President Bola Ahmed Tinubu, yesterday, responded to calls for a review of the current economic reforms that have intensified hardship across the country, insisting that there was no going back until his vision for the nation was achieved.Tinubu, who said his “can-do-attitude must be translated into “must-do-attitude”, stressed that his administration remained steadfast in implementing necessary economic reforms to facilitate business growth and create investment opportunities that support the nation’s growing population.
This was as the beleaguered naira experienced significant gain against the US dollar in the parallel market yesterday, soaring to N1,700 following major government clampdown on cryto trading platforms such as Binance and others, where manipulative tactic known as spoofing pose major threat to the value of the local currency.
This involves individuals or groups placing large buy or sell orders on the platform without intending to execute them.This creates a false illusion of high demand or abundance, influencing others to buy or sell at manipulated prices.The deceptive practice, often used in conjunction with pump-and-dump schemes,But the Chief Executive, Financial Derivatives Company Limited, Mr. Bismarck Rewane, has criticised the ongoing crackdown on Bureau de Change (BDC) operators by law enforcement agents to arrest further naira depreciation, saying it still would not provide the much-sought solution.However, Tinubu’s response
came about 72 hours after Nigeria Employers’ Consultative Association (NECA) advised the federal government to review its floating foreign exchange regime to save the country from monetary collapse.Also, the Manufacturers Association of Nigeria (MAN) cried out over the fate of the naira, saying for Nigeria to boost its production base, priority FX allocation must be given to the sector.Director-General of MAN, Segun Ajayi-Kadir, who made the assertion Wednesday said a 60 per cent increase in customs duty in the last three weeks was unsustainable.
He revealed that less than 20 per cent of FX requirement was available in the banks, and that most manufacturers got their FX requirements from the black market.But speaking while receiving a delegation from the Corporate Council on Africa (CCA) led by its President and Chief Executive Officer, Florizelle Liser in Abuja, the president reiterated his unwavering commitment to Nigeria’s economic growth and stability, emphasising that he was not relenting until his vision for Nigeria was achieved.Tinubu commended
the recent landing of a 45,000-kilometre submarine fibre optic cable in Akwa Ibom State, which established connectivity for the entire South-south region of Nigeria with Europe, and other parts of Africa via the Atlantic Ocean.Highlighting the significance of the feat, the President noted that with the right policies, partnerships, and determination, Nigeria could overcome long-standing development challenges that have encumbered rapid progress across sectors.
Drawing on his extensive experience in corporate governance and interactions with CCA during his tenure as the two-term governor of Lagos State, Tinubu expressed satisfaction with the corporate council’s dedication to fostering business connections between the United States of America and Africa.“I am happy that the council is interested in various segments of Nigeria’s economy. We are right in the middle of a challenging stage of our reforms. We have headwinds, no doubt, but we are not going back.”We are challenged, and we believe we will overcome the challenges. I have a can-do
attitude that must be translated into a must-do attitude. We have a good team, and we must remain focused to get the goal accomplished,” Tinubu stated.The president reaffirmed his commitment to creating an enabling environment for business to thrive, emphasising that his administration’s focus on investing in key sectors, such as agriculture, solid minerals, energy and health was unshaken.
He also listed physical infrastructure, trade promotion, financial services, digital enterprise, and the creative economy as underpinned by the need to ensure the welfare and prosperity of citizens, as some of his priorities.”We are going to do more on security and investing in education, as we believe that education is the greatest weapon against poverty. We welcome partners like CCA, and we will strengthen our partnership to achieve our goals,” he said.Earlier, Liser expressed CCA’s commitment to supporting Nigeria’s economic growth through the eight priority areas outlined by Tinubu’s administration.She invited Tinubu to consider participating in CCA’s US-Africa Business Summit in May in Dallas, Texas, and urged him to see CCA as a partner in enhancing USA-Nigeria trade, business, and investment.
Meanwhile, in a surprising turn of events, the the naira experienced significant gain against the US dollar in the parallel market yesterday , soaring to N1,700.This surge followed the apprehension in the parallel market operators across the country.In contrast, the official exchange rate at the Nigerian Autonomous Foreign Exchange (NAFEM) depicted a different story, with the naira depreciating to N1,571.31/$1, marking a loss of N28.73 compared to its Wednesday closing rate of N1,542.58/$1.The parallel market also saw the naira witness a substantial gain to N1,700, adding N220 in one day
to N1,700, adding N220 in one day compared to N1,920/$1 it exchanged on Wednesday. Notably, yesterday recorded a daily turnover of $192.25 million an increase of 11.68 per cent compared to $172.14 million recorded the previous day.The highest spot rate recorded yesterday was N1,851 while the lowest spot rate recorded on the he day was N1,300.
Crackdown on BDCs’ Not Solution
The Chief Executive, Financial Derivatives Company Limited, Mr. Bismarck Rewane, has criticised the ongoing crackdown on Bureau de Change (BDC) operators by law enforcement agents to arrest further Naira depreciation.Speaking on Channels Television’s Business Morning show, he said, the raid would be counterproductive as government make the situation worse by the action.“This doesn’t happen in other countries, raiding market and all. You are only making it more difficult because there is what we call illicit premium in a currency.“You leave them do what they want, a speculator can make money and a speculator definitely will lose money.”Rewane urged the
government to “Allow things settle down and the true value of the currency will emerge.
“All these is what I call misguided enthusiasm of law enforcement agents is chasing shadows and is going to be counterproductive.”He said that the market would be brought under control when the government intervenes by supplying enough dollars into the market.He said, “Let the market settle and when you have enough supply intervene. If the central bank wakes up today and says we are going to intervene with $500 million, all the bureau de change will run into the bush because nobody will patronise them.”He said raiding BDC operators was not the solution to the forex crisis, and wondered what offence they have committed to warrant the raid.“What is the offence that they have committed in the first place? I heard something like naira racketeering, mutilation of notes and all that, is that the problem?“And I heard the BDC man saying that we will ensure that the rate will come down, were they the ones that ensured the rate went up in the first place?“Market works when the supply is in excess of demand. The value of that currency appreciates. When the demand is in excess of supply, the currency depreciates.”
Ironically, the Association of Bureau De Change Operators of Nigeria (ABCON), recently backed the current raid on FX traders whom it claimed were street traders without offices – and not licensed by the Central Bank of Nigeria (CBN) to operate.ABCON President, Mr. Aminu Gwadabe, emphasised that ABCON remained a lawful and regulated entity and would not engage in street activities.
He revealed that the association had concluded plans to automate FX trading activities within three weeks, adding that it was currently awaiting a “No Objection” certificate from the CBN to kick-off.
He said the move would revolutionise the entire retail exchange market, adding that the association was opposed to any form of street trading and “we support any actions that will remove street trading.”
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