The House of Representatives says it will investigate the alleged non-repayment of seven billion dollars from the country’s foreign reserves, disbursed to 14 global asset managers and 14 banks by the Central Bank of Nigeria since 2006.
The House on Thursday resolved to investigate the matter, after a motion sponsored by representative Abubakar Ahmad.
According to the motion, the CBN gave each asset manager and its Nigerian bank counterpart a sum of $500 million dollars from the nation’s foreign reserves to manage.
For the second time since President Muhammadu Buhari assumed office in May 2015, Nigeria’s foreign reserves have hit the 30 billion dollar mark.
The latest figures from the nation’s apex bank, (CBN), show that the reserves which have experienced a steady day-on-day increase of between 2.30 and 2.75 % since January 5, 2017, closed the trading week above 30 billion dollars.
The last time the reserves crossed the 30 billion dollar mark was in July 2015, and went as high as 31.63 billion dollar in August of the same year before it began to decline.
The reserves were affected by low crude oil prices across the world, which reduced the availability of foreign exchange and in turn, put pressure on the Naira.
The rising reserves may be attributed to oil prices, which have soared as a result of agreed production cuts between OPEC and non-OPEC members.
Since February 2017, the Central Bank of Nigeria (CBN), has been providing foreign exchange to banks to meet the tuition, travel and medical needs of customers, thereby reducing the pressure on the Naira.
The Lagos Chamber Of Commerce and Industry (LCCI) has called for the urgent liberalisation of the downstream petroleum sector as part of measures to put an end to the lingering fuel scarcity in the country.
In a statement released by the chamber, the LCCI asked for a clear definition of the role of the Nigerian National Petroleum Corporation as well as a level playing ground for all operators.
The LCCI believes this would also attract more investment, generate more jobs and reduce the pressure on the country’s foreign reserves.
The chamber also suggested that the pipelines should be given out on concession to private investors for more efficient management.
According to the statement, the Central Bank of Nigeria (CBN) needs to ensure a more transparent process in the allocation of foreign exchange to petroleum product marketers and ensure the payment of matured letters of credit to their offshore fuel suppliers.
The decision by the Monetary Policy Committee to raise the cash reserve requirements on private sector deposits to 15 from 12 percent may not create the much needed impact on the money market.
This was the opinion of the CEO, Financial Derivatives Company Limited, Mr Bismark Rewane.
Commenting on the outcome of the MPC meeting on our programme Business Morning, Mr. Rewane said the hike in private sector deposits to 15 per cent would translate to the mopping up of over n400 billion from the banking system.
He also said the hike would not have much impact on liquidity since the amount represents only three per cent of money supply.
Owing to the pressure on the local currency and depleting foreign reserves, Mr Rewane opined that a further tightening of the monetary policy will ease the pressure at the money market.
Economic analysts have predicted that the Nigerian economy will maintain positive macro-economic indices in 2013.
Speaking on Channels Television’s weekend programme, Sunrise, the analysts including the Deputy Governor (Operations) of the Central Bank of Nigeria (CBN), Tunde Lemo; an Economist, Henry Boyo; and a Bank Executive, Foluke Aboderin, agreed that Nigeria would see higher growth, higher equity valuations, robust reserves accretion, firm oil prices and slightly lower inflation next year.
However, the analysts disagreed on some government policies that have impeded the growth of the Nigerian economy such as the interest rates, cash liquidity and other economic growth indicators.
Mr Lemo said statistics from the CBN showed Nigeria’s foreign reserves which has moved in tandem with higher oil prices up to 34.9 per cent, has reached $44.340 billion.
Watch the complete interview with the three analysts in the five parts video below:
The Director of communications of the Central Bank of Nigeria; (CBN) Ugo Okoroafor on Saturday said that Nigeria has done well with the finance of the economy compared to some countries not only in Africa but in Europe as well.
Mr Okoroafor, who was a guest on Channels Television’s programme, Sunrise, cited Greece as an example of countries facing recession in the global economy.
The CBN’s director said Nigeria is controlling the Foreign Direct Investment coming into Africa as it is now the arrowhead of sub-Saharan Africa, accounting for $46 billion in foreign reserves, opening doors for foreign investment in banking with RAND Merchant Bank signifying its interest in the Nigerian economy.
He listed some of the steps the country needs to take to be among the top economies of the world come 2020.
Below is a video of the complete interview with Mr Okoroafor.
The Excess crude reserve fell 1.4 per cent month-on-month to $36.40 billion at July 25, from $36.93 billion a month before, hit by falling oil prices and strong dollar demand, latest figures from the Central bank of Nigeria (CBN) showed on Tuesday.
The Foreign reserves stood at $36.71 billion at the end of June, higher from $33.45 billion a year before.
LAGOS Dec 8 (Reuters) – Nigeria’s foreign reserves stood at $32.99 billion at December 2, its lowest since Nov. 9, as the central bank struggles to sustain stability in the domestic foreign exchange market, the central bank data showed on Thursday.
The forex reserves of Africa’s top energy producer were at $32.96 billion a year ago, but remain under pressure from strong domestic demand for the dollar and low accretion from oil revenue.
The central bank moved its target trading band for the naira last month to +/-3 percent around 155 naira, from +/-3 percent around 150 due to prolonged strong demand on available dollar which gradually eaten deep into its reserves.