The Catholic Archbishop of Jos, in central Nigeria, has accused the West of ignoring the threat of the militant Islamist group, Boko Haram.
Ignatius Kaigama said the world had to show more determination to halt the group's advance in Nigeria.
He said the international community had to show the same spirit and resolve it had done after the attacks in France.
His warning came after 23 people were killed by three female suicide bombers, one reported to be 10 years old.
The weekend attacks come after reports that hundreds of people were killed last week during the capture by Boko Haram of the town of Baga in Borno state.'Depraved'
Archbishop Kaigama told the BBC's Newsday programme that the slaughter in Baga had shown that the Nigerian military was unable to tackle Boko Haram.
"It is a monumental tragedy. It has saddened all of Nigeria. But... we seem to be helpless. Because if we could stop Boko Haram, we would have done it right away. But they continue to attack, and kill and capture territories... with such impunity," he said.
The UN Secretary-General, Ban Ki-Moon, said he was appalled by reports of the killings in Baga and condemned what he called "the depraved acts of Boko Haram terrorists".
The Nigerian military has said it is trying to retake the town but has given few details about the operation.
On Saturday, it said it had successfully fought off Boko Haram fighters trying to capture another major north-eastern town, Damaturu.
A BBC correspondent in Lagos, Will Ross, says it was a rare success for the army, which on the whole has failed to protect civilians from the relentless violence.
Our correspondent says Nigeria's politicians appear more focused on next month's elections and President Goodluck Jonathan has not commented on the recent violence.
On Sunday, two female suicide attackers killed four people and injured more than 40 people in the town of Potiskum.
A day earlier, another young female suicide bomber, reported to be 10 years old, struck in the main city of north-east Nigeria, Maiduguri, killing at least 19 people.'Sadness'
Archbishop Kaigama said facing down Boko Haram required international support and unity of the type that had been shown after last week's militant attacks in France.
"We need that spirit to be spread around," he said. "Not just when it [an attack] happens in Europe, but when it happens in Nigeria, in Niger, in Cameroon.
"We [must] mobilise our international resources and face or confront the people who bring such sadness to many families."
In June, Britain said it would increase its military and educational aid to help Nigeria tackle Boko Haram.
The aid includes counter-insurgency training for troops, which is also being provided by the US military.
However, Nigeria has criticised the US for refusing to sell it weapons because of alleged human rights abuses committed by Nigerian troops.
Jos, where the archbishop is based, has a mixed population of Muslims and Christians and has faced attacks by Islamist militants, although it is some distance from Boko Haram's strongholds.
Last month more than 30 people were killed in twin bomb attacks on a market there.
Churches have also been targeted in what are believed to be attempts by the militants to foment religious tension.
A French-led initiative has called for Nigeria, Niger, Cameroon and Chad to contribute 700 troops each to a multinational force against Boko Haram, but no country has implemented the plan.
Niger has blamed Nigeria, saying it has not kept to commitments regarding its own troop levels.
BBC
Monday, January 12, 2015
Friday, January 9, 2015
Why Nigeria cancelled U.S. military training
The recent row between Nigeria and the United States over assisted military training may not be unconnected with the inability of the Nigerian government to fulfill its own part of the deal.
Two months ago, the Federal Government of Nigeria cancelled the military training arrangement it had with the United States without providing official reasons to the public.
In a terse statement regretting the premature termination of the training, the US Embassy in Lagos had last month stated that the cancelled training was to be the third in a series of training programmes the US military was handling with its Nigerian counterpart with the goal of helping the Nigerian Army build capacity to counter the Boko Haram insurgents.
However, in an interview with select journalists at his residence in Lagos yesterday, the US Ambassador to Nigeria, James Entwistle, disclosed that there was an agreement between Nigeria and America on the provision of equipment and trainers for the Nigerian military, which Nigeria failed to honour.
He said: “We had, at Nigeria’s request, agreed to train some battalion, in my opinion, some of the best trainers in the world have been provided by the United States. The agreement was that we would provide the trainers and the Nigerian Army would provide the equipment we need to properly conduct the training and that was agreed well ahead of time as part of our partnership.
“This was not something we were going to do for Nigeria; it was something we were going to do together as partners. We were able to do a bit of this and it got to a point where we were waiting for these equipment to be provided for us to finish the training, but the decision by the Nigerian government, as I understand it, was ‘no that is enough; we don’t want to finish this training’. Frankly, that was a disappointment to us given that we had provided that symbol of our commitment. As to what motivated your government, I don’t know. I will encourage you to put that question to them.”
Entwistle, whose breakfast meeting with the select journalists was centred on the donation of a decommissioned warship, NNS Okpabana, to Nigeria by the US, further reiterated the US position on the forthcoming general elections.
“The United States’ position on the election is quite clear. For the past years I have been talking about the importance of non-violence in the elections. I have been doing that and I have seen that the civil society and the Nigerian media have taken this up too. I even went to one or two of Tuface’s hip-hop concert ‘Vote not fight’ campaign. So, that is the message the United States will continue to preach, especially to urge all candidates to probably commit themselves that they will not support or engage in violence before, during and after the elections. I think that is key in any democracy,” he said.
He described the recent shooting during a political rally in Rivers State as ugly, saying: “The incident in Rivers was very sad. I condemned it, but that underlines to me why our campaign against violence is so important.”
According to Entwistle, no other country has supported Nigeria in its quest to
overcome terrorism in recent times more than the US.
“In terms of what is happening in the North-east and military relationship, we have all seen in recent months a lot of stuff about the US imposing an arms embargo. I am here to tell you as President Obama’s personal representative to this country that that is nonsense; that is not true.
“We have given this ship, NNS Okpabana as part of our commitment to strengthen security in Nigeria. We have a number of discussions on the way right now. A good portion of the assistance we give every day on the war against terror are things I can’t talk about that much, but I can assure you that no partner is doing more to assist Nigeria in its fight against terror now than the United States of America. We have seen the most unfortunate incident in Baga and that underlines to me the importance of continuing this fight.
“We are still talking about a number of equipment, different kinds of helicopters that can be more appropriate to that kind of thing. But, what are our human rights considerations? When I got here about two years ago, there were discussions about the conduct of the Nigerian Army in the North-east about the treatment of the civilian population. It was reported in your media. This is not something we came up with.
“Nigerians themselves were focusing on it. So, we have had a lot of discussions with the Nigerian Army about the need to, as you fight terror, you also have to protect the civilian population and keep them on your side.
“We have learnt the hard way in our own counterterrorism that if you lose the trust and support of the civilian population, you’ve lost everything. So, we have had that conversation. Indeed, much of the trainings that we’ve done with your army in the U.S. have focused on that kind of thing, effective leadership and how do you operate against an enemy that is hard to identify? That mixes into the civilian population, how do you fight that kind of enemy while at the same time respecting the civilian population? I am not a military man but it strikes me that this is a very difficult thing to do.”
On small arms proliferation in the Gulf of Guinea, he said: “I think small arms proliferation is something that is difficult to control because the arms are small. They are easy to smuggle. We think that in providing NNS Thunder and Okpabana they can gradually help against that. But they can also help against the broader issue of security in the Gulf of Guinea, which is a trans-national issue. It affects all the countries of this region. It also affects foreign investments. Oil companies want to get forward, like deep water. Security is paramount. We think it can also help Nigeria’s struggle against oil theft and (illegal) oil bunkering. It is an array of issues in relations to our broad issue of security with Nigeria.”
As in time past, Entwistle insisted that Nigeria would not disintegrate as being bandied about by some people.
The Ambassador said: “I have been plagued by that question ever since I got this job. I have gone back and looked, I can’t find any government report that said US thought Nigeria would disintegrate in 2015, may be some think-tank or somebody outside the government said it, I don’t know. But, in my opinion as US Ambassador to this country, I am not worried in the least that Nigeria is going to disintegrate in 2015. Do you face big challenges now? Of course you do. So does my country. But, I see a Nigeria that if you can do what needs to be done in the coming years on security, on corruption and all of those things, I think the future for Nigeria is very bright.”
He added: “Whenever I travel around this country, I always try to go to the universities and have big sessions to give talks to students and have questions and answers and whenever I do that, I leave with incredible sense of optimism about Nigeria when I get to know your best and brightest. So, are there challenges for Nigeria under the horizon? Sure, but I have no doubt that Nigeria will muscle them, will move on.
“Will it be easy? Of course not. Nothing is easy in this life… We are now here in 2015, I don’t know what you see but I can’t see those signs that Nigeria will disintegrate. I see signs of growth and I say that not to minimise the challenges that you have.”
This Day
Related story: Nigeria cancels U.S. military training
Two months ago, the Federal Government of Nigeria cancelled the military training arrangement it had with the United States without providing official reasons to the public.
In a terse statement regretting the premature termination of the training, the US Embassy in Lagos had last month stated that the cancelled training was to be the third in a series of training programmes the US military was handling with its Nigerian counterpart with the goal of helping the Nigerian Army build capacity to counter the Boko Haram insurgents.
However, in an interview with select journalists at his residence in Lagos yesterday, the US Ambassador to Nigeria, James Entwistle, disclosed that there was an agreement between Nigeria and America on the provision of equipment and trainers for the Nigerian military, which Nigeria failed to honour.
He said: “We had, at Nigeria’s request, agreed to train some battalion, in my opinion, some of the best trainers in the world have been provided by the United States. The agreement was that we would provide the trainers and the Nigerian Army would provide the equipment we need to properly conduct the training and that was agreed well ahead of time as part of our partnership.
“This was not something we were going to do for Nigeria; it was something we were going to do together as partners. We were able to do a bit of this and it got to a point where we were waiting for these equipment to be provided for us to finish the training, but the decision by the Nigerian government, as I understand it, was ‘no that is enough; we don’t want to finish this training’. Frankly, that was a disappointment to us given that we had provided that symbol of our commitment. As to what motivated your government, I don’t know. I will encourage you to put that question to them.”
Entwistle, whose breakfast meeting with the select journalists was centred on the donation of a decommissioned warship, NNS Okpabana, to Nigeria by the US, further reiterated the US position on the forthcoming general elections.
“The United States’ position on the election is quite clear. For the past years I have been talking about the importance of non-violence in the elections. I have been doing that and I have seen that the civil society and the Nigerian media have taken this up too. I even went to one or two of Tuface’s hip-hop concert ‘Vote not fight’ campaign. So, that is the message the United States will continue to preach, especially to urge all candidates to probably commit themselves that they will not support or engage in violence before, during and after the elections. I think that is key in any democracy,” he said.
He described the recent shooting during a political rally in Rivers State as ugly, saying: “The incident in Rivers was very sad. I condemned it, but that underlines to me why our campaign against violence is so important.”
According to Entwistle, no other country has supported Nigeria in its quest to
overcome terrorism in recent times more than the US.
“In terms of what is happening in the North-east and military relationship, we have all seen in recent months a lot of stuff about the US imposing an arms embargo. I am here to tell you as President Obama’s personal representative to this country that that is nonsense; that is not true.
“We have given this ship, NNS Okpabana as part of our commitment to strengthen security in Nigeria. We have a number of discussions on the way right now. A good portion of the assistance we give every day on the war against terror are things I can’t talk about that much, but I can assure you that no partner is doing more to assist Nigeria in its fight against terror now than the United States of America. We have seen the most unfortunate incident in Baga and that underlines to me the importance of continuing this fight.
“We are still talking about a number of equipment, different kinds of helicopters that can be more appropriate to that kind of thing. But, what are our human rights considerations? When I got here about two years ago, there were discussions about the conduct of the Nigerian Army in the North-east about the treatment of the civilian population. It was reported in your media. This is not something we came up with.
“Nigerians themselves were focusing on it. So, we have had a lot of discussions with the Nigerian Army about the need to, as you fight terror, you also have to protect the civilian population and keep them on your side.
“We have learnt the hard way in our own counterterrorism that if you lose the trust and support of the civilian population, you’ve lost everything. So, we have had that conversation. Indeed, much of the trainings that we’ve done with your army in the U.S. have focused on that kind of thing, effective leadership and how do you operate against an enemy that is hard to identify? That mixes into the civilian population, how do you fight that kind of enemy while at the same time respecting the civilian population? I am not a military man but it strikes me that this is a very difficult thing to do.”
On small arms proliferation in the Gulf of Guinea, he said: “I think small arms proliferation is something that is difficult to control because the arms are small. They are easy to smuggle. We think that in providing NNS Thunder and Okpabana they can gradually help against that. But they can also help against the broader issue of security in the Gulf of Guinea, which is a trans-national issue. It affects all the countries of this region. It also affects foreign investments. Oil companies want to get forward, like deep water. Security is paramount. We think it can also help Nigeria’s struggle against oil theft and (illegal) oil bunkering. It is an array of issues in relations to our broad issue of security with Nigeria.”
As in time past, Entwistle insisted that Nigeria would not disintegrate as being bandied about by some people.
The Ambassador said: “I have been plagued by that question ever since I got this job. I have gone back and looked, I can’t find any government report that said US thought Nigeria would disintegrate in 2015, may be some think-tank or somebody outside the government said it, I don’t know. But, in my opinion as US Ambassador to this country, I am not worried in the least that Nigeria is going to disintegrate in 2015. Do you face big challenges now? Of course you do. So does my country. But, I see a Nigeria that if you can do what needs to be done in the coming years on security, on corruption and all of those things, I think the future for Nigeria is very bright.”
He added: “Whenever I travel around this country, I always try to go to the universities and have big sessions to give talks to students and have questions and answers and whenever I do that, I leave with incredible sense of optimism about Nigeria when I get to know your best and brightest. So, are there challenges for Nigeria under the horizon? Sure, but I have no doubt that Nigeria will muscle them, will move on.
“Will it be easy? Of course not. Nothing is easy in this life… We are now here in 2015, I don’t know what you see but I can’t see those signs that Nigeria will disintegrate. I see signs of growth and I say that not to minimise the challenges that you have.”
This Day
Related story: Nigeria cancels U.S. military training
President Goodluck Jonathan begins re-election campaign
Nigeria’s president, Goodluck Jonathan, formally began his campaign for re-election on Thursday, taking the fight to a key opposition stronghold with a mass rally.
All roads to the venue on Lagos Island were cordoned off and armed soldiers and police searched the crowds, many of them dressed in the red, white and green of Jonathan’s Peoples Democratic party (PDP).
The vote is due to go ahead on 14 February but there are fears that polling could be ruled out in swaths of the country’s north-east because of sustained violence by Boko Haram militants. The national electoral body has said there are no plans to postpone.
Jonathan, a 57-year-old southern Christian, is pushing for a second four-year term, calling for more time to build on his first and complete his “transformation agenda”. Two-page advertisements in national newspapers on Thursday proclaimed: “Goodwork in progress … Vote goodwork … vote Goodluck.”
The main opposition All Progressives Congress (APC) has denounced Jonathan’s presidency as a failure, highlighting his inability to end the Islamist insurgency and tackle endemic corruption. Nigeria is also reeling from a fall in global crude prices that has forced a revision of the 2015 budget estimates and a devaluation of the currency against the US dollar.
“Under his watch, Nigeria has become No 1 in broken promises,” read one advertisement supporting the APC candidate, Muhammadu Buhari, a former military ruler.
On Wednesday Jonathan’s campaign chief, Femi Fani-Kayode, described Buhari as a “great danger” for the unity of the country. He said the 72-year-old from the Muslim-majority north, who is standing for the presidency for the fourth time since 1999, “represents a return to an ugly past which is best forgotten”.
Fani-Kayode also questioned Buhari’s democratic credentials and described his record in public office as “shameful and disastrous”. Buhari ousted the civilian president Shehu Shagari in a military coup in 1983 and his 18-month rule was characterised by a hardline stance on corruption.
“We do not believe that Nigeria ought to be run by a man that is not capable of tolerating dissent or by a political party like the APC that has no sense of remorse, restraint or decency,” Fani-Kayode said.
The APC, a coalition of opposition parties, is seen as having its best chance of winning power since Nigeria returned to civilian rule 16 years ago. It said the PDP was running scared. “The real danger to democracy in Nigeria is Jonathan,” said the party’s spokesman Lai Mohammed. “Before he came into office in 2010, Nigeria was a united country. But it is no more now.
“[Buhari] is also a good party man. The orgy of violence, armed robbery, killings, kidnappings and other forms of crime under Jonathan’s watch is unprecedented in the history of Nigeria. We have more than 20,000 sq km of our land now occupied by Boko Haram.”
The opposition has previously denounced a secret police raid on its Lagos offices and the teargassing of opposition MPs outside parliament last year as politically motivated. This week the APC claimed that Buhari supporters were shot as they made their way to a rally in the southern oil city of Port Harcourt on Tuesday.
The Guardian
All roads to the venue on Lagos Island were cordoned off and armed soldiers and police searched the crowds, many of them dressed in the red, white and green of Jonathan’s Peoples Democratic party (PDP).
The vote is due to go ahead on 14 February but there are fears that polling could be ruled out in swaths of the country’s north-east because of sustained violence by Boko Haram militants. The national electoral body has said there are no plans to postpone.
Jonathan, a 57-year-old southern Christian, is pushing for a second four-year term, calling for more time to build on his first and complete his “transformation agenda”. Two-page advertisements in national newspapers on Thursday proclaimed: “Goodwork in progress … Vote goodwork … vote Goodluck.”
The main opposition All Progressives Congress (APC) has denounced Jonathan’s presidency as a failure, highlighting his inability to end the Islamist insurgency and tackle endemic corruption. Nigeria is also reeling from a fall in global crude prices that has forced a revision of the 2015 budget estimates and a devaluation of the currency against the US dollar.
“Under his watch, Nigeria has become No 1 in broken promises,” read one advertisement supporting the APC candidate, Muhammadu Buhari, a former military ruler.
On Wednesday Jonathan’s campaign chief, Femi Fani-Kayode, described Buhari as a “great danger” for the unity of the country. He said the 72-year-old from the Muslim-majority north, who is standing for the presidency for the fourth time since 1999, “represents a return to an ugly past which is best forgotten”.
Fani-Kayode also questioned Buhari’s democratic credentials and described his record in public office as “shameful and disastrous”. Buhari ousted the civilian president Shehu Shagari in a military coup in 1983 and his 18-month rule was characterised by a hardline stance on corruption.
“We do not believe that Nigeria ought to be run by a man that is not capable of tolerating dissent or by a political party like the APC that has no sense of remorse, restraint or decency,” Fani-Kayode said.
The APC, a coalition of opposition parties, is seen as having its best chance of winning power since Nigeria returned to civilian rule 16 years ago. It said the PDP was running scared. “The real danger to democracy in Nigeria is Jonathan,” said the party’s spokesman Lai Mohammed. “Before he came into office in 2010, Nigeria was a united country. But it is no more now.
“[Buhari] is also a good party man. The orgy of violence, armed robbery, killings, kidnappings and other forms of crime under Jonathan’s watch is unprecedented in the history of Nigeria. We have more than 20,000 sq km of our land now occupied by Boko Haram.”
The opposition has previously denounced a secret police raid on its Lagos offices and the teargassing of opposition MPs outside parliament last year as politically motivated. This week the APC claimed that Buhari supporters were shot as they made their way to a rally in the southern oil city of Port Harcourt on Tuesday.
The Guardian
Wednesday, January 7, 2015
Nigeria ranks highest for Christians killed around the world for faith reasons
Nigeria topped the list of Christians confirmed to have been killed for faith-related reasons around the world last year, according to an annual survey monitoring religious freedom, which says radical Islamists were the main persecutors of Christians, not only in the Middle East but increasingly in sub-Saharan Africa.
Open Doors, an international group supporting persecuted Christians worldwide, said on Wednesday Islamic militants posed the greatest threat to the faith in 18 of the 20 countries that its annual World Watch List says are toughest for Christians.
Rankings are based on the group’s analysis of violence against Christians and official or informal restrictions on rights to practice their faith, convert from other religions and enjoy the same civil liberties as other citizens.
Topping the list of Christians confirmed to have been killed for faith-related reasons were Nigeria at 2,484 and Central African Republic at 1,088, with Syria and Iraq – where Islamic State militants have driven hundreds of thousands of Christians from areas they control – at 271 and 60, respectively.
“Islamic extremism has two global centres of gravity. One in the Arab Middle East, but the other is in sub-Saharan Africa,” researcher Ron Boyd-MacMillan wrote in a report accompanying the survey.
“Even Christian majority states are experiencing unprecedented levels of exclusion, discrimination and even violence,” he wrote.
North Korea topped the list of countries most hostile to the world’s largest faith for the 13th consecutive year followed by Somalia, Iraq, Syria, Afghanistan, Sudan, Iran, Pakistan, Eritrea and Nigeria. Christianity has an estimated 2.2 billion followers compared with Islam at 1.6 billion.
The 4,344 Christians killed in the survey year to October 31 were more than double the 2,123 victims in 2013, it said.
Boyd-McMillan said rising persecution was less due to the major incidents of violence during the year than to what he called “increased cultural marginalization” making daily life ever more difficult for Christians.
These trends had also grown in countries with religious nationalist movements such as Hindu-majority India and Buddhist-majority Sri Lanka, he said. China registered the most attacks on churches, at 258.
On the positive side, the report said the Middle East’s splintered Christian groups “have drawn together in a remarkable new unity”, especially in Syria, and Muslim leaders opposed to Islamic State have shown more support for Christian minorities.
Reuters
Open Doors, an international group supporting persecuted Christians worldwide, said on Wednesday Islamic militants posed the greatest threat to the faith in 18 of the 20 countries that its annual World Watch List says are toughest for Christians.
Rankings are based on the group’s analysis of violence against Christians and official or informal restrictions on rights to practice their faith, convert from other religions and enjoy the same civil liberties as other citizens.
Topping the list of Christians confirmed to have been killed for faith-related reasons were Nigeria at 2,484 and Central African Republic at 1,088, with Syria and Iraq – where Islamic State militants have driven hundreds of thousands of Christians from areas they control – at 271 and 60, respectively.
“Islamic extremism has two global centres of gravity. One in the Arab Middle East, but the other is in sub-Saharan Africa,” researcher Ron Boyd-MacMillan wrote in a report accompanying the survey.
“Even Christian majority states are experiencing unprecedented levels of exclusion, discrimination and even violence,” he wrote.
North Korea topped the list of countries most hostile to the world’s largest faith for the 13th consecutive year followed by Somalia, Iraq, Syria, Afghanistan, Sudan, Iran, Pakistan, Eritrea and Nigeria. Christianity has an estimated 2.2 billion followers compared with Islam at 1.6 billion.
The 4,344 Christians killed in the survey year to October 31 were more than double the 2,123 victims in 2013, it said.
Boyd-McMillan said rising persecution was less due to the major incidents of violence during the year than to what he called “increased cultural marginalization” making daily life ever more difficult for Christians.
These trends had also grown in countries with religious nationalist movements such as Hindu-majority India and Buddhist-majority Sri Lanka, he said. China registered the most attacks on churches, at 258.
On the positive side, the report said the Middle East’s splintered Christian groups “have drawn together in a remarkable new unity”, especially in Syria, and Muslim leaders opposed to Islamic State have shown more support for Christian minorities.
Reuters
Tuesday, January 6, 2015
The Naira drops as Central Bank controls choke trading
The naira weakened a second day and Nigerian stocks headed for biggest drop since 2010 as central bank measures to protect the currency of Africa’s largest crude producer from falling oil prices stifled trading.
There were nine trades in the naira between 9 a.m. and 12:30 p.m. in Lagos, compared with 122 in the same period four weeks ago, according to data compiled by Bloomberg from at least 39 local and international banks. The naira weakened 0.8 percent to 185 per dollar, extending losses over the past three months to 11 percent, the most of 24 African currencies tracked by Bloomberg.
The Abuja-based regulator last month told banks to clear foreign exchange positions daily, having previously allowed them net-open positions of 1 percent of shareholder funds. The move has made it difficult for non-Nigerian investors to exit their holdings, according to Samir Gadio, head of African strategy at Standard Chartered Plc.
“For those who remain in Nigeria, it’s become virtually impossible to get out,” he said by phone from London. “There’s a risk that these measures last as long as the central bank feels it doesn’t have the ability to control the exchange rate.”
Calls to the mobile phones of Ibrahim Mu’azu, a spokesman for the central bank, weren’t picked up and he didn’t immediately respond to e-mailed questions. The steps are short-term measures to stabilize the market, he said last month.
Naira Devaluation
Nigeria, which relies on oil for 70 percent of its budget and over 90 percent of exports, has been battered by Brent crude prices more than halving since June to under $52 a barrel. The central bank raised interest rates to a record 13 percent and devalued its target exchange rate for the naira to 5 percent either side of 168 per dollar in November. Finance Minister Ngozi Okonjo-Iweala proposed cutting this year’s budget by 8 percent.
The Nigerian Stock Exchange All Share Index (NGSEINDX) plunged 4.2 percent, the most on a closing basis since March 2010, to 32,533.21. Volumes amounted to 66 percent of the three-month daily average. Nigerian Breweries Plc fell 9.6 percent for the biggest one-day fall since December 2004. United Bank for Africa Plc, the country’s third biggest bank by assets, slipped 7.4 percent to the lowest level since Dec. 22.
Bloomberg
There were nine trades in the naira between 9 a.m. and 12:30 p.m. in Lagos, compared with 122 in the same period four weeks ago, according to data compiled by Bloomberg from at least 39 local and international banks. The naira weakened 0.8 percent to 185 per dollar, extending losses over the past three months to 11 percent, the most of 24 African currencies tracked by Bloomberg.
The Abuja-based regulator last month told banks to clear foreign exchange positions daily, having previously allowed them net-open positions of 1 percent of shareholder funds. The move has made it difficult for non-Nigerian investors to exit their holdings, according to Samir Gadio, head of African strategy at Standard Chartered Plc.
“For those who remain in Nigeria, it’s become virtually impossible to get out,” he said by phone from London. “There’s a risk that these measures last as long as the central bank feels it doesn’t have the ability to control the exchange rate.”
Calls to the mobile phones of Ibrahim Mu’azu, a spokesman for the central bank, weren’t picked up and he didn’t immediately respond to e-mailed questions. The steps are short-term measures to stabilize the market, he said last month.
Naira Devaluation
Nigeria, which relies on oil for 70 percent of its budget and over 90 percent of exports, has been battered by Brent crude prices more than halving since June to under $52 a barrel. The central bank raised interest rates to a record 13 percent and devalued its target exchange rate for the naira to 5 percent either side of 168 per dollar in November. Finance Minister Ngozi Okonjo-Iweala proposed cutting this year’s budget by 8 percent.
The Nigerian Stock Exchange All Share Index (NGSEINDX) plunged 4.2 percent, the most on a closing basis since March 2010, to 32,533.21. Volumes amounted to 66 percent of the three-month daily average. Nigerian Breweries Plc fell 9.6 percent for the biggest one-day fall since December 2004. United Bank for Africa Plc, the country’s third biggest bank by assets, slipped 7.4 percent to the lowest level since Dec. 22.
Bloomberg
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