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Economist Tasks CBN on Approach to Forex Challenge
By Tony Obiechina, Abuja
The Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf has called on the Central Bank of Nigeria (CBN) to take a comprehensive approach in tackling the current foreign exchange challenges.
Yusuf, an economist, spoke in Lagos against the background of the Federal Government’s plan to officially adopt a N750 to a U.
S. dollar exchange rate for 2024.He acknowledged that the CBN was currently implementing a new market-based approach in managing the foreign exchange market, perceived as more efficient and transparent.
He said that this had led to a weaker Naira currency, but noted that could improve over time.
According to him, the success of this new approach will rely on its ability to attract foreign investment, promote economic growth, and effectively manage inflation.
He, however, said that the government’s decision to officially adopt a new exchange rate of N750 per U. S. dollar for 2024 could have positive and negative consequences for the economy.
According to him, the current exchange rate is more realistic and reflects the true value of the currency, as well as the government’s efforts to eliminate foreign exchange subsidies.
The economist said the development had resulted in increased government revenue, as the conversion of dollar earnings at N750 is more favourable compared to the previous rates.
He explained that the major advantage of the new exchange rate is its positive impact on government revenue.
Yusuf said, “unlike what was used before, the current exchange rate, as its used, is more realistic and reflects the market situation; the true value of the currency of the exchange rate.
“More importantly, the attempt to eliminate the foreign exchange subsidy that has existed before has helped to increase government revenue.
“So, these are some of the major advantages that this new exchange rate will bring to the economy and the governments; there will be major revenue advantages.
“Can you imagine when we were converting our dollar earnings at N450? You can imagine what it was under the previous governments compared to the dollar earnings at N750 to a dollar.
“You can see that the revenue implication is huge. So, there’s a major revenue advantage,’’ he said.
He noted that challenges encountered during previous attempts to manage the exchange rate included corruption and a large difference between the official rate and the parallel market rate.
According to him, such discrepancies create incentives for round-tripping and hinder economic stability.
“The premium between the official rate and the parallel market rate was very high; getting close to almost 100 per cent. You can’t run an economy that way such that you now create incentives for people to now be round tripping.
“So, there’s a major problem of corruption and round tripping that the previous foreign exchange regime created.
`Secondly, it lacked transparency because we didn’t know who was getting what and what the criteria for the allocation was. This eroded public trust and confidence in the financial system, among others.’’
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Experts Raise the Alarm over 610,000 Unsafe Abortions in Nigeria
By Laide Akinboade, Abuja
Stakeholders in the health sector yesterday raised the alarm over the prevalence of unsafe abortions in Nigeria.
According to them, the country records over 610,000 unsafe abortions annually, prompting a call for women in the country to opt for contraceptives.
This and other health related concerns dominated discussions in Abuja at a summit to commemorate the World Contraception Day.
The summit, which raised awareness on women’s Sexual Reproductive Health and Rights was organised by an NGO – Media, Health and Rights Initiative of Nigeria.
The theme of the conference highlighted women’s freedom to plan and choose when to get pregnant.
The Country Director, IPAs Nigeria Health Foundation, Dr Lucky Palmer, in his opening address said it’s important for Nigerian women to be able to choose what they want.
According to him, most women are not able to express what they want and sometimes they can’t express their feelings when they get to hospital.
Dr Palmer highlighted the plight of women with disabilities, citing a case of a woman with hearing impairment who contracted sexually transmitted disease.
Dr Palmer said the doctor attending to her had to invite her son to interpret her sign language, which she found embarrassing.
“This is the reality most of our women go through, maybe because of disability or financial constraints or both.
“Unplanned pregnancies are a great challenge but these pregnancies are preventable. We shouldn’t be having unplanned pregnancies if contraceptives are free. Nigeria contributes about 28 percent of maternal deaths in the world,” the Country Director stated.
He charged stakeholders in the health sector not to relent in their efforts in addressing the challenges, saying, “Contraceptives should not only be for married women.
“They should also be for young people. Other animals have sex for procreation but human beings have sex for pleasure. If we are to prevent unnecessary deaths among our women, it is imperative we have this conversation.”
According to him, of the 610,000 unsafe abortions carried out in the country annually, about 285,000 of the women experience complications.
He added that of the 285,000 that develop complications, about 20,000 of them die annually.
Citing unsafe abortions as a major contributor to the country’s high maternal mortality rate, the experts listed Nigeria among the highest in the world with 1,5000 women in every 100,000 cases.
They noted that only 16 percent of women of reproductive age use any form of contraceptives, with even fewer using modern methods with success rates.
According to them, 28 out of every 100 pregnancies in Nigeria are unintended with 48 percent of these pregnancies ending in induced abortion.
They attributed 72 percent of deaths among girls below the age of 19 to complications arising from unsafe abortions.”Despite legal restrictions, cases of induced abortions are quite common with an estimated 1.25 million abortions performed in 2012 alone,” they said.
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CBN Releases New Forex Codes to Check Exchange Rate Manipulation
By Tony Obiechina, Abuja
Central Bank of Nigeria (CBN) has released the Nigeria Foreign Exchange Code (FX Code) to strengthen the country’s FX market.The document which was released yesterday aims at facilitating better functioning of the market and reinforcing a flexible exchange rate regime.
The CBN said, “The FX Code requires Market Participants to ensure that illegal financial transfers are avoided, and appropriate money laundering policies put in place to protect the integrity of the domestic markets and the global financial framework as a whole. ”CBN said Nigeria pursues a floating exchange rate regime, and the value of the naira is determined by the market forces according to the demand and supply of foreign exchange.The apex bank said all market participants are required to submit to the CBN a detailed compliance implementation plan that is approved by its Board by Dec. 31, 2024.“The FX Code should be fully implemented, and each Market Participant be in full compliance by December 31, 2024,” the bank said.Based on the document, the CBN banned operators from buying or selling a larger amount around the period rates are referenced for computation with the intent of manipulating the market price.It banned dealers from, “Buying or selling a larger amount than the client’s interest within seconds of the fixing calculation window with the intent of inflating or deflating the price against the client.“Buying or selling an amount shortly before a fixing calculation window such that there is an intentionally negative impact on the market price and outcome to the client.“Showing large interest in the market during the fixing calculation window with the intent of manipulating the fixing price against the client.“Informing others of a specific client dealing at a fixing rate; and acting with other market participants to inflate or deflate a fixing rate against the interests of a client.”COVER
Corruption: Court Summons Bello, Grants Ishaku N150m Bail
By David Torough, Abuja
A High Court of the Federal Capital Territory (FCT) sitting in Maitama, Abuja yesterday issued a public summon against embattled immediate past governor of Kogi State, Yahaya Bello.Justice Maryanne Anenih ordered Bello, alongside two other defendants to appear in court on Oct.
24 to answer a fresh 16-count charge pending against them. The other two defendants in the charge are Umar Oricha and Abdulsalami Hudu. The court issued the order for public summons in a ruling following an application by the Economic and Financial Crimes Commission (EFCC).Justice Anenih ordered EFCC to publish the public summons in a widely circulating newspaperShe ordered EFCC to paste copies of the public summons on Bello’s last known address and in conspicuous places on the court premises.EFCC claimed that it had been unable to serve Bello with the charge filed on Sept. 24, in which the ex-governor and two others were charged with criminal breach of trust to the tune of N110.4 billion.Bello’s absence stalled the arraignment earlier scheduled for yesterday.In a related development, a former governor of Taraba State, Darius Ishaku was yesterday admitted to bail in the sum of N150 million by an FCT High Court in the alleged N27 billion fraud charges brought against him by the Federal Government.The former governor was granted bail by Justice Sylvanus Oriji with two sureties in same amount.One of the two sureties must be a Federal Government employee of the rank of Director.Similarly, the two sureties must be residents in the FCT with their house addresses to be verified by the Registrar of the court.Besides, Justice Oriji barred the former governor and his co-defendant, Bello Hero from traveling out of the country except with the permission of the court.EFCC, through its counsel, Rotimi Jacobs did not oppose the bail.Jacobs noted that EFCC had on its own granted Ishaku administrative bail and he did not jump bail.Justice Oriji after granting the bail fixed Nov. 4, 5 and 13 for commencement of trial.Ishaku, who left office in 2023 after serving as governor for eight years was slammed with 15-count charge by EFCC but pleaded not guilty when he was arraigned on Monday.According to the charge sheet dated Sept. 27, the former governor and the former Permanent Secretary of Bureau for Local Government and Chieftaincy Affairs, Bello Yero are the two defendants in the case.In the charge marked CR/792/24, EFCC accused the defendants of diverting over N1 billion to their personal use between Aug. 25, 2015 and March 21, 2016 in Abuja.The agency said the amount formed part of the 2.5 percent contingency funds belonging to the Bureau of Local Government and Chieftaincy Affairs.EFCC noted that the duo committed an offence contrary to Section 315 of the Penal Code A, Cap 532, Laws of the Federal Capital Territory of Nigeria 2007 and punishable under same section.Ishaku and Yero were also accused of diverting an aggregate sum of N1,138,082, 097.71 which formed part of the 2.5 percent contingency fund belonging to the Bureau of Local Government and Chieftaincy Affairs between July 2015 and May 2019.Also, between Sept. 3, 2015 and Jan. 29, 2018 in Abuja, the defendants were accused of diverting the sum of N761,301,000 to defray the loan of N1 billion granted by Zenith Bank Plc. to your company, Worthy Construction Limited.“That you Ishaku whilst being the Governor of Taraba State and Bello Yero whilst being the Permanent Secretary, Bureau for Local Government and Chieftaincy Affairs, Taraba State between July 19, 2019 and February 5, 2021 in Abuja, within the jurisdiction of this Honourable Court, and in such capacity entrusted with dominion over certain property, to wit: an aggregate sum of N3,348,942,411.15, which sum formed part of the funds belonging to Bureau of Local Government and Chieftaincy Affairs, Taraba State and Local Government Councils in Taraba State, and you thereby committed criminal breach of trust in respect of the said property, when you dishonestly diverted the said sum to your own use,” the charge sheet partly read.Other sums of money that formed part of the contingency fund allegedly diverted by the defendants include N650,686,369.99 between Jan. 6, 2019 and April 29, 2021; N193,030,000 between Jan. 2019 and April 29, 2021; and N170,549,842.00 between Jan. 6, 2019 and April 29, 2021, among others.