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Naira exchange rates determined by demand and supply of forex – Cardoso

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The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, says the value of the Naira is determined by the availability of foreign exchange.

Cardoso said this on Tuesday in Abuja while addressing the House of Representatives on Naira depreciation and the instability in the foreign exchange market.

According to him, the exchange rate is determined by the dynamics of supply and demand for a product or service similar to the pricing of cows or cars.

“The value of the dollar in Nigeria is determined by the balance of dollars entering the country and the demand for dollars among Nigerians.

“The exchange rate in Nigeria has increased due to the simultaneous occurrence of two factors: a decline in the supply of dollars coinciding with a surge in the demand for dollars,” he said.

The CBN Governor said that the growing number of Nigerian students studying abroad was also a major contributor to forex scarcity and depreciation of the Naira.

“In the 1980s and 1990s, the need for US dollars for their living expenses was minimal. However, recent data shows a significant change.

“According to UNESCO’s Institute of Statistics, the number of Nigerian students abroad increased from less than 15,000 in 1998 to over 71,000 in 2015.

“By 2018, this figure, according to a World Bank report, had reached 96,702 students. Another report projects the number of Nigerian students studying abroad to exceed 100,000 by 2022.

“Additionally, the UK’s Higher Education Statistic Agency noted a 64 per cent increase in Nigerian students studying in the country, rising from 13,020 in the 2019/2020 academic session to 21,305 by the 2020/2021 session,” he said.

He said that between 2010 and 2020, foreign education expenses amounted to a substantial 28.65 billion dollars.

“Medical treatment abroad has also incurred around 11.01 billion dollars in costs during the same period.

“Consequently, over the past decade, foreign exchange demand for education and healthcare has totaled nearly 40 billion dollars.

“This amount surpasses the total current foreign exchange reserves of the CBN. Mitigating a significant portion of this demand could have resulted in a considerably stronger Naira today,” he said.

He said that Personal Travel Allowances have also accounted for a total of 58.7 billion dollars during the same period.

According to him, between January and September 2019, the CBN disbursed 9.01 billion dollars to Nigerians for personal foreign travel.

He said that Nigeria’s annual imports, which require dollars for payment, amounted to 16.65 billion dollars in 1980.

“By 2014, the annual import expenditure had significantly surged to 67.05 billion dollars, although it gradually decreased to 54.71 billion dollars as of 2023.

“Similarly, food imports escalated from 2.63 billion dollars in 1980 to 14.84 billion dollars in 2019,” he said.

Cardoso said that over the past 12 years, oil exports, constituting over 90 percent of our foreign exchange earnings, have declined from 93.89 billion dollars in 2011 to 31.4 billion dollars in 2020.

“The genuine issue impacting the exchange rate is the simultaneous decrease in the supply of, and increase in the demand for, dollars.

“It also seems that the task of stabilising the exchange rate, while an official mandate of the CBN, would necessitate efforts beyond the apex bank itself and indeed to an attitudinal change of all our citizens,” he said.

Cardoso assured that the management team of the CBN was dedicated to refocusing the apex bank by giving primacy to price stability.

He said that the team also aimed to build confidence in the Nigerian economy through the maintenance of stability in consumer prices and the foreign exchange market.

“We are aware that the twin challenges of inflation and exchange rate depreciation on our economy are daunting, however, they are not insurmountable.

“Monetary policy actions are sometimes inhibited by transmission lags, nonetheless, it is expected that the policy measures implemented by the CBN will permeate the economy in the short- to medium-term.

“Inflation pressures may persist, albeit temporarily, but are expected to moderate significantly by fourth quarter of 2024.

“Exchange rate pressures are also expected to reduce with the smooth functioning of the foreign exchange market.

“We are committed to implementing policies that will ensure a stable macroeconomic environment and guarantee improved livelihoods for all Nigerians,” he said.

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LASG to empower one million youths in ICT — Commissioner

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…250,000 to benefit in first cohort

By Sodiq Adelakun

The Lagos State Government has announced a new innovation to partner with an international organisation to provide opportunities in Information and Communications Technology (ICT) for one million youths in the state.

This was disclosed by the Honourable Commissioner for the Ministry of Youth and Social Development, Mr. Mobolaji Abubakre Ogunlende during a Ministerial press briefing on Wednesday.

He said the programme will be divided into four cohorts, starting with 250,000 youths, and will offer different cadres of certificates, including Artificial Intelligence.

According to the commissioner, “We are starting with one million youth in Lagos State and we are looking to break it down to four cohorts, starting with 250,000 youths. It is tailored for formal and informal youth.

“Some youths have not been opportuned to go to school, but they want to learn, while some have gone to school but have dropped out, some do not like school, there are programmes that have been established for them, and there are different cadres of certificates.

“The brilliant ones can go as far as Artificial intelligence. There are programmes that will suit you as well. It’s across the value chain from the formal straight to the informal.”

The Commissioner emphasised the need for a collective effort to combat drug abuse among youths in the state.

He however expressed concern over the increasing rate of drug abuse among the younger generation, noting that many are introduced to it at a very young age due to peer pressure.

He revealed that the state government has been engaging in various programs and activities, including drama, musical concerts, and training of psychotherapists, to address the issue.

“Whilst we’re giving this briefing, it is also an opportunity to make a claim that advocacy on drug abuse is the responsibility of all of us. And we will continue to request, to plead, to beg, that we all come together to ensure that we do advocacy across legal states.

“Again, consciousness is advised that we’re seeing amongst the younger generation and it’s something that a lot of them are imbibing at a very young age. We continue to do programs and activities which are not limited, but to include drama, musical concerts, training of psychotherapies to see how they can aid some of the children that have been caught in this act.

“But again, a lot of it is also caught in advocacy. And you see, we also realise that some of the children that are caught in this act are against peer pressure. So we continue to do a lot of advocacy, we go to a lot of schools, with the help and support of our social workers, we ensure that we go into the schools in the remote areas where we found that some of these activities drive out,” he added.

In the same vein, he reiterated that advocacy remains a crucial aspect of the fight against drug abuse, and urged everyone to join hands in this effort.

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Lagos Govt to airlift over 1,800 pilgrims for 2024 Hajj

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By Sodiq Adelakun

The Lagos State Government has announced plans to airlift 1,862 pilgrims for the 2024 Hajj, according to the Commissioner for Home Affairs, Ibrahim Layode.

Speaking during the 2024 Ministerial Press Briefing on Wednesday at Alausa, Ikeja, Layode assured that Israel is safe for pilgrimage.

Layode also revealed that a total of 3,655 Muslim pilgrims from Lagos State performed the Hajj in 2023.

He said the year’s arrangement is expected to facilitate a hassle-free journey for the 1,862 pilgrims bound for the Holy Land.

According to the commissioner, “While in the Holy Land during the Christian pilgrimage, the Israel-Hamas war broke out, thus the second batch of the Christian pilgrims were not able to make the trip.

“To the glory of God, the whole 310 pilgrims returned home safe and sound, no death or absconded.”

He therefore highlighted the Ministry achievements in promoting religious harmony and tolerance in the state. According to the Commissioner, Ibrahim Layode, the ministry organised a Combined Special Prayers for Nigeria and President Bola Ahmed Tinubu during the Easter and Ramadan period, which was attended by top government officials and religious leaders.

Meanwhile, he added that the ministry also celebrated the 25th anniversary of the Lagos State Ramadan Tafsir, which brought together past commissioners and permanent secretaries.

During the Ramadan fast, over 50,000 food packs and drinks were distributed to public servants across the state to break their fast.

Similarly, during the Lent/Easter celebration, the ministry facilitated the distribution of gift items and over 50,000 food packs to fasting Christians across the state.

The Commissioner commended Governor Sanwo-Olu for extending the gesture to religious leaders in the state.

“In addition, the ministry commemorated the International Tolerance Day on November 16, which was declared by the United Nations.

“The event brought together religious leaders, scholars, and professionals to discuss topical issues bordering on tolerance. The participants included students, youth, and religious organisations, among others,” he reiterated.

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We are working to make Correctional Centres reformative not destructive — Minister

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…Commends UNODC for partnership

The Minister of Interior, Dr. Olubunmi Tunji-Ojo has stated his administration is poised to transform the correctional centres to being reformative in nature rather than destructive.

Dr. Tunji- Ojo made this call when the Country Representative, UNODC in Nigeria, Dr. Oliver Stolpe visited him  in his office.

Speaking, the Minister reiterated the need to partner with the United Nations Office on Drugs and Crime (UNODC) in upgrading the status of the Correctional Service.

“It is important we implement the inmate audit project as soon as we can. Implementing the inmate audit is key towards actualising our desire and plan for correctional service,” he said.

Dr. Tunji-Ojo, said he is poised to transform the  Correctional Centres, to become correctional and reformative in nature and not destructive.

“These people are vulnerable because they don’t have freedom of choice. Correctional centres take the freedom of movement but retain your dignity as a citizen and as a human being. So while we want to retain the dignity of people; while we are restricting their access in terms of movement and interactions; we must also make sure that we don’t condemn them. We must make sure they are reformed from correctional centres to correctional homes”.

He expressed gratitude to UNODC for their interventions.

“You are a worthy partner, you supported us in all our plans and endeavors towards making the correctional service a better one. Thank you for the efforts you are making in terms of funding and of course your contribution technically.

“I do not want to leave as Minister of Interior with regrets in terms of correctional reforms; I want to leave, knowing that I did my best by giving life to the most vulnerable and that I did my best to ensure that the renewed hope agenda of Mr. President finds a suitable place in the correctional centres and correctional service in general.”

Earlier, the UNODC Country Representative in Nigeria, Oliver Stolpe said he was in the Ministry to update the Minister on the ongoing projects and to get his ideas towards the success of the projects.

It should be noted that addressing overcrowding and poor prison conditions which threaten human rights is a priority to UNODC.

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