Forex

Reps Summon Emefiele Over Foreign Exchange sale to Oil Marketers

Published

7 years ago

February 7, 2017

Reps Summon Emefiele Over Foreign Exchange sale to Oil Marketers

The House of Representatives on Monday summoned Central Bank of Nigeria Governor, Mr. Godwin Emefiele, over alleged sale of foreign exchange to International Oil Companies.

Emefiele’s invitation by the House’s Ad hoc Committee on the Review of Pump Price of Petrol followed the committee’s rejection of the records of the foreign exchange transactions presented to it.

The committee, which continued its public hearing on the issue in Abuja, ordered that the CBN governor should appear with details of all beneficiaries of the foreign exchange deals.

He is also expected to give insight into the banks used by the apex bank in the transaction with the oil marketers.

In the rejected record presented on behalf of Emefiele by the Director, Financial Market Department of CBN, Dr Alvan Ikoku, he told the committee why the bank acted as third party to oil companies and importers of petroleum products.

He said that the CBN took over the purchase of dollars from the IOCs and began to sell directly to petroleum marketers seeking foreign exchange to import products.

It was, however, not revealed in the records how much the apex bank sold the currencies to the companies even when it stated that Emefiele determined the rate the currencies were sold to oil marketers.

The committee Chairman, Rep Raphael Igbokwe, directed that the CBN boss should prepare explanations on the legal grounds or provisions that allowed IOCs to operate as financial institutions selling foreign exchange to Nigerians.

According him, by so doing the IOCs acted as parallel financial clearing houses.

The committee demanded explanation on the criteria for the allocation of foreign exchange to dealers as well as necessary documents to show such allocations to the marketers.

It also ordered the appearance of Managing Director of Duke Oil and other oil marketers, who were invited.

Igbokwe explained that the order was important as the representatives of the oil marketers were not in the capacity to respond to some allegations levelled against the companies.

Commodore P.A. Efedue, who represented the Nigerian Navy, explained that multiple charges by government agencies operating at the ports were responsible for most oil importers avoiding Nigerian ports.

Efedue said that the charges were part of the reasons why some of the oil marketers preferred to deliver their products through ports in neighbouring countries.

He said that the development was in spite of security which had improved tremendously at Nigerian ports.

He said, “The oil marketers come to my office every day and I ask why Lome, not Lagos port. They said the reason is that charges in Lagos are higher.’’

He, therefore, advised that the charges at the ports should be addressed to attract oil vessels to Nigeria’s ports, saying that the rate of insecurity in the country’s waterways had reduced.

He said, “Cases of piracy have reduced, so it is the charges that are the issue with the marketers.”

He also said that the navy did not charge any money to grant approval to marketers, adding that the collaboration between navy and NIMASA was helping in securing the water ways.

On his part, Commodore A.O. Bamidele of the Operations Directorate, Naval Headquarters, also reiterated that insecurity was not the reason for marketers preferring neighbouring countries’ ports.

He said, “It is not security; look at Lagos harbour and anchorage, we don’t have security challenges.

“It is only in Bayelsa and Rivers area but we are making efforts to put it in check.”

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

16 hours ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,540
Selling Rate: ₦1,530

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

17 hours ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

2 days ago

May 16, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 2024.

This indicates a decline in the Naira exchange rate compared to the current rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.