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How Can We Save The Naira From Hitting 1,000 Per Dollar?

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By Mayowa Tijani

In the past few weeks, I have written extensively about the naira and Nigeria’s foreign exchange regime. As a result, I have got quite a lot of feedback from virtually all strata of society.

Through it all, one thing has remained constant: How can we save the naira from hitting 1,000 per dollar?

As of September 27, 2021, the naira had touched another low of 580 per dollar at the parallel market. That is a fine of N420 from N1,000. But in these conversations on and off social media, Nigerians are quick to say, “the naira will soon hit 1,000 per dollar”. Sadly, history teaches these conversations may be exaggerated, but they are not totally out of line.

In an interview with Punch, Taiwo Oyedele, Fiscal Policy Partner at PwC, was asked if Nigeria should redenominate the naira by removing a few zeros to make the naira seem strong. He said no, that the Ghana plan doesn’t take the problem away. He argued that even if the naira exchanged at 1,000 per dollar, that may not be as big a problem as we think. He said the stability of the naira is all that matters, and for that to happen, the currency has to be supported by fundamentals.

His example was apt. He said the British pound is worth more than the US dollar, but this does not mean the British economy is stronger or bigger than the American economy. Might I add that the Nigeria naira is 411 to the US dollar (at the banks), while the South Korean won is 1,177 to the dollar. That does not make the Nigerian economy stronger than the South Korean economy. In fact, its GDP is three times that of Nigeria.

However, for the peace of Nigeria and all those who love her, it would be good not to go beyond N500 per dollar. But how do we do that?

CAN DANGOTE SAVE THE NAIRA?

One of the things we established from my most recent article on the subject is that we have a demand and supply problem. There is more need for dollars than the actual amount of dollars Nigeria has. Simple economics teaches that when demand is higher than supply, price tends to go up. So our solution lies in simply reducing demand or increasing supply.

Let’s assume we can’t increase supply just yet. Can we reduce demand?

The biggest demand for forex in Nigeria is from petroleum products. As far back as 2016, Nigeria spent about $18 million on fuel importation per day. That translates to almost $6.6 billion per year. This correlates with CBN figures which showed that $36.3 billion was spent importing fuel in five years.

If we suddenly do not have to import fuel, that saves us huge dollar reserves that can help stabilise the naira. If Dangote refinery comes online, we can save that cost. However, I understand that Dangote Refinery’s presence in a free trade zone may mean it would also demand to be paid in dollars for refined crude. But the CBN and Dangote can definitely settle that amicably. But how soon is Dangote refinery coming?

FOREIGN INVESTMENTS TO THE RESCUE

After my article asking if CBN can close the forex gap, a respected friend and colleague reached out to make some observations. His central point was that the 2017 miracle that moved the naira from 520 per dollar to 360 was not just because CBN tweaked its FX policy, but because of an increase in FX inflow. He noted that the problem should be fixed from the supply side.

“A quick finding revealed that external reserves surged by about $5bn in the first five months of the year [2017] from $25.8bn in December 2016 to $30.3bn in May 2017. Interestingly, that was not driven by crude oil as many would have expected. The prices of the commodity hovered around $35 per barrel,” he said.
He’s right. Adding firepower to Godwin Emefiele’s currency gun at CBN can sure help the naira. We desperately need foreign investments — especially non-oil investments. The only time in recent history that the naira was stronger at the parallel market than the banks was in April 2015, and it was a result of heavy investment inflow into Nigeria.

According to data from the National Bureau of Statistics (NBS), foreign investment in Nigeria has been epileptic in the last six years. If we must save the naira, we must fix the supply side driven by investments.

TRUST IN CBN AND THE SYSTEM

Sometimes, getting investors to come in is not the actual problem. Getting them to stay is the big elephant. One of the challenges with the FX system in 2016 was investors’ inability to repatriate their investment. To get dollars to take out was extremely difficult until the CBN introduced the I&E window, which helped tremendously.

Every investor I have met has three major concerns: rule of law, policy stability, and ability to repatriate profit.

Rule of law is beyond CBN, but a lot of the rest rests on the apex bank. Policy stability is important for investors to stay. Many don’t stay because the policies — monetary and fiscal — change. Consistency in policy would do good to the inflow and stability of forex into Nigeria, thus saving the naira.

PROFITING FROM ‘JAPA’

Hear me out. This weekend on social media, it felt like half of Nigeria was leaving the country to the UK, US, Canada, and the rest of Europe. And that should be a good thing, but it’s not entirely so. The Nigerian government in words and action has attempted to criminalise talent export. Annually, Nigeria loses thousands of doctors, software developers, academics, nurses, and maybe truck drivers soon. But rather than think of ways to make some structured forex from it, we fight it.

As Ibukun Awosika noted in 2019, Nigeria can deliberately train experts for export. We lose assets anyway, but what if the nation didn’t take them as enemies of Nigeria, but work with them as allies? Forex win-win.

A suite of demand and supply policies in the short, medium, and long term can definitely save the naira from the scary 1000/$1.

You can reach ‘Mayowa on Twitter @OluwamayowaTJ

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Dollar To Naira Exchange Rate Today 19 October 2021 (Black Market Rate)

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Dollar to Naira exchange rate today 19 October 2021, black market rate can be accessed below.

JomogNews Nigeria has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

How Much Is Dollar To Naira Exchange Rate Today Official Rate?

October 19 dollar to naira official exchange rate: $1 dollar to naira = Not published due to Eid-el Maulud celebration

The exchange rate between the Naira and the US dollar according to the data posted on the FMDQ Security Exchange where forex is officially traded showed that the naira opened at N….. per dollar on Tuesday, 19 October 2021, after it closed at N414.73 per $1 on Monday, 18 October 2021. This represents a change of -0.08%.

How much is exchange rate of Dollar to Naira in Black Market today?

The Nigeria parallel market (black market dollar exchange rate today) to the Nigerian Naira is as follows: For the Lagos market (black market).

LAGOS PARALLEL MARKET RATES October 19, 2021 (BLACK MARKET): dollar to naira exchange rate today black market

October 19 dollar to naira black market exchange rate: $1 dollar to naira = N570

The local currency opened at N570.00 per $1 at the parallel market otherwise known as the black market, today, Tuesday, 19 October 2021, in Lagos Nigeria after it closed N572.00 per $1 on Monday, 18 October 2021. This represents a change of $2 from the previous day. This means dollar to naira changed its position from the previous day.

Note: dollar to naira exchange rate has stabilized at N570-575 per $1 since Monday, October 11.

Even though the dollar to naira opened in the parallel market at ₦570 per $1 today, JomogNews Nigeria reports that the Central Bank of Nigeria (CBN) does not recognise the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.

JomogNews Nigeria reports that the black market, the players buy a dollar for N560 and sell for N570 on Tuesday morning, October 19, 2021 after they bought N568 and sold N572 the previous day. This means dollar to naira changed its position from the previous day.

Meanwhile, JomogNews Nigeria reports that the USD started this week at ₦572 in Parallel Market also known as Black Market on Monday, October 18, 2021 in Lagos Nigeria after it opened N575 last week Monday, October 11, 2021.

Disclaimer: JOMOGNEWS NIGERIA does not set or determine forex rates. The official NAFEX rates are obtained from the website of the FMDQOTC. Parallel market rates (black market rates) are obtained from various sources including online media outlets. The rates you buy or sell forex may be different from what is captured in this article.

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Heritage Bank blazes the trail by winning multiple awards

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Heritage Bank blazes the trail by winning multiple awards

Heritage Bank Plc, Nigeria’s Most Innovative Banking Service provider emerged winner in several categories at the 2021 Human Resource (HR) People Magazine Awards and at the Finance Correspondents Association of Nigeria’s (FICAN) 30th-Anniversary Conference and Awards.

The bank carted away five coveted awards- HR Champion Award (for MD/CEO, COO), Most Outstanding Engagement Strategy for over 1000 Employees and the HR Leader Award (for Heads of HR).

Others which were awarded by the largest body of financial journalists in Africa, FICAN to Heritage Bank are the duo Platinum Awards presented to the MD/CEO, Ifie Sekibo and Heritage Bank for Outstanding Support towards FICAN and Financial Reporting, respectively.

The bank won the prestigious awards in recognition of the leadership of Heritage Bank in Human Capital Development (HCM) for putting employees first and ensuring that its people management & engagement strategies are second to none, and in celebration of its MD/CEO, Sekibo’s leadership style. The bank was also recognised for Outstanding Support towards Financial Reporting in Nigeria.

This was Heritage Bank’s first time in participating in such an event as HR practitioners, as the financial institution had the opportunity to enter for 3 award categories.

Over 20 established brands from different industry sectors were also said to have participated in the several keenly contested award categories, which cut across various areas of people management and development. Despite the formidable competition and the very rigorous screening process, Heritage Bank emerged as winner in the series of awards won.

Commenting on the awards, the Divisional Head, Human Capital Management, Abike Wesey expressed gratitude to the organisers for believing in Heritage Bank and the leadership of the bank for their support to employees’ welfare.

“We are ecstatic to have received this honour and are extremely grateful for leadership of Executive Management, for giving us wings to fly right in our corner and always willing to listen. It was indeed a remarkable moment for us, as we strutted up the dais, with heads held up high and proud, amidst the cheer & accolades from the HR community, well represented at the event; especially in an event of such calibre, being recognized in a gathering of doyens & captains of Industries for our exceptional accomplishments in a widely acclaimed, challenging year – it was definitely no small feat,” Wesey said.

According to her, “The award and commendations go a long way to show that our people management & engagement strategies are truly working, and we are committed to do more in our world to keep the Heritage flag flying. We identify with our Heritage, because, winning is our heritage.”

The HR Awards is very unique because of its process and organisation. The organisers are usually not aware of the winners till the day of the event, same time the results are revealed per category and award submissions are made on a peculiar website – comparable to none in West Africa.  The judges are respected & prominent former heads of HR, selected from five different countries and from various industries, with cutting-edge experience who judge the contestants on global best practices. //END.//

Ozena Utulu, Ag. Group Head, Corporate Communications

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Dollar To Naira Exchange Rate Today 18 October 2021 (Black Market Rate)

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Dollar to Naira exchange rate today 18 October 2021, black market rate can be accessed below.

JomogNews Nigeria has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

How Much Is Dollar To Naira Exchange Rate Today Official Rate?

October 18 dollar to naira official exchange rate: $1 dollar to naira = N414.46

The exchange rate between the Naira and the US dollar according to the data posted on the FMDQ Security Exchange where forex is officially traded showed that the naira opened at N414.46 per dollar on Monday, 18 October 2021, after it closed at N414.40 per $1 on Friday, 15 October 2021. This represents a change of -0.15%.

How much is exchange rate of Dollar to Naira in Black Market today?

The Nigeria parallel market (black market dollar exchange rate today) to the Nigerian Naira is as follows: For the Lagos market (black market).

LAGOS PARALLEL MARKET RATES October 18, 2021 (BLACK MARKET): dollar to naira exchange rate today black market

October 18 dollar to naira black market exchange rate: $1 dollar to naira = N572

Lagos parallel market (black market dollar exchange rate today)

The local currency opened at N572.00 per $1 at the parallel market otherwise known as the black market, today, Monday, 18 October 2021, in Lagos Nigeria after it closed N571.00 per $1 on Friday, 15 October 2021. This represents a change of $1 from last Friday. This means dollar to naira changed its position from last week.

Note: dollar to naira exchange rate has stabilized at N570-575 per $1 since Monday, October 11.

Even though the dollar to naira opened in the parallel market at ₦572 per $1 today, JomogNews Nigeria reports that the Central Bank of Nigeria (CBN) does not recognise the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.

JomogNews Nigeria reports that the black market, the players buy a dollar for N568 and sell for N572 on Monday morning, October 18, 2021 after they bought N567 and sold N572 last Friday. This means dollar to naira changed its position from last week.

Meanwhile, JomogNews Nigeria reports that the USD started this week at ₦572 in Parallel Market also known as Black Market on Monday, October 18, 2021 in Lagos Nigeria. after it opened N575 last week Monday, October 11, 2021.

Disclaimer: JOMOGNEWSNIGERIA does not set or determine forex rates. The official NAFEX rates are obtained from the website of the FMDQOTC. Parallel market rates (black market rates) are obtained from various sources including online media outlets. The rates you buy or sell forex may be different from what is captured in this article.

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