The naira on Tuesday steadied at 1,350 per US dollar on the parallel market, popularly called black market.

On Monday morning, the naira opened the foreign exchange (FX) market at the same rate before closing at N1,360/$1 on the same day at the black market.

At the official market known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira on Monday fell to 1,419.11 per dollar, the lowest since March 13, 2024 at the official FX market, following slowing inflows occasioned by the withdrawal of funds by Foreign Portfolio Investors (FPIs).

The intraday high closed at N1,451 per dollar on Monday, weaker than N1,410 closed on Friday. The intraday low also depreciated marginally to N1,060 on Monday as against N1,051/$1 closed on Friday at NAFEM, data from the FMDQ Securities Exchange indicated.

Dollars supplied by willing buyers and willing sellers declined by 52.16 percent to $147.83 million on Monday from $309.01 million recorded on Friday.

On day to day trading, the naira weakened by 5.63 percent as the dollar was quoted at N1,419.11 on Monday as against N1,339.23 quoted on Friday at NAFEM.

During the recent Monetary Policy Committee (MPC) meeting, Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, emphasised the critical need to attract inflows to maintain liquidity in the foreign exchange market and stabilize the exchange rate.

In his statement, Governor Cardoso highlighted the importance of addressing inflationary pressures through exchange rate management to safeguard both price stability and long-term economic growth.

“Failure to tame inflationary pressure using the exchange rate channel may jeopardise not only price stability but also long-term growth,” stated Governor Cardoso.

Addressing concerns raised at the March 2024 MPC meeting, Governor Cardoso emphasised the need to reduce negative real interest rates to attract capital flows and enhance liquidity in the FX market. He stressed the significance of attracting capital flows through foreign portfolio investments and moderating exchange rate pressures to mitigate the impact of exchange rate pass-through on inflation, particularly in Nigeria’s import-dependent economy.

Commenting on the monetary situation, Mustapha Akinkunmi highlighted a decline in Nigeria’s reserve money by 24.91 percent to approximately N22.2 trillion by the end of February 2024. Despite this, broad money (M3) supply increased to N93.7 trillion, contributing to inflationary pressures. Nigeria’s external reserves also decreased to US$32.87 billion as of March 19, 2024, from US$33.68 billion in February 2024.

Although current reserves cover imports for 5.7 months of goods only and 4.5 months of goods and services, the country’s ability to repay short-term debts using reserves exceeded the threshold at 104.0 percent, he said.

According to him, the reserves-to-broad money ratio of 33.1 percent surpassed the 20.0 percent threshold, indicating Nigeria’s capacity to manage capital flows effectively.

Governor Cardoso’s emphasis on attracting inflows and managing exchange rate pressures underscores the CBN’s commitment to maintaining stability in the FX market and combating inflationary challenges in Nigeria’s economy.

Latest report by the Nigeria Inter-Bank Settlement System (NIBSS) on Annual Fraud Landscape (January to December 2023) has revealed that commercial banks, Point of Sales (PoS) operators and others lost about N17.67 billion to fraudsters in 2023.

The report published on its website on Monday identified mobile channels as the most vulnerable avenue for fraudsters notably Web and POS businesses.

The report noted that fraud perpetrated via mobile channels increased by five percent compared to the previous year.

It also suggested some of the regulations inputted to check fraud in financial institutions need detailed examination, modification and reinforcement.

According to the statistics revealed by the report, fraud count dropped by six percent to 95,620, as actual loss from fraud grew by 23 percent in 2023 when compared to 2022 with the first quarter being the month with the highest fraud volume in 2023 and the fourth quarter being the month with the highest fraud value.

It also disclosed that the month of May recorded the highest fraud count of 11,716, followed by February with 9,492 while October saw the highest actual loss in 2023 at N3.7 billion, followed by January with N2.7 billion. It said the count of Web Fraud decreased by 38 percent and ATM fraud recorded a 64 percent reduction from 2022 to 2023.

Also, in 2023, people aged 40 and above remained the primary targets of fraudsters, which NIBSS said signified a persistent focus on the targeting strategy of fraudsters.

“This sustained trend emphasises the enduring appeal of the demographic group as potential victims, reinforcing the need for continuous efforts to educate and protect individuals in this category from fraudulent activities,” NIBSS said.

In 2023, a total of 80,658 unique customers fell for the gimmicks of fraudsters which is four per cent less than 84,130 customers recorded in the previous year.

“This decline, though apparent, does not diminish the severity of the issue, urging the financial industry to remain vigilant, enhance security measures and collaboratively address the tenacious challenges posed by fraud,” it said.

By our reporter

The board of Transcorp Hotels Plc has approved a N2bn dividend payout to shareholders at its 10th Annual General Meeting (AGM).

The AGM held in Abuja on Monday provided an opportunity for shareholders to assess the Company’s 2023 performance.

The results showed Transcorp Hotels’s continuous growth, as well as new revenue and profit records set in the year under review.

As contained in the Company’s annual report, revenue grew by 36.2 percent to N41.46 billion in 2023 from N30.44 billion in 2022, while gross profit grew 37 percent to N29.79 billion from N21.74 billion in 2022. Profit before tax grew by 104.8 percent to N9.48 billion from N4.63 billion in 2022.

Chairman, Board of Directors, Emmanuel Nnorom remarked, “Our exceptional performance in 2023 underscores our unwavering commitment to excellence and sustainable growth. Our strict adherence to corporate governance principles has been fundamental in guiding our strategic decisions. This impressive achievement and our confidence in continued business growth has consistently improved shareholder return.”

He announced that the Board of Directors has approved that over N2 billion be paid as dividend to the Company’s shareholders, an announcement that was welcomed with rousing applause and approval by the shareholders.

Managing Director/CEO, Dupe Olusola, stated that 2023 was a year of exceeding performance as the Company leveraged increased demand to set new operational and financial records.

“By strategically investing in opportunities that align with our growth objectives, we have achieved impressive outcomes. Our business expansion has been propelled by reinforcing our capital base, enhancing operational efficiency, and exercising fiscal responsibility to foster sustainable growth and create value for all our stakeholders,” Dupe Olusola said, adding that the positive momentum created by the Company’s successful strategy offers confidence for its 2024 outlook and beyond.

She acknowledged the resilience and dedication of her team, stressing that the impressive performance reflects their commitment and hard work.

Chief Olatunde Okelana, a longtime shareholder of the Company expressed his excitement at the year-on-year growth and his confidence in the future growth of the Company.

“I have watched this Company grow in leaps and bounds over the years. Returns to shareholders is growing impressively every year, and we owe this to our experienced board and excellent management. I am excited about what the future holds for our Company,” Chief Okelana said.

Another shareholder Bisi Bakare, commended the management of Transcorp Hotels, stressing the importance of the company’s core values of Excellence, Execution and Enterprise. “The triple Es have been the bedrock of the business and have yielded profit.”

 Transcorp Hotels is strengthening its asset base through ongoing expansion efforts. A new world-class event centre is expected to open before the end of 2024. The 5,000-capacity event centre is purpose-built to host both local and international events and exhibitions.

The Company is also developing a 315-room 5-star hotel at the heart of Ikoyi, Lagos. Through the property, Transcorp Hotels will be able to further tap into the global luxury hotel market, estimated to expand to $107.77 billion in 2024, reaching $157.59 billion by 2029.

Transcorp Hotels Plc is the hospitality subsidiary of Transnational Corporation Plc (Transcorp Group), one of Africa’s leading, listed companies with strategic investments in the power, hospitality, and energy sectors. Transcorp Hotels is redefining hospitality standards in Africa through its businesses, including the iconic Transcorp Hilton, Nigeria’s flagship hospitality destination, and digital platform, Aura by Transcorp Hotels.