Money market
Naira’s decline continues despite CBN efforts, experts stress need for productivity boost
Despite efforts by the Central Bank of Nigeria (CBN) to bolster the country’s currency, the Naira continues to face a relentless decline, prompting financial experts to emphasise the need for accelerated productivity as the key to strengthening it.
Amidst widespread concern over the Naira’s depreciation, with the currency trading at a staggering N900 to the dollar in the parallel market, the CBN’s monetary policy initiatives have failed to yield the desired results.
In light of this, experts argue that a significant boost in productivity is crucial for the Naira’s stability and growth. By enhancing productivity across various sectors of the economy, Nigeria can potentially increase its export capacity, attract foreign investments, and ultimately strengthen its currency.
Addressing the ongoing challenges faced by the Naira requires a comprehensive approach that goes beyond monetary policy interventions. It necessitates a concerted effort to enhance productivity through the implementation of policies that promote innovation, efficiency, and competitiveness.
According to Mr Okechukwu Unegbu, a financial expert, only accelerated productivity will stabilise and strengthen the Naira.
Unegbu, a past president of the Chattered Institute of Bankers of Nigeria (CIBN), said that the Naira is in a pitiable situation and requires commitment by the government to salvage it.
“The crude oil market is on the downward trend; our bonny light is not doing well in the international market and we have very little window to manoeuvre because the Naira and our productivity do not align.
“There is no economic theory that can change the situation. The only way to bridge balance of payments deficits is to increase productivity,” he said.
A Professor of Capital Market at the Nasarawa State University, Keffi, Uche Uwaleke, said that the economic fundamentals required to support a naira float are still weak, especially in relation to sources of forex.
According to Uwaleke, who is the Director, Institute of Capital Market Studies at the university, the unification of exchange rates as done by President Bola Tinubu, should not be a one step process.
“It should be implemented over a period of time, however, short it may be.
“Empirical evidence suggests that reforms are more successful when they are sequenced and implemented in phases.
“So, while fiscal and monetary policy reforms are welcome, absolute care should be taken to strike the right balance and minimise their unintended consequences,” he said.
Uwaleke said that the recent, second quarter real Gross Domestic Product (GDP) performance was also disturbing.
“Growth was driven by the Non-oil sector. Oil sector ranked considerably on account of reduction in crude oil production
“The Non-oil sector performance was powered by the Services sector (4.42 per cent), especially by telecoms, trade and financial services.
“In my view, this identified growth pattern, weighted in favour of the services sector, is not healthy for a developing economy such as ours.
“Economic growth does not appear inclusive reflecting in rising unemployment and poverty levels, which the new NBS methodology attempts to mask,” he said.
He said that it is time to reset the faulty economic structure, leveraging technology in favour of the productive sectors like industry and agriculture.
Nigeria’s leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB) will be at this year’s Ojude Oba Festival to be held in Ijebu Ode, Ogun State.
The Ojude Oba festival is an annual event that typically holds on the third day of the Eid-al-Kabir whereby different cultural age groups put up a spectacular parade to pay homage to the Royal Majesty, the Awujale of Ijebualand.
As a precursor to the Ojude Oba festival, Moneymaster, has embarked on a month-long market activation, engaging indigenes of Ijebuland to onboard them on to one of its digital banking platforms – mobile wallet. With the Moneymaster mobile wallet, customers can transfer, withdraw from an agent, buy airtime and pay utility bills.
During this month-long activation, customers in Ijebuland who open an account stand a chance of winning free airtime amongst other gift items.
According to a statement by the company, the move towards a cashless economy can become a reality when the bulk of Nigerians embrace mobile wallets so as to help them cultivate a more convenient savings habit and also enable them make payment with ease.
“While we rejoice with the people of Ijebuland at this time, we also want to showcase what we have in Moneymaster’s mobile wallet that can help various people to enjoy seamless banking from their phones,” the statement noted.
Moneymaster Payment Service bank is licensed by the Central Bank of Nigeria and insured by NDIC to promote financial inclusion in furtherance of the Nigerian financial literacy initiative driven by the Central Bank of Nigeria.
With Moneymaster, Nigerians can open mobile wallets, savings account, individual and business accounts to make payments, buy airtime, and pay utility bills to over 4,000 companies.
MoneyMaster was recently appointed a payment partner to the Ounje Eko initiative by the Lagos State government in its bid to provide discounted food items to residents of the state amidst rising cost of food items. Moneymaster is positioned to support individuals and businesses in their journeys towards financial prosperity by offering bespoke financial services that meet their aspirations.
Union Bank Nigeria Limited has stressed the importance of preserving and restoring the global environment through sustainable practices.
This message was conveyed during an event co-hosted with the Nigerian Conservation Foundation in observance of World Environment Day.
A key highlight of the event was a tree-planting exercise involving participants and stakeholders representatives. This activity aligned with this year’s theme, “Land Restoration, Desertification, and Drought Resilience,” emphasising the need to rejuvenate and restore areas affected by deforestation, erosion, and desertification, both globally and in Nigeria.
During the program, the Head of Citizenship and Sustainability at Union Bank, Patricia Iwhewhe, highlighted the need to protect our environment.
In her words: “Land degradation and erosion are not things stakeholders and policymakers can afford to ignore or gloss over. We all must get involved in helping restore and reclaim parts of our environment badly impacted by deforestation and desertification. Union Bank, as a sustainability champion committed to the preservation of our dear planet, appreciates and recognises the responsibility we have as humanity to look after our environment. We will continue to support and participate in programs dedicated to protecting and enriching our precious habitat.”
The event gathered diverse stakeholders, including environmental rights activists, international partners agencies, corporate bodies, government agencies, and students from selected secondary schools, to discuss and engage in World Environment Day activities.
The Naira on Thursday slightly depreciated at the official market trading at N1,476.24 to the dollar.
Data from the official trading platform of the FMDQ Exchange, revealed that the Naira lost N2.58.
This represents a 0.17 percent loss when compared to the previous trading date on Tuesday when it traded at N1,473.66 to the dollar.
Also, the volume of currency traded reduced to $92.68 million on Thursday down from $385.91 million recorded on Tuesday.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between 1,500 and N1,400 against the dollar.
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