The Nigerian currency Naira weakened to record low against the U.S. dollar this week, falling to 1,000 Naira per dollar on the parallel market, 29 percent weaker than the official rate of 775.37 per dollar. So, how much is the uncertainty at the CBN driving the Naira's performance in comparison to other economic fundamentals?
Friday, September 29, 2023
Video - Naira plunges to record low against U.S. dollar
Britain urged to return James Ibori's loot to Nigeria
In a letter to Britain's home and foreign affairs ministers, a coalition of close to 50 NGOs said the long-delayed confiscation process had undermined the strong anti-corruption message sent by Ibori's conviction over a decade ago.
"The years of disruption and delay in recovering and returning these stolen assets means this message has so far rung hollow for the Nigerian people," said the letter, made public on Thursday by one of its signatories, Spotlight on Corruption.
A former governor of oil-producing Delta State in southern Nigeria, Ibori pleaded guilty in a London court in 2012 to 10 counts of fraud and money-laundering and was handed a 13-year jail sentence, of which he served about half before going home.
Still influential in Nigeria, Ibori has had meetings with President Bola Tinubu in recent months and has friends and associates in other powerful positions.
The NGOs, which also included Transparency International and Africa Network for Environment and Economic Justice, said funds confiscated from him should go to projects benefitting the people of Delta State and implementation should be subject to civil society monitoring.
Efforts by British prosecutors to confiscate Ibori's assets began in 2013 but have run into repeated obstacles and delays in the London courts.
In July, a judge ordered the confiscation of 101.5 million pounds ($123.9 million) from him, one of the biggest orders under Britain's Proceeds of Crime Act 2002 since it came into force.
He has applied for leave to appeal against the order and his application is at the early stages of the appeal process.
By Estelle Shirbon, Reuters
Related stories: Former Delta state governor James Ibori pleads guilty to money laundering
Oil workers in Nigeria to join nationwide strike next week
One of Nigeria's main oil and gas unions will join a nationwide strike starting on Oct. 3 to protest against government policies that are causing economic hardship for Nigerians, union leaders said on Thursday.
Nigeria is Africa's largest oil producer and relies on the commodity for around 90% of foreign exchange earnings and about half its budget.
The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) directed its members to ensure "unwavering compliance" with the indefinite strike called by Nigeria's two biggest workers union federations.
NUPENG represents a myriad of workers across the entire value chain in the oil and gas sectors, including upstream oil platform workers, fuel tanker drivers and pump attendants, and its decision to join the strike is a significant escalation of the unions' dispute with the government.
NUPENG President Williams Akporeha said the government's policies have caused "excruciating and debilitating socio-economic pains" for Nigerians without any accompanying measures to cushion "the immediate effects and impacts."
President Bola Tinubu has been under pressure to reverse his decision to scrap a popular petrol subsidy that had kept fuel prices low but was costly on government finances.
While his policies have cheered investors, unions say they have led to soaring costs for Nigerians - an estimated four in 10 of whom live below the national poverty line- as they grapple with the highest inflation in nearly two decades.
By Camillus Eboh, Reuters
Wednesday, September 27, 2023
New central bank Governor of Nigeria Cardoso pledges to clear $7 billion forex backlog
The Senate unanimously approved Cardoso's nomination as central bank governor after he appeared before lawmakers to answer questions. Four new deputy governors were also confirmed.
Cardoso pledged to improve transparency, fix corporate governance, and restore diminished confidence in the autonomy and integrity of the central bank.
President Bola Tinubu had promised a thorough house cleaning of monetary policy at his inauguration in May after criticizing former Governor Godwin Emefiele's handling of the currency.
Cardoso said once the central bank has verified the extent of its obligations, it will need to find a way to settle them quickly.
"We need to promptly find a way to take care of that. It would be naive for us to expect that we'll be making too much progress if we're not able to handle that side of the foreign exchange market," he said.
Cardoso said he will maintain price stability, revert to evidence-based monetary policies and discontinue his predecessor's unorthodox monetary policies to bolster the country's naira currency.
Cardoso, who began work on Sept. 22 in an acting capacity, takes office following the resignation of Emefiele, who was suspended as central bank chief by Tinubu in June and later detained by security agents and charged with procurement fraud.
Cardoso's comments come at a time when the naira has slumped to a record low, reaching the psychologically sensitive 1,000 naira per dollar on the parallel market.
The official exchange rate was quoted at 785 to the dollar as of 1710 GMT.
Unmet forex demand on the official market due to inadequate liquidity and speculation in street trading added downward pressure to the currency, widening the gap with the official market where restrictions on trading were lifted in June.
By Elisha Bala-Gbogbo, Reuters
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Video - Experts call for increase in incentives to boost fish farming in Nigeria
Fish farming is a costly enterprise and is struggling to plug the deficit to meet Nigeria’s needs. Experts say the high cost of mostly-imported fish food, the quality of fish being farmed and a lack of much-needed funding for farmers all affect production.
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