Business

Despite Emefiele’s claim of N1tn in circulation, Nigerians continue experiencing scarcity

Published

2 years ago

March 22, 2023

DESPITE a claim by Central Bank of Nigeria (CBN) Governor Godwin Emefiele that the apex bank has pushed nearly N1 trillion into circulation, Nigerians continue experience scarcity.

Many branches of the Deposit Money Banks (DMBs) complain of inadequate allocation of cash from the CBN on daily basis.

Emefiele told reporters after the end of the Monetary Policy Committee (MPC) meeting at the CBN headquarters in Abuja yesterday that the apex bank has pumped more cash into circulation.

Fielding questions on the outcome of the MPC meeting, Emefiele said on the Naira redesign policy and where things stand now, the “currency in circulation is roughly close to a N1 trillion and the CBN continues to pump the newly designed currency into the market.”

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Speaking on cash flow since the March 3 Supreme Court judgment, Emefiele said: The CBN will need to re-access again to know whether the currency in circulation has attained an optimal level so as to be able to put in place measures that will ensure that we don’t go back to what we had before, where people were keeping a lot of money outside the banking system for their own benefit.

“The MPC has noted that the naira redesign and cash withdrawal limit policies have resulted in a sizeable reduction in Currency-Outside-Banks, indicating an expected improvement in the potency of monetary policy tools.”

The CBN governor praised Fintech operators, whom he said “used their idle capacity to boost their online payment,” adding “they have made a lot of money from that.”

He said the “online payment on the Intech sector has actually improved quite a lot and we are happy that rather than relying on just only the banks, we have many other channels through which online payment services can be done so that Nigerians don’t suffer because we are in insisting that we have to go cashless.”

He apologised to Nigerians for the pains they go through while trying to carry out electronic transactions across several bank channels.

But notwithstanding Emefiele’s claim that more cash had been pumped into circulation, businesses, consumers and banks customers have demanded immediate end to the ongoing naira scarcity.

As far as they are concerned, the impact of the cash injected by the CBN is yet to be felt in the banking system.

According to small business operators, the cash crunch has limited their transaction volume and ability to meet the financial needs both to their customers and families.

Mary Okon, a Lagos-based entrepreneur said the cash crunch has reduced her volume of sales.

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She said: “Before now, I made at least N35, 000 daily sales. Today, recording N10, 000 daily sales has become a big challenge. I plead with the CBN to release more cash to the economy.”

Although banks continued the payment of both old and new naira notes to customers, the volume of the notes in circulation has not met the demand for cash.

Many banks within the Lagos metropolis did not dispense cash to their customers either over the counter (OTC) or through the Automated Teller Machines (ATMs).

“There were long queues of bank customers at most ATM points that had some cash to dispense. One bank branch in Marina Lagos, could only dispense N10,000 to customers with the bank’s ATM card. Customers of other banks got N5,000,” a customer narrated.

In Abeokuta, the Ogun State capital, agonies of residents arising from the persisting cash crunch worsened yesterday.

Banks in the Gateway City ran out of cash – both the new and old naira notes of 200, 500 and 1,000 denominations.

At Omida, Lalulu Street (Okelewo), Panseke, Jide Jones, Sapon, Ita – Eko, Kuto and the Old Secretariat area, investigation showed that they only opened to their surging customers to lodge complaints over truncated transactions and debit issues that occurred since the redesigned new naira notes policy took effect.

Those who came for cash withdrawals returned home with disappointments. There were neither OTC payments, nor from the ATMs.

The few ATM points that were dispensing cash stopped at 11am. A security guard in one of the banks cited mechanical faults and cash shortage as reasons.

Related Topics:Emefiele Featured Naira Nigerians

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Railway

Lagos Rail Mass Transit part of FG free train ride – NRC

Published

1 day ago

December 21, 2024

Trends Admin

Lagos Rail Mass Transit part of FG free train ride – NRC

The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.

The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).

This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.

While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.

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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.

“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.

Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.

He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.

Lagos Rail Mass Transit part of FG free train ride – NRC

Business

NNPC denies claim of Port Harcourt refinery shutdown

Published

1 day ago

December 21, 2024

Trends Admin

Port Harcourt refinery

NNPC denies claim of Port Harcourt refinery shutdown

The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.

The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.

Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.

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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.

“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”

He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”

NNPC denies claim of Port Harcourt refinery shutdown

Business

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

Published

2 days ago

December 20, 2024

Trends Admin

CBN Governor, Olayemi Cardoso

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).

This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.

The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.

The arrangement will be in effect from December 19, 2024, to January 30, 2025.

Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.

Transactions to occur at the prevailing NFEM rate

The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.

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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.

The circular read in part:

“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).

This window will be open between December 19, 2024 to January 30, 2025.

“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”

The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”

These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.

This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.