Economy
E-Naira Will Have Far-Reaching Implications for Banking Sector – Economists
Economists have said that the e-Naira, when rolled out, will have far-reaching implications for the future of the banking sector in Nigeria.
The experts, in separate interviews with the Newsmen, said whether the launch would be salutary or destabilizing would depend on how it is implemented.
President Muhammadu Buhari, on Monday launched the Central Bank Digital currency, the e-Naira.
With the official launch, Nigeria becomes the first country in Africa and one of the first in the world to introduce a digital currency to its citizens.
Uche Uwaleke, Professor of Finance and Capital market, Nasarawa State University, Keffi, said without doubt that the launch would have effects on the future of the banking sector.
“Expectedly, being among first-time movers of a technologically-complex project such as a central bank digital currency, it is bound to create winners and losers and produce unintended consequences.
“The cheering news, however, is that the CBN appears to have devoted considerable time and resources to prevent undesirable outcomes especially in relation to the health of the Nigerian banking sector.
“In any case, that the CBN is testing e-Naira through pilot projects is a demonstration of a cautious approach. All said, the launch of the CBN’s digital currency is an important milestone which holds a lot of promise for the financial system in Nigeria and the banking sector in particular,’’ he said.
The Director, Centre for Economic Policy Analysis and Research (CEPAR), Prof. Ndubisi Nwokoma, said that the currency which is novel, would be faced with distrust even as implementation progresses.
“The launch of the e-Naira is a new path being taken by the CBN to follow in the global practice of enhancing the payment system through the use of digital currency.
“It is novel, even in advanced societies hiccups may be encountered as implementation progresses. Even currently, many global companies have not fully embraced the use of crypto-currencies in payments.
“Skepticism may be the order of the day, at the onset, except for those already familiar with digital currencies,’’ he said.
Sheriffdeen Tella, a Professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Ogun State, said the e-Naira is a worthy innovation by the CBN, hoping that the banks would keep the charges low so as not to frustrate the project.
“ e-Naira is a worthy innovation by the CBN, though some other countries are already into it. It is expected to strengthen the cashless policy.
“It is an extension or addition to normal fund transfer except that it can be used easily for cross border transactions. It also requires an app which may not be available for those phones used by the poor people.
“There is the need for more enlightenment on the modus operandi, even for educated people.
“One also hopes the banks with not frustrate the project through unholy charges. It’s a worthy financial innovation and problems that might arise can be resolved as soon as they rear their heads,’’ Tella said. (NAN)
The Nigerian Exchange Ltd. (NGX) continued its bullish trend on Wednesday, gaining N183 billion.
Accordingly, the market capitalisation, which opened at N59.532 trillion, gained N184 billion or 0.31 per cent to close at N59.715 trillion.
The All-Share Index also added 0.31 per cent or 303 points, to settle at 98,509.
68, against 98,206. 97 recorded on Tuesday.Consequently, the Year-To-Date (YTD) return increased to 31.
74 per cent.Gains in Aradel Holdings, Zenith Bank, United Bank For Africa(UBA), Oando Plc, Nigerian Breweries among other advanced equities drove the market performance up.
Market breadth closed positive with 34 gainers and 17 losers.
On the gainers’ chart, Africa Prudential, Conoil and RT Briscoe led by 10 per cent each to close at N14.30, N352 and N2.42 per share, respectively.
Golden Guinea Breweries followed by 9.95 per cent to close at N7.18, while NEM Insurance rose by 9.74 per cent to close at N10.70 per share.
On the other hand, Julius Berger led the losers’ chart by 10 per cent to close at N155.25, Secure Electronic Technology Plc trailed by 9.52 per cent to close at 57k per share.
Multiverse lost 7.63 per cent to close at N5.45, Haldane McCall dropped 6.07 per cent to close at N4.95 and Honeywell Flour shed 5.62 per cent to close at N4.70 per share.
Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 49.44 per cent.
A total of 320.10 million shares valued at N6.48 billion were exchanged in 7,943 deals, compared with 939.41 million shares valued at N12.81billion traded in 9,098 deals posted in the previous session.
Meanwhile, ETranzact led the activity chart in volume with 70.27 million shares, while Aradel led in value of deals worth N1.22 billion.(NAN)
The central parity rate of the Chinese currency renminbi, or the Yuan, weakened 22 pips to 7.1870 against the dollar on Monday.This is according to the China Foreign Exchange Trade System.In China’s spot foreign exchange market, the Yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.
The central parity rate of the Yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. (Xinhua/NAN)
Arewa Youths Initiative for Energy Reforms (AYIFER), has urged Nigeria National Petroleum Corporation Limited (NNPCL) to do everything possible to bring Kaduna Refinery back into operation.
National Coordinator of the group, Mr Bashir Al’Amin, stated this in a statement issued on Friday in Abuja.
Al’Amin specifically called on the Chief Executive Officer of NNPCL, Mallam Mele Kyari, to do all within his powers to rejuvenate the refinery and bring it up to global standard.
He said that having delivered the Port Harcourt refinery, coupled with the establishment of Dangote Refinery in Lagos, attention should be shifted to Kaduna refinery for easy spread of petroleum products.
“We are calling on Malam Mele Kyari to expedite action on Kaduna refinery so we can be at par with other regions in the country.
“We equally beg the NNPCL to do professional work in rehabilitating the old refinery and deliver a standard and functional petrochemical refinery and not a blending plant.
“Kyari should resist any temptation that could make him do something that can jeopardise his good image,” he said.
Al’Amin said that since the extinction of groundnut pyramid and textiles in Kano State as well as PAN in Kaduna State and with the Kaduna refinery getting moribund, a lot of youths had lost their jobs.
According to him, all their hopes in the north are tied to the legacy refinery, expressing the hope that God would use Kyari to deliver it well and on time.
He said that the group was solidly behind NNPCL in prayer and would be ready to celebrate the company if its expectations were met. (NAN)
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