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Nigeria’s economy will bounce back under Tinubu– SSA



Nigeria’s economy will bounce back under Tinubu-- SSA

Sen. Abdullahi Gumel, the Senior Special Assistant (SSA) to the President on National Assembly Matters, says the Nigerian economy will bounce back in a short while under President Bola Tinubu.

Gumel said this when he received a team of officials from the Fidelity Bank plc led by the Executive Director, Northern Directorate, Mr Hassan Imam on a courtesy visit on Thursday in Abuja.

He said that the President was aware of the hardship being faced by Nigerians under his administration.

“I appeal for patience with the present government as the president is doing everything to ameliorate the suffering of Nigerians.

“The president is yet to clock 100 days in office but he has reeled out several measures to tackle the economic challenges the country was faced with.

“As we are all aware, he has constituted committees with specific assignments and timelines, also the presentation of list of nominees to the National Assembly within 60 days as stipulated by law, indicates he is here to work.

“Now that the confirmation has been transmitted to the presidency by the senate, I believe the economy will soon bounce back with all ministers at work,”he said.

Gumel expressed appreciation for the visit, saying it was a call for greater hard work.

“The visit is one of many others that have spurred me to continue to work for national development,” he said.

He called on Nigerians to continue to work with the present government to reposition the economy and give Nigeria its pride of place.

Earlier speaking, Imam, who led the team, said that the visit was to congratulate Gumel on his appointment as SSA to the President on National Assembly Matters.

He said that the appointment was well deserved looking at the Gumel’s track record in nation building.

He prayed for God’s guidance, wisdom and wise counsel to the SSA in his endeavours.


Job Losses, Factory Closures Loom As Unsold Goods Pile Up — MAN



AGAINST the backdrop of sustained pressure in the foreign exchange market and high cost of production, the Manufacturers Association of Nigeria, MAN has indicated that inventory of unsold goods is escalating to levels now threatening the existence of companies operating in the production sector of the economy with attendant job losses.

Findings show that as of the weekend the foreign exchange market had recorded over 254 per cent plunge in the value of the naira since flotation of the currency by the Central Bank of Nigeria (CBN) in June 2023.

Recall that the naira traded for N471 per dollar in the official I&E market on June 13, 2023 before the floatation of the currency, but exchanged for N1,665.50 to a dollar as at February 23, 2024 on the Nigerian Foreign Exchange Market (NAFEM), indicating a depreciation of more than 253.6 per cent over the eight-month period. The forex crisis is also stoking inflation, and coupled with high energy costs, purchasing power has continued plummet, stifling demand for goods.

Speaking on the impact of this development on the manufacturing sector, Director General, MAN, Segun Ajayi-Kadir, said: “There are reports that across the board, many warehouses and plants of many manufacturing firms are stockpiled with unsold goods manufactured last year. “The development is as a result of the devastating effects of the exchange rate crisis, inflation, fake and sub-standard goods, smuggling and other macro-economics challenges.”

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CBN Lifts Ban On BDCs, Introduces New Operational Mechanism



In a major development aimed at financial stability and strengthening the naira, the Central Bank of Nigeria (CBN) plans to resume its weekly intervention in the country’s foreign exchange (FX) market through the Bureau de Change (BDC) operators.

In 2021, the central bank, in a bid to achieve its mandate of safeguarding the value of the local currency, ensuring financial system stability, and shoring up external reserves, announced the immediate discontinuance of foreign currency sales to Bureau de Change (BDC) operators in the country.

However, the resumed intervention, which would reportedly commence today for funding as well as Tuesday for collection, will see the apex bank inject FX into the subsector in a bid to rescue the naira from further depreciation against major currencies, particularly the US Dollar. The collection will be at designated CBN branches in Lagos, Abuja, Kano, and Awka, while details of the naira accounts to be credited for funding bidding will also be made available today.

CBN is also expected to publish the list of eligible BDCs to benefit from its funding using certain compliance criteria.National Executive Council of Association of Bureau De Change Operators of Nigeria (ABCON) hinted on the latest developments through a memo to its members over the weekend.

The association also warned members that it will no longer be business as usual under the new supervisory regime of the central bank, as any infringement or infraction would result in outright revocation of license and prosecution.

ABCON said through the association’s various engagements with the central bank, in conjunction with ABCON’s strategic partners, CBN had agreed to its request, under the bank’s supervision, to inject liquidity into the market through a weekly intervention beginning today.

CBN assured ABCON that the new circular on the Revised Regulatory and Supervisory Guidelines to BDCs, which was introduced over the weekend, was only a draft exposure that required the association’s inputs before the release of the final guidelines by the apex bank.

To that effect, the letters of the guidelines were not cast in stone, the association’s leadership told its members, who had been worried over the sweeping reforms in the document, which, among other things, prescribed N2 billion and N500 million minimum capital for national and state BDCs, respectively.

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