Panic in financial sector, others over depreciating naira at N1,500/$

The depreciating value of Nigeria’s currency, the naira, is causing panic among businesspeople and others in the finance sector.
Naira went over N1,500 mark to one US dollar on Sunday on the parallel market.

Ibrahim Dollar as one of the BDC operators in Lagos is called told Newstrends Sunday morning that there appeared to be a mop-up of the dollars.

He said, “As of today, we sell one dollar at N1,500 and buy at N1,460.

“In the last one month, we get more people buying the dollars than those exchanging dollars for naira.”
The N500/$ rate is about N34 loss compared to 1,466 that the naira exchanged for a US dollar on Friday.
The naira lost N40 between Thursday and Friday when it closed at N1,426 to a dollar, according to the National Autonomous Foreign Exchange Market (NAFEM), the official exchange market.
Surprisingly, the naira had about a month ago firmed up against the dollar, exchanging below N1,000.

The continued fall in naira has fuelled the fears that prices of goods including food items may further rise and worsen the current high cost of living.

Nigeria’s inflation rate jumped to 33.20% in March 2024 from 31.70% in February when naira recorded some gain
This was after a number of reforms and interventions by the Central Bank of Nigeria (CBN) including supply of dollars to the Bureau De Change (BDC) operators.
But with increasing demand for the US dollars, the earlier gain has been retarded.
A report by Bloomberg last week rated the naira as the worst performing current in the world in the last one month.
This was after the CBN had disclosed that the naira came as the best performing currency.

The Economic and Financial Crimes Commission (EFCC) last week announced that henceforth transactions at the foreign embassies in Nigeria would be conducted in naira and no longer in dollars, just to shore up the value of the nation’s currency.

Tinubu bows to pressure, asks CBN to suspend cybersecurity levy

President Bola Tinubu has directed the Central Bank of Nigeria (CBN) to suspend cybersecurity levy implementation and review the policy.

A major report by Sunday Punch quoted some sources at the Presidency as saying the President’s action followed the public outcry that greeted last week’s announcement of the levy by the CBN.

This came three days after the House of Representatives had urged the CBN to withdraw its circular directing all banks to start charging the 0.5 per cent cybersecurity levy on all electronic transactions in the country from May 20, 2024.

The CBN issued the circular on May 6, 2024, mandating all banks, mobile money operators and payment service providers to implement the new levy, in accordance with Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024 provisions.

In suspending the levy, Tinubu was said to be sensitive to the feelings of Nigerians and did not want anything that could add to the burden of the people.

“He has asked the CBN to hold off on that policy and ordered a review. I would have said he ordered the CBN, but that is not appropriate because the CBN is autonomous.

“But he has asked the CBN to hold off on it and review things again,” a senior presidency official reportedly said.

Another presidency official said, “If you look at it, the law predates the Tinubu administration. It was enacted in 2015 and signed by Goodluck Jonathan. It is only being implemented now.

“You know he (Tinubu) was not around when that directive was being circulated. And he does not want to present his government as being insensitive.

“As it is now, the CBN has held off the instruction to banks to start charging people. So, the President is sensitive. His goal is not to just tax Nigerians like that. That is not his intention. So, he has ordered a review of that law.”

Dana Air lays off workers amid govt audit

Dana Air has sacked some of its workers amid an operational audit being conducted and by the Nigerian regulatory authorities.

Dana disclosed this through its head of corporate communications, Kingsley Ezenwa, in a statement on Saturday, May 11.

The audit coming after some incidents is to ensure the airline complies with necessary standards and regulations.

Ezenwa stated, “In light of the ongoing audit, Dana Air has made the decision to temporarily disengage some staff members pending the conclusion of the audit.

“This decision has been made to ensure efficient management of resources and to facilitate a thorough review of operational procedures.”

He said the management appreciated the sacked workers’ resilience and dedication and recognised the difficulties they had faced.

Ezenwa also said that the airline pledged to provide updates and support for its staff members throughout the audit process.

He said the airline had commenced talks with lessors and was engaging stakeholders on the progress made so far.

“Dana Air therefore urges for calm and understanding from our very dedicated staff for their altruism,” he added.

The Nigeria Civil Aviation Authority (NCAA) recently suspended the Air Operator Certificate (AOC) of Dana Air after one of its aircraft skidded off the runway at the Murtala Muhammed Airport, Lagos State.