Economy
E-Naira’ll not Affect Commercial Banks’ Deposits – Adedipe
Dr Biodun Adedipe, Chief Consultant, B. Adedipe Associates Ltd., said the e-Naira introduced by the Central Bank of Nigeria (CBN) would not affect deposits of commercial banks.
Adedipe said this at the National Business Extra fourth anniversary lecture/awards on Thursday in Lagos.
He spoke on the theme: “Cryptocurrency Vs E-Naira: Issues, prospects and challenges in Nigeria economy.
”Adedipe, who was the guest speaker, said e-Naira could not replace deposits or reduce the ability of the banks to create credits.
“It has limits on the amount that can conveniently be carried in a physical wallet,” he said.
According to him, banks will not lose their deposits to digital naira because of limits on e-Naira wallet transactions.
The economist explained that cumulative balance limits and transfer limits introduced by the CBN on Tier 1, 2 and 3 e-Naira wallet were small compared with activities of commercial banks.
The cummulative balance limit for Tier 1 is N300,000 with transfer limit of N50,000; Tier 2 balance unit is N500,000 with transfer limit of N200,000.
The CBN also pegged Tier 3 cumulative balance limit at five million naira with transfer limit of one million naira.
X-raying the benefits of the e-Naira, he said it would eliminate the cost of printing and minting currencies in the country.
Adedipe said it would eliminate restrictions in making cross-border payments, enhance financial inclusion and allow users to avoid the cost and restrictions in transactions on digital platforms of commercial banks.
The economist disagreed with insinuations that the e-Naira was introduced because of foreign exchange volatility.
He attributed foreign exchange volatility to speculation and the country’s huge import dependency.
On crytocurrency, the expert said recognising crypro as asset, commodity or means of exchange should be determined by its most prevalent use in Nigeria.
He stressed the need for a regulatory framework underscored by the popularity of mobile money.
Adedipe noted that regulatory framework was necessary due to trading in cryptos as alternative means of livelihood for tech-savvy, unemployed youths.
He said the framework should centre on what should be allowed, how it should be used, which financial institutions should be allowed and monitoring framework and reporting requirements.
“Blockchain technology has come to stay and will become more important. Cryptos ride on the back of the blockchain technology.
“If we want to encourage investment in blockchain technology (which is no longer the future, but already here), then we need to create space for cryptos and other adaptations of the technology,” he said.
Earlier, the Publisher of the National Business Extra, Mr Odion Aideloje, said the newspaper was established to be an alternative business platform.
Aideloje said the company was ready to partner corporate entities and other stakeholders for the growth and development of the country.
He said it had not been easy for the company in last four years of operation due to challenging operating environment.
The publisher assured stakeholders that the company would improve on shortcomings of previous years. (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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