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Showing posts with label CBN Governor. Show all posts

Crippling Financial System: CBN Indicts FG

Crippling Financial System: CBN Indicts FG

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Crippling Financial System: CBN Indicts FG
The Punch Newspaper - The Monetary Policy Committee of the Central Bank of Nigeria on Tuesday called on the Federal Government to urgently evaluate the level of its domestic indebtedness and develop a framework for settling these debts.

The committee, in a communique issued at the end of its two-day meeting held at the headquarters of the CBN in Abuja, warned that the huge government indebtedness to economic agents had slowed down business activities.

In the communique, which was read by the CBN Governor, Mr. Godwin Emefiele, the committee noted that the development was not good for the economy as it was compromising the integrity of the financial system.


While reiterating that monetary policy alone could not address the current economic crisis, the CBN governor noted that the committee called for an enrichment of fiscal and other sector initiatives and interventions towards resolving the growth challenges in the economy.

He said these interventions were vital in order to promptly revive confidence in the economy.

Emefiele said, “Members stressed the need for a robust and more keenly coordinated macroeconomic policy framework that would restart output growth, stimulate aggregate demand and rein in inflation expectations.

“The MPC urged the Federal Government to urgently assess the extent of its indebtedness to domestic economic agents and develop a framework for securitising the debts in order to settle its outstanding domestic contractual obligations, which cut across all sectors of the economy.

“These accumulated debts have slowed the business activities of economic agents, most of who are indebted to the banking system, thus compromising the integrity of the financial system. It also advised the bank (CBN) to commit to greater surveillance and deployment of early warning systems in managing the banking system.”

The CBN governor said the committee called on security agencies to sustain their checks on the activities of illegal foreign exchange operators in order to bring sanity to that segment of the market.

He said, “The extant foreign exchange regulation outlaws the trafficking of currency on the streets as some unlicensed operators currently do.

“Thus, to evolve an appropriate naira exchange rate that stabilises the foreign exchange market, Bureau De Change operators must strictly observe the terms and conditions of their licences.”

On whether the CBN was supporting jail terms for people hoarding dollars, Emefiele said the apex bank would not support any such move.

He said while the current foreign exchange regulations of the CBN did not in any way support jail term for people who hoard dollars, he was aware that the Nigerian Law Reform Commission was working towards reviewing the regulations.

The apex bank boss, however, added that the CBN would not support any move to prescribe jail terms for people who hoard dollars.

He said, “Let me use this opportunity to reiterate that it is not in our foreign exchange regulations that people should be jailed or their dollars confiscated. But I am aware because just today (Tuesday), I was told that the Nigerian Law Reform Commission is looking at reviewing the exchange regulations, just like it normally will from time to time depending on the exigency of the time.

“We have not been contacted regarding whether or not some of the clauses that are involved are included in the review to be conducted by the Law Reform Commission.

“But I am saying here categorically that if we are contacted, or whenever it becomes an issue for discussion, we will advise against a clause that forbids people from keeping their dollars if they chose to, or a law that says people should be jailed for keeping foreign currencies.”

When asked if the apex bank was concerned about some of the risks facing the banking system owing to the current economic crisis, the CBN governor admitted that while all players in the financial system were facing “tremendous risks,” the central bank would ensure that they would not crystalise to a point where depositors’ funds would be lost.

He said, “As a result of the current challenges being faced by the global economy, all agents in the financial system, such as banks and other players, are facing tremendous risks.

“When there is a slowdown or recession, naturally banks will face certain risks such as non-performing loans rising and different other risks, and this imposes on the regulator a greater challenge to ensure that it strengthens its prudential guidelines to ensure that the banks and particularly depositors are protected.

“Nigerian banks, like other banks in other climes, are facing risks. But those risks are surmountable, and the central bank is doing all its best to ensure those risks don’t crystalise to a point where we will begin to talk about depositors losing their deposits. So for that reason, the rumour about banking sector risks is overtly elevated.”

On whether the apex bank was considering reducing the number of BDC operators so as to better regulate their activities, the governor said the CBN might consider that option at the appropriate time.

He said, “We believe that everybody (BDC) is entitled (to have a licence) once the regulations are set; there is no need to preclude you if you meet the conditions. But of course, naturally, the regulator, which is the CBN, has a right to put in place policies that limit entry. If we want to limit entry, we know what to do.

“I can assure you we will do it anytime we decide to limit entry or even exacerbate exit from the market, and that is something we will look into at the appropriate time.”

On the foreign exchange inflow through the CBN, the governor said the country recorded a decline of $447.5m or 31.85 per cent from $1.4bn in September to $957.37m in October.

He attributed the decrease to lower crude oil and other government revenues in the period under review, lamenting that despite the resumed Joint Venture payments in October, the total outflows also continued to decrease.

Foreign exchange outflows, according to him, dropped significantly by 58.68 per cent from $2.25bn to $1.01bn during the period.

Emefiele said the committee implored the CBN to continue to direct more focus at making foreign exchange available to the agriculture and manufacturing sectors of the economy.

This, according to him, can be achieved by enforcing its policy directing Deposit Money Banks to allocate 60 per cent of the available foreign exchange to these sectors.

On the Monetary Policy Rate, the CBN governor said the committee decided to leave it unchanged at 14 per cent.

He explained that all the 10 members who attended the MPC meeting agreed to maintain the current monetary policy stance.

Apart from the MPR that was retained at 14 per cent, the governor said the committee also voted to retain the Cash Reserves Ratio at 22.5 per cent.

Also retained were the liquidity ratio, which was left at 30 per cent; and the asymmetric window, which was left at +200 and -500 basis points around the MPR.
Crippling Financial System: CBN Indicts FG
The Punch Newspaper - The Monetary Policy Committee of the Central Bank of Nigeria on Tuesday called on the Federal Government to urgently evaluate the level of its domestic indebtedness and develop a framework for settling these debts.

The committee, in a communique issued at the end of its two-day meeting held at the headquarters of the CBN in Abuja, warned that the huge government indebtedness to economic agents had slowed down business activities.

In the communique, which was read by the CBN Governor, Mr. Godwin Emefiele, the committee noted that the development was not good for the economy as it was compromising the integrity of the financial system.


While reiterating that monetary policy alone could not address the current economic crisis, the CBN governor noted that the committee called for an enrichment of fiscal and other sector initiatives and interventions towards resolving the growth challenges in the economy.

He said these interventions were vital in order to promptly revive confidence in the economy.

Emefiele said, “Members stressed the need for a robust and more keenly coordinated macroeconomic policy framework that would restart output growth, stimulate aggregate demand and rein in inflation expectations.

“The MPC urged the Federal Government to urgently assess the extent of its indebtedness to domestic economic agents and develop a framework for securitising the debts in order to settle its outstanding domestic contractual obligations, which cut across all sectors of the economy.

“These accumulated debts have slowed the business activities of economic agents, most of who are indebted to the banking system, thus compromising the integrity of the financial system. It also advised the bank (CBN) to commit to greater surveillance and deployment of early warning systems in managing the banking system.”

The CBN governor said the committee called on security agencies to sustain their checks on the activities of illegal foreign exchange operators in order to bring sanity to that segment of the market.

He said, “The extant foreign exchange regulation outlaws the trafficking of currency on the streets as some unlicensed operators currently do.

“Thus, to evolve an appropriate naira exchange rate that stabilises the foreign exchange market, Bureau De Change operators must strictly observe the terms and conditions of their licences.”

On whether the CBN was supporting jail terms for people hoarding dollars, Emefiele said the apex bank would not support any such move.

He said while the current foreign exchange regulations of the CBN did not in any way support jail term for people who hoard dollars, he was aware that the Nigerian Law Reform Commission was working towards reviewing the regulations.

The apex bank boss, however, added that the CBN would not support any move to prescribe jail terms for people who hoard dollars.

He said, “Let me use this opportunity to reiterate that it is not in our foreign exchange regulations that people should be jailed or their dollars confiscated. But I am aware because just today (Tuesday), I was told that the Nigerian Law Reform Commission is looking at reviewing the exchange regulations, just like it normally will from time to time depending on the exigency of the time.

“We have not been contacted regarding whether or not some of the clauses that are involved are included in the review to be conducted by the Law Reform Commission.

“But I am saying here categorically that if we are contacted, or whenever it becomes an issue for discussion, we will advise against a clause that forbids people from keeping their dollars if they chose to, or a law that says people should be jailed for keeping foreign currencies.”

When asked if the apex bank was concerned about some of the risks facing the banking system owing to the current economic crisis, the CBN governor admitted that while all players in the financial system were facing “tremendous risks,” the central bank would ensure that they would not crystalise to a point where depositors’ funds would be lost.

He said, “As a result of the current challenges being faced by the global economy, all agents in the financial system, such as banks and other players, are facing tremendous risks.

“When there is a slowdown or recession, naturally banks will face certain risks such as non-performing loans rising and different other risks, and this imposes on the regulator a greater challenge to ensure that it strengthens its prudential guidelines to ensure that the banks and particularly depositors are protected.

“Nigerian banks, like other banks in other climes, are facing risks. But those risks are surmountable, and the central bank is doing all its best to ensure those risks don’t crystalise to a point where we will begin to talk about depositors losing their deposits. So for that reason, the rumour about banking sector risks is overtly elevated.”

On whether the apex bank was considering reducing the number of BDC operators so as to better regulate their activities, the governor said the CBN might consider that option at the appropriate time.

He said, “We believe that everybody (BDC) is entitled (to have a licence) once the regulations are set; there is no need to preclude you if you meet the conditions. But of course, naturally, the regulator, which is the CBN, has a right to put in place policies that limit entry. If we want to limit entry, we know what to do.

“I can assure you we will do it anytime we decide to limit entry or even exacerbate exit from the market, and that is something we will look into at the appropriate time.”

On the foreign exchange inflow through the CBN, the governor said the country recorded a decline of $447.5m or 31.85 per cent from $1.4bn in September to $957.37m in October.

He attributed the decrease to lower crude oil and other government revenues in the period under review, lamenting that despite the resumed Joint Venture payments in October, the total outflows also continued to decrease.

Foreign exchange outflows, according to him, dropped significantly by 58.68 per cent from $2.25bn to $1.01bn during the period.

Emefiele said the committee implored the CBN to continue to direct more focus at making foreign exchange available to the agriculture and manufacturing sectors of the economy.

This, according to him, can be achieved by enforcing its policy directing Deposit Money Banks to allocate 60 per cent of the available foreign exchange to these sectors.

On the Monetary Policy Rate, the CBN governor said the committee decided to leave it unchanged at 14 per cent.

He explained that all the 10 members who attended the MPC meeting agreed to maintain the current monetary policy stance.

Apart from the MPR that was retained at 14 per cent, the governor said the committee also voted to retain the Cash Reserves Ratio at 22.5 per cent.

Also retained were the liquidity ratio, which was left at 30 per cent; and the asymmetric window, which was left at +200 and -500 basis points around the MPR.
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Diaspora Group Demands Emefiele's Sack Over Poor Handling of Naira

Diaspora Group Demands Emefiele's Sack Over Poor Handling of Naira

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Diaspora Group Demands Emefiele's Sack Over Poor Handling of Naira
Nigerians in Diaspora Monitoring Group, NDMG, has asked President Muhammadu Buhari to seek the approval of the Senate to immediately sack the Governor of the Central Bank of Nigeria, CBN, Mr Godwin Emefiele over what it termed long-running incompetence and deliberate sabotage of the country's economy through questionable monetary policies that ruined the naira.

It threatened to shut down Nigeria High Commission in London should Emefiele not be immediately removed as CBN governor while other chapters of the group have been contacted to take similar actions at the nation's various diplomatic missions.

NDMG said the problems caused by are so grave that he should have been fired immediately while the President retroactively seek Senate's backing but that the need to adhere to due process and the necessity of not spooking the economy were the only argument against such approach. 

A statement issued by the United Kingdom coordinator of the group, Engineer Adeka Oyinlo, noted that anyone with honour would have resigned as the apex banker without being prompted given the unprecedented free fall of the naira under Emefiele's watch.

The statement said similar to the employment scandal in which the apex bank boss illegally hired relations of those he wanted to please, the distress of the naira was worsened by steps that the CBN governor took to service the interests of his cronies in and out of government.

It argues that "We have seen Mr Emefiele converting the Central Bank into the personal bank of his business friends which he used to raise dollars for them to execute projects not just in Nigeria but also in other African countries without a thought for how this would affect the nation's economy.

"The CBN has also largely abdicated his and the bank's regulatory roles to the commercial banks under the Bankers' Committee, which has consequently created a situation where a clique takes decisions to the detriment of 180 million Nigerians so long as their bottom line is met.

"This perhaps explains why Emefiele's reactions to the troubled naira has been nothing short of knee jerking that has seen series of policy summersaults that occurred within days in some instances. Not only have the responses been inconsistent they also appeared to be targeted at making life miserable for the populace while strengthening the hands of the forex cabal.

"Round tripping and false declaration of forex application have continued unabated while Emefiele looks the other way as his buddies on the Bankers' Committee make killings on hourly basis. The CBN Governor's only intervention is to further compound the problem by removing those who stand in the way of his friends' profit.

"For the avoidance of doubt, Nigerians who have to seek medical treatment abroad are dying, not just because treatment has become more expensive in dollars-naira terms but also because they now face impossibly long delays in getting forex to commence treatment. Too many youths have also been forced to abort their education abroad and consequently shatter their dreams.

"These nightmarish scenario must end, which is why we are asking President Muhammadu Buhari to immediately approach the Senate to get the necessary backing for Mr Godwin Emefiele's removal as CBN Governor. Where Mr President does not immediately remove him we will mass at Nigeria's High Commission in the United Kingdom and ensure that the place remains on lockdown.

"We have fortunately secured the understanding of our chapters in other countries to take similar steps to drive home the message. Those of us in the Diaspora now bear untold burden because of the hardship trailing Mr Emefiele's poor handling of the naira, which we have been able to establish as a deliberate act of sabotage," the statement said.

A FORMER 1 MINUTES MAN REVEALS HOW HE INCREASED HIS PENIS SIZE TO SATISFACTION AND STOPPED HIS CHRONIC PREMATURE EJACULATION ISSUES IN LESS THAN 29DAYS AS HE NOW LASTS 35MINS+ IN BED USING THIS NEW, 100% NAFDAC APPROVED NO-SIDE EFFECT 2-IN-1 SOLUTION.... 

Diaspora Group Demands Emefiele's Sack Over Poor Handling of Naira
Nigerians in Diaspora Monitoring Group, NDMG, has asked President Muhammadu Buhari to seek the approval of the Senate to immediately sack the Governor of the Central Bank of Nigeria, CBN, Mr Godwin Emefiele over what it termed long-running incompetence and deliberate sabotage of the country's economy through questionable monetary policies that ruined the naira.

It threatened to shut down Nigeria High Commission in London should Emefiele not be immediately removed as CBN governor while other chapters of the group have been contacted to take similar actions at the nation's various diplomatic missions.

NDMG said the problems caused by are so grave that he should have been fired immediately while the President retroactively seek Senate's backing but that the need to adhere to due process and the necessity of not spooking the economy were the only argument against such approach. 

A statement issued by the United Kingdom coordinator of the group, Engineer Adeka Oyinlo, noted that anyone with honour would have resigned as the apex banker without being prompted given the unprecedented free fall of the naira under Emefiele's watch.

The statement said similar to the employment scandal in which the apex bank boss illegally hired relations of those he wanted to please, the distress of the naira was worsened by steps that the CBN governor took to service the interests of his cronies in and out of government.

It argues that "We have seen Mr Emefiele converting the Central Bank into the personal bank of his business friends which he used to raise dollars for them to execute projects not just in Nigeria but also in other African countries without a thought for how this would affect the nation's economy.

"The CBN has also largely abdicated his and the bank's regulatory roles to the commercial banks under the Bankers' Committee, which has consequently created a situation where a clique takes decisions to the detriment of 180 million Nigerians so long as their bottom line is met.

"This perhaps explains why Emefiele's reactions to the troubled naira has been nothing short of knee jerking that has seen series of policy summersaults that occurred within days in some instances. Not only have the responses been inconsistent they also appeared to be targeted at making life miserable for the populace while strengthening the hands of the forex cabal.

"Round tripping and false declaration of forex application have continued unabated while Emefiele looks the other way as his buddies on the Bankers' Committee make killings on hourly basis. The CBN Governor's only intervention is to further compound the problem by removing those who stand in the way of his friends' profit.

"For the avoidance of doubt, Nigerians who have to seek medical treatment abroad are dying, not just because treatment has become more expensive in dollars-naira terms but also because they now face impossibly long delays in getting forex to commence treatment. Too many youths have also been forced to abort their education abroad and consequently shatter their dreams.

"These nightmarish scenario must end, which is why we are asking President Muhammadu Buhari to immediately approach the Senate to get the necessary backing for Mr Godwin Emefiele's removal as CBN Governor. Where Mr President does not immediately remove him we will mass at Nigeria's High Commission in the United Kingdom and ensure that the place remains on lockdown.

"We have fortunately secured the understanding of our chapters in other countries to take similar steps to drive home the message. Those of us in the Diaspora now bear untold burden because of the hardship trailing Mr Emefiele's poor handling of the naira, which we have been able to establish as a deliberate act of sabotage," the statement said.

A FORMER 1 MINUTES MAN REVEALS HOW HE INCREASED HIS PENIS SIZE TO SATISFACTION AND STOPPED HIS CHRONIC PREMATURE EJACULATION ISSUES IN LESS THAN 29DAYS AS HE NOW LASTS 35MINS+ IN BED USING THIS NEW, 100% NAFDAC APPROVED NO-SIDE EFFECT 2-IN-1 SOLUTION.... 

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Former CBN Gov. Soludo Joins BIAFRA 'Agitators'

Former CBN Gov. Soludo Joins BIAFRA 'Agitators'

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Professor Chukwuma Soludo
Professor Chukwuma Soludo
Professor Chukwuma Soludo, a former Central Bank of Nigeria (CBN) Governor may have joined the BIAFRA agitators as he justified the secessionist agitation for a breakaway, describing in as intelligentsia.

In making case for the secessionist, Soludo advised the Federal Government to free Nnamdi Kanu as a first step of resolving the agitation for a Biafra State. Soludo, who reviewed a Book, titled “The Politics of Biafra and The Future of Nigeria” written by former House of Representatives member, Hon. Chudi Offodile, said keeping Kanu in prison would not do Nigeria any good as a nation., New Telegraph reports this morning


“Kanu threw a bait and Nigeria accepted it. I think he is a most popular political prisoner today and should be released; he may be a subject of the next political campaign. He may be like the late Obafemi Awolowo, who came out of prison after being charged for treason and embraced by all ” Soludo explained. He said Kanu and his followers were in the main stream of the struggle and that he would be surprised if anybody tells President Mohammadu Buhari to ignore this group of intelligentsia. Soludo said any elite group, who goes to the government in a bid to negotiate on their behalf unjustly will be consumed by this monster they created.

“Let me agree with Professor Wole Soyinka that said the declaration of the state of Biafra is an idea which can be resolved with dialogue.” He said what the various agitators like MASOB, Biafra Movement, new Biafra division were craving for is a fairer Nigeria with equity, fair play and even development, adding that the Igbo land had been underdeveloped in terms of infrastructure in spite of so many political appointments given to its children.

He said that if Chief Odumegwu Ojukwu and Nnamdi Azikiwe, who died as Nigerians were alive today, they would have towed the line of the new Biafra movement. He said Bakassi changed the map of Nigeria, the day it was ceded to Cameroon and wondered why Biafra too cannot change it. Reviewing the book, Solu-do said it is a must read by all because it captures and provides essential insights, analytical comments and excellent peace of research in Nigeria’s attempts to forging a sustainable unity and a Biafran dialogue as it is impossible to hold people hostage in their country.

“The book tells Nigerians the steps it can take to save its fragile independence and way forward,” he said

Also speaking on the struggles, former Governor of Abia State, Chief Orji Kalu, said it was true that the South East had been neglected and marginalized in terms of infrastructural developments.

He said the area required urgent attention by the Federal Government. Those present at the launch were former Vice President, Dr. AlexEkwueme, Bishop Matthew Hassan Kukah, Catholic Bishop of SokotoDiocese; formerMinister of Aviation, Hon Osita Chidoka; former Speaker House of Representatives, Ghali Na’ bba, Senator Ken Nnmani, former Deputy Speaker, Hon Emeka Ihedioha and host of others.
Professor Chukwuma Soludo
Professor Chukwuma Soludo
Professor Chukwuma Soludo, a former Central Bank of Nigeria (CBN) Governor may have joined the BIAFRA agitators as he justified the secessionist agitation for a breakaway, describing in as intelligentsia.

In making case for the secessionist, Soludo advised the Federal Government to free Nnamdi Kanu as a first step of resolving the agitation for a Biafra State. Soludo, who reviewed a Book, titled “The Politics of Biafra and The Future of Nigeria” written by former House of Representatives member, Hon. Chudi Offodile, said keeping Kanu in prison would not do Nigeria any good as a nation., New Telegraph reports this morning


“Kanu threw a bait and Nigeria accepted it. I think he is a most popular political prisoner today and should be released; he may be a subject of the next political campaign. He may be like the late Obafemi Awolowo, who came out of prison after being charged for treason and embraced by all ” Soludo explained. He said Kanu and his followers were in the main stream of the struggle and that he would be surprised if anybody tells President Mohammadu Buhari to ignore this group of intelligentsia. Soludo said any elite group, who goes to the government in a bid to negotiate on their behalf unjustly will be consumed by this monster they created.

“Let me agree with Professor Wole Soyinka that said the declaration of the state of Biafra is an idea which can be resolved with dialogue.” He said what the various agitators like MASOB, Biafra Movement, new Biafra division were craving for is a fairer Nigeria with equity, fair play and even development, adding that the Igbo land had been underdeveloped in terms of infrastructure in spite of so many political appointments given to its children.

He said that if Chief Odumegwu Ojukwu and Nnamdi Azikiwe, who died as Nigerians were alive today, they would have towed the line of the new Biafra movement. He said Bakassi changed the map of Nigeria, the day it was ceded to Cameroon and wondered why Biafra too cannot change it. Reviewing the book, Solu-do said it is a must read by all because it captures and provides essential insights, analytical comments and excellent peace of research in Nigeria’s attempts to forging a sustainable unity and a Biafran dialogue as it is impossible to hold people hostage in their country.

“The book tells Nigerians the steps it can take to save its fragile independence and way forward,” he said

Also speaking on the struggles, former Governor of Abia State, Chief Orji Kalu, said it was true that the South East had been neglected and marginalized in terms of infrastructural developments.

He said the area required urgent attention by the Federal Government. Those present at the launch were former Vice President, Dr. AlexEkwueme, Bishop Matthew Hassan Kukah, Catholic Bishop of SokotoDiocese; formerMinister of Aviation, Hon Osita Chidoka; former Speaker House of Representatives, Ghali Na’ bba, Senator Ken Nnmani, former Deputy Speaker, Hon Emeka Ihedioha and host of others.
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FG's New Exchange Rate Policy: Naira Begins To Benefit, Appreciates Sharply Against The Dollar

FG's New Exchange Rate Policy: Naira Begins To Benefit, Appreciates Sharply Against The Dollar

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New Exchange Rate Policy: Naira Begins To benefit, Appreciates Sharply Against The Dollar
Following the Central Bank of Nigeria's new flexible Foreign Exchange rate policy, the Nigerian currency, the naira has begun to reap the benefit significantly against the United States Dollars.

Just yesterday, a day after the Central Bank of Nigeria released the much-awaited foreign exchange market framework., the local currency gained N12, rising from 367 to 355 against the United States dollar at the parallel market.

Forex dealers and analysts said the naira-dollar exchange rate, which closed flat at 367 on Wednesday, started reacting to the new policy following a rise in the supply of the greenback at the parallel market on Thursday, Punch Newspaper reports

The International Monetary Fund on Thursday said it welcomed the decision by the CBN to abandon its currency peg and adopt a flexible exchange rate policy, saying this was important to reduce fiscal and external imbalances.

The CBN had said on Wednesday that a market-driven foreign exchange market would commence on Monday, in the process abandoning the peg of N197 to the dollar that it had supported for 16 months.

Experts, who spoke to our correspondent on Wednesday, lauded the CBN for its courage to implement the market-determined exchange rate policy, saying it would bring down prices and eliminate market distortions.

Traders said on Thursday that the naira would likely fall next week as the country switches to a flexible and market-driven exchange rate policy.

Analysts also said that the naira might slide to a record low when the new open-market foreign currency trading commenced on Monday.

“We are expecting an initial wide depreciation of the naira at the official window, but the rate could stabilise at around the present black market rate of 370, depending on how much dollars the central bank will be willing to push into the market,” a senior trader told Reuters.

However, the CBN has said it is “reasonably optimistic” the naira will settle at around 250 to the US dollar, according to Reuters.

While forecasting that that naira will initially weaken against the greenback following a flotation on Monday, the CBN Governor, Godwin Emefiele, said the local currency would gain significantly over time.

Quoting a letter to President Muhammadu Buhari by the CBN governor was said to have noted that the naira would settle around 250 against the greenback.

“I must assure Your Excellency that we are indeed reasonably optimistic that at some point, the rate will settle around 250 naira,” Emefiele was quoted to have written by News Agency of Nigeria.

The letter, which briefs Buhari on the foreign exchange plan, says it could take three to four weeks to clear a $4bn backlog of foreign exchange demand.

New Exchange Rate Policy: Naira Begins To benefit, Appreciates Sharply Against The Dollar
Following the Central Bank of Nigeria's new flexible Foreign Exchange rate policy, the Nigerian currency, the naira has begun to reap the benefit significantly against the United States Dollars.

Just yesterday, a day after the Central Bank of Nigeria released the much-awaited foreign exchange market framework., the local currency gained N12, rising from 367 to 355 against the United States dollar at the parallel market.

Forex dealers and analysts said the naira-dollar exchange rate, which closed flat at 367 on Wednesday, started reacting to the new policy following a rise in the supply of the greenback at the parallel market on Thursday, Punch Newspaper reports

The International Monetary Fund on Thursday said it welcomed the decision by the CBN to abandon its currency peg and adopt a flexible exchange rate policy, saying this was important to reduce fiscal and external imbalances.

The CBN had said on Wednesday that a market-driven foreign exchange market would commence on Monday, in the process abandoning the peg of N197 to the dollar that it had supported for 16 months.

Experts, who spoke to our correspondent on Wednesday, lauded the CBN for its courage to implement the market-determined exchange rate policy, saying it would bring down prices and eliminate market distortions.

Traders said on Thursday that the naira would likely fall next week as the country switches to a flexible and market-driven exchange rate policy.

Analysts also said that the naira might slide to a record low when the new open-market foreign currency trading commenced on Monday.

“We are expecting an initial wide depreciation of the naira at the official window, but the rate could stabilise at around the present black market rate of 370, depending on how much dollars the central bank will be willing to push into the market,” a senior trader told Reuters.

However, the CBN has said it is “reasonably optimistic” the naira will settle at around 250 to the US dollar, according to Reuters.

While forecasting that that naira will initially weaken against the greenback following a flotation on Monday, the CBN Governor, Godwin Emefiele, said the local currency would gain significantly over time.

Quoting a letter to President Muhammadu Buhari by the CBN governor was said to have noted that the naira would settle around 250 against the greenback.

“I must assure Your Excellency that we are indeed reasonably optimistic that at some point, the rate will settle around 250 naira,” Emefiele was quoted to have written by News Agency of Nigeria.

The letter, which briefs Buhari on the foreign exchange plan, says it could take three to four weeks to clear a $4bn backlog of foreign exchange demand.

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The New Foreign Exchange Regime: The New Value of Naira, All You Need To Know - The CBN Explains

The New Foreign Exchange Regime: The New Value of Naira, All You Need To Know - The CBN Explains

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The New Foreign Exchange Regime: What Will Happen To Naira, All You Need To Know - The CBN Explains
ThisDayLive - In what has been hailed as a bold move by market analysts in Lagos, London and Johannesburg, the Central Bank of Nigeria (CBN) wednesday unveiled the new guidelines for the Nigeria Interbank Foreign Exchange (NIFEX) Market, allowing the exchange rate of the naira to be determined by the market forces of demand and supply, although the central bank would step in whenever appropriate.

Paring the losses it made since Friday last week, the Nigerian Stock Exchange All-Share Index (NSE-ASI) rose by 3.17 per cent yesterday to close at 27,891.96, up from 27,034.05 the previous day, while market capitalisation added N279 billion to close higher at N9.579 trillion.

The new guidelines came after weeks of consultations with stakeholders including the banks on the need for a more flexible forex market, to among other things, reduce pressure on the local currency and attract foreign investors.

Speaking to journalists at a press briefing in Abuja, CBN Governor, Mr. Godwin Emefiele, said the central bank had resolved to henceforth deal with FX Primary Dealers (FXPDs) under the new arrangement.

He also said the existing ban of 41 items from accessing forex from the official window would remain in place.

He said part of the objectives of the new framework, which included the introduction of the naira-settled Over-the-Counter (OTC) FX Futures trading, was to discourage people from front-loading or hoarding forex due to uncertainty.

He also assured the markets that the backlog of matured letters of credit would be cleared.

Confirming THISDAY’s exclusive report yesterday that the CBN would not create a “special” window for critical transactions, Emefiele said the new forex framework would allow the market to operate as a single market structure through the interbank/autonomous window, while the exchange rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book.

He said the CBN would however participate in the market through periodic interventions to either buy or sell forex as the need arises.

He said to improve the dynamics of the market, the central bank would further introduce FX Primary Dealers (FXPD), who would be registered by the CBN, to deal directly with the Bank for large trade sizes on a two-way quote basis.

The governor said the primary dealers would operate with other dealers in the interbank market, among other obligations that would be stipulated in the Foreign Exchange Primary Dealers (FXPD) guidelines.

However, he said selected FX Primary Dealers would be notified by Friday, June 17, 2016 on the new guidelines while all other non-primary dealers would remain valid and eligible to participate in the market.

He said interbank trading under the new guidelines would begin on Monday, June 20, 2016, while tenors and rates for the naira-settled OTC FX Futures would be announced on June 27, 2016.

According to Emefiele, “The big point here is that we’ve decided that the CBN will deal primarily with what we call the foreign exchange primary dealers. We will have non-primary dealers and primary dealers.

“The guidelines for the qualification for being a foreign exchange primary dealer would be on our website.
“There are a number of qualifications, either the size of the bank, or the size of forex transactions it had done before, the level of liquidity, the extent to which those banks have complied with CBN guidelines, regulations in the past and their level of preparedness in terms of being able to provide all the soft and hardware that is needed to operate in a very transparent manner that can handshake with the Thompson Reuters and FMDQ software – these will be the basis.”

He said: “But from what we see, we do not think there’ll be more than a maximum of eight or 10 primary dealers. What that means is that you have what we can call Grade A dealers and you have the Grade B dealers.
“But being a Grade A dealer doesn’t confer on you any special preference other than the fact that the size of trade that the CBN is willing to deal with you would be larger than the trade for those who are going to be dealing as non-primary dealers.

“And forex dealers themselves right now and even the banks understand what we mean by the size of trade, talking about an open transparent, two-way quote system, where I can close or they can close on themselves, or me on them, and their capacity to deliver anytime within the trading period is very important here.
“So that’s why we are trying to segment them in two parts.”

Emefiele said based on what the central bank had published, the level of trades as a primary dealer would be set at a minimum of $10 million.

“So what that means is not about talking about the standard trades of those days when a dealer said it’s about $100,000 and you say, I close on you for $100,000.

“Now, we are talking about a minimum of $10 million and to do that, you have to have strong capacity, you must have prepared yourselves, you have to be ready to play with the highest level of professionalism and transparency and nobody is going to take any nonsense from you if you decide to breach the regulations or guidelines.

“And that’s the reason I said we will expect those who are going to deal here to be people who can deliver on their words. They must be people who understand the implications for whatever decisions they take regarding the size, talking of the volume and the exchange rate they decide to quote.

“It’s intended to ensure that we don’t have speculators, we don’t have rent seekers who just want to come into the market, particularly the primary market to just come and start auctioning and staking on prices against each other for what I can call private benefits,” he clarified.

On steps being taken by the CBN to narrow the gap between the official and parallel market rates, the central bank governor said: “As long as there’s one window, whatever comes out at the end of the day as the marginal rate, that rate will be the rate that will be recognised officially by the world as the rate of the naira.

“I do not expect that any other rate will be recognised in the market. But I think it’s important for me to provide a little clarification on a few issues burning in the hearts of people. And the first is what we call the OTC FX futures.

“The FX futures market is an innovation which we have introduced to moderate volatility in the foreign exchange market. It’s a situation where it makes it easy for you as a businessman to plan your business and the rate at which you want to do your business.”

He said the new flexible forex regime would also discourage speculative attacks on the naira.

According to him, “You do not have to fear that because of what is happening to crude oil prices today, that you are afraid that you may not be able to source your dollars in the next two, three, seven or nine months, and for that reason you begin to take precautionary decisions by front-loading on your foreign exchange.
“Under the new regime, you can decide that I have pegged the price of foreign exchange or I have pegged the price of my product based on an exchange rate of X and you lock yourself on to a future rate with our primary dealers or even with the non-primary dealers.

“When you lock yourself to a rate of let’s say N200 or you decide to lock yourself to a rate of say N230 or N280, as the case maybe, all you need to do is go back and do your business once you’ve locked yourself to a futures transaction through futures deal.

“So if in the next three months, if the rate you agreed at locking up your futures deal was say N260, and the market is doing say, N270 at that time, that N10 gap, the Central Bank of Nigeria will bridge the naira equivalent of that N10 gap such that you are not seen to be losing money by waiting for the next two to three months to procure your foreign exchange.”

Emefiele added that what the OTC FX futures market would do for Nigeria is that it would shift forex demand from the spot market to the time when forex is really needed, adding that demand for forex on the spot market had led to the demand pressure in the market and speculative attacks against the naira.

“Indeed, we would be engaging more and more both with the banks and primary and non-primary forex dealers about how this would work because we are determined to ensure that this works and I am very optimistic that it would work,” he said.

On the matured letters of credit, he said the current level of Nigeria’s foreign reserves should offer hope to investors.

“I know a couple of people, particularly those who have matured letters of credit, who would want to buy their foreign exchange and would demand to know what would happen to the matured transactions? The important thing is that the backlog of transactions will be taken to the market for the clearance.

“And let me say this, the CBN has foreign reserve of close to about $26.5 billion-$26.7 billion; this is certainly substantially higher than the level of any demand that is in the market.

“We are making efforts with respect to the supply of forex in the market and we are also optimistic that the steps that we have taken today will help to further deepen the market and also get foreign exchange into the market.
“We are very hopeful that this will work and we are saying independently, the CBN is working to even ensure that we improve the level of supply into the market, so the demand would be met.

“There’s no need for everybody to rush at the same time into the market: indeed, you may find yourself losing money when you rush into the market and take some emergency decisions that will hurt you, hurt your profits, hurt your balance sheet and ultimately, if you are taking a bank loan, hurt your interest charges on your bank loans. So we need to be very careful.

“And that’s the reason we’ve starting the OTC FX futures market, so that you can take it easy. If you are not too sure, go to the futures, commit yourself to a rate and you’ll find a deal – all the banks will provide you with a FX futures rate whether from one to nine months and with that, you are able to go about your business without losing sleep.

“We’ve committed ourselves to the level of guarantees to say, it’s like a bet if the rate that you get eventually at the time of your futures maturing is higher than the deal date, as we will pay you the difference.
“But if the rate on that day is lower than the deal date rate, you’ll pay us the naira equivalent,” the governor explained.

Revised Guidelines for NIFEX Market

Following Emefiele’s briefing, the CBN yesterday posted the revised guidelines for the operation of the NIFEX market on its website, stating that the CBN shall operate a single market structure through the autonomous/interbank market, i.e. the interbank forex market with the CBN participating in the market through interventions directly in the interbank market or through dynamic “Secondary Market Intervention Mechanisms”.

Furthermore, it stated that in order to promote the global competitiveness of the market, the interbank FX market would be supported by the introduction of additional risk management products offered by the CBN and authorised dealers to further deepen the market, boost liquidity and promote financial security in the market.

“Additionally, to further improve the dynamics of the market, the CBN shall introduce FX Primary Dealers (FXPDs). These shall be registered authorised dealers designated to deal with the CBN on large trade sizes on a two-way quote basis, amongst other obligations as stated in the FXPD Guidelines.

“Participants in the inter-bank FX market shall include authorised dealers, authorised buyers, oil companies, oil service companies, exporters, end-users and any other entity the CBN may designate from time to time.

“Authorised dealers shall buy and sell FX among themselves on a two-way quote basis via the FMDQ Thomson Reuters FX Trading Systems (TRFXT- Conversational Dealing), or any other system approved by the CBN.

“Authorised dealers may offer one-way quotes (bid or offer) on all products and on request to other authorised participants via the FMDQ Thomson Reuters FX Trading System (FMDQ TRFXT – Order Book System), or any other system approved by the CBN.

“The maximum spread between the bid and offer rates in the interbank market shall be determined by FMDQ OTC Securities Exchange (FMDQ) via its market organisation activities with the Financial Market Dealers Association (FMDA).
“Proceeds of foreign investment inflows and international money transfers shall be purchased by authorised dealers at the interbank rate,” it added.

However, to further deepen the FX market, in addition to the already approved hedging products referenced in the CBN “Guidelines for FX Derivatives and Modalities for CBN FX Forwards”, the new circular stated that authorised dealers are now permitted to offer naira-settled non-deliverable over-the-counter (OTC) FX Futures.

It explained that OTC FX Futures’ transactions shall be non-standardised with fixed tenors and bespoke maturity dates, adding that the OTC FX Futures sold by authorised dealers to end-users must be backed by trade transactions (visible and invisible) or evidenced investments.

“FMDQ will provide the appropriate benchmarks for the valuation and settlement of the OTC FX Futures and other FX derivatives. FX OTC Futures and Forwards will count as part of the FX positions of authorised dealers.

“To promote market liquidity, authorised dealers may apply FX spot transactions to hedge Outright Forwards, OTC FX Futures and FX Options, etc.

“Settlement amounts on OTC FX Futures may be externalised for Foreign Portfolio Investors (FPIs) with Certificates of Capital Importation. Such settlement amounts shall be evidenced by an FMDQ OTC FX Futures Settlement Advice,” the guidelines stipulated.

CBN further referenced its earlier Circular Ref: TED/FEM/FPC/GEN/01/001 dated 12th January 2015, authorised dealers, (FXPDs and non-FXPDs), a review in the daily foreign currency trading positions of banks has been made with a new limit of +0.5%/-10% of their shareholders’ funds unimpaired by losses as Foreign Currency Trading Position Limits to support their obligations as liquidity providers at the close of each business day.

“Where an authorised dealer requires a higher position limit to accommodate a customer trade, the authorised dealer shall contact the Director, Financial Markets Department.

“Where the request is assessed as valid, the director shall communicate immediate approval by text or email to the authorised dealer. Thereafter, the authorised dealer must, with 24 hours, write to the Director, Financial Markets Department who will thereafter communicate an approval in writing.

“The Director, FMD shall exercise discretion on the duration of the temporary position limit depending on the estimated defeasance period of the transaction size.

“Returns on the purchases and sales of FX shall be rendered daily to the CBN by authorised dealers. Interbank funds shall NOT be sold to Bureaux-de-Change,” it stated.

According to the CBN, participation in the FX market by the CBN shall be via: the Interbank FX Market or Secondary Market Intervention Sales (SMIS).

Guidelines for Primary Dealership in Forex Products

In a separate circular on the guidelines for primary dealership in foreign exchange products, the central bank explained that the FXPDs system is one whereby interested authorised dealers are accorded access to transact FX products directly with the CBN.

The main objectives for the establishment of primary dealership in FX products, the CBN explained are: to achieve exchange rate management policy objectives; to improve the effectiveness of CBN FX market intervention activities; and to enhance market liquidity.

In addition, it stated that the FXPDs shall be evaluated on the following qualitative criteria: strong FX trading capacity (qualified and experienced; FX dealers, strong sales teams, and wide distribution networks); deployment of all FMDQ1 Thomson Reuters FX Trading Systems or any other systems approved by the CBN; dealing room standards and a dealing room supported by independent market risk management, back-offices and effective disaster recovery plan, among others.

The FXPDs are expected to have a minimum shareholders fund unimpaired by losses of at least N200 billion; minimum of N400 billion in total foreign currency assets; and minimum liquidity ratio of 40 per cent.

“FXPDs shall have a maximum limit of +0.5%/- 10% of their shareholders’ funds unimpaired by losses as Foreign Currency Trading Position Limits. Where an FXPD requires a higher position limit to accommodate a customer trade, the FXPD shall contact the Director, Financial Markets Department.

“Where the request is assessed as valid, the director shall communicate immediate approval by text or email to the FXPD. Thereafter, the FXPD must, with 24 hours, write to the Director, Financial Markets Department who will thereafter communicate an approval in writing.

“The Director, FMD shall exercise discretion on the duration of the temporary position limit depending.
“FXPDs must have a robust business continuity plan and be able to interface with the CBN from an alternate location (Contingency Dealing Room) in the case of a disaster.

“FXPDs’ disaster recovery capabilities, as reflected in their business continuity plans and are routinely tested, should ensure continuous participation in CBN’s FX trading operations (including trading, clearing and settling) in the event of a wide-scale disruption in the FXPD’s primary place of business.

“The CBN expects FXPDs to maintain a robust compliance programme, including procedures to identify and mitigate legal, regulatory, financial, and reputational risks. Such programme should include compliance officers dedicated to the business lines relevant to the FXPD functions.

“The CBN will not designate as FXPD, any authorised dealer that is, or recently (within the last year) has been subject to financial market- related litigation or regulatory action or investigation that the CBN determines material or otherwise relevant to the potential FXPD.

“In making such determination, the CBN will consider, among other things, whether and how any such matters have been resolved or addressed and the authorised dealer’s history of such matters.

“In addition, with regard to registered FXPDs, the CBN may limit access to any or all operations, and may suspend or terminate the FXPD status of an authorised dealer, at anytime deems necessary, if it becomes the subject of, or is involved with, regulatory or legal proceedings that, in the judgment of the CBN, unfavourably impacts the FXPD relationship.

“FXPDs shall maintain such accounting and other records of their respective activities in the interbank FX markets as set forth by the CBN and other relevant regulatory authorities from time to time and render returns of trades executed with the CBN to the Bank.

“All FXPDs shall submit a weekly report of FX transactions undertaken by them in the format advised by the CBN. FXPDs shall advise CBN the authorised dealers for which they do not have PSR lines for and state the reasons why.
“FXPDs shall treat all non-public information received from the CBN and, in particular, information relating to transactions and outstanding positions with the highest degree of confidentiality. FXPDs shall not share this confidential information with any third party unless required to do so by applicable law or a court order,” the guidelines for FXPDs stipulated.

How CBN Naira-Settled OTC FX Futures Will Work

In addition, providing clarification on how the CBN Naira-settled OTC FX Futures would work, the central bank explained that the proposal of the OTC FX Futures are Non-Deliverable Forwards (i.e. a contract where parties agree to an exchange rate for a predetermined date in the future, without the obligation to deliver the underlying US dollar (notional amount) on the maturity date, i.e. the settlement date).

On maturity date, it will be assumed that both parties would have transacted at the spot FX market rate. The party that would have suffered a loss with the spot FX rate will be paid a settlement amount in naira, according to a document on the central bank’s website.

The CBN stated that it would kick off the market by acting as the seller of OTC FX Futures contracts for defined tenors, i.e. 1-month, 2-month, 3-month, 6-month, 9-month, 12-month, 18-month and 24-month.

The dollar/naira OTC FX Futures contracts will provide the CBN the opportunity to kick-start the liquidity of risk management products available to end-users in the FMDQ OTC markets.

According to the central bank, the contracts would assist the CBN to manage the volatility in the spot FX market thereby promoting stability and entrenching confidence in the FX market.
Furthermore, it explained that all OTC FX Futures contracts would be trade-backed, adding that visible, invisible and investments qualify for OTC FX Futures.

FMDQ will act as the ‘OTC FX Futures Exchange’ and its appointed agent, the Nigeria Inter-Bank Settlement System PLC (NIBSS) will clear the interbank OTC FX Futures, i.e. collect initial and variation margins and settle the party to compensate on the maturity date.

“The introduction of the OTC FX Futures market will encourage end-users to spread out their demand for spot FX deals as they are now able to lock down the exchange rates for future FX requirements. This has the potential to eradicate the constant frontloading of FX requirements and minimise the disequilibrium in the spot FX market.

“End-users will make better judgements as to the timing of accessing the spot FX market. The availability of the OTC FX Futures will improve the business planning practice of end-users and FX sellers, as the future exchange rate is guaranteed through the OTC FX Futures.

“An end-user (buyer of USD) may consider it wiser to delay the purchase of its USD requirement in the spot FX market if the spot FX rate is higher than the OTC FX Futures rate of a particular tenor. The end-user will borrow USD or obtain trade finance and simultaneously hedge its exchange rate exposure with an attractive OTC FX Futures sold by the CBN.

“At maturity of the OTC FX Futures contract, the end-user will access the spot FX market. The OTC FX Futures will be used to attract significant capital flows to the Nigerian fixed income and equity markets as returns can now be enhanced as FX exposures are hedged. Foreign Portfolio Investors (FPIs) will be able to use the OTC FX Futures for capital protection.

“The envisaged increase of supply of US Dollars due to the OTC FX Futures offered by the CBN in the spot FX market will cause the spot FX rate to moderate.

“OTC FX Futures which are non-deliverable are ideal for FPIs and even Foreign Direct Investors (FDIs). OTC FX Futures can be used when the investor wants to hedge the exchange rate risk without interest in buying outright forwards which will necessitate liquidation of its investment to pay for outright forwards.

“Banks will increase the liquidity in the OTC FX Futures market (by selling OTC FX Futures) if $/N Spot FX rate starts dropping. This may cause the Spot FX rate to drop further,” it added.

Equities Rise, Naira Remains Stable

Reacting to the adoption of a floating exchange rate regime yesterday, the Nigerian Stock Exchange All-Share Index (NSE-ASI) rose by 3.17 per cent to close at 27,891.96, up from 27,034.05 the previous day, while market capitalisation added N279 billion to close higher at N9.579 trillion.
Similarly, the volume of trading soared by 244 per cent from 170,686 million shares valued at N2.424 billion the previous day to 588.437 million shares worth N3.477 billion yesterday.

The market had recorded losses for three consecutive days starting from last Friday before the rebound yesterday. Some market analysts attributed yesterday’s rally to the central bank’s announcement on the details of the new forex guidelines.

In the parallel market, on the other hand, the rate of the naira remained stable selling at N370 to a dollar yesterday, same value at which it sold on Tuesday.

Analysts Welcome New Forex Policy

Speaking on the new NIFEX policy, the Managing Director/Chief Executive, Cowry Asset Management Limited, Mr. Johnson Chukwu, expressed satisfaction with it, saying that a flexible exchange rate would provide opportunity for inflows from other sources other than crude oil sales.

According to him, the decision to allow foreign remittances to be converted at the interbank rate as well as inflows from foreign investment would help to address the disincentive that operators and other players in those areas had witnessed in the last couple of months, forcing inflows from those sources to dry up.

“So I expect that in the medium-to-long term, but not immediately, we should begin to see improvement in inflows from other sources. I want to believe the federal government would back this up with other fiscal policies, particularly as it relates to investments and in an area like infrastructure by making the infrastructure sector attractive for private sector investments.

“That would now help drive inflows. But what the central bank has done was most expected. I think clearly, in the medium term, it would help open up the economy and help stabilise the exchange rate,” Chukwu said.
The Head of Research at SCM Capital Limited (formerly Sterling Capital), Mr. Sewa Wusu, described the decision by the central bank as a positive and good move for the economy, adding: “Although it was delayed, it is better now than never.”

“We have seen the impact of that delay on the market and by extension the economy. All the same, the adoption of flexibility around the interbank market is a policy that would help bridge the gap that had existed in the forex market in the past, particularly the gap between the official and parallel markets. We expect that gap to fizzle out.
“Now, what has been adopted is more or less a floating exchange rate, which entails that we would see the interplay of demand and supply. That would by extension determine the true value of exchange rate in the country.

“What that means is that businesses would be able to plan with respect to their forex requirements and that is very critical. It would also help reduce the volatility we have seen in the market over a long period of time.

“Also, the introduction of the futures market is a positive one. It would allow for demand to be met and apart from that, you can also hedge in your transactions. So that would help for proper business planning,” he said.
However, Wusu expressed concern over forex supply in the market considering the weak value of the country’s external reserves.

In a note to THISDAY, London-based Economist at Exotix Partners LLP, Alan Cameron, said judging from the statement, the CBN would keep the bulk of its intervention for the NDF market (forward market) while futures would also be introduced, with FMDQ acting as the platform.

“Overall, this looks like quite a bold step towards liberalisation – and certainly better than many investors’ expectations (and our own), who have seen many false dawns before.

“The key feature here is that the multiple tiers/layers have been removed – the sub-text of this decision that the president (Muhammadu Buhari) has finally recognised that multiple tiers lead to arbitrage, and arbitrage creates opportunity for fraud.

“Reading a bit deeper into things, we are also tempted to conclude that this is a sign of Buhari handing the reins of the economy (back) over to his ministers,” he added.

NEW FOREX POLICY AT A GLANCE

· Exchange rate to be determined by market forces
· Market to operate a single window through the interbank market
· CBN will intervene when appropriate
· Ban on 41 items to remain
· CBN to appoint primary forex dealers by Friday to deal on large transactions
· Primary forex dealers to have a minimum shareholding of N200bn
· CBN to offer long-tenured forex forwards
· Backlog of matured letters of credit to be cleared
· Naira-settled Over-the-Counter (OTC) Forex futures market to be introduced
· Tenors and rates for OTC FX Futures market to be announced on June 27
· Non-oil exports allowed unfettered access to export proceeds through interbank market
· Banks’ foreign currency trading positions to be reviewed
The New Foreign Exchange Regime: What Will Happen To Naira, All You Need To Know - The CBN Explains
ThisDayLive - In what has been hailed as a bold move by market analysts in Lagos, London and Johannesburg, the Central Bank of Nigeria (CBN) wednesday unveiled the new guidelines for the Nigeria Interbank Foreign Exchange (NIFEX) Market, allowing the exchange rate of the naira to be determined by the market forces of demand and supply, although the central bank would step in whenever appropriate.

Paring the losses it made since Friday last week, the Nigerian Stock Exchange All-Share Index (NSE-ASI) rose by 3.17 per cent yesterday to close at 27,891.96, up from 27,034.05 the previous day, while market capitalisation added N279 billion to close higher at N9.579 trillion.

The new guidelines came after weeks of consultations with stakeholders including the banks on the need for a more flexible forex market, to among other things, reduce pressure on the local currency and attract foreign investors.

Speaking to journalists at a press briefing in Abuja, CBN Governor, Mr. Godwin Emefiele, said the central bank had resolved to henceforth deal with FX Primary Dealers (FXPDs) under the new arrangement.

He also said the existing ban of 41 items from accessing forex from the official window would remain in place.

He said part of the objectives of the new framework, which included the introduction of the naira-settled Over-the-Counter (OTC) FX Futures trading, was to discourage people from front-loading or hoarding forex due to uncertainty.

He also assured the markets that the backlog of matured letters of credit would be cleared.

Confirming THISDAY’s exclusive report yesterday that the CBN would not create a “special” window for critical transactions, Emefiele said the new forex framework would allow the market to operate as a single market structure through the interbank/autonomous window, while the exchange rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book.

He said the CBN would however participate in the market through periodic interventions to either buy or sell forex as the need arises.

He said to improve the dynamics of the market, the central bank would further introduce FX Primary Dealers (FXPD), who would be registered by the CBN, to deal directly with the Bank for large trade sizes on a two-way quote basis.

The governor said the primary dealers would operate with other dealers in the interbank market, among other obligations that would be stipulated in the Foreign Exchange Primary Dealers (FXPD) guidelines.

However, he said selected FX Primary Dealers would be notified by Friday, June 17, 2016 on the new guidelines while all other non-primary dealers would remain valid and eligible to participate in the market.

He said interbank trading under the new guidelines would begin on Monday, June 20, 2016, while tenors and rates for the naira-settled OTC FX Futures would be announced on June 27, 2016.

According to Emefiele, “The big point here is that we’ve decided that the CBN will deal primarily with what we call the foreign exchange primary dealers. We will have non-primary dealers and primary dealers.

“The guidelines for the qualification for being a foreign exchange primary dealer would be on our website.
“There are a number of qualifications, either the size of the bank, or the size of forex transactions it had done before, the level of liquidity, the extent to which those banks have complied with CBN guidelines, regulations in the past and their level of preparedness in terms of being able to provide all the soft and hardware that is needed to operate in a very transparent manner that can handshake with the Thompson Reuters and FMDQ software – these will be the basis.”

He said: “But from what we see, we do not think there’ll be more than a maximum of eight or 10 primary dealers. What that means is that you have what we can call Grade A dealers and you have the Grade B dealers.
“But being a Grade A dealer doesn’t confer on you any special preference other than the fact that the size of trade that the CBN is willing to deal with you would be larger than the trade for those who are going to be dealing as non-primary dealers.

“And forex dealers themselves right now and even the banks understand what we mean by the size of trade, talking about an open transparent, two-way quote system, where I can close or they can close on themselves, or me on them, and their capacity to deliver anytime within the trading period is very important here.
“So that’s why we are trying to segment them in two parts.”

Emefiele said based on what the central bank had published, the level of trades as a primary dealer would be set at a minimum of $10 million.

“So what that means is not about talking about the standard trades of those days when a dealer said it’s about $100,000 and you say, I close on you for $100,000.

“Now, we are talking about a minimum of $10 million and to do that, you have to have strong capacity, you must have prepared yourselves, you have to be ready to play with the highest level of professionalism and transparency and nobody is going to take any nonsense from you if you decide to breach the regulations or guidelines.

“And that’s the reason I said we will expect those who are going to deal here to be people who can deliver on their words. They must be people who understand the implications for whatever decisions they take regarding the size, talking of the volume and the exchange rate they decide to quote.

“It’s intended to ensure that we don’t have speculators, we don’t have rent seekers who just want to come into the market, particularly the primary market to just come and start auctioning and staking on prices against each other for what I can call private benefits,” he clarified.

On steps being taken by the CBN to narrow the gap between the official and parallel market rates, the central bank governor said: “As long as there’s one window, whatever comes out at the end of the day as the marginal rate, that rate will be the rate that will be recognised officially by the world as the rate of the naira.

“I do not expect that any other rate will be recognised in the market. But I think it’s important for me to provide a little clarification on a few issues burning in the hearts of people. And the first is what we call the OTC FX futures.

“The FX futures market is an innovation which we have introduced to moderate volatility in the foreign exchange market. It’s a situation where it makes it easy for you as a businessman to plan your business and the rate at which you want to do your business.”

He said the new flexible forex regime would also discourage speculative attacks on the naira.

According to him, “You do not have to fear that because of what is happening to crude oil prices today, that you are afraid that you may not be able to source your dollars in the next two, three, seven or nine months, and for that reason you begin to take precautionary decisions by front-loading on your foreign exchange.
“Under the new regime, you can decide that I have pegged the price of foreign exchange or I have pegged the price of my product based on an exchange rate of X and you lock yourself on to a future rate with our primary dealers or even with the non-primary dealers.

“When you lock yourself to a rate of let’s say N200 or you decide to lock yourself to a rate of say N230 or N280, as the case maybe, all you need to do is go back and do your business once you’ve locked yourself to a futures transaction through futures deal.

“So if in the next three months, if the rate you agreed at locking up your futures deal was say N260, and the market is doing say, N270 at that time, that N10 gap, the Central Bank of Nigeria will bridge the naira equivalent of that N10 gap such that you are not seen to be losing money by waiting for the next two to three months to procure your foreign exchange.”

Emefiele added that what the OTC FX futures market would do for Nigeria is that it would shift forex demand from the spot market to the time when forex is really needed, adding that demand for forex on the spot market had led to the demand pressure in the market and speculative attacks against the naira.

“Indeed, we would be engaging more and more both with the banks and primary and non-primary forex dealers about how this would work because we are determined to ensure that this works and I am very optimistic that it would work,” he said.

On the matured letters of credit, he said the current level of Nigeria’s foreign reserves should offer hope to investors.

“I know a couple of people, particularly those who have matured letters of credit, who would want to buy their foreign exchange and would demand to know what would happen to the matured transactions? The important thing is that the backlog of transactions will be taken to the market for the clearance.

“And let me say this, the CBN has foreign reserve of close to about $26.5 billion-$26.7 billion; this is certainly substantially higher than the level of any demand that is in the market.

“We are making efforts with respect to the supply of forex in the market and we are also optimistic that the steps that we have taken today will help to further deepen the market and also get foreign exchange into the market.
“We are very hopeful that this will work and we are saying independently, the CBN is working to even ensure that we improve the level of supply into the market, so the demand would be met.

“There’s no need for everybody to rush at the same time into the market: indeed, you may find yourself losing money when you rush into the market and take some emergency decisions that will hurt you, hurt your profits, hurt your balance sheet and ultimately, if you are taking a bank loan, hurt your interest charges on your bank loans. So we need to be very careful.

“And that’s the reason we’ve starting the OTC FX futures market, so that you can take it easy. If you are not too sure, go to the futures, commit yourself to a rate and you’ll find a deal – all the banks will provide you with a FX futures rate whether from one to nine months and with that, you are able to go about your business without losing sleep.

“We’ve committed ourselves to the level of guarantees to say, it’s like a bet if the rate that you get eventually at the time of your futures maturing is higher than the deal date, as we will pay you the difference.
“But if the rate on that day is lower than the deal date rate, you’ll pay us the naira equivalent,” the governor explained.

Revised Guidelines for NIFEX Market

Following Emefiele’s briefing, the CBN yesterday posted the revised guidelines for the operation of the NIFEX market on its website, stating that the CBN shall operate a single market structure through the autonomous/interbank market, i.e. the interbank forex market with the CBN participating in the market through interventions directly in the interbank market or through dynamic “Secondary Market Intervention Mechanisms”.

Furthermore, it stated that in order to promote the global competitiveness of the market, the interbank FX market would be supported by the introduction of additional risk management products offered by the CBN and authorised dealers to further deepen the market, boost liquidity and promote financial security in the market.

“Additionally, to further improve the dynamics of the market, the CBN shall introduce FX Primary Dealers (FXPDs). These shall be registered authorised dealers designated to deal with the CBN on large trade sizes on a two-way quote basis, amongst other obligations as stated in the FXPD Guidelines.

“Participants in the inter-bank FX market shall include authorised dealers, authorised buyers, oil companies, oil service companies, exporters, end-users and any other entity the CBN may designate from time to time.

“Authorised dealers shall buy and sell FX among themselves on a two-way quote basis via the FMDQ Thomson Reuters FX Trading Systems (TRFXT- Conversational Dealing), or any other system approved by the CBN.

“Authorised dealers may offer one-way quotes (bid or offer) on all products and on request to other authorised participants via the FMDQ Thomson Reuters FX Trading System (FMDQ TRFXT – Order Book System), or any other system approved by the CBN.

“The maximum spread between the bid and offer rates in the interbank market shall be determined by FMDQ OTC Securities Exchange (FMDQ) via its market organisation activities with the Financial Market Dealers Association (FMDA).
“Proceeds of foreign investment inflows and international money transfers shall be purchased by authorised dealers at the interbank rate,” it added.

However, to further deepen the FX market, in addition to the already approved hedging products referenced in the CBN “Guidelines for FX Derivatives and Modalities for CBN FX Forwards”, the new circular stated that authorised dealers are now permitted to offer naira-settled non-deliverable over-the-counter (OTC) FX Futures.

It explained that OTC FX Futures’ transactions shall be non-standardised with fixed tenors and bespoke maturity dates, adding that the OTC FX Futures sold by authorised dealers to end-users must be backed by trade transactions (visible and invisible) or evidenced investments.

“FMDQ will provide the appropriate benchmarks for the valuation and settlement of the OTC FX Futures and other FX derivatives. FX OTC Futures and Forwards will count as part of the FX positions of authorised dealers.

“To promote market liquidity, authorised dealers may apply FX spot transactions to hedge Outright Forwards, OTC FX Futures and FX Options, etc.

“Settlement amounts on OTC FX Futures may be externalised for Foreign Portfolio Investors (FPIs) with Certificates of Capital Importation. Such settlement amounts shall be evidenced by an FMDQ OTC FX Futures Settlement Advice,” the guidelines stipulated.

CBN further referenced its earlier Circular Ref: TED/FEM/FPC/GEN/01/001 dated 12th January 2015, authorised dealers, (FXPDs and non-FXPDs), a review in the daily foreign currency trading positions of banks has been made with a new limit of +0.5%/-10% of their shareholders’ funds unimpaired by losses as Foreign Currency Trading Position Limits to support their obligations as liquidity providers at the close of each business day.

“Where an authorised dealer requires a higher position limit to accommodate a customer trade, the authorised dealer shall contact the Director, Financial Markets Department.

“Where the request is assessed as valid, the director shall communicate immediate approval by text or email to the authorised dealer. Thereafter, the authorised dealer must, with 24 hours, write to the Director, Financial Markets Department who will thereafter communicate an approval in writing.

“The Director, FMD shall exercise discretion on the duration of the temporary position limit depending on the estimated defeasance period of the transaction size.

“Returns on the purchases and sales of FX shall be rendered daily to the CBN by authorised dealers. Interbank funds shall NOT be sold to Bureaux-de-Change,” it stated.

According to the CBN, participation in the FX market by the CBN shall be via: the Interbank FX Market or Secondary Market Intervention Sales (SMIS).

Guidelines for Primary Dealership in Forex Products

In a separate circular on the guidelines for primary dealership in foreign exchange products, the central bank explained that the FXPDs system is one whereby interested authorised dealers are accorded access to transact FX products directly with the CBN.

The main objectives for the establishment of primary dealership in FX products, the CBN explained are: to achieve exchange rate management policy objectives; to improve the effectiveness of CBN FX market intervention activities; and to enhance market liquidity.

In addition, it stated that the FXPDs shall be evaluated on the following qualitative criteria: strong FX trading capacity (qualified and experienced; FX dealers, strong sales teams, and wide distribution networks); deployment of all FMDQ1 Thomson Reuters FX Trading Systems or any other systems approved by the CBN; dealing room standards and a dealing room supported by independent market risk management, back-offices and effective disaster recovery plan, among others.

The FXPDs are expected to have a minimum shareholders fund unimpaired by losses of at least N200 billion; minimum of N400 billion in total foreign currency assets; and minimum liquidity ratio of 40 per cent.

“FXPDs shall have a maximum limit of +0.5%/- 10% of their shareholders’ funds unimpaired by losses as Foreign Currency Trading Position Limits. Where an FXPD requires a higher position limit to accommodate a customer trade, the FXPD shall contact the Director, Financial Markets Department.

“Where the request is assessed as valid, the director shall communicate immediate approval by text or email to the FXPD. Thereafter, the FXPD must, with 24 hours, write to the Director, Financial Markets Department who will thereafter communicate an approval in writing.

“The Director, FMD shall exercise discretion on the duration of the temporary position limit depending.
“FXPDs must have a robust business continuity plan and be able to interface with the CBN from an alternate location (Contingency Dealing Room) in the case of a disaster.

“FXPDs’ disaster recovery capabilities, as reflected in their business continuity plans and are routinely tested, should ensure continuous participation in CBN’s FX trading operations (including trading, clearing and settling) in the event of a wide-scale disruption in the FXPD’s primary place of business.

“The CBN expects FXPDs to maintain a robust compliance programme, including procedures to identify and mitigate legal, regulatory, financial, and reputational risks. Such programme should include compliance officers dedicated to the business lines relevant to the FXPD functions.

“The CBN will not designate as FXPD, any authorised dealer that is, or recently (within the last year) has been subject to financial market- related litigation or regulatory action or investigation that the CBN determines material or otherwise relevant to the potential FXPD.

“In making such determination, the CBN will consider, among other things, whether and how any such matters have been resolved or addressed and the authorised dealer’s history of such matters.

“In addition, with regard to registered FXPDs, the CBN may limit access to any or all operations, and may suspend or terminate the FXPD status of an authorised dealer, at anytime deems necessary, if it becomes the subject of, or is involved with, regulatory or legal proceedings that, in the judgment of the CBN, unfavourably impacts the FXPD relationship.

“FXPDs shall maintain such accounting and other records of their respective activities in the interbank FX markets as set forth by the CBN and other relevant regulatory authorities from time to time and render returns of trades executed with the CBN to the Bank.

“All FXPDs shall submit a weekly report of FX transactions undertaken by them in the format advised by the CBN. FXPDs shall advise CBN the authorised dealers for which they do not have PSR lines for and state the reasons why.
“FXPDs shall treat all non-public information received from the CBN and, in particular, information relating to transactions and outstanding positions with the highest degree of confidentiality. FXPDs shall not share this confidential information with any third party unless required to do so by applicable law or a court order,” the guidelines for FXPDs stipulated.

How CBN Naira-Settled OTC FX Futures Will Work

In addition, providing clarification on how the CBN Naira-settled OTC FX Futures would work, the central bank explained that the proposal of the OTC FX Futures are Non-Deliverable Forwards (i.e. a contract where parties agree to an exchange rate for a predetermined date in the future, without the obligation to deliver the underlying US dollar (notional amount) on the maturity date, i.e. the settlement date).

On maturity date, it will be assumed that both parties would have transacted at the spot FX market rate. The party that would have suffered a loss with the spot FX rate will be paid a settlement amount in naira, according to a document on the central bank’s website.

The CBN stated that it would kick off the market by acting as the seller of OTC FX Futures contracts for defined tenors, i.e. 1-month, 2-month, 3-month, 6-month, 9-month, 12-month, 18-month and 24-month.

The dollar/naira OTC FX Futures contracts will provide the CBN the opportunity to kick-start the liquidity of risk management products available to end-users in the FMDQ OTC markets.

According to the central bank, the contracts would assist the CBN to manage the volatility in the spot FX market thereby promoting stability and entrenching confidence in the FX market.
Furthermore, it explained that all OTC FX Futures contracts would be trade-backed, adding that visible, invisible and investments qualify for OTC FX Futures.

FMDQ will act as the ‘OTC FX Futures Exchange’ and its appointed agent, the Nigeria Inter-Bank Settlement System PLC (NIBSS) will clear the interbank OTC FX Futures, i.e. collect initial and variation margins and settle the party to compensate on the maturity date.

“The introduction of the OTC FX Futures market will encourage end-users to spread out their demand for spot FX deals as they are now able to lock down the exchange rates for future FX requirements. This has the potential to eradicate the constant frontloading of FX requirements and minimise the disequilibrium in the spot FX market.

“End-users will make better judgements as to the timing of accessing the spot FX market. The availability of the OTC FX Futures will improve the business planning practice of end-users and FX sellers, as the future exchange rate is guaranteed through the OTC FX Futures.

“An end-user (buyer of USD) may consider it wiser to delay the purchase of its USD requirement in the spot FX market if the spot FX rate is higher than the OTC FX Futures rate of a particular tenor. The end-user will borrow USD or obtain trade finance and simultaneously hedge its exchange rate exposure with an attractive OTC FX Futures sold by the CBN.

“At maturity of the OTC FX Futures contract, the end-user will access the spot FX market. The OTC FX Futures will be used to attract significant capital flows to the Nigerian fixed income and equity markets as returns can now be enhanced as FX exposures are hedged. Foreign Portfolio Investors (FPIs) will be able to use the OTC FX Futures for capital protection.

“The envisaged increase of supply of US Dollars due to the OTC FX Futures offered by the CBN in the spot FX market will cause the spot FX rate to moderate.

“OTC FX Futures which are non-deliverable are ideal for FPIs and even Foreign Direct Investors (FDIs). OTC FX Futures can be used when the investor wants to hedge the exchange rate risk without interest in buying outright forwards which will necessitate liquidation of its investment to pay for outright forwards.

“Banks will increase the liquidity in the OTC FX Futures market (by selling OTC FX Futures) if $/N Spot FX rate starts dropping. This may cause the Spot FX rate to drop further,” it added.

Equities Rise, Naira Remains Stable

Reacting to the adoption of a floating exchange rate regime yesterday, the Nigerian Stock Exchange All-Share Index (NSE-ASI) rose by 3.17 per cent to close at 27,891.96, up from 27,034.05 the previous day, while market capitalisation added N279 billion to close higher at N9.579 trillion.
Similarly, the volume of trading soared by 244 per cent from 170,686 million shares valued at N2.424 billion the previous day to 588.437 million shares worth N3.477 billion yesterday.

The market had recorded losses for three consecutive days starting from last Friday before the rebound yesterday. Some market analysts attributed yesterday’s rally to the central bank’s announcement on the details of the new forex guidelines.

In the parallel market, on the other hand, the rate of the naira remained stable selling at N370 to a dollar yesterday, same value at which it sold on Tuesday.

Analysts Welcome New Forex Policy

Speaking on the new NIFEX policy, the Managing Director/Chief Executive, Cowry Asset Management Limited, Mr. Johnson Chukwu, expressed satisfaction with it, saying that a flexible exchange rate would provide opportunity for inflows from other sources other than crude oil sales.

According to him, the decision to allow foreign remittances to be converted at the interbank rate as well as inflows from foreign investment would help to address the disincentive that operators and other players in those areas had witnessed in the last couple of months, forcing inflows from those sources to dry up.

“So I expect that in the medium-to-long term, but not immediately, we should begin to see improvement in inflows from other sources. I want to believe the federal government would back this up with other fiscal policies, particularly as it relates to investments and in an area like infrastructure by making the infrastructure sector attractive for private sector investments.

“That would now help drive inflows. But what the central bank has done was most expected. I think clearly, in the medium term, it would help open up the economy and help stabilise the exchange rate,” Chukwu said.
The Head of Research at SCM Capital Limited (formerly Sterling Capital), Mr. Sewa Wusu, described the decision by the central bank as a positive and good move for the economy, adding: “Although it was delayed, it is better now than never.”

“We have seen the impact of that delay on the market and by extension the economy. All the same, the adoption of flexibility around the interbank market is a policy that would help bridge the gap that had existed in the forex market in the past, particularly the gap between the official and parallel markets. We expect that gap to fizzle out.
“Now, what has been adopted is more or less a floating exchange rate, which entails that we would see the interplay of demand and supply. That would by extension determine the true value of exchange rate in the country.

“What that means is that businesses would be able to plan with respect to their forex requirements and that is very critical. It would also help reduce the volatility we have seen in the market over a long period of time.

“Also, the introduction of the futures market is a positive one. It would allow for demand to be met and apart from that, you can also hedge in your transactions. So that would help for proper business planning,” he said.
However, Wusu expressed concern over forex supply in the market considering the weak value of the country’s external reserves.

In a note to THISDAY, London-based Economist at Exotix Partners LLP, Alan Cameron, said judging from the statement, the CBN would keep the bulk of its intervention for the NDF market (forward market) while futures would also be introduced, with FMDQ acting as the platform.

“Overall, this looks like quite a bold step towards liberalisation – and certainly better than many investors’ expectations (and our own), who have seen many false dawns before.

“The key feature here is that the multiple tiers/layers have been removed – the sub-text of this decision that the president (Muhammadu Buhari) has finally recognised that multiple tiers lead to arbitrage, and arbitrage creates opportunity for fraud.

“Reading a bit deeper into things, we are also tempted to conclude that this is a sign of Buhari handing the reins of the economy (back) over to his ministers,” he added.

NEW FOREX POLICY AT A GLANCE

· Exchange rate to be determined by market forces
· Market to operate a single window through the interbank market
· CBN will intervene when appropriate
· Ban on 41 items to remain
· CBN to appoint primary forex dealers by Friday to deal on large transactions
· Primary forex dealers to have a minimum shareholding of N200bn
· CBN to offer long-tenured forex forwards
· Backlog of matured letters of credit to be cleared
· Naira-settled Over-the-Counter (OTC) Forex futures market to be introduced
· Tenors and rates for OTC FX Futures market to be announced on June 27
· Non-oil exports allowed unfettered access to export proceeds through interbank market
· Banks’ foreign currency trading positions to be reviewed
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I Failed In Kogi, Bayelsa, Rivers Poll - 'Honest' Buhari Admits Failure

I Failed In Kogi, Bayelsa, Rivers Poll - 'Honest' Buhari Admits Failure

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buhari
President Muhammadu Buhari has as admitted his failure in the conduct of elections and rerun polls in Kogi, Bayelsa and Rivers states saying that probably more Nigerians died in the Rivers state rerun poll than in other states. 

He also disclosed that no fewer than 27 states are broke and cannot pay salaries in the country even as he added that the Treasury Single Account, TSA has hit a record N3trillion balance. 

Buhari who also rationalized his frequent foreign trips, saying they are meant to explain his economic and other policies to Nigeria’s partners and neighbours, made the declaration in his address to the leaders of the ruling All Progressives Congress, APC, at the party’s National Executive Committee, NEC meeting in Abuja yesterday. 

On electoral violence, he described the incidents recorded during the just concluded re-run election in Rivers state as very shameful. “I am afraid I did not succeed in the election in Kogi, Bayelsa, Rivers. I think that more Nigerians are killed or killed themselves in Rivers than in any particular state. At this stage of our political development, to remain brutal is shameful and as a government, I promise we will do something by the next general election,” he said. 

President Buhari said the FG has been able to mop- up more than N3 trillion from payments into the TSA since its inception. He said that TSA savings will be redeployed and distributed to all the critical sectors of the economy as soon as the implementation of the 2016 budget commences. “ When we insist that we have to know what comes in and what goes out for us to make a comprehensive amendment to the economy. If you go and see the Central Bank Governor, he will tell you that in the TSA, we have more than N3 trillion. Where would this money have been if TSA was not in vogue?” 

President Buhari painted a gloomy picture of the economy and stressed that 27 out of 36 states are having serious problems in paying their workers salaries, a situation he attributed to financial indiscretion of the former PDP- led administration. He expressed sadness that successive Peoples Democratic Party governments since 1999, failed to make provisions for times like these considering the volatility of oil prices. 

According to the president his foreign trips were needed to give a personal touch to making a case for the APC-led government’s economic and other policies. “You need to present your economic policies personally to your partners and your neighbours. He said nobody can contradict the fact that what his administration is focussing on at the moments remains very critical to the development and overall well- being of the people. In the area of corruption in the oil sector, President Buhari said the government will soon begin prosecution so that Nigerians will begin to appreciate the position on the malfeasance that has gone on. 

He however, lamented that the administration is not finding it easy securing relevant evidences to prosecute the corruption suspects but that more work is to be done to ensure that those indicted are duly and properly prosecuted. 

“We have tried to make sure that NNPC is reorganized, so that we know how much of our crude is taken, how much it is sold and to which account the money is going. But I tell you that up to the time we came, if anybody told you that he knows how much of crude exchanges hands either on the high sea or reaching their destination and the accounts the money goes into, that person is not telling you the truth. “We are getting the cooperation of countries that has received this crude. 

But we have to be sure of the facts in our hands before we start prosecution so that Nigerians will believe what we have been telling them. Security at the national secretariat of the APC, venue of the NEC meeting was beefed-up. Most of the journalists that were detailed to cover the meeting were denied access into the party secretariat by operatives of Department of State Security, DSS.
buhari
President Muhammadu Buhari has as admitted his failure in the conduct of elections and rerun polls in Kogi, Bayelsa and Rivers states saying that probably more Nigerians died in the Rivers state rerun poll than in other states. 

He also disclosed that no fewer than 27 states are broke and cannot pay salaries in the country even as he added that the Treasury Single Account, TSA has hit a record N3trillion balance. 

Buhari who also rationalized his frequent foreign trips, saying they are meant to explain his economic and other policies to Nigeria’s partners and neighbours, made the declaration in his address to the leaders of the ruling All Progressives Congress, APC, at the party’s National Executive Committee, NEC meeting in Abuja yesterday. 

On electoral violence, he described the incidents recorded during the just concluded re-run election in Rivers state as very shameful. “I am afraid I did not succeed in the election in Kogi, Bayelsa, Rivers. I think that more Nigerians are killed or killed themselves in Rivers than in any particular state. At this stage of our political development, to remain brutal is shameful and as a government, I promise we will do something by the next general election,” he said. 

President Buhari said the FG has been able to mop- up more than N3 trillion from payments into the TSA since its inception. He said that TSA savings will be redeployed and distributed to all the critical sectors of the economy as soon as the implementation of the 2016 budget commences. “ When we insist that we have to know what comes in and what goes out for us to make a comprehensive amendment to the economy. If you go and see the Central Bank Governor, he will tell you that in the TSA, we have more than N3 trillion. Where would this money have been if TSA was not in vogue?” 

President Buhari painted a gloomy picture of the economy and stressed that 27 out of 36 states are having serious problems in paying their workers salaries, a situation he attributed to financial indiscretion of the former PDP- led administration. He expressed sadness that successive Peoples Democratic Party governments since 1999, failed to make provisions for times like these considering the volatility of oil prices. 

According to the president his foreign trips were needed to give a personal touch to making a case for the APC-led government’s economic and other policies. “You need to present your economic policies personally to your partners and your neighbours. He said nobody can contradict the fact that what his administration is focussing on at the moments remains very critical to the development and overall well- being of the people. In the area of corruption in the oil sector, President Buhari said the government will soon begin prosecution so that Nigerians will begin to appreciate the position on the malfeasance that has gone on. 

He however, lamented that the administration is not finding it easy securing relevant evidences to prosecute the corruption suspects but that more work is to be done to ensure that those indicted are duly and properly prosecuted. 

“We have tried to make sure that NNPC is reorganized, so that we know how much of our crude is taken, how much it is sold and to which account the money is going. But I tell you that up to the time we came, if anybody told you that he knows how much of crude exchanges hands either on the high sea or reaching their destination and the accounts the money goes into, that person is not telling you the truth. “We are getting the cooperation of countries that has received this crude. 

But we have to be sure of the facts in our hands before we start prosecution so that Nigerians will believe what we have been telling them. Security at the national secretariat of the APC, venue of the NEC meeting was beefed-up. Most of the journalists that were detailed to cover the meeting were denied access into the party secretariat by operatives of Department of State Security, DSS.
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REVEALED: Top Secrets, Why 'Cabals' Want Emefiele Sacked As CBN Gov.

REVEALED: Top Secrets, Why 'Cabals' Want Emefiele Sacked As CBN Gov.

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The political intrigues playing out as being orchestrated by the advocates of Mr. Godwin Emefiele’s sack is nothing but sickening. You wonder what Emefiele’s sins are. The clamour is assuming a maddening crescendo without the advocates considering the implication of their endeavour on the economy.

About two years ago, an unprecedented political action spearheaded by hawks around government made the government in power to suspend the governor of the Central Bank. Though unprecedented in the annals of Nigeria, the suspension by fiat had its consequences on the economy.

The governor then was Mallam Sanusi Lamido Sanusi, now Emir of Kano. At that time the Nigeria economy was in good shape. But consequent upon that action, the economy began to have issues as the international community out of panic lost interest in the economy and they began to recall their investments.

The case of Emefiele, the current CBN Governor is even more laughable and dangerous. It is obvious that some powerful hawks want him out.

The same intrigues are now playing out. Emefiele and the Bank he runs in the last few months have been under undue vilification by supposedly critics but who are obviously agents of the enemies of the people of Nigeria. A lot of ignorance is playing out, with underserved blames being heaped on Emefiele’s head.

Mr. Godwin Emefiele may have been unlucky to be appointed as governor at a troubled time of the economy, but he came prepared. Rather than being supported, he is being bashed left right and center by those bent on seeing him leave the exalted position.

Reasons as canvassed by these hawks in and around the corridors of power, both informed and uninformed, are that Emefiele is bereft of ideas and lack capacity to run the economy. What some of these enemies of Nigerians do not know or pretending not to know is that, the economy which is having some challenges is not caused by the governor.

The global crude oil price which has witnessed its ever lowest point is majorly the cause of the bad shape of the economy. The nation’s revenue has dipped. Oil as we know is the only major source of financing the economy. Emefiele is not responsible for the dip, or volatility of crude oil price. Rather than lending all hands on the deck to fix it, we have embarked on blame games.

Worrisome to patriotic Nigerians is these unabated attacks on the Central Bank and Mr. Emefiele. It is certain that the governor has stepped on some powerful toes in the society when he promised Nigeria and Nigerians that the Central Bank under his watch will spend its energies on building a resilient financial system that can serve growth and the development needs of the Nigerian people.

Keen watchers of the Nigerian economy will agree that, despite the current challenges which are not peculiar to Nigeria, the Bank under Emefiele has been resolute in fulfilling its mandate. This is why they are calling for his sack.

Those clamouring for Emefiele’s sack can be categorized into three groups – the FOREX speculators and looters who want their monies out at all cost, the BDC owners – some of who registered between 5 and 10 under different company names and the international currency sharks and their media.

Though the Bank over the years has been a whipping child of all manner of political and economic pundits and the novice alike, the battle for the removal of the governor started immediately after he pronounced the suspension of 41 items from the FOREX window of the Bank.

A patriotic decision he took (as if he foresaw the impending shortfall in the nation’s revenue) to encourage local production of the items, and rein-in the drain in the foreign reserves.

Instead of Nigerians asking – why it took any government official this long to take this kind of policy decision? The local investors and their international cronies took up arms against the Bank. Nigeria’s economy is almost down and out, just because of the precarious situation we found ourselves as a mono-economy.

Should we not note as a nation that instead of vilifying Emefiele, he should be encouraged further with his economic diversification agenda of making the CBN a model central bank that is delivering price and financial stability, aimed at promoting sustainable economic development.

Emefiele’s second sin was his battle against currency speculators and looters. He came out strong with reforms in the Bureau de Change sub-sector.

Immediately after, both local and international conspirators took up battles with the CBN using their accomplices in the media – particularly the online outfits and some international magazines and broadcast media like the Financial Times of London, The Economist of London, Reuters, Bloomberg, to mention but few and the local media demanding for his removal.

In an edition of the Financial Times of August 16th, 2015, it derogatively tagged the decision by the Bank to reform the BDC sector in its editorial as “Nigeria Adopts Unorthodox Measures to Defend the Naira”, written by one Maggie Fick. So was the editorial of The Economist edition of July 15th, 2015 entitled “Toothpick Alert”.

The local media has also been awash with warped, uninformed stories and articles from emergency economic commentators and columnists, doing the bidding of their paymasters. The rating agencies were not excluded in their neo-colonialism enterprise.

Since Mr. Emefiele embarked on his radical reforms in the financial sector, Standards and Poors has never hid his aversion for some of the policies churned out by the CBN. So was JP Morgan’s delisting of Nigeria from its Government Bond Index.

Was the decision taken by this commercial bank to delist Nigeria not an insult on our national integrity?  Just because CBN refused to further devalue the Naira? What about the dire consequences of devaluation on some Nigerians who spend over 70% of their expendable income on food items alone.

And since the CBN refused to heed their satanic campaign, these neo-colonialists and their collaborators, veiled as intellectuals, businessmen, NGOs and journalists, particularly the online media, have embarked on ‘tailor-made sack campaigns’ to make way for the candidate they want to replace Emefiele.

Surprisingly too, is the unpatriotic attitude some NGOs that enjoy annual subventions from these neo-colonialists. They have joined the fray, raising their voices to the roof calling for Emefiele’s sack apparently to satisfy their masters. They may not like the face Emefiele, but has anyone come out with superior argument to fault his monetary policies.

We cannot continue growing other economies and kill our own. Has Godwin Emefiele, and the CBN, decided to chart a new course for Nigerians, who are these detractors to say otherwise. The United States Dollar is not Nigeria’s currency, why should we dollarize the economy? Why must we kill the Naira?

With some of the revelations coming out from the media lately about the CBN, it is also obvious that many of its staff may have been compromised and recruited into this unpatriotic endeavour. And as moles they are likely to have been induced to compromise and undermine the system, while not ruling out the activities of the deposit money banks.

Many of the managing directors of some deposit money banks have been undermining the CBN, and this is simply because they had expected Emefiele, being a former colleague, to churn out policies that will favour them. Under Emefiele, the CBN has accelerated the e-payment systems, thus making it difficult to perpetrate fraud hitherto rampant in the banking sector.

The CBN through its Biometric Verification Number (BVN) has blocked avenues through which bank customers are duped of their hard earned money. Are these the sins of Emefiele?

The clamour for his sack has assumed a dangerous tempo; and we need to thread carefully. It is quite obvious that many of the promoters of this evil campaign are those who felt shortchanged with the CBN pro-people policies who are trying relentlessly to arm-twist the President, Muhammadu Buhari, to heed their evil call.

If Emefiele is removed, what would the promoters and their agents achieve? What would be the consequences of their action on the economy and the already impoverish Nigerians?

Ms. Christine Largarde, the Managing Director, International Monetary Fund (IMF) when she visited Nigeria few months back said Nigeria is an economy the 21st century is waiting for, if only the government can tackle and fix some defective structural challenges noticed in the economy. This is what Godwin Emefiele has been doing, even before the constitution of the federal cabinet.

Let the campaigners sheath their swords and join hands with Emefiele and the President, Muhammadu Buhari, in redirecting the course of economy than pull him down at all cost. It is all about Nigeria, not Godwin Emefiele.

Deepak Michael writes from Jos, Plateau State

Culled from Elombah.com
The political intrigues playing out as being orchestrated by the advocates of Mr. Godwin Emefiele’s sack is nothing but sickening. You wonder what Emefiele’s sins are. The clamour is assuming a maddening crescendo without the advocates considering the implication of their endeavour on the economy.

About two years ago, an unprecedented political action spearheaded by hawks around government made the government in power to suspend the governor of the Central Bank. Though unprecedented in the annals of Nigeria, the suspension by fiat had its consequences on the economy.

The governor then was Mallam Sanusi Lamido Sanusi, now Emir of Kano. At that time the Nigeria economy was in good shape. But consequent upon that action, the economy began to have issues as the international community out of panic lost interest in the economy and they began to recall their investments.

The case of Emefiele, the current CBN Governor is even more laughable and dangerous. It is obvious that some powerful hawks want him out.

The same intrigues are now playing out. Emefiele and the Bank he runs in the last few months have been under undue vilification by supposedly critics but who are obviously agents of the enemies of the people of Nigeria. A lot of ignorance is playing out, with underserved blames being heaped on Emefiele’s head.

Mr. Godwin Emefiele may have been unlucky to be appointed as governor at a troubled time of the economy, but he came prepared. Rather than being supported, he is being bashed left right and center by those bent on seeing him leave the exalted position.

Reasons as canvassed by these hawks in and around the corridors of power, both informed and uninformed, are that Emefiele is bereft of ideas and lack capacity to run the economy. What some of these enemies of Nigerians do not know or pretending not to know is that, the economy which is having some challenges is not caused by the governor.

The global crude oil price which has witnessed its ever lowest point is majorly the cause of the bad shape of the economy. The nation’s revenue has dipped. Oil as we know is the only major source of financing the economy. Emefiele is not responsible for the dip, or volatility of crude oil price. Rather than lending all hands on the deck to fix it, we have embarked on blame games.

Worrisome to patriotic Nigerians is these unabated attacks on the Central Bank and Mr. Emefiele. It is certain that the governor has stepped on some powerful toes in the society when he promised Nigeria and Nigerians that the Central Bank under his watch will spend its energies on building a resilient financial system that can serve growth and the development needs of the Nigerian people.

Keen watchers of the Nigerian economy will agree that, despite the current challenges which are not peculiar to Nigeria, the Bank under Emefiele has been resolute in fulfilling its mandate. This is why they are calling for his sack.

Those clamouring for Emefiele’s sack can be categorized into three groups – the FOREX speculators and looters who want their monies out at all cost, the BDC owners – some of who registered between 5 and 10 under different company names and the international currency sharks and their media.

Though the Bank over the years has been a whipping child of all manner of political and economic pundits and the novice alike, the battle for the removal of the governor started immediately after he pronounced the suspension of 41 items from the FOREX window of the Bank.

A patriotic decision he took (as if he foresaw the impending shortfall in the nation’s revenue) to encourage local production of the items, and rein-in the drain in the foreign reserves.

Instead of Nigerians asking – why it took any government official this long to take this kind of policy decision? The local investors and their international cronies took up arms against the Bank. Nigeria’s economy is almost down and out, just because of the precarious situation we found ourselves as a mono-economy.

Should we not note as a nation that instead of vilifying Emefiele, he should be encouraged further with his economic diversification agenda of making the CBN a model central bank that is delivering price and financial stability, aimed at promoting sustainable economic development.

Emefiele’s second sin was his battle against currency speculators and looters. He came out strong with reforms in the Bureau de Change sub-sector.

Immediately after, both local and international conspirators took up battles with the CBN using their accomplices in the media – particularly the online outfits and some international magazines and broadcast media like the Financial Times of London, The Economist of London, Reuters, Bloomberg, to mention but few and the local media demanding for his removal.

In an edition of the Financial Times of August 16th, 2015, it derogatively tagged the decision by the Bank to reform the BDC sector in its editorial as “Nigeria Adopts Unorthodox Measures to Defend the Naira”, written by one Maggie Fick. So was the editorial of The Economist edition of July 15th, 2015 entitled “Toothpick Alert”.

The local media has also been awash with warped, uninformed stories and articles from emergency economic commentators and columnists, doing the bidding of their paymasters. The rating agencies were not excluded in their neo-colonialism enterprise.

Since Mr. Emefiele embarked on his radical reforms in the financial sector, Standards and Poors has never hid his aversion for some of the policies churned out by the CBN. So was JP Morgan’s delisting of Nigeria from its Government Bond Index.

Was the decision taken by this commercial bank to delist Nigeria not an insult on our national integrity?  Just because CBN refused to further devalue the Naira? What about the dire consequences of devaluation on some Nigerians who spend over 70% of their expendable income on food items alone.

And since the CBN refused to heed their satanic campaign, these neo-colonialists and their collaborators, veiled as intellectuals, businessmen, NGOs and journalists, particularly the online media, have embarked on ‘tailor-made sack campaigns’ to make way for the candidate they want to replace Emefiele.

Surprisingly too, is the unpatriotic attitude some NGOs that enjoy annual subventions from these neo-colonialists. They have joined the fray, raising their voices to the roof calling for Emefiele’s sack apparently to satisfy their masters. They may not like the face Emefiele, but has anyone come out with superior argument to fault his monetary policies.

We cannot continue growing other economies and kill our own. Has Godwin Emefiele, and the CBN, decided to chart a new course for Nigerians, who are these detractors to say otherwise. The United States Dollar is not Nigeria’s currency, why should we dollarize the economy? Why must we kill the Naira?

With some of the revelations coming out from the media lately about the CBN, it is also obvious that many of its staff may have been compromised and recruited into this unpatriotic endeavour. And as moles they are likely to have been induced to compromise and undermine the system, while not ruling out the activities of the deposit money banks.

Many of the managing directors of some deposit money banks have been undermining the CBN, and this is simply because they had expected Emefiele, being a former colleague, to churn out policies that will favour them. Under Emefiele, the CBN has accelerated the e-payment systems, thus making it difficult to perpetrate fraud hitherto rampant in the banking sector.

The CBN through its Biometric Verification Number (BVN) has blocked avenues through which bank customers are duped of their hard earned money. Are these the sins of Emefiele?

The clamour for his sack has assumed a dangerous tempo; and we need to thread carefully. It is quite obvious that many of the promoters of this evil campaign are those who felt shortchanged with the CBN pro-people policies who are trying relentlessly to arm-twist the President, Muhammadu Buhari, to heed their evil call.

If Emefiele is removed, what would the promoters and their agents achieve? What would be the consequences of their action on the economy and the already impoverish Nigerians?

Ms. Christine Largarde, the Managing Director, International Monetary Fund (IMF) when she visited Nigeria few months back said Nigeria is an economy the 21st century is waiting for, if only the government can tackle and fix some defective structural challenges noticed in the economy. This is what Godwin Emefiele has been doing, even before the constitution of the federal cabinet.

Let the campaigners sheath their swords and join hands with Emefiele and the President, Muhammadu Buhari, in redirecting the course of economy than pull him down at all cost. It is all about Nigeria, not Godwin Emefiele.

Deepak Michael writes from Jos, Plateau State

Culled from Elombah.com
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Fresh SCANDAL At CBN: Emefiele In Secret Job 'Bribe' Offer To Atiku, Buhari's Relatives & Allies To Save Job

Fresh SCANDAL At CBN: Emefiele In Secret Job 'Bribe' Offer To Atiku, Buhari's Relatives & Allies To Save Job

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CBN Governor, Godwin Emefiele
CBN Governor, Godwin Emefiele
The Governor of the Central Bank of Nigeria, CBN, Mr. Godwin Emefiele in a desperate move to save job under the present administration of President Muhammadu Buhari has reportedly bribed top government functionaries and some high-profile politicians with offer of jobs to their sons and daughter, Sahara Reporters says.

Our source said it has obtained a list of at least 91 people tied to influential or highly placed Nigerians who were recently offered juicy appointments by the Central Bank of Nigeria (CBN) in a hiring process that was highly 

The list of beneficiaries of the CBN’s job largesse include a daughter of former Vice President Abubakar Atiku, a son of Mamman Daura, a nephew of President Muhammadu Buhari and one of the closest members of the president’s inner circle, a son of the Minister of State for Petroleum Resources, Emmanuel Ibe Kachikwu, a daughter of former Speaker of the House of Representatives, Ghali Na’aba,  also daughter of of the Inspector General of Police, Solomon Arase, a niece of the Minister of Internal Affairs, Abdurahman Danbazzau and at least 86 others.

The highly controversial recruitment, seen as peddling of influence, first came to light a few weeks ago, but SaharaReporters just exclusively obtained the names of the beneficiaries. 

The leaking of the irregular hires by the CBN caused significant embarrassment for the government and the bank. The CBN’s Director of Human Resources, Chizoba Mojekwu, was reportedly redeployed as the bank’s Director of Capacity Development and IT after CBN Governor, Godwin Emefiele, accused her of being behind the leaking of the list.

However, a top official of the CBN told our correspondent that Mr. Emefiele had arranged the hiring of relatives of top party leaders and powerful government officials as a strategy for saving his job.

Even though the list obtained by SaharaReporters has 91 names, our sources at the CBN disclosed that the CBN Governor had started the practice of using job offers to woo top government officials since Mr. Buhari came into power on May 29, 2015. One source revealed that, in September 2015, Mr. Emefiele had hired Claire Arase, a daughter of Nigeria’s Inspector General of Police, Solomon Arase. 

SaharaReporters learnt that the CBN often went to great lengths, including tweaking the names of recruits, in order to hide the identities of beneficiaries of politically motivated recruitment. Often the CBN used the beneficiaries’ first names and their father’s middle names to hide their real identities. For instance, the bank listed Maryam Atiku as “Maryam Abubakar.” In another case, the bank entered the name of the son of Nigeria’s Minister of Interior, Abdulrahman Dambazau, as “Nagode Abdulrahman.” In other instances, the bank used the maiden names of hired persons instead of their married names.

The recruitments are deemed irregular because the CBN failed to advertise the vacancies in order to allow opportunities to all qualified Nigerians to apply for the jobs. In addition, the bank’s “political” recruitments did not follow principles of federal character set out for employment by government agencies and other public institutions. “Jobs were just handed to the children of ministers in the current administration,” one bank official stated. The source added that many of the new hires were asked to pick their department of choice after their irregular employment was concluded.

Below is the full list of 91 people illegally hired by the CBN:

1. BIOLA OLOGBURO ADENIRAN 2. ABBA MUSTAPHA SHETTIMA 3. ABDUL-HAKEEM MOHAMMED ALI 4. ABDULLAHI MOHAMMED NURADEEN 5. ABDULMALIK ATTA 6. ABDULNASIR HARUNA 7. ABUBAKAR MOHAMMED YAHAYA 8. ADEFELA H. ADEJUWON 9. ADUWAK LARABA 10. AHMAD AMINU 11. AHMED AMINU-KANO 12. AHMED ZAINAB SHEHU 13. AINA MICHAEL O 14. AKINWUNMI AYODEJI AKINTOLA 15. ALEXANDAR CHUKWUKA OKAKWU 16. ALIYU AISHA YAKUBU 17. AMINU AHMADU DAUDA 18. AMINU HALIMAT SADIA ABDULLAHI 19. ASUZU OBIOMA C 20. AYOOLA B OYEBANJO 21. AYOOLA OLUWABUKOLA 22. BABAYO ABDULHAKEEM ABDULLAHI 23. CARPENTER BARKA MUHAMMAD 24. DAHIRU ISA ABBA 25. EJIKE EMMANUEL IBE

26. EKAYI NYOFO SHITTA 27. ESSIEN INNOCENT JOSHUA 28. ETHEL ISIOMA OJIJE 29. FARIDA ZUHAIR 30. FATIMA BABA SHEHU 31. FATIMA IMAM 32. HAJARA SANI 33. HANAFI ABUBAKAR MUJELI 34. HASSAN USMAN 35. IBEH NNADOZIE NATHANIEL 36. IBIRONKE IFEOLUWA ADETUNBI 37. IBRAHIM AHMED LAWAN 38. IBRAHIM KABIR TIJJANI 39. IBRAHIM MUHAMMED KABIR 40. IBRAHIM USMAN 41. IDIGO IFEANYI CHARLES 42. IHEOMAMERE CHIKEZIE CHIKWENDU 43. IKYEMBE TERSEEL IKYEMBE 44. JAMES ELIZABETH EDIDIONG 45. JIBRIL ABDULLAHI IBRAHIM 46. JOEL UGOCHUKWU JONES 47. JOHN IRIMIYA BALEWA 48. KAMALUDDEN TUKUR TAFIDA 49. LORETTA LAOYE 50. MARYAM ABUBAKAR

51. MARYAM ADAMU BADAMASI 52. MBWIDUFFU IBRAHIM AUTA 53. MOHAMMAD AHMAD ADAMU 54. MOHAMMED ALI 55. MOHAMMED AMEER IBRAHIM BUNU 56. MUHAMMAD ISAH RUMU 57. MUHAMMAD MUHAMMAD MAGASA 58. MUHAMMED HASSAN 59. MUSA IBRAHIM 60. MUSTAPHA MARIAM BUKOLA 61. NA'ABBA FATIMA GHALI 62. NAGODE ABDULRAHMAN 63. NASREEN MAMMAN-DAURA 64. ODELOLA OYEKUNLE ISIMENME 65. OKOCHA UZOMA MESHARK 66. OLAJIDE TOLANI KUDIRAT 67. OLAWUNMI ADEDOYIN KAYODE 68. OMITOKUN OMOLOLA TEMITOPE 69. OMOILE KINGSLEY UCHEKA 70. ONOJA UWANE JESSICA 71. ORUCHE CHUKWUDUBEM GODWIN 72. OWOADE ADEDAMOLA KAZEEM 73. PRINCEWILL EVA 74. RABIU MUSA MBULO 75. SADIK UBA SULE


76. SADIQ INUWA BABA 77. SALAMI BASHIRAT OMOLOLA 78. SAMAILA SHEHU 79. SHIMA KUMA 80. SOLOMON EZRA MONDE 81. SUNDAY JOHN MOMOH 82. TASLIM GANIYU OLALEKAN 83. TEMITOPE ADEOLA ODUNOWO 84. TITILAYO TOLA OLOWONIYI 85. UKUTE PATRICK EWERE 86. USMAN BUBA JALO 87. YAHAYA SANI 88. YAKUB UMAR YAKUB 89. YAMANI SANUSI 90. YINUSA BILIKIS OREKULEYIN 91. YISA DANIEL NMA


CBN Governor, Godwin Emefiele
CBN Governor, Godwin Emefiele
The Governor of the Central Bank of Nigeria, CBN, Mr. Godwin Emefiele in a desperate move to save job under the present administration of President Muhammadu Buhari has reportedly bribed top government functionaries and some high-profile politicians with offer of jobs to their sons and daughter, Sahara Reporters says.

Our source said it has obtained a list of at least 91 people tied to influential or highly placed Nigerians who were recently offered juicy appointments by the Central Bank of Nigeria (CBN) in a hiring process that was highly 

The list of beneficiaries of the CBN’s job largesse include a daughter of former Vice President Abubakar Atiku, a son of Mamman Daura, a nephew of President Muhammadu Buhari and one of the closest members of the president’s inner circle, a son of the Minister of State for Petroleum Resources, Emmanuel Ibe Kachikwu, a daughter of former Speaker of the House of Representatives, Ghali Na’aba,  also daughter of of the Inspector General of Police, Solomon Arase, a niece of the Minister of Internal Affairs, Abdurahman Danbazzau and at least 86 others.

The highly controversial recruitment, seen as peddling of influence, first came to light a few weeks ago, but SaharaReporters just exclusively obtained the names of the beneficiaries. 

The leaking of the irregular hires by the CBN caused significant embarrassment for the government and the bank. The CBN’s Director of Human Resources, Chizoba Mojekwu, was reportedly redeployed as the bank’s Director of Capacity Development and IT after CBN Governor, Godwin Emefiele, accused her of being behind the leaking of the list.

However, a top official of the CBN told our correspondent that Mr. Emefiele had arranged the hiring of relatives of top party leaders and powerful government officials as a strategy for saving his job.

Even though the list obtained by SaharaReporters has 91 names, our sources at the CBN disclosed that the CBN Governor had started the practice of using job offers to woo top government officials since Mr. Buhari came into power on May 29, 2015. One source revealed that, in September 2015, Mr. Emefiele had hired Claire Arase, a daughter of Nigeria’s Inspector General of Police, Solomon Arase. 

SaharaReporters learnt that the CBN often went to great lengths, including tweaking the names of recruits, in order to hide the identities of beneficiaries of politically motivated recruitment. Often the CBN used the beneficiaries’ first names and their father’s middle names to hide their real identities. For instance, the bank listed Maryam Atiku as “Maryam Abubakar.” In another case, the bank entered the name of the son of Nigeria’s Minister of Interior, Abdulrahman Dambazau, as “Nagode Abdulrahman.” In other instances, the bank used the maiden names of hired persons instead of their married names.

The recruitments are deemed irregular because the CBN failed to advertise the vacancies in order to allow opportunities to all qualified Nigerians to apply for the jobs. In addition, the bank’s “political” recruitments did not follow principles of federal character set out for employment by government agencies and other public institutions. “Jobs were just handed to the children of ministers in the current administration,” one bank official stated. The source added that many of the new hires were asked to pick their department of choice after their irregular employment was concluded.

Below is the full list of 91 people illegally hired by the CBN:

1. BIOLA OLOGBURO ADENIRAN 2. ABBA MUSTAPHA SHETTIMA 3. ABDUL-HAKEEM MOHAMMED ALI 4. ABDULLAHI MOHAMMED NURADEEN 5. ABDULMALIK ATTA 6. ABDULNASIR HARUNA 7. ABUBAKAR MOHAMMED YAHAYA 8. ADEFELA H. ADEJUWON 9. ADUWAK LARABA 10. AHMAD AMINU 11. AHMED AMINU-KANO 12. AHMED ZAINAB SHEHU 13. AINA MICHAEL O 14. AKINWUNMI AYODEJI AKINTOLA 15. ALEXANDAR CHUKWUKA OKAKWU 16. ALIYU AISHA YAKUBU 17. AMINU AHMADU DAUDA 18. AMINU HALIMAT SADIA ABDULLAHI 19. ASUZU OBIOMA C 20. AYOOLA B OYEBANJO 21. AYOOLA OLUWABUKOLA 22. BABAYO ABDULHAKEEM ABDULLAHI 23. CARPENTER BARKA MUHAMMAD 24. DAHIRU ISA ABBA 25. EJIKE EMMANUEL IBE

26. EKAYI NYOFO SHITTA 27. ESSIEN INNOCENT JOSHUA 28. ETHEL ISIOMA OJIJE 29. FARIDA ZUHAIR 30. FATIMA BABA SHEHU 31. FATIMA IMAM 32. HAJARA SANI 33. HANAFI ABUBAKAR MUJELI 34. HASSAN USMAN 35. IBEH NNADOZIE NATHANIEL 36. IBIRONKE IFEOLUWA ADETUNBI 37. IBRAHIM AHMED LAWAN 38. IBRAHIM KABIR TIJJANI 39. IBRAHIM MUHAMMED KABIR 40. IBRAHIM USMAN 41. IDIGO IFEANYI CHARLES 42. IHEOMAMERE CHIKEZIE CHIKWENDU 43. IKYEMBE TERSEEL IKYEMBE 44. JAMES ELIZABETH EDIDIONG 45. JIBRIL ABDULLAHI IBRAHIM 46. JOEL UGOCHUKWU JONES 47. JOHN IRIMIYA BALEWA 48. KAMALUDDEN TUKUR TAFIDA 49. LORETTA LAOYE 50. MARYAM ABUBAKAR

51. MARYAM ADAMU BADAMASI 52. MBWIDUFFU IBRAHIM AUTA 53. MOHAMMAD AHMAD ADAMU 54. MOHAMMED ALI 55. MOHAMMED AMEER IBRAHIM BUNU 56. MUHAMMAD ISAH RUMU 57. MUHAMMAD MUHAMMAD MAGASA 58. MUHAMMED HASSAN 59. MUSA IBRAHIM 60. MUSTAPHA MARIAM BUKOLA 61. NA'ABBA FATIMA GHALI 62. NAGODE ABDULRAHMAN 63. NASREEN MAMMAN-DAURA 64. ODELOLA OYEKUNLE ISIMENME 65. OKOCHA UZOMA MESHARK 66. OLAJIDE TOLANI KUDIRAT 67. OLAWUNMI ADEDOYIN KAYODE 68. OMITOKUN OMOLOLA TEMITOPE 69. OMOILE KINGSLEY UCHEKA 70. ONOJA UWANE JESSICA 71. ORUCHE CHUKWUDUBEM GODWIN 72. OWOADE ADEDAMOLA KAZEEM 73. PRINCEWILL EVA 74. RABIU MUSA MBULO 75. SADIK UBA SULE


76. SADIQ INUWA BABA 77. SALAMI BASHIRAT OMOLOLA 78. SAMAILA SHEHU 79. SHIMA KUMA 80. SOLOMON EZRA MONDE 81. SUNDAY JOHN MOMOH 82. TASLIM GANIYU OLALEKAN 83. TEMITOPE ADEOLA ODUNOWO 84. TITILAYO TOLA OLOWONIYI 85. UKUTE PATRICK EWERE 86. USMAN BUBA JALO 87. YAHAYA SANI 88. YAKUB UMAR YAKUB 89. YAMANI SANUSI 90. YINUSA BILIKIS OREKULEYIN 91. YISA DANIEL NMA


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