Naira becomes worst performing currency in one month – Report

As outlined in a recent Bloomberg report, the

The Nigerian currency, naira, has experienced a significant downturn, moving from being the best performing to the worst performing in the last one month.

This contrasts with its commendable performance in the previous month, placing added pressure on the Central Bank of Nigeria (CBN) to consider further interest rate adjustments.

The naira’s depreciation to 1,466.31 against the dollar, its weakest level since March 20, is primarily attributed to the scarcity of US currency in the local market, with only $84 million available on Thursday, representing half of the previous day’s supply.

CBN Governor Yemi Cardoso had previously lauded the Naira as the world’s best-performing currency as of April 2024. However, challenges arose in March, with the Naira plummeting to N1,600/$1 on the official market and N1,800/$1 on the parallel market.

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Cardoso attributed this achievement to foreign exchange market reforms and positive sentiment from leading international investment institutions. Nonetheless, Razia Khan, Chief Economist for Africa and the Middle East at Standard Chartered, estimates that the maturity of $1.3 billion in Naira futures by the end of this month may increase demand for dollars, impacting market sentiment.

This decline in the naira’s performance is anticipated to escalate pressure on the CBN to implement another rate hike following its upcoming policy meeting on May 21.

The CBN had raised rates by 600 basis points in February and March, aiding the Naira’s rebound from its March low.

The weakening of the naira extends to the unofficial market, where it depreciated by 0.9% to 1,468 Naira against the dollar on Friday. According to Abubakar Muhammed, CEO of Forward Marketing Bureau de Change Ltd, this decline is attributed to heightened demand from individuals and small businesses.

Interestingly, two other African currencies, the Zambian kwacha and Ghana’s cedi, rank among the four worst-performing currencies in the last month. The Zambian kwacha reached a record low against the dollar on Friday, while Ghana’s cedi weakened to its lowest level since 2022, reflecting ongoing debt restructuring processes in both countries.

Naira becomes worst performing currency in one month – Report

10th Transport Day event to focus on safety issues

Transport industry experts and other stakeholders from both public and private sectors will x-ray safety issues across all modes of transportation at the 10th edition of the Nigeria Transport Lecture holding in Lagos on May 23, 2024.

The event fixed for Radisson Blu Hotel, Ikeja GRA, Lagos, according to a statement by Transport Day Media, will hold under the theme ‘Transportation Safety in Nigeria: The Way Forward’.

Those expected at the lecture are key industry players such as the Federal Road Safety Corps (FRSC), the Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Shippers’ Council, and the Nigeria Safety Investigation Bureau (NSIB).

The Editor-in-Chief of Transport Day Media, Mr. Frank Kintum, said the topic had become relevant in contemporary times because many lives and property were being lost to lack of adherence to safety measures in all modes of transportation.

He said, “Irrespective of the level of infrastructural development in the transportation sector, if safety is not promoted, we are going to continue to record loss of lives and valuable property.

“Hence, the lecture is meant to address pertinent issues concerning the industry as it concerns our local Nigerian setting.

“Aside from the lecture, we are also going to use the opportunity to recognise some players, both public and private sectors, who have significantly contributed to the growth of the sector and the economy in general.”

BKG holds all-inclusive Lagos Motor Fair, auto parts expose June 4-6

BKG Exhibitions Limited, organizers of annual Lagos International Motor Fair & Africa Autoparts Expo, has announced this year’s edition will be all-inclusive and billed to hold from June 4 to June 6.
It said in a statement that the event incorporating the Africa Motorcycle and Tricycle Expo aimed at reinforcing focus on attaining a thriving automotive industry in West Africa using Nigeria as the hub.
According to the BKG Managing Director, Mr Ifeanyi Agwu, apart from exhibition of automobiles (18th edition) and auto spare parts (11th), there will be Business-to-Business interface between auto dealers and Original Equipment Manufacturers (OEMs), seminars and workshops with closing of deals.
Even as he urged the Federal Government to focus on auto parts manufacturing, the BKG boss said over 100 original components manufacturers from China, India, South Korea, South Africa, Singapore, Turkey and Nigeria, including major automobile distributing/manufacturing companies in Nigeria would be showcasing at the event.
“Our intention in bringing them is to enable Nigerians and neighbouring West Africans engaged in automobile, spare parts, accessories, and allied businesses to work out rewarding and lasting business relationships with the main companies engaged in manufacturing these products and services.
“Nigeria is endowed with natural as well as man-made resources to become one of the most vibrant automotive industry giant in the world” and as such we in partnership with other well minded players will always deploy all we can to see that the country attains this height sooner than expected.
“This informs our resolve to use our events despite the challenges which keep increasing to support the rapid growth of the industry.
Agwu, who is also the chairman of the event’s organizing committee, also said, “We have been using the events over the years to drive more investment into automobile spare parts and accessories manufacturing in Nigeria as well as boosting aftermarket activities in the sector with the objective of showcasing the capacities and potential of this important sector of the economy.”

The event, he stressed, aimed at spurring the rapid springing up of companies that manufacture these components parts and use it to enhance the policy leading to the establishment of a virile automotive sector in the country.
He advised the Federal Government to focus more on spare parts manufacturing in place of assembling. According to him, spare parts is the place where the real technology transfer takes place.

Specifically, Agwu noted that this involves precision and proper planning more than the coupling that takes place in assembling.
This, he added , would give rise to establishing of more Original Equipment Manufacturers and increase employment”.
He said that there should be a review of the ongoing auto policy to make it achieve the desired ends.
Agwu stated, “Organizing the event has been very challenging we are only trying to find a way to push it as a key event in the sector we cannot but use the event to draw the necessary attention to the sector.
“Government should bail out the automobile companies operating in the country.
“It is a sector that affects virtually everything. It occupies prime position in the economy.
“If it is not done now it will in the very near future affect a whole lot in the life of the people and the economy.
“The challenges of hosting this event is becoming daunting but our drive in continuing is that the sector must not be allowed to die.
“In conjunction with our foreign partners, we have reached out to many of such companies, and happily, the response has been tremendous and we are expecting close a lot of them.
The statement said from June 4-7, 2024 at the Federal Palace Hotel, Victoria Island, Lagos, the venue of the event, each of those days that the fair will last is loaded with activities and events that will make this edition remarkably rewarding to the exhibitors, visitors, and other stakeholders.