There is a sharp disagreement between the Federation Account Allocation Committee (FAAC) and the leadership of the Central Bank of Nigeria (CBN) over revenues moved to the federation account between January 2006 and December 2021.
While FAAC has said the CBN disregarded its invitations to answer questions on the revenue moved to the account of the Federal Government, the apex bank reacted, saying the allocation committee lacks the power to summon it.
FAAC’s post-mortem sub-committee made this known at its monthly meeting where it provided an update on a proposed review of the FGN/CBN treasury crude account numbered 20054141287, Investors King understands.
Recall that on November 18, 2022, during FAAC plenary meeting, a consultant hired by the Nigeria Governors’ Forum had made a presentation to ascertain whether all revenues generated by ministries, department, and agencies and paid into a designated account with the CBN during the aforementioned period; were fully moved to the federation account for distribution to the federating units as provided by section 162 of the Constitution of the Federal Republic of Nigeria (as amended).
However, the NGF had referred to the FAAC sub-committee with a duty to review and report back to the forum.
In lieu of this mandate, the Post Mortem Sub-Committee (PMSC) said an ad hoc committee was constituted to handle the assignment.
The sub-committee disclosed that it invited CBN to a meeting in order to clarify and answer some questions on the movement of the revenue but the bank declined.
It said all the members of the ad hoc committee attended the inaugural meeting scheduled for Thursday, December 8, 2022, except CBN which turned down the invitation.
The committee said the CBN had argued that it is not answerable to FAAC post-mortem sub-committee but the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
“Therefore, another letter signed by the chairman of RMAFC requesting the bank to send appropriate representatives to the meetings of the ad hoc committee to enable the sub-committee proceed with the assignment was sent, but CBN did not respond,” the sub-committee said.
“The ad hoc committee called for another meeting on Thursday, 12th January, 2022, and a letter of invitation, signed by the chairman of RMAFC was sent to CBN, yet they did not attend.
“The sub-committee has gone to this length to ensure that CBN attends the meeting because they are critical to the issue, without their participation the assignment would not proceed,” it revealed at the meeting.
Meanwhile, a Federal High Court in Abuja has summoned the Governor of the CBN, Godwin Emefiele, to appear on Wednesday (today) over a $53 million judgment debt arising from the Paris Club refunds.
Ruling on an application for garnishee made on October 20, 2022, by a Senior Advocate of Nigeria, Joe Agi, Justice Inyang Ekwo ordered Emefiele to appear on January 18 as the hearing date for the matter.
Agi’s application is against Linas International Ltd, Minister of Finance and the CBN through his lawyers, Isaac Ekpa and Chinonso Obasi.
The application is also seeking an order directing the Inspector General of Police to arrest Emefiele and bring him to court alongside his lawyers: Damian Dodo, Audu Anuga, all Senior Advocates of Nigeria, and Ginika Ezeoke, Jessica Iyoke, Abdullahi Afolayan and Olayemi Afolayan.
The suit arose over an alleged $70 million judgment against Linas over the lawyer’s services in the Paris Club refund, which Emefiele was said to have released only $17 million, leaving an outstanding $53 million.
The court had on January 23, 2020, ruled that Emefiele must appear “to be examined on oath touching the means you have or have had, since the date of the said garnishee order absolute, to pay the balance of $53 million now due and payable under the said garnishee order absolute and also show cause why you should not be committed to prison for default in payment of the said sum.”
Scarcity of Naira Worsens at Nigerian Banks as Customers Shun Cash Deposits
Since the Central Bank of Nigeria (CBN) announced the extension of deadline for return of the old naira notes, checks by Investors King has revealed that most Nigerians have refused to deposit money in the banks.
This development was said to have been triggered by the low circulation of the resigned N1000, N500 and N200 naira notes and inability of the nation’s commercial banks to load their Automated Teller Machines (ATMs) with the new notes.
Investors King had reported that CBN Governor, Godwin Emefiele had directed commercial banks to ensure they load there ATMs with the new notes.
However, banks have not lived up to expectations even as reports of naira racketeering rock the financial institutions.
Most ATMs have been witnessing crowds as customers fight their way out on long queues to withdraw cash.
At various banking halls across the country, activities of financial transactions have decelerated drastically as customers complain of lack of cash.
While most banking halls were desolated as a result of paucity of funds in bank vaults, the few banks that were said to be preparing to load their ATMs were beseiged by frustrated customers, mostly operators of Pont of Sales (PoS).
Customers who visited bank counters to withdraw cash said they were given lower denominations such as N5, N10 and N20.
A bank official disclosed that the CBN had restricted commercial banks from to paying denominations lower than N200 notes owing to scarcity of new notes and to also discourage the spending of the larger denominations.
Confirming lack of cash to pay customers, the Chairman of the National Association of Microfinance Banks, Osun State chapter, Tunde Lawal, said the situation has led to the collapse in operations of many of the banks.
There was confusion at a microfinance bank in Osogbo early Thursday when some aggrieved customers threatened protest as bank officials flee. They had claimed that the bank was not attending to them.
Meanwhile, operatives of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) have started monitoring the cash disbursement exercise in Bauchi State as the agency noted that the operation would spread across the country.
The joint taskforce comprising operatives of the ICPC and its sister anti-graft agency, the Economic and Financial Crimes Commission (EFCC) and some officials of the apex bank was said to have been necessitated following reports of hawking of the new notes by black marketers.
The Lagos and Ondo States Chambers of Commerce, Industry have said the implementation of the new naira policy introduced by the CBN was designed to run micro small and medium enterprises and the common man out of business.
The spokesperson for the agency, Adeboro Onibalusi said the new policy has caused hardship for Nigerian Masses especially micro small and medium enterprises operators.
In a statement signed by the chambers’ Director-General, Chinyere Almona, the Lagos chapter noted that the CBN’s inability to properly plan and implement the phasing out of old naira notes has caused serious strain on many businesses.
Kuda Bank Says Customer Deposits Are Safe Despite Mobile App Issues
The fintech company assured that the application glitches will soon be fixed and customers will gain access to their money again.
Kuda Bank, a leading digital microfinance bank, has said there is no cause for alarm as their customers’ money is safe despite the mobile application issues.
The fintech company operating in Nigeria further assured that the application glitches will soon be fixed and customers will gain access to their money again.
Investors King gathered that currently, users of Kuda are having difficulties in accessing the bank app. Some have bitterly complained that their account balance reads zero despite having money in the account.
The Kuda bank management has, however, responded to the complaints by its customers through its official Twitter handle.
The digital bank admitted that the application was having issues and apologised to its customers for their inability to access their money or use the application adequately.
It stated that the company is aware of the mobile app malfunctioning, as well as the zero account balance error.
According to its statement, work is ongoing to rectify the issue and when properly completed, customers will be alerted. It stressed that their money has not been tampered with and the glitch will soon be resolved.
The company’s response on its Twitter handle, @joinkuda reads, “We are sorry that you still haven’t been able to use your Kuda app.
“We are working with our cloud services provider to sort out the downtime, and we will let you know when it’s been fixed. Your money remains safe and you will be able to access it as soon as services are restored.
“We know that the ₦0.00 balance error reported by several people is worrying but we assure you that it’s just what the app is displaying because of the downtime, not the amount of money you actually have. We will keep sharing updates as we make progress.”
Black Market Dollar To Naira Exchange Rate For Today 2nd February 2023
This online business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.
Note that the exchange rate changes hourly.… it depends on the volume of dollars available and the Demands. It means that…you can buy or sell 1 dollar at ₦745 and ₦750, and the price can change (high or low) within hours.
How Much Is Black Market Dollar To Naira Exchange Rate Today?
Dollar to naira exchange rate today black market (Aboki dollar rate):
Investors King understands that the exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N750 and sell at N755 as of the time of filing this report.
|Dollar to Naira (USD to NGN)||Black Market Exchange Rate Today|
The local currency opened at N755.00 per $1 at the parallel market otherwise known as the black market today Thursday, 2nd February 2023, in Lagos Nigeria, after it closed at N750 per $1 on Wednesday, 1st February 2023.
Even though the dollar to naira opened in the parallel market at N755 per $1 today, Investors King reports that the Central Bank of Nigeria (CBN) does not recognize the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.
Investors King reports that in the black market, the players buy a dollar for N750 and sell for N755 on Thursday morning, February 2, 2023, after they purchased N745 and sold for N750 on Wednesday, 1st February 2023.
Meanwhile, Investors King reports that the USD started this week at ₦755 in Parallel Market also known as Black Market after it opened at ₦757 last week Monday, January 23, 2023.
Factors Influencing Foreign Exchange Rates
Here are some of the causes of the dwindling dollar to naira exchange rate.
Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is controlled, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.
Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.
Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.
Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.
Conditions of Trade: Favorable trade terms will increase the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.
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