Naira stages a comeback as dollar crashes at parallel market to N730 – Newstrends
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Naira stages a comeback as dollar crashes at parallel market to N730

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The naira, which has been falling against major currencies in the past two weeks, has staged a comeback, recording gains on the parallel market as it exchanged for about N730 to a dollar on Thursday.

Recall that the Nigerian currency hit an all-time low of about N850 to the US dollar on the black market shortly after the Central Bank of Nigeria (CBN) announced plans to redesign high-value currency notes of N200, N500 and N1,000 and reissued from December 15.

CBN said the affected currency notes will cease to be accepted after January 31, 2023, and asked currency holders to pay their currency notes to the banks before then.

While some have begun paying their hordes of naira notes into banks, many have sought refuge in the dollar, mopping up the dollar bills from Bureaus de Change, to preserve value.

In Lagos, black-market traders attributed the recovery of the naira to its scarcity, saying this was responsible for the inability of speculators buying dollars to offer higher rates for the green back.

“There is no naira in the system,” one currency dealer told Daily Trust in Central Lagos District, the heart of the financial market.

He said the dollar had risen to N730, but said if a seller wants naira to be paid into his bank account, it would be done at a lower rate of N700. In Port Harcourt, a dealer priced the dollar at N700 but demanded N720 to sell dollars to buyers.

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In Abuja around the Zone 4 area, some BDCs recalled the drop in patronage of the dollar over varying accounts of information.

According to Umaru Abu, “People are scared that with recent information that the US is rejecting the $100 bill, buying the dollar could be a risk, but we have now heard from CBN officials that it is not true.

“Some of my colleagues said maybe people are buying more assets due to the CBN naira redesign policy and are cutting down spending in dollars. But we have observed some drop in patronage since Tuesday evening,” he noted.

In the meantime, the Institute of Chartered Accountants of Nigeria (ICAN) is worried about the pressure the naira is facing from the US dollar.

A dollar exchanged for about N780 to N820 in the parallel market earlier, far above the around N450/$ official rate, due to insufficient supply, which has implications on inflation and the sourcing of raw materials and services.

ICAN president, Mallam Tijjani Isa, stated this on Thursday in Lagos during a briefing to commemorate the International Accounting Day 2022.

“As a nation, we must find a permanent solution to the forex crisis if we are to develop at the desired pace,” he said.

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The president in the company of the Chairman, Body of Past Presidents of the Institute, Dr Sir Ike Nwokolo, led other members to embark on a health walk among other activities to commemorate the International Accounting Day 2022.

Naira gain may be short-lived – AZA

While the latest firming of the naira against the dollar could be good to tame the rising inflation, analysts say the recovery by the local currency is unlikely to be sustainable, noting the flight into the dollar will resume.

“While Nigerian bureau de change operators have confirmed reduced demand at current parallel market levels, we expect dollar appetite to pick up again in the coming days and the naira to resume its recent slide,” AZA Finance wrote in a note to clients on Thursday.

The CBN has set limits to acceptable amounts of cash deposits into accounts, warning that it would monitor such transactions in conjunction with the Economic and Financial Crimes Commission.

Since then, the EFCC has raided the offices of bureau de change operators and black-market currency traders in Abuja, Lagos, and other towns.

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Appeal court takes over NURTW case as NIC withdraws

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Appeal court takes over NURTW case as NIC withdraws

The National Industrial Court has withdrawn from a case involving Alhaji Najeem Usman Yasin, Board of Trustees chairman of the National Union of Road Transport Workers (NURTW), and Alhaji Tajudeen Ibikunle Baruwa’s ambition to return as president of the union over lack of jurisdiction.

The industrial court’s decision was made to avoid conflict with the Court of Appeal, where the matter is already being heard.

Before the NIC announced its decision to hands-off the case, the defendants’ counsel, Mr. O.I. Olorundare SAN, had informed the court that the matter is currently before the Court of Appeal, Abuja division, and that the industrial court could not continue to adjudicate on the same matter.

The counsel cited authorities to support his claim, adding that the National Industrial Court does not have concurrent jurisdiction with the Court of Appeal.

The presiding judge, O.O. Oyewunmi, struck out the case, stating that the Appeal Court had taken over the matter and that the Industrial Court must respect the hierarchy of courts.

Alhaji Yasin and six others took the case to the Appeal Court, challenging the decision of the industrial court recognising a delegates’ conference held on May 24, 2023, where Baruwa was proclaimed as President of the union for a second term in office.

With the latest NIC judgement, both parties will now proceed to defend their positions at the Court of Appeal and await the final judgement.

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Multichoice shuns court order, proceeds with increase of DSTV, Gotv packages

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Multichoice shuns court order, proceeds with increase of DSTV, Gotv packages

Despite the intervention of the CCPT, Multichoice Limited has proceeded to increase packages price for DSTV and GOTV as announce on Wednesday last week.

Newstrends had earlier reported that the corporation announced that the new rates will go into effect on Wednesday, May 1, 2024, in a statement.

Meanwhile, on Monday, MultiChoice Nigeria Limited was ordered by the Competition and Consumer Protection Tribunal (CCPT) in Abuja to suspend the planned prices and tariffs hike on packages and services.

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The three-member tribunal, presided over by Saratu Shafii, gave the interim order following an ex-parte motion moved by Ejiro Awaritoma, counsel for the applicant, Festus Onifade.

News prices includes: DStv, Premium bouquet, the price moved from N29,500 to N37,000; Compact+ from N19,800 to N25,000; Compact from N12,500 to N15,700; Confam from N7,400 to N9,300, among others.

For GOtv users, Supa+ increased from N12,500 to N15,700; Supa moved from N7,600 to N9,600; Max from N5,700 to N7,200; Jolli, from N3,950 to N4,850, among others.

Multichoice shuns court order, proceeds with increase of DSTV, Gotv packages

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As controversy over Maersk-FG port investment rages, Onanuga says no $600m deal signed

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As controversy over Maersk-FG port investment rages, Onanuga says no $600m deal signed


The Nigerian government and a shipping giant, Maersk, have not signed any investment agreement, Bayo Onanuga, special adviser on information and strategy to President Bola Tinubu, has said.
Onanuga was reacting to the controversy surrounding the reported sealing of a $600 million deal for the development of the nation’s seaports.
He said there was only talk “of possible investment in Nigeria” by Maersk.
Interestingly Onanuga had hinted about the deal in a tweet said to have been pulled down after the social media backlash.
After President Tinubu’s discussion with Maersk’s Chairman Robert Uggla on April 28, on the sidelines of the World Economic Forum Special Meeting in Riyadh, Saudi Arabia, the presidency had released a statement announcing that the shipping company had pledged to inject $600 million into the Nigerian seaport industry.
“Danish shipping company, A.P Moller-Maersk plans $600m investment in Nigeria. Danish shipping and logistics company A.P Moller-Maersk has disclosed a planned investment of $600 million in Nigeria to accommodate more container shipping services in Nigerian ports,” Onanuga wrote on X.
In a statement, Tinubu’s spokesperson, Ajuri Ngelale, also said “President Tinubu meets Chairman of Danish shipping giant Maersk, secures $600 million investment in Nigerian seaport infrastructure.” He quoted Uggla as saying, “We believe in Nigeria, and we will invest $600m in existing facilities and make the ports accommodating for bigger ships.”
In response to this. Maersk officials have denied any such agreement and stress no deals have been signed.
Onanuga in a new report by TheCable, an online news platform admitted no agreement on investment had been reached by the two parties.
“I think the statement issued by Maersk did not talk about a deal. There was no deal according to that statement that I read.
“However, there was talk of investment,” the special adviser said.
“No document or agreement was signed, so there was no deal. But there was talk of a possible investment in the country.
“So, go and read the statement again. They never said any deal was signed between the Nigerian government and the Dutch company. There was nothing like that.”
Onanuga however said the shipping company did not expressly deny that there was an investment talk.
He said people are “unnecessarily giddy over nothing.

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