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Tinubu Moves Crude Oil Sales Revenue From NNPCL To CBN

President Bola Tinubu has reportedly given a new order to the Central Bank of Nigeria (CBN).
Tinubu ordered the apex bank to take over the responsibility for crude oil sales from the Nigerian National Petroleum Company Limited (NNPCL).
The move was to show transparency and accountability as NNPCL over the years has maintained sole control over crude oil sales, and only rendered accounts to the Federal Government.
According to Western Post, under the new arrangement, NNPC will submit receipts for crude oil sales to CBN for vetting and documentation.
A source within the CBN confirmed to the news platform that receipts of payment for the oil sales will be forwarded to the apex bank with immediate effect.
The source added that the new arrangement will block any gap in the crude oil sales and declared receipts.
Experts told the news site that this arrangement is opaque as it makes the NNPC the overall responsibility rendering whatever amount it wishes to FG for the crude oil sales.
They added that the move is no longer tenable amid declining oil revenue following lower oil production arising from crude theft and other sharp practices.
Recall that the CBN Governor, Olayemi Cardoso, last week stated that the collaboration with the Ministry of Finance and the NNPCL is to ensure that all foreign inflows are returned to the Central Bank.
Cardoso, who was delivering a keynote address at the launch of the Nigerian Economic Summit Group (NESG) “2024 Macroeconomic Outlook Report”, said, “This coordinated effort will greatly enhance the Bank’s foreign exchange flows and contribute to the accretion of reserves.
 
“The expected stability in the foreign exchange market for 2024 can be attributed to the reduction in petroleum product imports and the recent implementation of a market-determined exchange rate policy by the CBN.
 
“This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage.
 
“The resulting consistent and stable exchange rate will not only boost investor confidence but also attract foreign investment, elevating Nigeria’s appeal to global investors.”
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Nigerian Customs Raises Foreign Exchange Rate For Collection Of Duties From N770/$ To N783/$

The Nigerian Customs Service, NCS, has increased the foreign exchange rate for its tariffs and duties.

As of press time, the new rates were reflected on the single window trade portal of the federal government.

According to information on the portal, the NCS exchange rate has gone up by 1.59 per cent or N12.37 to N783.174/$, from the former rate of N770.88/$.

Last month, the Central Bank of Nigeria, CBN, announced the lifting of the ban on 43 items imported into the country previously restricted from accessing forex.

Consequently, the amount used to clear goods — including the 47 items at Nigerian ports has increased.

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Naira Falls to Almost N1,000/$ In Official Market

According to a report by Punch, the naira has depreciated to a record N996.75/1$ at the official exchange rate market.
This is despite recent moves by the Central Bank of Nigeria to strengthen the foreign exchange market.
The naira closed trading on the Investor & Exporter forex window on Thursday at N996.75/$, almost N1,000/$.
This is a 13.95 per cent decline from the N874.71/$ it closed trading on Wednesday. So far, the naira has lost 27.75 per cent of its value since opening the week at N780.23/$ according to details on FMDQ OTC Securities Exchange.
Since firming up against the dollar last week, after news that the apex bank was clearing some of its backlog broke, the naira has been on a steady decline in both the official and parallel markets.
So far, the naira has lost about 40 per cent of its value in 2023, earning the tag of one of the worst performing African currencies from the World Bank.
In the parallel market, the currency has lost value too, falling from N950/$ as of Friday to close to N1,140/$ as of Thursday according to Bureaux De Change operators who spoke to The PUNCH. This represents a 20 per cent decline.

A trader who only gave his name as Kadri said, “Dollar is N1,100 if you want to sell. It is N1,140 if you want to buy.” Another trader, Awolu, stated that he would buy the dollar at N1,100 from our correspondent.
He said, “Dollar is N1,100 if you want to sell to me.”
Earlier in the week, the President of the Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, told The PUNCH that the dollar was gaining against the naira because people who had bought it at a higher price were resisting its fall.
He said, “Speculators are always looking at elements of sustainability. Once they sense that it (the injection) is not continuous, they begin to react. They begin to react. It is the reaction of the market we are witnessing. Also, there is resistance. There are people that bought at a higher price that this does not favour. People are not willing to take further losses.”
Concerned with the fall of the currency, the presidency recently stated that it is planning policies to strengthen the local currency.
A Special Adviser to the President on Economic Matters, Dr Tope Fasua, who was representing the Vice President, Kashim Shettima, at an event, said: “For those who are speculating and praying and wishing that the currency would become nonsense, I believe that the central bank is rolling out the policies and the government that I serve, led by the President, will shock some of them.
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Naira Hits New Low, Depreciates To N1,315/$ At Parallel Market

On Thursday, the naira, depreciated further yet again to N1,315 per dollar at the parallel section of the foreign exchange (FX) market.

The figure represents a depreciation of N90 or 7.35 percent compared to the N1225 it traded on Monday.

Bureau De Change operators (BDCs), in Lagos, put the buying price of the dollar at N1300 and the selling price at N1315 — resulting in a profit margin of N15.

“The dollar scarcity is still a problem,” a trader identified as Aliyu, told TheCable.

At the official market, the local currency appreciated by 5.51 percent, from N847.77/$ on Tuesday, to close at N801.10/$ on Wednesday.

This is according to data from FMDQ Securities Exchange — a platform that oversees official FX trading in Nigeria.

A total of $100.18 million was traded at the investors’ and exporters’ window (I&E) window — Nigeria’s official trading market.

Following the floating of the naira, the foreign exchange market has witnessed high levels of volatility — with the gap between the official and parallel markets further widening.

The Central Bank of Nigeria (CBN) lifted the ban on 43 items restricted from accessing forex to boost liquidity in the foreign exchange market.

CBN also said it will intervene “from time to time” to support the naira.

On Tuesday, the house of representatives summoned Yemi Cardoso, governor of the Central Bank of Nigeria (CBN), over the decision to lift the forex ban on the 43 items.

To ease liquidity in the FX market, Wale Edun, minister of finance and coordinating minister of the economy, said Nigeria expects $10 billion in foreign currency inflows in the next few weeks.

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CBN Mandates Deposit Banks To Obtain Customers’ Social Media Handles For Identification

The Central Bank of Nigeria (CBN) has issued a new directive to financial institutions.

The CBN mandated financial institutions to obtain the social media handles of customers for the purpose of identification.

The directive is contained in a new CBN customer regulation, which is aimed at further strengthening the identification process in the banking system.

The bankers’ bank also in the diligence regulations mandated deposit money banks to obtain e-mail addresses, telephone numbers, and residential addresses, among other things, from customers.

Titled: “Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023,” published on its website on Friday, the apex bank revealed that the new regulation was designed to provide additional customer due diligence measures for financial institutions under its regulatory purview.

The objective of the new regulations according to CBN includes, “To provide additional customer due diligence measures for financial institutions under the regulatory purview of the Central Bank of Nigeria to further their compliance with relevant provisions of the Money Laundering (Prevention and Prohibition) Act (MLPPA), 2022, Terrorism (Prevention and Prohibition) Act (TPPA), 2022, Central Bank of Nigeria (Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction in Financial Institutions) Regulations, 2022 (CBN AML, CFT and CPF Regulations) and international best practices.

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Stock Market Jumps To 15-Year High After Emefiele’s Suspension

The Nigerian stock market has risen dramatically, according to reports.

The stock market rose to its highest level since July 2008 on Tuesday, the first day of trading after the suspension of the Central Bank Governor, Godwin Emefiele.

According to a report by Bloomberg, investors are betting on a currency devaluation and sent the main index of the Nigerian Exchange to above 57,437 points, which contrasted with a flat performance for MSCI’s main emerging equity benchmark.

The report stated that this move takes the country’s stocks’ year-to-date gains to 11.8 per cent, almost double the six per cent return on the MSCI index.

It noted that the rally, which followed increased gains on Nigerian dollar bonds on Monday, reflected optimism over the policy signals from the newly elected President, Bola Tinubu.

The head of research at Chapel Hill Denham, Tajudeen Ibrahim, stated, “An improvement in the economy will enhance the performance of companies operating in the market.”

Since resuming office, the new president has scrapped fuel subsidy and recently suspended the apex bank’s governor, Emefiele.

The NGX Banking Index has since risen by 8.5 per cent to 570.64, its biggest advance in more than eight years.

Ibrahim, added, “The exchange rate convergence is expected to lead to improvement in liquidity in the foreign currency market and will increase trading activities for the banks.”

Meanwhile, pressure is mounting on the naira to fall towards its market value. The currency has fallen to 474 per dollar, with traders betting on further depreciation.

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DSS Seizes Emefiele’s Passport, Plans Home, Office Search

The passport of the suspended Central Bank Governor, Godwin Emefiele, has been confiscated by the Department of State Services, The PUNCH reports.

The service, it was also learnt, may search Emefiele’s home and office this week.

Following his suspension on Friday as a result of the ongoing investigation of his office and the planned reforms in the financial sector, the service arrested Emefiele in Lagos and flew him to Abuja in a private jet on Saturday.

The spokesperson for the service, Peter Afunanya, in a statement said Emefiele had been taken into custody and was under investigation.

However, a source in the DSS  on Sunday said it was standard procedure for his travel document to be seized pending the conclusion of the ongoing investigation.

The source added that the office and residence of the suspended apex bank governor would be searched.

The source said, “Of course, Emefiele’s travel document would be confiscated as part of the standard process pending the conclusion of our investigation. Also, as part of the investigation, his house and office would be searched for documents that can aid the ongoing investigation on his management of the CBN.”

The spokesperson for the service, Peter Afunanya, in a statement said Emefiele had been taken into custody and was under investigation.

However, a source in the DSS  on Sunday said it was standard procedure for his travel document to be seized pending the conclusion of the ongoing investigation.

The source added that the office and residence of the suspended apex bank governor would be searched.

The source said, “Of course, Emefiele’s travel document would be confiscated as part of the standard process pending the conclusion of our investigation. Also, as part of the investigation, his house and office would be searched for documents that can aid the ongoing investigation on his management of the CBN.”

Our correspondent had reported that other top directors of the CBN might also be invited or arrested for questioning over their roles in the administration of the apex bank.

It was learnt that the DSS might revisit the criminal charges it earlier filed against Emefiele which borders on terrorism financing and fraud.

The secret police similarly accused the suspended CBN box of mismanaging the CBN subsidiary, Nigeria Incentive-Based Risk Sharing System for Agricultural Lending and the Anchor Borrowers Programme.

The DSS spokesman, Afunanya, could not be reached for comment on Sunday as calls to his line indicated that he was unreachable.

He had yet to respond to a text message on the detention of Emefiele as of the time of filing this report.

Meanwhile, human rights lawyer, Femi Falana, SAN,  has said the DSS  lacked constitutional power to investigate and prosecute  Emefiele.

Falana in a message sent to one of our correspondents said Emefiele should be transferred to the custody of the Economic and Financial Crimes Commission who according to him, posses the legal right to prosecute Emefiele.

“A few months ago, the State Security Service levelled grave allegations of terrorism financing, money laundering, and other economic crimes against Godwin Emefiele, the Governor of the Central Bank of Nigeria. At the material time, the attempt by the SSS to arrest, investigate, and prosecute Mr. Emefiele was frustrated by the erstwhile Buhari administration.

“However, following the suspension of Mr. Emefiele as the Governor of the CBN by President Bola Tinubu, the SSS quizzed him in Lagos and flew him to Abuja yesterday. According to media reports, the investigation of the suspect by the SSS has commenced. Even though the SSS which initially denied the arrest has since turned around to admit that Mr. Emefiele is in its custody.

“In the case of Dr. Bukola SarakI v. Federal Republic of Nigeria (2018) 16 NWLR (pt. 1646) 433-434, the Supreme Court ruled that the Economic and Financial Crimes Commission lacks the vires to investigate and prosecute the appellant for the breach of the provisions of the Code of Conduct Bureau and Tribunal Act. It was for that principal reason that Senator Saraki was freed by the apex court.

“In line with the principle of law enunciated by the apex court in Saraki’s case the SSS lacks the power to investigate and prosecute Mr. Emefiele in respect of allegations of money laundering and other economic crimes. Therefore, after investigating the alleged involvement of Emefiele in terrorism financing the SSS should transfer him to the EFCC for the purpose of investigating

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President Tinubu Appoints Folashodun Shonubi Acting CBN Governor

Mr Folashodun Adebisi Shonubi has been appointed as the acting Governor of Central Bank of Nigeria.

Shonubi’s appointment followed the suspension of Godwin Emefiele as the CBN Governor on Friday.

Until his appointment, he was the Deputy Governor, Operations Directorate.

Bayo Onanuga, a media aide to Tinubu disclosed this in a post via his Twitter handle on Friday.

He wrote, “Folashodun Adebisi Shonubi is the CBN acting governor. He has been since October 2018, the Deputy Governor, Operations Directorate. He was born on the 7th of March, 1962. He attended the University of Lagos from 1978 to 1983 and obtained a Bachelor of Science in Mechanical Engineering. He also represents the CBN on the board of FIRS”.

Emefiele has been directed to immediately hand over the affairs of his office to the Deputy Governor (Operations Directorate), who will act as the Central Bank Governor pending the conclusion of investigation and the reforms.

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CBN Debunks Reports It Plans To Phase Out Redesigned Naira Notes

The Central Bank of Nigeria has dismissed reports that it plans to withdraw circulation of the recently redesigned Naira notes.

In a released notice, signed by the acting Director of corporate communication, Isa AbdulMumim on Sunday, April 30 the bank stated that the speculation is a ploy by some people to cause panic among members of the public.

The bank reiterated that the old and new notes have been circulating side by side as they have been taking good delivery of a good quantity of the redesigned notes from the Nigerian Security Printing and Minting company Limited.

It was also stated that the bank would remain committed to supplying the approved indent for the smooth running of the economy.

The CBN also emphasized that the redesigned and the old currency, will continue to be accepted as legal tender for transactions ahead of the December 31, 2023 deadline.

The Statement Read;

“We wish to state emphatically that such speculation is unfounded and a ploy by some interests to cause panic among members of the public.

“We wish to reiterate that the new and old currency notes have been circulating side by side just as the Bank has been taking delivery of a good quantity of the redesigned bank notes from the Nigerian Security Printing and Minting Company (NSPMC) Limited.

“Furthermore, we are committed to supplying the approved indent for the smooth running of the economy.

“We, therefore, urge members of the public to disregard any report suggesting a phase-out of the redesigned currency.

”For the avoidance of doubt, the redesigned and old notes will continue to be accepted as legal tender.

“They will circulate side-by-side for transactions ahead of the December 31, 2023 deadline, when the old N1000, N500 and N200 banknotes will eventually be phased out.  Please be guided accordingly.”

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CBN Orders Banks To Open On Saturday And Sunday For Massive Disbursement of Naira Notes

All Deposit Money Banks have been ordered to open on Saturday and Sunday for massive disbursement of naira notes by the Central Bank of Nigeria (CBN).
CBN gave the order on Friday.
The apex bank has also commenced massive deployment of banknotes from its vaults to commercial banks across the country as part of a coordinated effort to ease the circulation of banknotes of various denominations.
This was made known on Friday by the Acting Director, Corporate Communications Department of the CBN, Dr. Isa AbdulMumin.
According to The Whistler, Abdulmumin stated that a substantial amount of money, in various denominations, had been received by the commercial banks for onward circulation to their respective customers.
The CBN spokesperson said the apex bank has also directed all banks to load their Automated Teller Machines (ATMs) as well as conduct physical operations in the banking halls through the weekends.
“Branches of commercial banks will operate on Saturdays and Sundays to attend to customers’ cash needs,” he noted.
He added that the Governor of the Central Bank of Nigeria, Godwin Emefiele, would personally lead teams to monitor the level of compliance by the banks in various locations across the country.
He, therefore, urged Nigerians to be patient as the current situation would ease soon with the injection of more banknotes into circulation.