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Manufacturers, Fuel Importer, Airlines to Get Dollars – CBN

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  • Manufacturers, Fuel Importer, Airlines to Get Dollars – CBN

The Central Bank of Nigeria on Friday said it would offer dollar forwards to offset a backlog of foreign exchange obligations for manufacturers, airlines and fuel importers.

The dollars will be sold directly to companies and are strictly for matured letters of credit obligations related to specific sectors, Reuters reported.

“Authorised dealers’ accounts with the central bank will be debited in full for the naira equivalent of the dollar bid amounts on a spot basis,” the CBN said in a statement to commercial lenders.

“The central bank will settle the bids through forward settlements of seven to 45 days,” the apex bank added. It did not specify the amount of dollars to be sold.

The CBN has been intervening on the official market to try to narrow the naira currency’s spread with the black market rate.

The naira was quoted at 315 per dollar on the official market on Friday, and at 385 on the black market. It traded at 410 a week ago.

The CBN has sold around $4bn since it started intervening in the currency market in February, according to analysts, who have expressed doubts that the cash injections can be sustained.

The apex bank had on Tuesday reduced the amount of paperwork that Small and Medium-scale Enterprises must provide to buy dollars as part of an effort to improve liquidity and attract them away from the black market

Meanwhile, the interbank lending rate climbed by around 20 percentage points on Friday after the CBN’s sale of dollar forwards to offset a backlog of forex obligations drained cash from the money market.

The overnight lending rate stood at 50 per cent against 29.33 per cent the previous day, because commercial banks scrambled for cash on Friday to pay for dollar purchases at a central bank foreign exchange intervention auction targeting certain sectors.

The CBN has been intervening on the official market to try to narrow the currency’s spread with the black market rate and this has also put pressure on naira liquidity in the money market, causing the cost of borrowing among banks to jump.

The lending rate among commercial lenders had opened at 70 per cent on Tuesday, but fell to around 29.33 per cent on Thursday after the injection of cash from matured treasury bills repayment by the central bank boosted liquidity.

“The money market is in repo because of the sales of open market operations’ treasury bills and funding for special foreign exchange auctions by the central bank, putting the market in a tight position,” one senior currency trader told Reuters.

The naira closed at 385 to the dollar on the black market on Friday.

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.

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FG Introduces NEXIT Portal for Npower Batch A and B Beneficiaries

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The Federal Government has introduced a new online portal for exited Npower beneficiaries of batch A and B.

According to the Minister for Humanitarian Affairs, Sadiya Farouq, the portal was launched in collaboration with the Central Bank of Nigeria (CBN) to enable exited Npower beneficiaries apply for available federal government empowerment options.

This was disclosed in a statement issued by Nneka Anibeze, the media aide to the minister, on Friday.

The ministry said the NEXIT portal will be used to determine the suitability of exited beneficiaries for various CBN-affiliated programmes.

She explained that selection will be based on the conditions and criteria set by the apex bank.

Ms Farouq, therefore, urged interested exited Npower beneficiaries to log on to the NEXIT portal and provide the required additional information for possible placements into central bank’s intervention options.

The Minister expressed her deep appreciation to the CBN Governor Mr Godwin Emefiele CON for his support adding that the Ministry of Humanitarian Affairs remained committed to the vision of Mr President to lift 100 million Nigerians out of poverty in the next 10 years.

“Minister Umar Farouq pledged the Ministry’s willingness to collaborate with relevant agencies of government and other stakeholders towards the realization of that vision and congratulated the exited beneficiaries while wishing them well in their future endeavours.

“The Federal Government of Nigeria is very proud of the milestones you have achieved during your period of service to the nation. As we prepare to exit into prospective endeavours.”

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Ellah Lakes Partner Ondo State Government to Develop Oil Palm, Cassava in the State

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The management of Ellah Lakes Plc said it has partnered with Ondo State Government to develop and manage 5000 hectares of land for the purpose of cultivating oil palm and cassava in Ondo State, Nigeria.

The company stated in a statement signed by Kenechi Ezezika, Company Secretary, Ellah Lakes Plc.

Speaking on the development, the Chief Executive Officer, Chuka Mordi said: “This is a significant landmark for the Company in the development of our landbank, & we are very excited to be working with ODSG.

I am delighted that we are fulfilling our strategic objective of progressively expanding our land bank & diversifying our portfolio and production base. I am also glad to say that the intercropping programme in Edo State is progressing steadily & we have achieved our first milestone of 100Hectares of Cassava with the participation of personnel of the Agricultural Development Program (ADP), in Edo State”.

The Special Adviser on Development & Investment to the Ondo State Governor/ Chief Executive Officer of Ondo State Development and Investment Promotion Agency (ONDIPA), Mr. Akinboye Oyewumi, who also spoke on the development said: “We are pleased with this collaboration with Ellah Lakes Plc., and we look forward to a mutually beneficial, valuable and fruitful venture.”

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Unilever Nigeria Appoints Mr Jaime Aguilera as a Non-Executive Director

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Unilever Nigeria Plc announced it has appointed Mr. Jaime Aguilera as a Non-Executive Director of the company effective from January 2021.

The company stated in a statement filed with the Nigerian Stock Exchange.

Mr Jaime Aguilera worked with Coca-cola, Nestle and Procter & Gamble before joining Unilever as Executive Vice President Unilever Eastern Europe in September 2016.

Therefore, his experience spans from Europe, Americas and Asia.

His key expertise areas are “in Sales & Marketing and he has lead teams in Spain, Brazil, South Eastern Europe, Middle East, Mexico and Global teams.

“In 2009, he joined Unilever Spain as EVP & Chairman and then moved to his current role as Unilever Executive Vice President Africa, leading the Unilever business in Africa. Jaime is of Spanish origin and is an alumnus of the Universidad Pontificia de Comillas- ICADE. Jaime majored in Economic Sciences, Management & Business Administration.”

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