CBN’s ‘action’ yields result as Naira appreciates to N1,382 per dollar – Newstrends
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CBN’s ‘action’ yields result as Naira appreciates to N1,382 per dollar

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CBN’s ‘action’ yields result as Naira appreciates to N1,382 per dollar

The local currency continued on a recovery note on Thursday with naira appreciating significantly against the dollar on the strength of recent interventions by the Central Bank of Nigeria (CBN).

From N1,536.83 in the previous day, the naira appreciated to N1,382.35/$ at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the first time in a long while that the local currency would record such a massive gain.

This was coming 24 hours after the Central Bank of Nigeria (CBN) announced it had cleared $7bn valid foreign exchange claims while increasing the country’s forex reserves.

CBN’s Acting Director of Corporate Communications, Hakama Sidi-Ali, announced this in a statement on Wednesday.

The statement partly reads, “The Central Bank of Nigeria has announced that all valid foreign exchange backlogs have now been settled, fulfilling a key pledge of the CBN Governor, Mr Olayemi Cardoso, to process an inherited backlog of $7bn in claims.

“Clearance of the foreign exchange transactions backlog is part of the overall strategy detailed in last month’s Monetary Policy Committee meeting to stabilise the exchange rate and thereby curb imported inflation, spurring confidence in the banking system and the economy.

Apart from the massive gain recorded at the official market, the local currency also stabilised yesterday at the parallel market exchanging at N1,500 to a dollar, according to checks in Lagos, Abuja and Kano.

In Lagos, the dollar was traded at N1,500 to N1,520 yesterday with the operators confirming relative stability in the market.

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A BDC operator, Haruna Agege, said the local currency is expected to appreciate against the dollars in days to come.

“So if you have dollars at home, it is advisable to bring it out,” he said.

In Abuja, a cross section of Bureau de Change operators in Wuse stated that the dollar has been falling against the Naira since the beginning of the week.

Gidado Muktar, a BDC operator said, “We have been seeing a lot of changes since Monday when the week started. I can tell you that when we started the week, the dollar was N1,700 to a dollar. By Tuesday it dropped to N1,600 and as we speak today Thursday it is fluctuating between N1,480 to N1,500/$,” he said.

Mukhtar added that he is happy that the Naira is appreciating which vindicates his colleagues that were accused of speculation.

In Kano, Alhaji Yusuf Kura, a BDC operator said operators buy dollar at the rate of N1490 and sell to prospective customers at the rate N1500 . Previously it traded at N1,520, he said.

Controversy over foreign airlines’ funds

Despite CBN claiming it has cleared all verified backlogs, there is controversy over the foreign airlines’ trapped funds as the foreign airlines claimed their funds are still trapped with commercial banks.

It would be recalled that in January when the CBN announced it had cleared all foreign airlines’ trapped funds, the carriers said the bulk of the trapped funds from ticket sales on the billing settlement platform (BSP) of the International Air Transport Association (IATA) is yet to be cleared.

A foreign airline representative who spoke on the condition of anonymity said, “Payments are being made as I write. Only IATA can confirm the value. This is because these monies are tickets sold via BSP. IATA manages the BSP. The bulk of the funds held are in the BSP. BSP sales make up about 70% of airline sales.”

President of the Association of Foreign Airline Representatives in Nigeria (AFARN), Dr. Kingsley Nwokoma said foreign airlines’ trapped funds remain uncleared.

FG not owing foreign airlines – Travel agents

President of the National Association of Nigerian Travel Agencies (NANTA), Mrs. Susan Akporiaye in a chat with Daily Trust said as it currently stands the Federal Government is not owing foreign airlines and asked the operators to sort out their issues with their commercial banks.

“The Federal Government is not owing the airlines. If the airlines still have some issues, it is the money with the commercial banks, not with the government and the CBN has also helped them as well by releasing the circular that the banks should sell to the airlines and we had report that the airlines have been getting their money although there is no update on whether the entire $700m has been cleared or not.

CBN’s ‘action’ yields result as Naira appreciates to N1,382 per dollar

(DAILY TRUST)

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Aviation

Disaster averted as bird strike hits Abuja-Lagos Air Peace flight 

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9 hours ago

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November 14, 2024

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Disaster averted as bird strike hits Abuja-Lagos Air Peace flight 

 

An Abuja-Lagos flight was on Thursday aborted following a bird strike on the airplane belonging to Air Peace, forcing the authorities to ground the aircraft.

The bird strike experienced in the early hours reportedly prompted a ramp return to ensure the safety of passengers onboard.

All the passengers quickly disembarked and were calmed down before they were moved into another plane for the one-hour journey.

A bird strike is a collision between a bird and an aircraft, or other airborne animal, while the aircraft is in flight, taking off, or landing. And it can be a significant threat to aircraft safety.

Air Peace in a statement by its Head of Corporate Communications, Ejike Ndiulo, said the bird strike occurred at 6:30am, and all passengers disembarked normally.

The statement read, “We wish to inform our esteemed passengers that our Abuja- Lagos 06:30 flight experienced a bird strike before take-off, prompting a ramp return as a safety measure. All passengers disembarked normally.

“We have deployed a replacement aircraft for the affected flight in order to minimize disruptions, thus ensuring that passengers continue their journeys promptly.

“We appeal for the understanding of our valued passengers impacted by this development, as well as those on other flights that may experience delays.

“At Air Peace, we are committed to providing safe, comfortable, and reliable air travel for all our passengers.”

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Business

NNPC achieves 1.8mbpd crude oil production

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9 hours ago

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November 14, 2024

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NNPC achieves 1.8mbpd crude oil production

The Nigerian National Petroleum Company Limited (NNPC Ltd) and its partners have revved up crude oil and gas production to 1.8million barrels per day (mbpd) and 7.4standard cubic feet per day (scfd).

The company which announced this at a press briefing said the feat was achieved in compliance with the mandate of President Bola Ahmed Tinubu.

Speaking on the development, the Group Chief Executive Officer, Mr. Mele Kyari, congratulated the Production War Room Team that anchored the production recovery process.

“The team has done a great job in driving this project of not just production recovery but also escalating production to expected levels that are in the short and long terms acceptable to our shareholders based on the mandates that we
have from the President, the Honourable Minister, and the Board,” Kyari explained.

Giving details of the efforts of the Production War Room, the Chief War Room Coordinator and Senior Business Adviser to the Group Chief Executive Officer, Mr. Lawal Musa, disclosed that the feat was achieved through the collaborative efforts of Joint Venture and Production Sharing Contract partners, the Office of the National Security Adviser, as well as government and private security agencies.

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He said the interventions that led to the recovery of production cut across every segment of the production chain with security agencies closely monitoring the pipelines.
He stressed that when the Production War Room team was inaugurated on 25th June 2024, production was at 1.430mbpd, but the team swung into action, culminating into sustaining the production recovery to 1.7mbpd in August and hitting the current 1.808mbpd in November.
“We are confident that with this same momentum and with the active collaboration of all stakeholders, especially on the security front, we can see the possibility of getting to 2mbpd by the end of the year,” he stated.
Also speaking on the development, Chairman of the NNPC Ltd Board of Directors, Chief Pius Akinyelure, who also congratulated the team, said he was happy to be part of the production recovery process, adding: “today, I will leave this place with my heart full of joy”.

He charged the Company’s Management to come up with a cashflow projection based on the new production figures to facilitate planning, stressing that he was looking forward to further production increase to 3mbpd.

On his part, the Honourable Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, expressed satisfaction with the performance of the team and pledged the Federal Government’s support for the company to do more.

 

NNPC achieves 1.8mbpd crude oil production

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Business

FG gets fresh $134m loan from AfDB for agric projects

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10 hours ago

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November 14, 2024

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FG gets fresh $134m loan from AfDB for agric projects

The Federal Government has secured a loan facility of $134million from the African Development Bank (AfDB) to help farmers boost seeds and grain production in the country.

This is contained in a statement issued by Anthonia Eremah, Chief Information Officer, Ministry of Agriculture and Food Security, on Thursday, in Abuja.

Minister of Agriculture and Food Security, Sen. Abubakar Kyari, made his know at the unveiling of the 2024/2025 National Dry Season Farming in Calabar, Cross River State capital.

Kyari explained that with the re-introduction of the national dry season farming to boost year-round agricultural production, the loan would be handy and guarantee national food security in the country.

The minister said the initiative is under the National Agricultural Growth Support Scheme-Agro Pocket (NAGS-AP) Project.

He said the federal government had declared an emergency on food production to enable all Nigerians to get easy access to quality and nutritional food at affordable rates.

Kyari also said government wants to use the agricultural sector for national economic revival through increase in production of some staple food crops such as wheat, rice, maize, sorghum, soybean, and cassava during both dry and wet season farming.

He added that 107,429 wheat farmers were supported under phase 1 of the 2023/2024 dry season, and 43,997 rice farmers under the second phase of the 2023/2024 dry season.

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The minister said recently, government supported 192,095 rice, maize, sorghum/millet, soyabean and cassava farmers under the 2024 wet season across the 37 States including the FCT.

He said Cross River was leading 16 other states in wheat production, adding that over 3000 wheat farmers have been listed to benefit from the support to grow the grain.

Kyari noted the Cross River government’s commitment to wheat production.

He said it informed why the federal government is partnering with the state to kick start the maiden wheat production and enlisting them among states commencing the current 2024/2025 dry season farming.

“The 2024/2025 dry season farming, the project is targeted to support 250,000 wheat farmers across the wheat-producing states with subsidised agricultural inputs.

“This is to cultivate about 250,000 hectares with an expected output of about 750,000 metric tonnes of wheat to be added to the food reserve to reduce dependence on importation of the product and also increase domestic consumption.

“Equally the programme will provide support to 150,000 rice farmers under the second phase to cover all the 37 states, including FCT, with an expected output of about 450,000 metric tonnes,” he said.

 

FG gets fresh $134m loan from AfDB for agric projects

(NAN)

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