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Naira Appreciates as CBN Resumes Dollar Sales to BDCs

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  • Naira Appreciates as CBN Resumes Dollar Sales to BDCs

The Nigerian Naira appreciated by N2 on the parallel market on Wednesday after the Central Bank of Nigeria announced it would resume the sales of forex to bureau de change operators across the country.

The local currency improved from N460 it traded to a dollar on Friday to N458 today as traders seem optimistic about dollar liquidity.

It should be recalled that the apex bank had suspended the sales of dollars to the BDCs on March 26 due to the coronavirus pandemic ravaging the world.

However, the central bank has now said it would resume sales of forex to BDC for onward sales to businesses and Nigerians looking to purchase for approved items.

On the Investors & Exporters FX Window published by the FMDQ Group, the Naira traded flat at N385.94 per US dollar, the same rate it traded on Friday.

Aminu Gwadabe, President, Association of Bureaux De Operators of Nigeria (ABCON), said it has issued reopening guidelines to all its members nationwide.

He stated that “We are also updating all regulatory obligations during the lockdown, fumigation of members offices/markets, distribution of the second phase of face mask nationwide to our members. There is also the provision of wash hand basins, sanitisers at our distributions centres while members are to explore school fees, mortgage, subscription payments as one of their allowable scopes during post-COVID-19.”

Meanwhile, the governor of the Central Bank of Nigeria has warned Nigerians and foreign investors patronising black market to stop, saying they are helping to heat up the already tensed forex market.

He said “I know some of you are involved, stop now. By going to the parallel market, you are helping to overheat that market. Not only that, but you will also lose money because you would have bought it at a price that is not realistic. I can tell you that you are going to lose money. But we have seen your account already. We are appealing to you, please stop and let’s do what is right, what is legal, so that Nigeria can continue to be a good place for you and to live in.”

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.

Banking Sector

Ecobank Nigeria Received N50 billion 10-Year Bilateral Subordinated Loan

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Ecobank Nigeria Received N50 billion 10-Year Bilateral Subordinated Loan

Ecobank Nigeria announced it has received N50 billion 10-year subordinated Loan.

Adenike Laoye, Group Head, Corporate Communications, Ecobank Nigeria, disclosed this in a statement released through the Nigerian Stock Exchange.

The statement read in part, “The bilateral funding provides stable medium-term liquidity to the balance sheet of Ecobank Nigeria and positively improved its balance sheet ratios, especially the capital adequacy ratio by circa 300 basis points.

The transaction proceeds would be deployed to support Micro, Small and Medium Scale Enterprises (“MSMEs”) and Small Corporates.

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Finance

Niger Insurance to Sell Property Worth N15bn in Recapitalisation Move

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Niger Insurance to Sell Property Worth N15bn in Recapitalisation Move

Niger Insurance Plc said it is working on a plan to sell off N15 billion worth of real estate and investment property to boost its cash flow and meet the liquidity requirements of the insurance industry.

Mr. Edwin Egbiti, the Managing Director of the company disclosed this during the company’s 2019 annual general meetings held virtually in Lagos recently.

He said, “Subsequent to the requisite approvals of the board on behalf of shareholders, a number of the company’s real estate and investment property valued at N15bn have been put on sale in order to improve liquidity/cash flows, ensure reserve adequacy and improve solvency margins.

“We are encouraged by the progress made so far, and confident that both capital restructuring and recapitalisation efforts will be successful in line with National Insurance Commission’s regulatory timelines.”

It added that Niger Insurance recognised that its people were the company’s most critical assets without whom its goals and plans would remain elusive.

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Finance

AMCON Takes Over Inducon Nigeria’s Assets Over N1.3 Billion Debt

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AMCON Takes Over Inducon Nigeria’s Assets Over N1.3 Billion Debt

The Asset Management Corporation of Nigeria has taken over the assets of Dr. John Abebe, the Chief Promoter of Inducon Nigeria Limited over N1.3 billion debt.

According to a statement signed by the Head, Corporate Communications Department, AMCON, Jude Nwauzor, and titled ‘N1.3bn debt: AMCON takes over assets of Inducon Nigeria Limited’ the decision followed the order of Honourable Justice Aikawa of the Federal High Court, Lagos.

In compliance with the enforcement order, AMCON at the weekend took effective possession of the property situate at Plot12, Block 108, Lekki Peninsula Residential Scheme, Lagos, through its debt recovery agent – Ogunsola Shonibare L.P.

“The court also ordered that the bank accounts of the company and its directors, Dr. John Abebe, Mr Olawole Fatimilehin and Ademola Buraimoh, be frozen pending the final determination of the suit.

The asset management corporation said the case of Dr. John Abebe and Inducon Nigeria Limited started shortly after the loan was procured by AMCON in 2011 during the first phase of Eligible Bank Asset purchases from the defunct FinBank, Now FCMB.

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