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Banks Documentation, Low Liquidity Crashes Naira

Banks Documentation, Low Liquidity Crashes Naira

Banks Documentation, Low Liquidity Crashes Naira

Banks documentation, low liquidity crashes Naira further to N532/$ at black market, CBN reacts

More Nigerians flocked to the black market on Monday, allowing speculators to further weaken the Naira against foreign currencies.

Nigerians see the black market as a more convenient way to avoid the lengthy process of obtaining dollars from banks and street traders are taking full advantage.

Data obtained from Aboki FX showed that the local currency traded against the United States Dollar at a new all-time low of N532/$1 on Monday.

Monday rate represents a loss of N2 or 0.38 percent when compared to the 530/$ it was traded by street traders on Friday.

In the same parallel market, Naira fell N1 against the British pound sterling yesterday, selling for N723/£1 compared to N722/£1 the previous session.

While, Naira depreciated against the Euro, closing at N625/€1, down from N622/€1 on Friday.

At the official market Naira appreciated marginally against the U.S dollars.

Data from FMDQ securities where Naira is officially traded, showed the Nigerian currency closed Monday trade at the Investors and Exporters window 37 kobo or 0.09 per cent stronger to settle at N411.13/$1 in contrast to N411.50/$1 on Friday.

This brings the difference between the official market rate and the unofficial rate for the dollar to N120.87 from N118.50 on Friday.

Meanwhile, the Central Bank of Nigeria has now authorised commercial banks to allow customers initiate domiciliary online account transfers on their online Banking platforms.

The move it is believed will help further bring liquidity to the forex markets and reduce pressure on the Naira.

The Domiciliary Account Transfer feature on online Banking platforms were temporarily inaccessible after a directive from the CBN.

However, to initiate the transfer customers daily limit is $10,000 (inflow/cash deposit) Monthly cumulative inflow of $20,000 (cash deposit)

For outflows the purpose of payment must be stated, including all supporting documents for foreign currency transfers to third parties such as: Form M, Form A, Proforma invoice, Medical, insurance, school fees and others.

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Business

35 illegal tax collectors facing prosecution in Benue

The Acting Chairman of the Benue State Internal Revenue Service (BIRS), Emmanuel Agena, has revealed that 35 persons involved in illegal tax collection in the state are currently facing prosecution.

Agena announced that the agency has set an ambitious target to generate over N16 billion in revenue for the year 2024 following the successful surpassing of its N14 billion target in 2023.

Speaking to journalists on Monday, Agena expressed concern over the activities of illegal tax collectors in the state, noting that many of them were supported by influential personalities.

He stated that his administration at the BIRS had put an end to the era of patronage by politicians, aiming to significantly reduce illegal tax collection activities.

The BIRS boss also condemned a recent incident in which a truck carrying palliatives from Adamawa to Anambra State was hijacked by youths in Aliade, Gwer East.

He disclosed that three suspects have been arrested in connection with the incident.

“A truck was intercepted and the driver beaten while the windscreen of the vehicle broken and over N200,000 was stolen.

“Three persons have been arrested and are in police custody. They will be moved to DSS for thorough investigation.

“We aim to flush out or reduce illegal tax collectors to the barest minimum. Already, 35 people who engaged in illegal tax collection were arrested and facing prosecution.

“This has been a big challenge. We have constituted a team headed by the director of Tax collection. Prominent people in the state are involved in encouraging these boys,” he stated.

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Nigeria’s Inflation rate hits 33.20% in March- NBS

The National Bureau of Statistics NBS says Nigeria’s inflation rate jumped to 33.20% in March 2024 compared to February 2024 headline inflation rate which was 31.70%.

A report released by the NBS on Monday, April 15, reads

“Looking at the movement, the March 2024 headline inflation rate showed an increase of 1.50% points when compared to the February 2024 headline inflation rate.

“On a year-on-year basis, the headline inflation rate was 11.16% points higher compared to the rate recorded in March 2023, which was 22.04%. On a month-on-month basis, the headline inflation rate in March 2024 was 3.02%, which was 0.10% lower than the rate recorded in February 2024 (3.12%).

“This means that in the month of March 2024, the rate of increase in the average price level is less than the rate of increase in the average price level in February 2024.”

 

The inflation report by the NBS followed the hike of Nigeria’s interest rate from 22.75% to 24.75% by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN).

The March inflation rate was released at a time when measures by the apex bank to strenghten the naira against foreign exchange have seen some positive results.

The naira has appreciated against the dollar in recent weeks, gaining over 40%, from about N1,900/$ to about N1,100/$1 now.

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Business

NAFDAC seals popular Supermarket in Ibadan

The National Agency for Food and Drug Administration Control (NAFDAC) has sealed a popular groceries and cosmetics supermarket, Pinnacle in Dugbe area of Ibadan over sale of fake products.

The supermarket, usually a beehive of activities was now a shadow of itself as the gate leading to the premises was shut with an inscription directing customers to its branch at Challenge.

Management of the supermarket cited technical issues as reason for its closure.

An inside source who pleaded for anonymity however revealed that problem started on Tuesday, 2nd April , 2024 when NAFDAC surveillance team stormed the mall to enforce total shutdown of the premises, thereby forcing shoppers out of the supermarket.

“The NAFDAC team came inside the mall and told us to close, even though people were many inside who wanted to do shopping but they couldn’t because the technical issue started and they all went away in disappointment”, the source said.

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