Forex Scarcity: Banks Suspend International Transactions On Naira Debit Cards – Newstrends
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Forex Scarcity: Banks Suspend International Transactions On Naira Debit Cards

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Nigerians will not be able to use their Naira debit cards for international transactions as scarcity of foreign exchange (forex)worsens in Africa’s largest economy and biggest oil exporter, Daily Trust learnt.

Some banks have already alerted their customers on the latest development while it was gathered that others are keenly watching activities before implementing the policy owing to the scarcity of forex.

This development is coming a few months after banks in the country reduced the monthly international spending limit on Naira cards to as low as $20. The daily international withdrawal limit has been around $100 for most banks until March when banks cut international spending.

Banks had in 2020 stopped the use of naira cards for ATM foreign currency withdrawals while reviewing monthly international spending using naira cards from $500 to $300 and ultimately to $100.

According to data obtained from the Central Bank of Nigeria (CBN), Nigeria’s external reserves depreciated by $1.37 billion (3.37%) in the first six months of 2022 to $39.16bn as of June 30 from $40.52bn it closed in 2021. This is despite the recent surge in global energy prices

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A further scrutiny of the data also revealed that the external reserves fell to $38.882bn on August 11 from $39.219bn at the end of July 2022.

External reserves are assets held on reserve by CBN in foreign currencies and these reserves are used to back liabilities and influence monetary policy.

In the latest development however, First Bank announced that international transactions will be stopped on all Naira cards from September 30.

“Due to current market realities on foreign exchange, you will no longer be able to use the Naira Mastercard, Naira Credit Card, our Virtual card and Visa Prepaid Naira card for international transactions. This will take effect on 30 September 2022.

Standard Chartered Bank had earlier announced the suspension of international transactions on Naira visa debit cards from August 1.

“Kindly be informed that effective August 1, 2022, International spend on our Naira Visa Debit Card will be suspended. Also, the International spend limit on our Standard Chartered Bank Credit Card however remains at $1,000 monthly and Foreign Currency Debit Card limits remain unchanged,” it had notified its customers in July.

A reliable source in one of the banks that have not implemented the latest policy said ‘it is a matter of time as we are also observing the situation’

Experts expressed worries that banks are reacting to the realities of the market, noting that the CBN has explanations to make on forex scarcity despite its many policies to encourage foreign exchange earnings.

“Are we not exporting at all? Are exporters not repatriating their funds to Nigeria despite CBN policies? Why are we having serious scarcity? The fault is not with the banks, CBN should be able to explain why we are having these challenges,” noted an analyst who does not want his name in print.

Daily Trust

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Updated: Exploded CNG car in Benin illegally converted, used fake parts – NIPCO, PCNGi 

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Updated: Exploded CNG car in Benin illegally converted, used fake parts – NIPCO, PCNGi 

 

The Presidential CNG Initiative has said the car explosion that occurred on Wednesday at a filling station in Benin City, Edo State, was caused by illegal conversion of a petrol vehicle to run on Compressed Natural Gas (CNG).

The management of NIPCO Gas Limited also in a separate statement attributed the explosion at its CNG station in Benin to a fake and substandard CNG cylinder installed in the vehicle.

The newly retrofitted CNG-powered car exploded at the NIPCO filling station, causing panic in the area with many injured people rushed to the hospital.

Video footage circulating on social media shows the aftermath, with the vehicle severely damaged and people in the area rushing to assist the injured.

Comparing the high cost of petrol to cheaper CNG, about 70% is said to be saved running a vehicle on the CNG.

Findings by newstrends also show that conversion from petrol to CNG will cost ₦1.5 million, depending on the engine size.

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PCNGi speaks

Reacting to the incident on Thursday, the Presidential CNG Initiative said on its X page, “The unfortunate incident involved an illegally modified vehicle at a NIPCO CNG Station at Ikpoba Hill in Benin City on Wednesday, October 16, 2024.

“The PCNGi commiserate with those injured in this avoidable incident, and is thankful that no lives were lost.”

NIPCO reacts

In a statement, NIPCO said, “The management of NIPCO Gas Ltd wishes to inform the general public of an incident that occurred at approximately 5:30 p.m. on Wednesday, October 16, 2024, at our Compressed Natural Gas (CNG) station located in Eyean, Benin City, Edo State.

“Our preliminary findings revealed that the explosion happened when a vehicle arrived for CNG refueling.

“Unfortunately, the cylinder installed in the vehicle was later identified as a fake, fabricated, substandard unit not designed for CNG.

“It exploded after being filled with just around 4 SCM of gas.

“The driver of the vehicle fled the scene immediately following the explosion. “While no fatalities were recorded, two individuals sustained injuries — one with a leg injury and another with an eye injury.

“Both victims were rushed to the hospital for medical attention, and one of them is scheduled for surgery at another facility, based on medical advice. Our team is ensuring that they receive the necessary care and treatment.”

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Carloha promotes CNG at NATCO 2024, delights with Arrizo 5 conversion display 

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Carloha promotes CNG at NATCO 2024, delights with Arrizo 5 conversion display 

 

Carloha, assembler of Chery brand of vehicles in Nigeria, has joined a league of prominent auto firms promoting the use of Compressed Natural Gas (CNG) as a sustainable vehicle fuel option in the country.

This was demonstrated by its spectacular display at the just concluded Nigerian Artisans and Technicians Conference (NATCO) held in Lagos where it showcased the Chery Arrizo 5’s CNG conversion capability, a significant step towards more eco-friendly transportation solutions in Nigeria.

The Presidential Compressed Natural Gas Initiative (PCNGi) was launched last year under President Bola Ahmed Tinubu’s directive to ease the impact of fuel subsidy removal on Nigerians by reducing energy costs.

Although the NATCO event organised in collaboration with the Federal Ministry of Industry, Trade and Investment took place a week ago on October 10, 2024, the Chery Arrizo CNG demonstration was found captivating and made a lasting impression on the automobile technicians and artisans in attendance.

It was indeed a major highlight of the event as Arrizo 5 CNG technology shows a combination of Chery’s modern design aesthetics with state-of-the-art technology, making it a stand-out option for eco-conscious consumers.

The vehicle is said to offer impressive fuel efficiency that translates to lower running costs for everyday drivers, with lower carbon emissions, contributing to a cleaner, greener future for Nigeria’s roads.

Carloha’s technical team at the event said the system allows a driver of the vehicle to switch from CNG to petrol and vise versa, giving people flexibility, cost savings, and a lower environmental footprint.

The technicians were impressed with the vehicle’s adaptability and ease of use, receiving practical insights into the CNG system, maintenance tips, and the long-term benefits for Nigerian drivers and mechanics alike.

Aftersales Manager at Carloha Nigeria, Mr. Samson Akinbowale, said, “This demonstration at NATCO is part of Carloha’s commitment to introducing cutting-edge technology and more sustainable energy options to the Nigerian automobile sector.

“We recognise the vital role technicians and artisans play in vehicle maintenance and are committed to empowering them with the knowledge and tools to adapt to this new wave of automotive innovation.”

The Conference convener, Mr. Dayo Bello, expressing appreciating Carloha Nigeria, said, “We are very grateful to all our supporters, especially Carloha, for the Chery display and CNG demonstration.

“We are equally glad to see that great things are beginning to happen in the automotive sectors, especially the assembling of new vehicles and the conversion of CNG interface with petrol engines that will help to save the cost of transportation in Nigeria.”

A statement by Carloha says it is proud to be at the forefront of promoting sustainable driving solutions in Nigeria, and the NATCO Conference was a testament to our ongoing efforts to introduce innovative vehicles that align with global environmental standards.

Carloha is the official dealer of Chery vehicles in Nigeria, offering a wide range of models that cater to diverse customer needs.

It says, “With a focus on innovation and sustainability, Carloha is dedicated to providing Nigerian motorists with cutting-edge automotive solutions, alongside excellent customer service and after-sales support.

“Carloha Nigeria offers a remarkable 6-year warranty/200,000 kilometres, 6-year free service on all Chery vehicles, a flexible auto financing solution with the best price for all vehicles, and 247 services and parts support nationwide.

“This ensures that owners can enjoy their Chery with confidence, knowing they have reliable support and service from Chery for years to come.”

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Naira trades for N1,680/$ in parallel market

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Naira trades for N1,680/$ in parallel market

The Naira, yesterday, appreciated to N1,680 per dollar in the parallel market from N1,690 per dollar last weekend.

Similarly, the Naira appreciated to N1,552.92 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.

Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,552.92 per dollar from N1,641.27 per dollar last weekend, indicating N88.35 appreciation for the Naira.

The volume of dollars traded (turnover) in the official market declined by 44 per cent to $343.71 million from $616.73 million traded last  Friday.

Consequently, the margin between the parallel market and NAFEM rate widened to N127.08 per dollar from N48.73 per dollar last weekend.

 

Naira trades for N1,680/$ in parallel market

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