By Ayo Fadimu
Ongoing strategic partnership between the Central Bank of Nigeria (CBN) and the Association of Bureaux De Change Operators of Nigeria (ABCON) has kept the naira stable at both the official and parallel market s despite huge campaign spendings by political parties.
ABCON President, Alhaji Aminu Gwadabe who spoke with financial journalists in Lagos at the weekend, said measures initiated by the CBN including the sustenance of dollar supply to over 4,000 Bureaux De Change (BDC) operators across the country through the International Money Transfer Operations (IMTOs) forex window has helped the status of the local currency.
Accordingly, the CBN spot rate closed last week somewhat flat at N306.75/$1 from N306.70/$1 in the prior week. Similarly, the exchange rate at the Investors & Exporters Forex window closed at N364.70/$1.
At the parallel market and BDCs, the naira traded at N363/$1 throughout the week.
He said: “ The naira remains stable despite political parties campaign spendings across the nation. The strategic partnership, actions and pre-actions of the Central Bank of Nigeria and the Association of Bureaux De Change Operators of Nigeria have stopped distortions to the exchange rate due to ongoing politicking and campaign spendings in the country.”
Continuing, he said the determination of the apex bank to maintain the IMTOs forex window for the over 4,000 BDCs on weekly basis has brought steady liquidity in the market and discouraged unethical market behaviours like hoarding, speculation and frivolous demand.
Gwadabe said that on its part, ABCON has ensured that its members continue to make dollar accessible to critical end-users like travelers demanding personal and business travel allowances, school fees and medical bills payment abroad among others.
Gwadabe said the ongoing ABCON automation and configuration of soft token for forex return rendition by over 4,000 BDCs nationwide will enhance transparency and financial integrity of the operators. “This feat will no doubt strengthen the effectiveness of the technical compliance of the Anti money laundering and counter terrorism financing laws and help Nigeria’s assessment into the Financial Action Task Force coming up next year,” he stated.
The ABCON boss was impressed that increased surveillance by the security agencies on illicit financial flow and controls at the nation’s boarders have enhanced the stability in the market.
He said that the secondary market currently enjoys huge confidence making it difficult for forex speculators and illegal forex dealers to manipulate the market.
Gwadabe said the operations of IMTOs was part of the efforts by the apex bank to liberalise the forex market, boost liquidity and make dollar more readily available to low end users.
He praised the apex bank for continuously providing an enabling environment for IMTOs and BDCs which has in no small measure, deepened availability of forex at the retail end of the market.
He explained that although declining global oil prices should fundamentally lead to massive depreciation of the naira, but the commitment of the CBN to the defence of the naira keeps providing stability for exchange rates at different segments of the forex market.
Gwadabe said the coming of Investors and Exporters (I&E) Forex Window, was also part of CBN’s efforts to further develop the Nigerian forex market and improve market structure.
On regulatory compliance, Gwadabe said the licensed BDCs are committed to naira’s stability at both official and parallel markets, and have consistently partnered the CBN to achieve this objective.
“The CBN-licensed BDCs have always played collaborative and positive roles for the regulator in achieving exchange rate stability. Besides, CBN’s admission of licensed BDCs into the International Money Transfer Operators- IMTOs-Window has continued to keep the naira stable,” he stated.
“ABCON has continuously assured the CBN and taken appropriate measures to ensure that purchased funds are disbursed to end users and for eligible transactions only. We also render weekly returns on purchases from the banks to Trade and Exchange Department of the apex bank. We also ensure strict compliance to the provisions of the anti-money laundering laws observance of appropriate Know-Your-Customer principles in the handling of forex transactions,” he said.
The ABCON chief reiterated the need for the forex users to deal with CBN-licensed BDCs only, and urged the public to report errant operators for necessary sanction.
FG to deploy 100 electric buses
President Bola Tinubu has said Nigeria is taking a significant step towards a sustainable and eco-friendly future by introducing a pioneering initiative to deploy a fleet of 100 electric buses.
The President spoke at a high-level meeting with stakeholders and investors on the Nigeria Carbon Market and Electric Buses Rollout Programme on Saturday in Dubai, United Arab Emirates, on the margins of the COP28 climate summit.
President Tinubu explained that the strategic initiative is aimed at significantly reducing Nigeria’s carbon footprint and modernizing the country’s transportation systems as part of a larger effort to position Nigeria and Africa as the pioneering frontier of green manufacturing and industrialization with a focus on natural gas as a transition fuel alongside other renewable energy sources.
To spearhead this transformative plan, the President announced the appointment of the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, and the Director-General of the National Council on Climate Change (NCCC), Mr. Dahiru Salisu, to co-chair the Nigeria Carbon Market Activation Plan.
”This initiative stands as a testament to our dedication to environmental stewardship as clearly exemplified through our collaboration with the Africa Carbon Market Initiative. Our visionary plan is a strategic guidepost, directing Nigeria towards becoming an investment-friendly destination for carbon market investments.
”We recognize the imperative of fostering an environment that not only attracts investment but also upholds standardized and sustainable industrial practices. As a manifestation of our forward-thinking approach, we are actively looking to implement robust, enabling policies and frameworks that will serve as the catalyst for the burgeoning growth of the carbon market within our national borders.
”In further driving my commitment, I have recently approved an Inter-governmental Committee on Carbon Markets to be chaired by the Executive Chairman of the Federal Inland Revenue Service and the Director-General of the National Council on Climate Change to drive this visionary plan,” the President stated.
The President assured prospective investors that this initiative transcends being a mere pilot project.
”It is a concrete manifestation of our unwavering dedication to a carbon-neutral future. I assure you; this is only the commencement of our ambitious plans, with many more impactful initiatives on the horizon,” he said.
President Tinubu, while acknowledging the pressing need for a comprehensive global collaboration on climate-related challenges, called on global partners to join hands in accelerating collective efforts towards a net-zero future.
”As we unveil our initiatives, I challenge other nations to emulate our strides in mapping out their sustainable futures with a clear understanding that Africa is a beacon of innovative solutions to climate-related challenges.
”In this pursuit, we acknowledge the pressing need for comprehensive global collaboration, and we reiterate our commitment to being an active participant in international efforts.
”Nigeria’s plans for a greener and cleaner economy can serve as an inspirational narrative for nations worldwide. Our comprehensive approach, rooted in visionary leadership and pragmatic action supported by our technical partners, is poised to become a blueprint for countries aspiring to also develop and catalyze their markets for sustainable growth,” the President concluded.
In his remarks, FIRS Chairman, Mr. Zacch Adedeji acknowledged the visionary leadership of President Tinubu as the guiding force behind Nigeria’s commitment to harnessing its vast carbon potential.
At COP28, Sanwo-Olu seeks funding to address supply of clean water in Lagos
Governor of Lagos Babajide Sanwo-Olu has sought global support for funding in Lagos state to be able to provide clean water.
The Governor speaking at a side meeting with the theme: “Valuing Water: A Lifeline in Climate Transition”, organised by Business and Philanthropy Climate Forum and Sustainable Market Initiative at the ongoing 28th session of Conference of Parties (COP28) at Dubai Exhibition Centre pitched a sustainable funding proposal in order to raise private and philanthropic funding in addressing inadequate water infrastructure and supply shortages in Lagos.
Sanwo-Olu disclosed that Lagos, with 22 million population, has a daily demand of 700 million gallons of portable water, but said the State could hardly supply 210 million gallons per day due to shortage of infrastructure.
The Governor said, although provision of clean water had been generally considered a social service, it was an essential element of economic necessity, given its importance to keeping humans healthy.
Lagos, he said, is challenged by increasing demand for clean water. Sanwo-Olu said the inadequacy of supply infrastructure could raise disease vulnerability in underserved communities, pointing out that the State, despite being surrounded by abundant water bodies, could only manage to utilise 40 per cent of its installed water facilities.
He said: “Lagos has an investment of about $2.8 billion in water infrastructure, but there is a burden on the huge population, as we need to create an ecosystem where we can have access to basic needs in the 21st century. Given our meagre resources, it is really a challenge but we certainly cannot continue to give excuses. This gap is being felt by underserved communities and the risk to the public is high.”
“We have continued to allocate resources to this sector from our budget, but the intervention is hardly enough to serve the needs of the residents. Four years ago, I gave a commitment of $100 million, but this is like a drop, given the number of investments required to fully explore the potential in the sector. We have huge infrastructure that is not being utilised, making us to operate at less than 40 per cent of the installed capacity.”
“Out of the $1.7 trillion needed globally to address the gap in clean water adequacy, Lagos requires less one per cent of the funds to provide safe water. It is my belief that this conversation would lead to sustainable solution that would meet the needs of millions of people that want water adequacy. Our goal is making committed partners believe in economic viability of their investments.”
Sanwo-Olu listed the country’s energy crisis as another factor slowing down the provision of clean water, stressing that irregular power supply rendered resources allocated to the sector inefficient.
The Governor called for equity in global investment towards accelerating water adequacy, noting that humans, regardless of their gender and geographical location, need equal access to clean water.
With 65 per cent of its population made up of young people of under 30, Sanwo-Olu told the funders that Lagos remained an African asset on which viable investments could be made.
The side meeting, which was moderated by the Secretary General of Insurance Development Forum, Ms. Ekhosuehi Iyahen, had seven other panelists, including Chief Executive Officer (CEO) of WaterAid, Tim Wainright, Chief Sustainability Officer of PepsiCo, and CEO of Dalmia Cement in India, Mahendra Singh.
Others are Chief Operating Officer of Water.org, Vedika Bhandarkar, Managing Partner of AquaForAll, Josien Sluijs, Assistant Director General of Food and Agriculture Organisation at UN, Maximo Torero, and former CEO of Mars, Incorporated, Grant Reid.
COP28: Gov Eno joins President Tinubu in Dubai
Akwa Ibom State Governor, His Excellency Pastor Umo Eno, is part of the delegation led by President Bola Ahmed Tinubu GCFR at the ongoing COP28 climate conference in Dubai, United Arab Emirates (UAE).
Delegates from nearly 200 countries, leaders in business and finance, and representatives of civil society are gathering in Dubai from November 30 to December 12 for the COP28 climate conference, aiming to fast-track the transition to a clean-energy future.
COP28 stands for the 28th meeting of the Conference of the Parties (COP) to the UN Framework Convention on Climate Change (UNFCCC), occurring annually.
Also in the President’s entourage are the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, President/Chief Executive of Dangote Group, Alhaji Aliko Dangote, Group CEO of NNPCL, Mele Kyari and the newly appointed Permanent Secretary, Federal Ministry of Finance, Mr. Okokon Ekanem Udo, among others.
News6 years ago
NLC, NUT shock El-Rufai with massive protest
Politics4 years ago
Implementation of N30,000 minimum wage depends on each State’s capacity -Governor’s Forum
Energy6 years ago
Cost reflective tariff, our challenge – Ikeja Electric
News8 years ago
Wema Bank awarded two ISO Certifications
News6 years ago
2019: OBJ lobbies Tinubu, Kwankwaso, Duke in new party
News8 years ago
10 dead, 4 rescued as shipping mall collapse in Ogun
News7 years ago
Relocation to Ghana: Nigeria to lose $12bn foreign airlines investments
News7 years ago
Ekweremadu visits Fani Kayode, Abati, others in EFCC cell