Stakeholders Warn CBN Over Widening Gap At Official, Parallel Markets

Bukola Idowu, By OLUSHOLA BELL

Stakeholders in the Nigerian foreign exchange market have expressed worry over the widening gap in the foreign exchange rates between the parallel and the interbank markets as this would have a negative implication for the economy.

The value of the naira at the parallel market depreciated crossing the N250 to the dollar mark on Monday for the first time in the history of the country while the Central Bank of Nigeria(CBN)’s rate appreciated to N196.97 to the dollar just as the interbank market rate stood at N198.65.

This has become a great concern to stakeholders as they believe it would create an incentive for round-tripping, making the management of the foreign exchange market vulnerable to all manner of sharp practices and corruption.

The value of the naira has been falling at the parallel market from the beginning of the year due to the slump in oil prices in the international market while the CBN has kept a firm grip on the local currency, keeping it almost fixed.

Reviewing naira movement in the parallel market, acting president of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe said, “The parallel market rate fell to N253 per dollar from N246 on December 3, and N222 in November, representing 22 per cent weaker than the official rate used in the interbank market, which was 198.50 in Lagos.

“The Central Bank will say they don’t care about the parallel market, but investors are looking. Why will they bring in their money at 197 or 198 when the parallel rate is 250?”

Gwadabe noted that the CBN in March fixed the official rate at N198-N199 per dollar and also restricted banks’ ability to buy dollars. In June, CBN stopped importers of about 40 items, including wheelbarrows and glass, from obtaining foreign-exchange.

“Foreign investors have criticised Nigeria’s stance and sold bonds and stocks this year on expectation of a devaluation, which would cause losses on their holdings in foreign-currency terms.

“The naira’s fall in the black market comes as the Central Bank restricts dollar supplies further to save its foreign reserves, which fell below $30 billion for the first time in four months on November 30.

“About 1,200 money changers, or 60 per cent of the total in Nigeria, were denied their weekly allocation of $30,000 from the Central Bank,” Gwadabe said.

According to him, his association has requested a crucial meeting with the Abuja-based regulator, yesterday, December 8, 2015 to address the issue.

Meanwhile, nearly half of 2,818 bureaux de change operators were denied access to the Central Bank of Nigeria’s (CBN) dollar sale last week because of incomplete documentation, weakening the naira.

Reuters quoted acting president of the Association of Bureaux De Change Operators of Nigeria (ABCON) as saying that, “We expect more dollar supply this week.”

The CBN has asked all bureaux de change operators to submit accounts showing their dollar usage at the start of each week before they can gain access to future sales, a move traders said was aimed at curbing speculation.

Capital Performance Lower Than 35% As At September – Saraki

By Blessing Anaro

Senate President, Olusola Saraki, has revealed that only 35 per cent of capital allocation has so far been spent, as at September this year.

Saraki, who spoke on Macroeconomic Outlook for 2016 and Legislative Perspective,” at the Lagos Business School Breakfast Club end of year dinner yesterday in Lagos said, “The 2015 budget benchmark oil price was pegged at $53pb and oil production of 2.2782mbpd, the exchange rate was projected at N190/$. The Budget had an outlay of N4.493 trillion implying a deficit of N1.041 trillion financed mainly by borrowing in a budget in which 78 per cent targeted recurrent expenditure. Oil revenues although lower than projected continued to dominate government revenues.

“Of the total appropriated and a supplementary budget of N574.53 billion on security and subsidy etc. N3.4trillion has been spent as at September for both recurrent and capital with the shortfall in revenue being made up by additional financing from borrowing. This also means that the capital performance of the budget has been lower than 35 per cent or N194.7 billion of N557 billion that has been spent.

“As we speak today, we are on the verge of introducing the first part of PIB for first reading. This sets out a new governance and institutional structure for the oil and gas industry. The emphasis of the bill is to create a world class oil and gas sector, competitive, open and simple, that would enable the emergence of an efficient oil and gas sector comparable to any other in the world,” he disclosed.

He warned that the senate would not tolerate wastage. “We will deploy our legislative resources to present to the nation an effective, efficient and implementable budget.”

“The National Assembly will pay particular attention to non-oil revenue. We will work with the executive to expand the economic base by freeing the private sector.”

Corrupt Public Officials Should Face Death Penalty – Oyebode

Former Vice Chancellor, University of Ado-Ekiti, Professor Akin Oyebode yesterday recommended that corrupt public officials should face the death penalty as it is the case in China.

According to him, until Nigeria adopt stiffer penalty for the offence of corruption the problem will continue unabated.

The Professor of Law, who was speaking yesterday at the Human Right Summit organised by the Nigerian Bar Association (NBA), Lagos branch, said Nigeria should adopt Chinese method adding that those found guilty of stealing public resources should be executed by firing squad.

Oyebode, who presently lectures International Law and Jurisprudence at the University of Lagos, stated this in his keynote address at the event titled: ‘’Towards Combating Corruption and the Protection of Human Rights’’.

He added that emulating the Chinese attitude to corruption or borrowing from the examples of Hong Kong or Singapore would have ensured greater success in the nation’s anti-corruption war.

He described as worrisome that successive Chief Justices of Nigeria have had to bemoan the fact that judges themselves are not immune to corruption virus saying ‘’if the physicians cannot heal themselves, it would be no exaggeration to declare that in Nigeria, the war against corruption could well be dead on arrival’’.

He said: ‘’Perhaps if Nigeria had overhauled its substantive and adjectival laws on corruption by opting for the inquisitorial instead of the adversary and accusatorial approach.

He said the nation cannot continue to embrace the ‘’nuances of our inherited procedural jurisprudence and hope to succeed in creating a new Nigeria.

Oyebode added that corruption is a Damocles’ sword dangling on Nigeria’s throat warning that for the nation to survive, it must engender a novel attitude to contain the scourge.

According to Oyebode, to the extent that corruption entails misappropriation of public resources by private persons, it can be said that corruption constitutes a gross violation of collective rights of members of the community.

He urged lawyers to be active in the fight against corruption and be ready to defend the less privileged without demanding for fees.

In her speech, the Chief Judge of Lagos State, Justice Funmilayo Atilade stressed the need for the Bar and the Bench to work together and ensure that corruption cases are speedily tried.

Represented by Justice Morenike Obadina, the CJ however cautioned that ‘’in the fight against corruption and other economic crimes and in the bid to ensure that there is speedy trial, the rights of suspects must be protected by the court’’.

In his opening remarks, the chairman f the occasion, Mr. Olasupo Shasore (SAN) said human rights would only be protected in a country where there is rule of law.

He urged participants to make the summit interactive and be willing to implement salient points.

Enrol in formal leadership class, PDP tells Gov Okorocha

By Chidi Nkwopara

OWERRI— The Peoples Democratic Party, PDP, Imo State, has advised Governor Rochas Okorocha to do himself a favour by enrolling in a formal leadership training class.

Rochas Okorocha

Addressing newsmen in Owerri, the party’s state Secretary, Mr. Chima Akujobi, explained that they opted to offer the advice, having found out that the governor did not fully appreciate what leadership was all about.

“The situation of things in the state is most disappointing. Our lawmakers are not even helping matters, as they have sadly lowered themselves by accepting to serve as members of taskforces, thus scuttling the legislative arm of government,” Akujobi said.

Recalling the N600 million planned expenditure for Christmas and New Year decoration, the Imo PDP described same as “senseless,” especially as civil servants and pensioners were owed.

“How can a government spend so much for Christmas decoration, when civil servants and pensioners are owed huge arrears of salaries and pensions? This amounts to insensitivity and shadow chasing,” Akujobi said.

He added that “Imo is the most backward and one of the worst administered states in the country.”

IDPs will soon return to their homes, says Buhari

By Mohammed Abubakar, Abuja

 

Buhari

PRESIDENT Muhammadu Buhari yesterday assured that the return of persons displaced by the Boko Haram insurgency to their homes and communities in the troubled North East would begin in earnest next year.

Addressing a delegation from the International Rescue Committee (IRC) led by former British Foreign Minister, Mr. David Miliband, Buhari said that his administration would do all within its powers to facilitate the quick return and resettlement of over two million internally displaced persons in their towns and villages.

He told Miliband, a former member of the British parliament, and his delegation that the Federal Government would welcome support of the IRC and other local and international non-governmental organizations for the rehabilitation of the internally displaced persons.

“In 2016, the return of the IDPs will start in earnest. They will return to their communities to meet destroyed schools and other infrastructure, which have to be rebuilt.
“With agriculture being moribund in the region in the last two years without cropping, hunger is already manifest. We will welcome all the help we can get to assist the returnees,” President Buhari said.

Responding to a request by Miliband for the Federal Government’s priorities as to the nature of assistance required for the IDPs, the President said there was an urgent need for support in the areas of agricultural inputs, health, nutrition, water and sanitation.

Buhari urged the IRC and other international agencies to work with the Presidential Committee on the North-East and the National Emergency Management Agency (NEMA) which, he said, were already doing a lot to cater for the IDPs and restore some basic infrastructure in communities affected by terrorism and insurgency.

Miliband assured Buhari that the IRC would intensify its ongoing work in Nigeria, through which it has assisted over 350,000 displaced persons, mainly in Adamawa and Borno states.

He called for increased security presence in recovered towns and territories, saying that most prospective returnees still fear for their safety on their return home.

Meanwhile, six members of a family, mostly women and children, have been identified as victims of the November 28 reported abduction by Boko Haram at Borno remote community of Bam-Buratai, south of Maiduguri, the state capital.

Suspected Boko Haram gunmen attacked Bam-Buratai, near the home of the Chief of Army Staff, Lt. Gen Tukur Buratai in Biu Local Government on November 28, killing some residents.

Reports also claimed scores of girls were kidnapped by the insurgents who invaded the community at about 10pm, shooting sporadically.

However, the Borno State government in quick reaction constituted a seven-member fact-finding committee to unearth the abduction claim as widely reported in the media within three days.

The committee led by member representing Biu State Constituency in the Borno House of Assembly, Aliyu Kachalla, said it ascertained the family members of one of the villagers, named Pidigum Mohammed Pindar as those abducted.