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CBN drops N379/$1 exchange rate, adopts I&E window

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The Central Bank of Nigeria has removed the official exchange rate of N379 to a dollar from its website since nobody really uses the rate.

This implies that the importer and exporter window (I&E) is now the default reference exchange rate for official transactions in the country.

The I&E FX window is the market trading segment for investors, exporters and end-users that allows for FX trades to be made at exchange rates determined based on prevailing market circumstances.

The window was introduced in 2017 by the CBN to improve foreign exchange market mechanisms, deepen market liquidity, and ensure prompt execution and settlement of all FX transactions.

Nigeria currently has multiple exchange windows. This has caused lack of clarity for investors who are worried about currency risk.

The World Bank has also urged the government to unify its various windows before the $1.5 billion budget support loan to Nigeria is disbursed.

The CBN has been trying to unify the rates and boost the dollar supply through direct interventions. It recently extended an incentive offer last week to recipients of dollar remittances to try to encourage more inflows from the Nigerian diaspora.

In March, Zainab Ahmed, minister of finance, budget and national planning, said Nigeria had moved into a flexible exchange rate by adopting the Nigerian Autonomous Foreign Exchange (NAFEX) rate as the new official rate for government transactions.

“Within the government and the central bank, there is only one official rate, and that’s the NAFEX rate,” Ahmed had said, a claim the governor of the CBN, Godwin Emefiele, has refuted.

Head of Retail Investment at Chapel Hill Denham, Ayodeji Ebo, said, “Removal may be to shift focus to the investors & exporters FX window which has also been the reference rate for the government in 2021.

“This step further reinforces the adoption of the I&E window as this will reduce the controversy on the reference rate to use for transactions.”

On Friday, the naira inched up 0.02 per cent to trade at $410.40 midday at the Investors and Exporters FX Window (I&E FX Window).

Aviation

Rains: NiMet warns of severe turbulence, flight cancellations

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The Director-General, Nigeria Meteorological Agency (NiMet), Prof. Mansur Matazu, has said airlines will encounter severe turbulence, flight delays and cancellations during rainfall.
He therefore called on pilots and airline managements to adhere to the weather forecast as the likely severe turbulence could cause discomfort, injury to passengers, instability and even loss of control for small aircraft.
Matazu was quoted in a statement on Friday as saying, “Heavy rains could also lead to skidding of aeroplanes due to surface wetness and impaired horizontal visibility.
“Thunderstorms could also lead to accidents, incidents, flight delays, flight cancellation, death, damage among others.
“Windshear could lead to accidents, incidents, aircraft nosedive, discomfort, aircraft lost control and death.”
The NiMet boss urged airline operators to take weather forecast seriously, stating the turbulence usually would cause poor visibility.
He also called on passengers to be patient with the airlines as flight delays, flight cancellations and flight diversion will be experienced within this period.

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Navy arrests 10 vandals with smuggled 210,000 litres of diesel

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Operatives of the Nigerian Navy Ship (NNS) Beecroft have arrested 10 suspected vandals with 210,000 litre of stolen diesel.
The suspects were alleged to have attempted to smuggle the products concealed in water tanks to neighbouring Benin Republic through a wooden boat when they were intercepted around the Lagos anchorage.
A statement released on Friday by Base Information Officer, Sub-Lieutenant Veronica Effiong, said the suspects with the seized products had been handed over to the Nigerian Security and Civil Defence Corps, after preliminary investigations.
She said, “The vandals and seized products were on Tuesday, June 15, handed over to the Lagos Command of the NSCDC for further investigation and prosecution.
“The Commander NNS BEECROFT Commodore Bashir Mohammed reiterated the NNS BEECROFT`s commitment to the protection of critical national infrastructure and the eradication of all illegal activities in its area of responsibility in line with the Chief of the Naval Staff`s mission statement and strategic directive of 2021-5.
“As partners for a safe maritime environment, members of the public especially our host communities are enjoined to kindly furnish the base with credible information to assist in curbing the activities of criminal elements and economic saboteurs.”

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Buhari challenges MTN on quality service, data rate

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President Muhammadu Buhari has asked the MTN Group to offer quality service to its Nigerian subscribers at cheaper rates.
He stated this when he received in audience members of the board of MTN Group, led by its President and Chief Executive Officer, Ralph Mupita, at the State House, Abuja, on Friday.
Buhari said, “I congratulate you on your appointment as the Group President of MTN. I wish you all the best.
“Nigeria is your most lucrative market in Africa, Asia and the Middle East as well as the source of a third of the income of the entire MTN Group. As such, we urge you to offer top-of-the-range and affordable services to Nigerians.
“As we seek to make broadband widely available and affordable, we urge MTN to continue to support our efforts by expanding high-quality connectivity to Nigerians in un-served and under-served areas.”
The President also called on MTN to support the implementation of the National Policy for the Promotion of Indigenous Content in the telecommunications sector.
He said, “I recently unveiled and launched the National Policy for the Promotion of Indigenous Content in the Nigerian telecommunications sector.
“I call on MTN to support the implementation of this policy and, train and engage more Nigerians in your company.”
He assured his visitors that his administration was doing everything possible to make Nigeria investor-friendly by addressing identified challenges.

He said, “We have identified and addressed the key challenges that affected the growth of the digital economy sector. I am happy to note that the right of way charges have now been pegged at a maximum of N145/linear metre.
“I have given directives for the protection of critical national infrastructure and this has addressed the issue of vandalism of such infrastructure.”

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