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CBN to open door for BDCs
Central Bank of Nigeria (CBN) is set to resume dollar sales to Bureaux De Change (CBN), in a bid to arrest the continued depreciation of the naira in the parallel foreign exchange market as well as reduce opportunity for round tripping of foreign exchange.
Vanguard investigations reveal that CBN yesterday held a meeting with the leadership of Association of Bureaux De Change Operators of Nigeria (ABCON), the umbrella body of BDCs in the country. It was gathered that the CBN informed the ABCON leaders that it would soon resume dollar sales to BDCs.
ABCON President, Alhaji Aminu Gwadabe confirmed this to Vanguard. He said, “We just held a meeting with the CBN and they informed us that they would soon resume dollar sales to BDCs.” He said the apex bank also promised to create addition windows for BDCs to access foreign exchange but the details and criteria would be announced later.
He said, “We also assured them that we would ensure that BDCs abide by the criteria as well as comply with all regulatory requirement to justify the renewed confidence in the subsector”.
CBN Acting Director, Corporate Communications, Mr. Isaac Okorafor however could not confirm this development to Vanguard as at the time of going to press. “I will find out and get back to you”, he said
Why the CBN suspended dollar sales to BDCs
The CBN on Monday January 11th, 2016 suspended dollar sales to BDCs due to decline in the country’s foreign exchange earnings, and sharp practices by BDCs. According to CBN Governor, Mr. Godwin Emefiele, “This fall in oil prices also implies that the CBN’s monthly foreign earnings have fallen from as high as US$3.2 billion to current levels of as low as US$1 billion. Yet, the demand for foreign exchange by mostly domestic importers has risen significantly. For example, the last we had oil prices at about US$50 per barrel for an extended period of time was in 2005. At that time, our average import bill was N148.3 billion per month. In stark contrast, our average import bill for the first nine months of 2015 is N917.6 billion per month, even though oil prices are now less than US$35 per barrel.
The net effect of these combined forces unfortunately is the depletion of our foreign exchange reserves. As of June 2014, the stock of Foreign Exchange Reserves stood at about US$37.3 billion but has declined to around US$28.0 billion as of today.”
“In particular, we have noted with grave concern that Bureau de Change (BDC) operators have abandoned the original objective of their establishment, which was to serve retail end users who need $5,000 or less. Instead, they have become wholesale dealers in foreign exchange to the tune of millions of dollars per transaction. Thereafter, they use fake documentations like passport.”
Why the CBN is resuming dollar sales to BDCs
The decision to resume dollar sales to BDCs must have been influenced by the need to reduce opportunity for round tripping of foreign exchange by closing the gap between the interbank and parallel market exchange rate, which widened yesterday, following further depreciation of the naira in the parallel market.
At the close of trading yesterday, the parallel market exchange rate rose to N355 per dollar yesterday from N351 per dollar on Monday, indicating N4 or 1.1 per cent depreciation.
Two weeks ago, the parallel market exchange rate had fallen upon announcement of the details of the CBN flexible exchange rate regime. From N369 per dollar on Tuesday June 16th, 2016 when the CBN announced details of the new exchange rate regime, the parallel market exchange rate fell steadily, reaching to N345 last week Tuesday due to panic reaction to the commencement of the revived interbank foreign exchange market. The parallel market exchange rate however resumed its upward movement last week due to demand pressure and dearth of dollar supplies, reaching N351 per dollar at the close of business last week Friday.
However, the naira had remained relatively stable at the interbank market. Apart from the sharp depreciation in the first day of trading on Monday June 20th, 2016, when the interbank exchange rate rose from N197 to N281.85 per dollar, the naira had remained below N285 per dollar in the interbank market.
This however resulted a widening of the gap between the interbank exchange rate and the parallel market exchange rate. The gap between the two exchange rates rose from N60.57 per dollar on Tuesday June 21st, 2016 to N72.68 yesterday.
This development implies increased incentive for round tripping of foreign exchange from the interbank market to the parallel market.
A CBN investigation in 2002 had find 21 banks guilty of foreign exchange round tripping, leading to imposing of sanctions including one year suspension of the banks from the foreign exchange market.
Naira depreciates to N282.32 in interbank
Meanwhile the naira suffered marginal depreciation in the interbank foreign exchange market yesterday as the interbank exchange rate for sport transactions rose to N282.32, indicating 84 kobo or depreciation for the naira. On Monday the naira depreciated by 35 kobo for spot transactions while remaining stable for futures transactions. Consequently the naira has depreciated by N1.18 or 0.4 percent in the interbank market this week.
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Customs seizes multi million-naira petroleum products in Adamawa
The Nigeria Customs Service under ‘Operation Whirlwind’ has seized petroleum products worth N181.6 million in eight weeks between the Nigeria and Cameroon borders.
ACG Kolapo Oladeji, national coordinator of Operation Whirlwind, disclosed this at a news conference on Thursday in Yola. Mr Oladeji said the seizures were made across various smuggling flashpoints in Adamawa in 55 separate operations.
“This operation is geared towards energy and food security to foster economic growth in line with the core mandates of the President of the Federal Republic of Nigeria, Bola Tinubu. In line with these mandates, the Operation Whirlwind Zone ‘D’ had repositioned all its machinery across the area of its responsibilities and ensured that the border became airtight,” he said.
He warned the smugglers to stop such acts and solicited the continued support and cooperation of all stakeholders in the state’s socioeconomic development. “We will ensure that the supply chains of these economic wreckers are truncated in accordance with enabling laws. This fight has no doubt helped in transforming the nation’s economy and strengthening the security of our borders,” he said.
He further said that the seized petroleum products would be auctioned to the public. Abidemi Adewumi-Aluko, assistant legal adviser of the attorney general of the federation, described the auction as a symbol of reclaiming resources to ensure that the benefit of petroleum remained in Nigeria. She said that such offences attracted life imprisonment because they threatened national security. NAN
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Chevron to join Nigeria oil licence auction, plans rig deployment in 2026
Chevron said on Friday it will participate in Nigeria’s next oil licensing round and plans to deploy a drilling rig in late 2026 as it seeks to expand operations in Africa’s top energy producer.
Jim Swartz, chairman and managing director of Chevron Nigeria/Mid-Africa Business Unit, said the company aims to grow its footprint in Nigeria, citing improved regulatory clarity under the Petroleum Industry Act, PIA.
“We will participate in the next licensing round. Our intention is to continue to grow in Nigeria,” Swartz told reporters after meeting the upstream regulator. Nigeria’s licensing rounds are part of efforts to attract investment and boost output after years of underinvestment. The 2025 round will offer 50 fields through a digital platform, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said. TotalEnergies has also expressed interest in joining an auction.
Chevron recently agreed to acquire a 40% stake in two offshore exploration licences, PPL 2000 and PPL 2001, from TotalEnergies and is seeking regulatory approval to accelerate development.
Swartz said it plans to bring in a rig in late 2026 to drill a newly discovered resource near Agbami and extend leases on existing assets. Swartz added that Chevron had recorded no oil theft or sabotage in the past year, the longest period without disruptions in its Nigerian operations, a sign of improved security in the sector. Reuters
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Don’t patronise touts, immigration personnel available 24/7—CGIS
Comptroller General of the Nigeria Immigration Service NIS, Kemi Nandap, on Friday urged Nigerians to shun touts and middlemen when applying for passports or other immigration services, insisting that the Service operates round-the-clock channels to assist citizens directly and transparently.
Nandap made the call in Abuja while delivering the keynote address at the fourth-quarter Nationwide Sensitization Campaign against corruption and for improved service delivery.
The campaign, themed “Innovating for Transparency and Efficiency: Strengthening Service Delivery and Combating Corruption Through Reforms,” highlights the NIS’ ongoing efforts to modernize its operations and eliminate corrupt practices.
Addressing participants, the Immigration chief said the era of relying on agents or informal handlers should be over, as the Service has put in place fully digital, citizen-focused systems that allow applicants initiate and track their processes from the comfort of their homes.
She stressed that the NIS has functional 24-hour call lines, an active call centre, constantly monitored emails and social-media channels, all designed to ensure citizens are attended to promptly and without intermediaries.
“You don’t have to go to a tout, you don’t have to go to an agent. You can sit in the comfort of your home and apply for most of our facilities. Once you avoid putting yourself at the mercy of someone, you stay in control of your application and can always reach us at any time”, she stated.
Nandap noted that recent reforms, including automated passport application processes, biometric-based verification, expanded digital architecture and streamlined service-centre operations, have significantly reduced delays, improved transparency and minimised opportunities for extortion.
She explained that passport processing timelines have improved across multiple commands following the rollout of automated scheduling and digital communication platforms.
The Comptroller General also emphasized that transparency remains the foundation of effective immigration management.
She highlighted enhanced internal audits, stricter enforcement of ethical codes and redesigned workflows as key elements of the NIS’ anti-corruption strategy.
With digital payments and automated checkpoints reducing cash interactions, she said the Service is committed to stamping out malpractice at all levels.
Nandap further disclosed that the NIS has deepened collaboration with sister agencies, civil-society groups, international partners and the diplomatic community to align operations with global border-management standards.
These partnerships, she said, are helping to harmonise processes, promote accountability and support ongoing reforms.
She appealed to citizens to familiarise themselves with official procedures, follow approved channels and use the Service’s feedback platforms—including suggestion boxes, hotlines and online desks—to report challenges or offer recommendations. “We are here for Nigerians. Tell us how to serve you better,” she said.
The Immigration CG also paid tribute to officers who lost their lives in the line of duty in Mogolu, Tuga, Tula and Niger State, calling their deaths a painful reminder of the risks faced daily by immigration personnel.
She urged Nigerians and officers alike to embrace positive change, adding that sustainable reform depends on individual commitment and collective responsibility. “The change we want starts with each and every one of us,” she said.
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