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Why Naira is worst performing currency, crashes further to N1,710/$

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Against the backdrop of the abysmal performance of Nigeria’s currency in the international market, financial analysts have indicated that the Naira is still facing more distortions that could further erode its value.

Meanwhile, the local currency sustained the depreciation trend yesterday hitting N1,710/$ in the parallel market, as against N1,690/$ the previous day.

The Naira also faced a similar fate in the official market, depreciating to N1,660/$ from N1,659/$ the previous day.

A World Bank report earlier in the week said that Naira is among the worst-performing currencies in the world so far in 2024.

Commenting on the situation, David Adonri, Analyst and Executive Chairman at Highcap Securities Limited, said: “The Naira has been battered severely by its persistent depreciation since last year following its floating.

“However, there is still a lot of distortion surrounding its value because CBN is still indirectly influencing it’s price thereby thwarting the market mechanism that ought to efficiently allocate the currency”.

Giving reasons for the woes of the local currency, Adonri stated further: “The precarious situation of the economy, huge fiscal deficit and excessive public borrowing together with dwindling forex income have battered the Naira”.

Making a recommendation for better performance, he said, “To strengthen the Naira, the government must run austerity on its recurrent expenditures, balance its budget and mobilize the domestic factors of production to drastically cut down on imports.

“There is actually a correlation between the value of the Naira and the inflation rate. Galloping inflation has been eroding the value of the Naira.

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“If the government takes the supply side of the economy seriously, inflation will be tackled”.

Also commenting, Tunde Abidoye, Head, of Equity Research, FBNQest Securities, said that efforts to strengthen the Naira must start with increased crude oil production.

While agreeing with the assessment of the Naira by the World Bank as the worst-performing currency globally, Abidoye highlighted measures that are needed to strengthen the Naira noting that the Cardoso-led Central Bank of Nigeria, CBN, has done a lot to enhance the workings of the forex market and ensure transparency.

He stated: “From my perspective, the things that need to be done are: In the near term – drive increased crude oil production. Oil production has to be taken up to maybe 1.8mbpd to 2mbpd;

“Medium-term – increase exports of the non-oil products, and possibly try to start to develop the export of services”.

Also stressing the need for increased oil production, Nnamdi Nwizu, Co-Founder, of Comercio Partners, said: “We all know that the “Naira has struggled over the past year, with a 51% depreciation from $/N810 to $/N1,650. During that period, we have seen the CBN aggressively tighten the market liquidity, increasing Cash Reserve Ratio, CRR, to 50% and Monetary Policy Rate, MPR, to 27.25%, from 32.5% and 18.75% respectively.

“I, however, believe that there is a limit to monetary policy and that we have reached it. The way forward in my view is working on the Fiscal policy. We need to increase our sources of foreign currency.

“Low-hanging fruit would be to increase crude oil production and sell some assets. Longer term would be to restructure the economy to become an export-driven economy, by increasing production output in the manufacturing sector.”

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Free-floating led to dismal performance – Ebo

Commenting on the poor state of the Naira compared to peers across Africa, Dr. Ayodeji Ebo, MD/Chief Business Officer, Optimus by Afrinvest, blamed the free float of the Naira for the adverse situation, saying that economic variables tied to the Naira currently makes it impossible to float the currency.

He stated: “The free-floating of the naira led to its dismal performance. Nigeria does not have the ability to float its currency given the several economic variables that are tied to the naira.

“A managed float is more appropriate where the CBN devalues intermittently. The current free-floating makes it difficult for businesses to plan, especially since the demand for the greenback keeps increasing.”

Commenting as well, the national President of Oil and Gas Service providers Association of Nigeria, OGSPAN, Mazi Colman Obasi, said: “The same World Bank that adviced Tinubu not to listen to Nigerians in hardship is also saying that Naira is among the worst performing currency in the world.

“The problems of Nigeria are not in the World Bank, it is right here in Nigeria. The only way to strengthen Naira is local production of what we eat and what we buy and what we export.

“But the preoccupation of this administration is buying of jet aircraft to fly all over the world. Then construction of Lagos-Calabar Coastal highways whereas what Calabar need is functional seaport.

“Until we move from consumption to production Naira will remain valueless and worst performing currency in the world.”

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Have negative, positive effects – ASBON

President, Association of Small Business Owners of Nigeria (ASBON), Dr. Femi Egbesola, said that the Naira losing value has two opposite side effects – negative and positive.

His words: “On one hand, most of our inputs – raw materials and machinery – are imported and paid for in dollars. With the devalued naira, all these become very expensive. This erodes our working capital and also makes our products very expensive, as the burden is passed to the end consumers in our local market.

“On the other hand, it makes our products very cheap, affordable and highly competitive in the international market. Thus, this has opened wide access to the export market and international trade for us, hereby enabling us to sell at relatively cheap prices due to lower Naira value and in return, earn foreign exchange which becomes highly profitable when translated to Naira back home.”

Highlights ongoing economic challenges – NACCIMA
In his comment, President of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, said: “The substantial depreciation of approximately 43% highlights the ongoing economic challenges, primarily driven by soaring demand for US dollars in the parallel market and inadequate dollar inflows. This instability has created a precarious situation for businesses, complicating import dependencies and increasing operational costs. Companies may struggle to maintain pricing stability, ultimately impacting consumer purchasing power and overall economic growth.

“CBN’s perceived lack of appreciation for its critical role in managing currency stability raises serious questions about its strategy and responsiveness to market dynamics. The slow disbursement of foreign exchange to currency exchange bureaus further exacerbated the situation, revealing a disconnect between policy implementation and the realities faced by businesses.

“A more proactive and transparent approach from CBN is essential to restore confidence, ensure a fair economic environment, and safeguard the interests of Nigerian businesses in these challenging times.” (Vanguard)

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Alleged £1.87m Fraud: UK set to deport Nigerian Pastor, Tobi Adegboyega

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A Nigerian pastor whose church was shut down over an alleged £1.87 million fraud has lost his fight against deportation, despite claiming it would breach his human rights.

An immigration tribunal has ruled that Tobi Adegboyega, 44, the cousin of John Boyega, the Star Wars actor, should be deported back to his native Nigeria after investigations, including by The Telegraph, exposed misuse of funds by his church.

Mr Adegboyega was head of SPAC Nation, a controversial church shut down after failing to properly account for more than £1.87 million of outgoings and operating with lack of transparency.

He claimed deportation would breach his right under the European Convention of Human Rights (ECHR) to a family life – having married a British woman.

He also said the attempt to remove him by the Home Office failed to take account of his community work with SPAC.

Describing a “charismatic” community leader of a large, well-organised church, his legal team claimed that he had “intervened in the lives of many hundreds of young people, predominantly from the black communities in London, to lead them away from trouble”.

He claimed his work had been “lauded” by politicians including Boris Johnson and senior figures within the Metropolitan Police, although no testimony by them was submitted to the court. He said that without his personal presence in London, projects that he had masterminded would fall apart or reduce in size.

However, the tribunal was told the Home Office contended “all is not as it seems”.

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“Various manifestations of [Mr Adegboyega’s] church have been closed down, by either the Charity Commission or the High Court, because of concerns over its finances and lack of transparency,” according to the judgment.

‘Selling their own blood’

“Former members of the church have alleged that it is a cult, in which impoverished young people are encouraged to do anything they can to donate money, including taking out large loans, committing benefit fraud and even selling their own blood.

“It is alleged that the church leadership lead lavish lifestyles and there have, it is said, been instances of abuse. The [Home Office’s] case before us was that all of this needs to be taken into account when evaluating whether [Mr Adegboyega] is in fact of real value to the UK.”

Mr Adegboyega has lived in the UK unlawfully since overstaying on a visitor’s visa that allowed him to enter Britain in 2005. In 2019, he applied for leave to remain under ECHR’s right to a family life. His application was initially dismissed by a first-tier immigration tribunal before he appealed. In the tribunal, he maintained no one had ever faced criminal charges over his church’s finances, that many of the attacks on him and SPAC Nation were politically motivated and that claims it was a cult were unfounded.

However, the tribunal was told the Charity Commission concluded “there had been serious misconduct and/or mismanagement in the administration of the charity which was sustained over a substantial period of time”.

The tribunal also found Mr Adegboyega’s evidence to be “hyperbolic in many instances” and had “sought to grossly inflate his influence”.

“We find it to be implausible that he has the time to undertake all of this work personally,” it said.

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The tribunal concluded: “We are not satisfied that the good work that SPAC Nation undertakes generally would collapse or even significantly suffer should the Appellant be required to leave the UK.

“Weighing all of the foregoing in the balance we conclude that the decision to refuse leave to remain was wholly proportionate.

“[Mr Adegboyega] seeks to rely on family and private life relationships, all of which have been established whilst he was in the UK unlawfully, and which would survive his return to Nigeria.

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REVEALED: Emefiele, cronies acquired 753-Duplex Estate with Forex kickbacks — EFCC

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Court papers filed by the Economic and Financial Crimes Commission have linked the immediate-past Governor of the Central Bank of Nigeria, Godwin Emefiele, to the massive Abuja property with 753 duplexes and other apartments located in the Cadastral Zone area of the capital city.

The anti-graft agency on Monday announced the recovery of the property from an unnamed ex-government top brass, describing the property as the biggest single recovery it had made in the course of fighting corruption since its establishment in 2003.

The recovery followed a ruling delivered on December 2, 2024 by Justice Jude Onwuegbuzie of the FCT High Court in Apo.

In the court documents obtained by our correspondent on Tuesday, the EFCC ran a narration linking Emefiele to the massive property spanning 150,500 square metre and identified as Plot 109, Cadazral Zone C09, Lokogoma District, Abuja.

Emefiele is currently being prosecuted by the EFCC in three separate cases before different judges.

Before Justice Hamza Mu’azu, he is being tried for procurement fraud, forgery of former President Muhammadu Buhari’s signature, and other charges.

Before Justice Rahman Oshodi at the Special Offences Court in Ikeja, Lagos, Emefiele is charged with alleged fraud involving $4.5bn and N2.8bn.

Additionally, Emefiele is before Justice Maryann Anenih of the FCT High Court in Abuja for allegedly approving the printing of N684.5m notes at the cost of N18.96bn.

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According to the document, Emefiele allegedly carried out “monumental fraud” as the CBN governor with his cronies to acquire several properties including the estate.

“The commission whilst investigating the alleged monumental fraud carried out by the immediate past Governor of the CBN and his cronies traced and discovered several properties reasonably suspected to have been acquired and or developed with proceeds of unlawful activities.

“The property highlighted in Schedule A to this application is one of the said properties recovered, having been reasonably suspected to have been acquired/ developed with proceeds of unlawful activities.”

The EFCC alleged that “in the cause of this investigation, it was revealed that the erstwhile CBN governor negotiated kickbacks in return for allocation of foreign exchange to some companies who were in desperate need of foreign exchange for their lawful and legitimate businesses.

“Our investigation equally revealed that erstwhile CBN Governor received kickbacks from some contractors who were awarded contracts by the Central Bank of Nigeria.”

The anti-graft agency also alleged that Emefiele connived with several cronies, including one Ifeanyi Omeke, who “ran several errands for him, which included purchase and perfection of title documents for several properties located in highbrow areas of Lagos and Abuja.”

It said the documents for the Abuja property were recovered during a search of Omeke’s office and that investigators located the property on September 17, 2024 “with the assistance of a surveyor from the Abuja Geographical Information Systems, using search results and coordinate.”

The EFCC said its investigation “revealed that the said property has been abandoned and deserted with only a guard manning the said property since June 2023 upon the arrest of the erstwhile CBN Governor. “

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The PUNCH reported that the Department of State Services arrested Emefiele in Lagos the following day he was suspended by President Bola Tinubu.

In October, the EFCC arrested Emefiele in less than an hour he regained his freedom from the DSS.

According to the EFCC, the massive property, allegedly acquired by Emefiele, through cronies, was originally meant for a mass housing development.

The EFCC said its investigation revealed that Emefiele used three companies to pay a total of N2.2bn to buy the property.

It said the seller “received the aggregate sum of N2,200,000,000.00,” adding that “the said three companies used for the payment of the property are enmeshed in criminal maneuvering of layering proceeds of illegal activities of Mr. Godwin Emiefele.”

According to the EFCC, one of the companies was used to pay N900m, the second paid N700m, while the third paid N600m, totalling N2.2bn.

It said the directors of the companies were arrested “and their statements voluntarily obtained in the course of investigation.”

“The funds used in the acquisition of the property highlighted in Schedule A to this application are not legitimate earnings of Godwin Emefiele but funds acquired through illegal and unlawful activities.

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“That I know as a fact and verily believe that the source/origin of the funds used in the acquisition and/or development of the properties sought to be forfeited are proceeds of unlawful activities to wit: corrupt enrichment, receiving of gratification or kickbacks and abuse of office,” an EFCC investigator stated in the affidavit filed in court.

The EFCC noted that the court had on November 1, 2024 made an order for the temporary forfeiture of the property “after evaluating facts placed before it.”

It, therefore, urged the judge to order the permanent forfeiture of the property to the Federal Government as no one had come forward to challenge the facts placed before the court, in spite of adverting the interim forfeiture order in The PUNCH edition of November 6, 2024.

According to the EFCC, the court acceded to its request and has now permanently forfeited the property to the Federal Government.

Efforts to get the reaction of Emefiele’s legal team were unsuccessfuly. One of the lawyers, Matthew Burkaa( SAN), did not pick up calls to his line and had also yet to respond to a text message seeking Emefiele’s side of the story as of the time of filing this report.
(Punch)

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We received N80,000 Minimum Wage in November, no strike plan – Enugu labour leaders

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The Organised Labour in Enugu State has refuted the media reports that the new minimum wage was yet to be paid in the state, saying that the implementation of the N80,000 minimum wage, which is above the N70,000 national minimum wage, commenced in November 2024.

The workers also said that they had no plan to go on strike.

They said that observed discrepancies in consequential adjustment in the implementation of the N80,000 minimum wage had already been conveyed to Governor Peter Mbah assuring that it would be addressed subsequently, as he had already earned workers’ trust by his commitment to their welfare since his assumption of office.

This was made known in a joint statement in the state capital on Tuesday by the Chairman, Nigeria Labour Congress, NLC, Enugu State Council, Comrade Fabian Nwigbo; Chairman of the Trade Union Congress, TUC, Comrade Ben Asogwa; and the Chairman of the state’s Joint Public Service Negotiating Council, JNC, Comrade Ezekiel Omeh.

The statement read, “The Orgaised Labour in Enugu State wishes to make clarifications in several media reports, which wrongly project Enugu among the states that are yet to pay the national minimum wage.

“We want to acknowledge the fact that the Enugu State Government paid the N80,000 minimum wage approved by the governor in the November 2024 salary.

“However, the minimum wage paid did not reflect the consequential adjustments inherent in minimum wage implementation.

“As labour leaders, we have already communicated to His Excellency the observed discrepancies and in his usual magnanimity to the welfare of workers, we strongly believe that he will address this subsequently.

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“Our confidence in the governor remains intact, considering his usual dispositions to the wellbeing of workers.

“It is worthy of note that he continued to pay wage award of N25,000 he approved for workers from December 2023 till October 2024 when the new minimum wage of N80,000 was approved and consequently reflected in the November salary.

“We also recall his good faith in ensuring that local government employees were included from the onset in the new minimum wage of N80,000, having earlier upgraded them to full N30,000 minimum wage upon assumption of office after several years of waiting.

“Likewise, he approved the payment of the N1.9bn four-year accumulated leave allowances owed to teachers of public primary schools in the state and eight-month salary arrears valued at over N467m, which were also owed the academic, non-academic, and casual staff of the Enugu State College of Education Technical, ESCET, Enugu, before his assumption of office.

“Consequently, in the same culture, we trust him to address all the concerns regarding consequential adjustments in the implementation of N80,000 minimum wage.

“So, we have not gone on strike. We do not also contemplate or foresee any strike in the near future because there is no need for that yet.”

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