Skills; Solid Infrastructure; Service Infrastructure; Soft Infrastructure; Digital Services Development and Promotion; Digital Society and Emerging Technologies; and Indigenous Content Development and Adoption.
The NDEPS was unveiled in November 2019 by President Muhammadu Buhari as a guide for the national digital economy which will lead to the Economy Recovery and Growth Plan (ERGP).