Connect with us

Markets

CBN: We’re Committed to Exchange Rate Stability

Published

on

CBN
  • We’re Committed to Exchange Rate Stability

The Director, Monetary Policy Department of the Central Bank of Nigeria (CBN), Moses Kpughur, has expressed confidence in the ability of the apex bank to achieve exchange rate stability, which is one of its core mandates.

Speaking at the 21st Annual Conference of the Association of National Accountants of Nigeria (ANAN) in Abuja, he expressed concern over volatility of the exchange rate and high inflation rate.

Kpughur stated this in a paper titled: Economic Management and Monetary Policy: An Assessment of the Policy Environment in Uncertain Times. He said the apex bank had been able to control inflation, pointing out that as long as there is increase in liquidity or volume of cash in circulation, too much money would chase fewer goods.

He also said that the apex bank was, in its quest for price stability, taking note of the interest rate, exchange rate and the prices of goods and services. He recalled that two years ago, the entire world was shocked with the drop in crude oil prices from as high as $108 per barrel to as low as under $40 per barrel.

Kpughur said that the shock affected Nigeria’s growth projections and those of other oil producing countries. “The drop in oil revenue effected government’s expenditure,’’ the CBN chief said. He blamed the situation on government’s over-dependence on a single commodity, which is crude oil.

The CBN chief also said that activities in states like non-payment of workers’ salaries had affected the monetary policy. He observed that expenditure kept on increasing because the nation’s population is also growing. “Until our income grows more than the population, we would keep on having economic problems. If you spend more money on capital projects, you are investing in the future, ’’ Kpughur said.

Head, Investigation Department, Independent Corrupt Practices and Other Related Offences Commission (ICPC), Adedayo Kayode, highlighted the nature of corruption in the country.

He spoke on the theme: Control Framework Against Corruption. He said abuse of positions and privileges; low level of transparency and accountability; inflation of contracts; bribery/kickbacks are to blame for corruption.

Kayode lamented the act of misappropriation/diversion of funds, under and over invoicing, false declaration, advance fee fraud, assets swapping, and corruption in education sector and other deceptive schemes.

According to him, these are: control through enforcement; control through financial intelligence and control through asset declaration and verification; control through corruption risk assessment and control through occupational and professional regulatory bodies and control through education and public enlightenment.

For effective performance, he urged accountants to improve on capacity; increased human resources, increased funding, enhanced salary. Kayode also spoke on the critical challenges in fighting corruption such as poor funding, lack of political will among others.

A communique issued at the end of the conference said infrastructural development should be carried out. The participants said that to get the Nigerian economy out of the present predicament, government should ensure speedy recovery of the ailing economy, foster growth and sustainability.

The conference recommended that there should be a clear policy direction, coordinated communication, more engagement with stakeholders, restoration of investor confidence, legal reforms, ease of doing business and competitiveness.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Markets

SEC To Ban Unregistered CMOs From Operating By Month End

Published

on

The Securities and Exchange Commission (SEC) says it will stop operations of Capital Market Operators (CMOs) that are yet to renew their registration on May 31, 2021.

This was contained in a circular signed by the management of SEC in Abuja on Monday.

On March 23, SEC had informed the general public and CMOs on the reintroduction of the periodic renewal of registration by operators.

The commission noted that the reintroduction of the registration renewal was due to the need to have a reliable data bank of all the CMOs registered and active in the country’s capital market.

“To provide updated information on operators in the Nigerian Capital Market for reference and other official purposes by local and foreign investors, other regulatory agencies and the general public, to increasingly reduce incidences of unethical practices by CMOs such as may affect investors’ confidence and impact negatively on the Nigerian Capital Market and to strengthen supervision and monitoring of CMOs by the Commission,” SEC explained.

According to the circular, the commission said CMOs yet to renew their registration at the expiration of late filing on May 31, would not be eligible to operate in the capital market.

It explained that CMOs were required to have completed the renewal process on or before April 30, however, the commission said late filing for renewal of registration would only be entertained from May 1 to May 31.

SEC also said that asides from barring the CMOs who failed to comply accordingly, their names would be published on its website and national dailies.

It added that names of eligible CMOs would be communicated to the relevant securities exchanges and trade associations.

Continue Reading

Crude Oil

A Threat to Revenue As Nigeria’s Largest Importer of Crude, India slash Imports By $39.5B

Published

on

Crude oil

Nigeria’s revenue earning capacity has come under threat following the reduction of importation of crude oil by India.

India, Nigeria’s largest crude oil importer, reduced crude oil imports by $39.5bn in April, compared to the same time the previous year, data from India’s Petroleum Planning & Analysis Cell showed.

According to the Indian High Commission in Nigeria, India’s crude oil imports from Nigeria in 2020 amounted to $10.03bn.

This represented 17 percent of Nigeria’s total crude exports for the year according to the Nigerian National Petroleum Corporation, as quoted by OilPrice.com.

As Nigeria’s largest importer of crude oil, lockdowns in India’s major cities from the COVID-19 surge in April had ripple effects on Nigeria’s oil sales.

The NNPC was prompted to drop the official standard price of its main export streams, Bonny Light, Brass River, Erha, and Qua Iboe, by 61-62 cents per barrel below its April 2021 prices. They traded at $0.9, $0.8, $0.65, $0.97 per barrel respectively, below dated Brent, the international benchmark, as Oilprice.com showed.

India had been buying the not-too-light and not-too-heavy Nigerian crudes that suited its refiners.

Reuters reported that the Indian Oil Corporation’s owned refineries were operating at 95 percent capacity in April, down from 100 percent at the same time the previous month.

An official at the IOC was quoted as saying, “If cases continue to rise and curbs are intensified, we may see cuts in refinery runs and lower demand after a month.” Hundreds of seafarers risked being stuck at sea beyond the expiry of their contracts, a large independent crude ship owner reportedly told Bloomberg.

India reportedly bought more American and Canadian oil at the expense of Africa and the Middle East, reducing purchases from members of the Organisation of the Petroleum Exporting Countries to around 2.86 million barrels per day.

This squeezed the group’s share of imports to 72 percent from around 80 percent previously, as India’s refiners were diversifying purchases to boost margins, according to Reuters.

India also plans to increase local crude oil production and reduce import expenses as its population swells, according to Bloomberg.

A deregulation plan by the Narendra Modi-led government to boost national production to 40 million tonnes of crude oil by 2023/2024, an increase of almost eight million tonnes, had already been initiated.

According to Business Today, an Indian paper, the country currently imports 82 percent of its oil needs, which amounted to $87bn in 2019.

Continue Reading

Energy

Invest Africa and DLA Piper Partner to Support ESG Best Practice in African Renewable Energy Projects

Published

on

Invest Africa - Investors King

The global law firm, DLA Piper, has partnered with Invest Africa, the leading trade and investment platform for African markets, to support the development of ESG best practice in African renewable energy projects.

Clear Environmental, Social and Governance (ESG) targets and measurements have become an increasingly important part of fundraising as investors seek to align their portfolios with sustainable growth. For a continent boasting ample natural resources, this presents a significant opportunity for Africa’s green energy sector. However, renewable does not always equal sustainable and developing and articulating ESG metrics can pose a significant challenge to projects as they prepare investment rounds.

The project will assemble experts from the worlds of impact investment, development finance and law. Across a series of online meetings, participants will discuss strategies to improve ESG practices in African renewable projects from both a fundraising and operational perspective.

Amongst those speaking in the inaugural session on Thursday 13th May are Cathy Oxby, Chief Commercial Officer, Africa GreencoDr. Valeria Biurrun-Zaumm, Senior Investment Manager, DEGOrli Arav, Managing Director – Facility For Energy Inclusion (FEI) – Lion’s Head Global PartnersBeatrice Nyabira, Partner, DLA Piper Africa, Kenya (IKM Advocates) and Natasha Luther-Jones, Partner, Global Co-Chair of Energy and Natural Resources, International Co-Head, Sustainability and ESG, DLA Piper.

Veronica Bolton-Smith, COO of Invest Africa said, “Africa is particularly vulnerable to the impact of climate change despite contributing very little to global emissions. As the price of renewables fall, they will form an ever more important part of Africa’s electrification. In this context, it is essential that projects be given the tools to apply best practice in ESG not only from an environmental perspective but also in terms of good governance, fair working conditions and contribution to social inclusion. I look forward to working closely with DLA Piper on this important topic.”

Natasha Luther-Jones, Global Co-Chair Energy and Natural Resources and International Co-Head Sustainability and ESG at DLA Piper also commented, “Climate change is one of the biggest challenges companies, and people, face today and when we look at its reduction – whether that be in how we power our devices, what we eat or how we dress, where we live or how we work – all roads come back to the need to increase the amount of accessible, and affordable, clean energy. However, renewable energy companies are not automatically sustainable as sustainability is a focus on all ESG factors, not just environmental. We know the need for renewable energy is only going to continue to rise, and therefore so will the number and size of renewable energy companies. The additional challenge is to make sure they are truly sustainable organisations and that’s what we’re excited about discussing during the webinar.”

Continue Reading

Trending