Monday, March 1, 2021

In Nigeria, an agonising wait for parents of 300 abducted girls

Families in northwest Nigeria’s Zamfara state are desperately waiting for news of their kidnapped daughters after more than 300 schoolgirls were taken by gunmen from a government school on Friday, the latest in a series of mass school abductions to hit the country.

Some parents and other relatives on Sunday gathered at the all-girls boarding school in the Jangebe village amid speculation that the children had regained their freedom after being held in a forest.

“There have been rumours flying around that the girls have been found; the government denied them but these rumours refuse to go away,” Al Jazeera’s Ahmed Idris, reporting from the school, said.

With police coordinating a joint rescue operation with the military and helicopters combing the forest, Idris said a number of government ministers had arrived in Zamfara to meet local officials. “Senior officials confirmed to Al Jazeera that some progress has been made and [expressed hope] in the next 24 hours the girls will be back home,” Idris added.

Locals say more than 100 gunmen in military uniforms invaded the village early on Friday morning before heading to the school’s hostel for the sleeping students.

Humaira Mustapha’s two daughters – Hafsa and Aisha, 14 and 13 respectively – were among the 317 schoolgirls abducted.

“Whenever I think about my daughters I’m filled with indescribable grief,” Mustapha told AFP news agency, making no effort to wipe away the tears rolling down her cheeks.

“Whenever I serve food to their younger sister, tears keep flowing from my eyes because I keep thinking about the hunger and thirst they are going through,” said the 30-year-old mother of three.

“I’m appealing to the governor to do everything to rescue our daughters who are facing real danger to their lives,” Mustapha added. “As a mother, my anguish is crushing me.”
‘Scared of going back to school’

Aliyu Ladan Jangebe said his five daughters aged between 12 and 16 were at the school when the kidnappers stormed in. Four were taken away but one escaped by hiding in a bathroom with three other girls, he told The Associated Press news agency.

“We are not in [a] good mood because when you have five children and you are able to secure (just) one. We only thank God … But we are not happy,” said Jangebe.

“We cannot imagine their situation,” he said of his missing daughters. Residents of a nearby village said the kidnappers had herded the girls through the town like animals, he said.

Masauda Umar was among the schoolgirls who managed to escape. “I was coming out from the door and I met somebody but ran back and hid under my bed,” she said. “I’m scared of going back to school because of what happened, but I will go back if the government makes it safe.”

One resident at the village said the gunmen also attacked a nearby military camp and checkpoint, preventing soldiers from responding to the mass abduction.

Nigerian President Muhammadu Buhari said the government’s priority is to get all the hostages returned safe and unharmed.

The girls’ abduction has caused international outrage, with the United Nations chief calling for the girls’ “immediate and unconditional release” and safe return to their families.

Nigeria has seen several such attacks and kidnappings in recent years. On Saturday, 24 students, six staff and eight relatives were released after being abducted on February 17 from the Government Science College Kagara in Niger state.

In December, more than 300 schoolboys from a secondary school in Kankara, in northwestern Nigeria, were taken and later released. The government has said no ransom was paid for the students’ release.

The most notorious kidnapping was in April 2014, when 276 girls were abducted by the Boko Haram armed group from the secondary school in Chibok in Borno state. More than 100 of those girls are still missing.

Boko Haram is opposed to Western education and its fighters often target schools. Other organised armed groups, locally called bandits, often abduct students for money. The government says large groups of armed men in Zamfara state are known to kidnap for money and to press for the release of their members held in jail.

Nigeria’s criminal networks may plot more such abductions if this round of kidnappings go unpunished, say analysts.

“While improving community policing and security, in general, remains a mid-to-long-term challenge, in the short term authorities must punish those responsible to send a strong message that there will be zero tolerance toward such acts,” said Rida Lyammouri, senior fellow at the Policy Center for the New South, a Moroccan-based think-tank.

Al Jazeera

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Friday, February 26, 2021

Video - Victims who were kidnapped from a bus in Nigeria speak out



Kidnapping for ransom has become one of the most reported crimes in Nigeria. Hundreds of people are being held by gangs across the country, and in a recent case, dozens of passengers were kidnapped from a bus.

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Video - More than 300 schoolgirls abducted in Northwest Nigeria

 

Kidnapping is currently Nigeria's biggest and fastest enterprise with dozens abducted daily.

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Wednesday, February 24, 2021

Niger Delta militants vow to bomb Lagos, Abuja in Nigeria

Niger Delta militants have threatened to attack Lagos and Abuja in Nigeria, about four years after they ceased fire.

As reported by NewsOnline Nigeria, in a viral video, the Supreme Egbesu Liberation Fighters accused the federal government of marginalizing the region and failing to deliver on the amnesty program.

A masked member of the group said: “After accepting the amnesty pact, till date, there are no schools, no potable water, no light, no hospital and access roads for our people to enjoy”.

He also complained that “Over the years, the Niger Delta people have made frantic efforts to create an enabling environment… but to our great dismay, the Nigerian government over the years has decided to handle the issues of the Niger Delta with kid gloves. They have betrayed the struggle and have left the people to their fate.

“Rather, what is visible is the presence of military gunboat and the numerous military personnel dispersed to the Niger Delta who are killing, raping, and maiming the innocent people of the region.”

The masked member, therefore, said, “As a group determined to give total liberation of her people, we will destroy all the oil facilities both onshore and offshore, in no distance time, we will cripple the Nigerian economy……we are coming to destroy all your infrastructure in Lagos and Abuja.”

By Grace Kuria

CGTN

In Nigeria, One Bitcoin Can Cost $68,000. Here’s Why

Bitcoin has already passed the $68,000 mark in Nigeria, but that’s if you use the official exchange rate.

Awosika Ayodeji, a Nigerian blockchain project designer, isn’t complaining. He is happy to wake up and see bitcoin prices quoted using unofficial U.S. dollar exchange rates because it means he’d be getting more naira per dollar when he converts his crypto earnings to his local currency.

At the same time, however, “buying [bitcoin] becomes more expensive, too,” Ayodeji noted.

On Friday, Nigeria’s official exchange rate for the U.S. dollar was around 380 naira per dollar. Using this rate, a bitcoin listing on peer-to-peer platform LocalBitcoins in Nigeria of around 26,000,000 naira converted to $68,246. On the surface, this looks like a hefty 24% premium, which in this context refers to bitcoin’s price being much higher in specific locations than it is on average worldwide.

In Nigeria, these premiums aren’t consistent. On peer-to-peer platform Paxful, the listed bitcoin prices were based on $1 trading for around 475 naira. This rate converted to $54,736, a price much closer to the average bitcoin trading price of the day. In fact, the informal market dollar exchange rate in Nigeria on Friday was around 478 naira, reflecting the rate seen on Paxful and the bitcoin prices listed on LocalBitcoins.

In emerging markets that are facing a currency crisis, bitcoin prices can actually shed light on the informal market for U.S. dollars. In Argentina, Latin American crypto exchange Bitso listed the bitcoin price at 8,700,993 Argentinian pesos on Friday, which converted to a whopping $98,000 using the official exchange rate, which was around 89 Argentine pesos per dollar. But bitcoin listings on exchanges like Bitso indicated the dollar was worth around 150 pesos, reflecting the informal going rate for the dollar.

Yele Bademosi, chief executive officer at social payments app Bundle Africa said exchanges are most likely using informal dollar rates, thus inflating bitcoin’s price in local currency. According to AndrĂ©s Ondarra, country manager for Argentina at Bitso, the market exchange rate for the dollar is usually higher than the official exchange rate in Argentina as well.

“This is mainly reflecting the difference between the informal U.S. dollar rate and the official one. The gap between the official and the informal dollar in Argentina is around 70%,” Emiliano Limia, press officer at Argentine crypto exchange Buenbittold CoinDesk via an email.

Exchanges using informal rates instead of official ones indicate the local bitcoin markets exist outside of government rules, and that bitcoin trading might reveal the real value of the local currency against the dollar.

According to Gina Pieters, a professor of economics and the University of Chicago who published a paper on how bitcoin can detect exchange rate manipulation and capital controls, bitcoin premiums can occur for a number of reasons.

“It seems unlikely that the price should be that much higher unless there is the manipulation of the nominal exchange rate channel,” Pieters said in an email to CoinDesk, referring to the price of one currency in terms of another.

In fact, the thesis of Pieters’ 2016 paper was that bitcoin trading can be used to approximate unofficial exchange rates, “which, in turn, can be used to detect both the existence and the magnitude of the distortion caused by capital controls and exchange rate manipulations.”
 

Informal exchange rates

Due to the falling purchasing power of the naira, on any given day, Nigeria has multiple exchange rates for the dollar. The informal exchange rates are typically much weaker, with Nigerians having to dish out more naira per dollar, indicating the local currency may be worth less than what the government says.

According to a chapter in economist Koji Kubo’s book about Myanmar’s foreign exchange market, multiple exchange rates emerge within the unofficial market when governments implement “exhaustive exchange restrictions” or limitations on the amount of foreign currency that could be bought or sold.

In 2020, Argentina’s government imposed strict controls on the purchase of U.S. dollars, restricting the amount of dollars citizens could buy and hold to $200, in an attempt to stop capital from flowing out of the country. The dollar black market flourished as a result, with people scrambling to buy more dollars to protect their wealth, and even paying more pesos per dollar. This quickly spilled over to crypto as Argentines tried to ditch the peso for stronger currencies: demand for bitcoin soared in 2020.

Meanwhile, Nigeria’s facing a U.S. dollar shortage: in 2020, local media reportedNigerian banks were limiting the amount of dollars Nigerians can spend abroad to as low as $500. Thanks to the scarcity of dollars that could not meet local demand, the value of the naira fell in local informal markets as people showed willingness to pay more naira per dollar.

“The general market is now setting the price to $480 as that seems to be the present value generally accepted between buyers and sellers,” Ayodeji said.

The lower informal exchange rate can mean sending money to family in Nigeria or Argentina in bitcoin can be beneficial as one bitcoin can get you more of the local currency, but this also means that the purchasing power of the local currency is weakening. Sending money out of the country can be problematic, as your wealth converts to less dollars.

It’s typically difficult to estimate local informal dollar rates: Ayodeji said black market currency merchants might ask for even more naira per dollar. But bitcoin conversions can calculate a decent estimate, Ayodeji said.
Inflation

Still, premiums can exist even after you factor in the difference in exchange rates. One possible reason is, in countries with high inflation, people may be willing to pay more for bitcoin.

“In the euro area the prices are pretty much the same as spot prices in big centralized exchanges,” Jukka Blomberg, chief marketing officer at LocalBitcoins, said in an email. But “in countries such as Venezuela, there can even be quite big premiums.”

Blomberg explained this is because Venezuelans who are willing to sell their bitcoin in exchange for their local currency typically want a higher premium due to the risk they have to take by accepting a highly inflationary currency such as the bolivar. In Venezuela, where the inflation rate hit a staggering 10 million% in 2019, and the value of the bolivar was dropping almost daily against the U.S. dollar, people began turning to bitcoin. In fact, the local demand for bitcoin drove crypto adoption in Venezuela ahead of other hyperinflationary countries like Argentina.

Nigeria is also an inflationary country, and citizens have been turning to bitcoin to weather value drops in naira. Demand for bitcoin was so high that the central bank of Nigeria first ordered banks to shut down all accounts associated with crypto trading, and released a five-page explainer that said the measure was taken to protect the country’s financial system.

According to Ayodeji, the naira exchange rate on crypto platforms changed drastically the days after the ban was announced, perhaps driven by the panic that followed, and the demand for bitcoin dropping slightly: the unofficial exchange hit between 410 and 420 naira per dollar, Ayodeji said.

“But the market circled back,” he said. 

By Sandali Handagama

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