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CBN Clears Valid FX Transactions, Eliminates $7bn Legacy Backlog

The Central Bank of Nigeria has announced that all valid foreign exchange backlogs have now been settled, fulfilling a key pledge of the CBN Governor, Mr Olayemi Cardoso, to process an inherited backlog of $7bn in claims.

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The Central Bank of Nigeria has announced that it has successfully cleared all valid foreign exchange backlogs, effectively eliminating a legacy burden.

This accomplishment fulfils a commitment made by CBN Governor, Mr Olayemi Cardoso, who vowed to address an inherited backlog of $7bn in claims.

The announcement was made by the bank’s Acting Director of Corporate Communications, Mrs Sidi Ali, in a statement made available to journalists on Wednesday.

The CBN followed this month by reporting a significant increase in external reserves, rising by $993m to $34.11bn as of March 7, 2024, the highest level in eight months.

The month-on-month increase was driven by a marked advance in remittance payments by Nigerians overseas, as well as higher purchases of local assets, including government debt securities, by foreign investors.

Ali emphasized that meticulous efforts were undertaken to settle these outstanding transactions.

Notably, the CBN recently completed the payment of $1.5bn, resolving obligations to bank customers and thereby clearing the residual balance of the FX backlog.

The apex bank noted that independent auditors from Deloitte Consulting meticulously assessed each transaction, ensuring that only legitimate claims were honoured.

It noted that all invalid transactions were promptly flagged for further scrutiny by relevant authorities.

The statement partly reads, “The Central Bank of Nigeria has announced that all valid foreign exchange backlogs have now been settled, fulfilling a key pledge of the CBN Governor, Mr Olayemi Cardoso, to process an inherited backlog of $7bn in claims.

“Clearance of the foreign exchange transactions backlog is part of the overall strategy detailed in last month’s Monetary Policy Committee meeting to stabilise the exchange rate and thereby curb imported inflation, spurring confidence in the banking system and the economy.

“Cardoso used the MPC meeting and a subsequent conference call with foreign portfolio investors to set expectations for sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.”

Cardoso, speaking at a recent meeting, underscored the importance of clearing the FX backlog to restore credibility and confidence in the Nigerian economy.

The clearance of the foreign exchange transactions backlog aligns with the strategy outlined during last month’s Monetary Policy Committee meeting.

The primary objectives include stabilising the exchange rate and mitigating imported inflation. By doing so, the CBN aims to bolster confidence in the banking system and stimulate economic growth.

Cardoso further communicated these expectations during a conference call with foreign portfolio investors, emphasizing sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.

“We needed to go through an independent and credible process that would determine the authenticity of those obligations, and, at this point, I can tell you that we have now cleared all genuine, verifiable transactions. This encumbrance to market confidence in the country’s ability to meet its obligations is now totally behind us,” he added.

This action by the CBN signifies a moment in Nigeria’s financial landscape, paving the way for a more resilient and stable economy. As the nation moves forward, the successful clearance of the FX backlog serves as a beacon of confidence for investors and businesses alike.

 

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Rivers: Tensions Grow As Wike, Fubara’s Supporters Clash, Baby Hurt

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A baby was reportedly tear-gassed and became unconscious on Wednesday as supporters of the Rivers State Governor, Siminalayi Fubara, clashed with the loyalists of ex-governor Nyesom Wike in the Obio/Akpor Local Government Area of the state.

It was gathered that the clash happened during a government medical outreach in the Eliozu community, Obio/Akpor LGA.

Eyewitnesses told our correspondent that trouble started when officials of the state Ministry of Health were carrying out a medical outreach for women at the Eliozu Health Centre.

It was gathered that no sooner had the programme started than some supporters allegedly loyal to the factional Speaker of the State House of Assembly, Martin Amaewhule, arrived at the venue to find out the reason for the gathering.

The venue is said to be near the residence of Amaewhule, who is the leader of the 27 lawmakers loyal to Wike.

But supporters of the Caretaker Committee Chairman of Obio/Akpor LGA, Chijioke Ihunwo, loyal to Fubara, who were at the venue allegedly stopped them from accessing the venue, leading to a heated argument and subsequent clash.

Following the fisticuffs, stones were pelted from several directions, as the medical outreach was disrupted abruptly.

A few minutes later, a team of anti-riot policemen arrived at the scene, firing teargas to disperse the opposing groups and quell the situation from getting out of hand.

It was gathered that a child was tear-gassed during the mayhem and became unconscious.

The situation led to the relocation of the medical outreach to a state-owned medical facility at the Waterlines axis of Port Harcourt where the programme was launched.

Reacting to the incident, the Obio/Akpor CTC Chairman, Chijioke Ihunwo, accused Amaewhule, of leading policemen to disrupt the outreach.

Ihunwo stated, “This morning there was an incident at the Eliozu Health Centre where the former Speaker of the Rivers State House of Assembly, Rt. Hon. Martin Amaewhule, led some security men to disrupt a programme by the Ministry of Health.

“A few minutes later, some policemen came and started beating up our women, shooting tear gas at pregnant women who were at the Health Centre.

“We want to say that Obio/Akpor Local Government Area will not be under siege. We want to call on the President, Bola Tinubu that the Inspector General of Police and the Minister of the FCT are tarnishing the image of your government.

“We are calling on you to rein them in so that Rivers State can have peace. Let the FCT Minister concentrate on his job in Abuja and leave our dear governor alone.”

When contacted, the spokesperson for the state police command, Grace Iringe-Koko, confirmed the incident.

Iringe-Koko, in a short message to our correspondent, said the police responded to a distress call over the scenario, adding that the investigation was ongoing.

She stated, “A distress call was received from the health centre in the Eliozu community today, 24th July 2024, where supporters of two separate political factions were engaged in a fight.

“The police responded by sending operatives to the scene to restore law and order.

“The police deployed anti-riot tactics, including the use of canisters, to disperse the crowds. An investigation into the matter has been initiated.”

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Protest: Nnamdi Kanu, Diaspora Voting Make List As Organizers Unveil 15 Demands

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Organizers of the planned nationwide protest, scheduled for August 1 to August 10, have unveiled their key demands from President Bola Tinubu’s government.

The nation’s economic situation has propelled citizens, particularly the youths, to plan a mass protest nationwide.

Despite efforts by the government to quell the move, the youths are insisting on embarking on the protest in the 36 states and the Federal Capital Territory, FCT, Abuja.

Former presidential candidate of the African Action Congress, AAC, Omoyele Sowore, who is one of the organizers of the movement, forwarded the demands to our correspondent on Wednesday.

The looming protest titled, “Days of Rage”, “EndBadGovernance” is aimed at drawing the attention of the Federal Government to the economic situation of the country.

Among other things, the intending protesters want the FG to return the fuel subsidy, address issues in the power sector, release the leader of the Indigenous People of Biafra, IPOB, Nnamdi Kanu from the custody of the Department of State Services, DSS, and allow for diaspora voting during general elections

According to Sowore, Nigerians are asking the FG to “Scrap the 1999 constitution and replace it with a people-made Constitution for the Federal Republic of Nigeria through a sovereign National Conference followed by a National Referendum.

“Toss the Senate arm of the Nigerian legislative system. Keep the House of Representatives and make lawmaking a part-time endeavour.

“Pay Nigerian workers a minimum wage of nothing less than N250,000 monthly.

“Invest heavily in education and give Nigerian students grants not loans. Aggressively pursue free and compulsory education for children across Nigeria.

“Release Mazi Nnamdi Kanu unconditionally and demilitarize the South East. All ENDSARS and political detainees must also be released and compensated.

“Rationalize public owned enterprises sold to government officials and cronies.

“Reinstate a corruption-free subsidy regime to reduce hunger, starvation and multidimensional poverty.

“Probe past and present Nigerian leaders, who have looted the treasury, recover their loot and deposit it in a special account to fund education, healthcare and infrastructure.

They are also demanding the “Restructuring of Nigeria to accommodate Nigeria’s diversity, resources control, decentralization and regional development.

“End banditry, terrorism and violent crimes. Reform security agencies to stop continuous human rights violations.

“Establishment of a special energy immediately to drive massive corruption-free power sector development.

“Immediate reconstitution of the electoral body, INEC to remove corrupt individuals and partisan hacks appointed to manipulate elections.

“Massive investment in public works and industrialization will help employ Nigeria’s teaming youths.

“Massive shake-ups in the Nigerian judiciary to remove cabals of corrupt generations of judges and judicial officers that continue denying citizens access to real justice.

“Diaspora voting”.

Meanwhile, President Bola Tinubu on Tuesday appealed to Nigerians to shelve the planned protest, urging youths to keep faith and believe in the ability of his administration to transform Nigeria.

 

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Stop Demarketing Dangote Refinery, Indigenous Companies – MAN Cautions FG

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The Manufacturers Association of Nigeria (MAN) has cautioned the Federal Government from demarketing local industries.

The Association also called for caution from major actors, government agencies, and regulators in the oil and gas sector of the economy regarding the Federal Government-Dangote Refinery saga.

MAN Director General, Segun Ajayi-Kadir, said government agencies that provide regulatory oversight functions should promote an enabling business environment for local investments to thrive.

He said no regulatory agency should cast a shadow over a homegrown investment like the Dangote Refinery.

According to him, the allegations of poor quality, and monopolistic tendencies levelled against Dangote Refinery by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) were unsubstantiated.

Ajayi-Kadir stressed that local investors in Nigeria, particularly the Dangote Industries Limited (DIL) play a vital role in driving economic growth, paying taxes, creating jobs and fostering development within the country. As such, these investors must be protected and given the necessary support to thrive in this business environment.

He said a business colossus like Alhaji Aliko Dangote, with investments in diverse sectors of the economy and across the Continent of Africa, should be accorded all needed support to grow and invest in more sectors and positively impact the well-being of the people.

 

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