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Dollar Scarcity Continues to Hurt Naira Value, Exchanges at N450/$

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  • Dollar Scarcity Continues to Hurt Naira Value, Exchanges at N450/$

The Nigerian Naira declined further at the parallel market on Wednesday as dollar scarcity continues to dictate the local currency exchange rate.

According to traders at the parallel market, the Nigerian Naira declined by N5 from N445 it traded on Tuesday to N450 per US dollar as dollar scarcity persist.

On Tuesday, the Association of Bureau De Change Operators of Nigeria attributed the surge in the Naira exchange rate to dollar scarcity.

Alhaji Aminu Gwadabe, the President, Association of Bureau De Change Operators of Nigeria, said: “The persistent dollar scarcity with shrinking liquidity in the market is one of the major unintended consequences of the shutdown of the BDCs window.”

The Central Bank of Nigeria had refused to resume the sales of forex to Bureau de Change operators across the country, saying they would have to wait until airlines resume operations.

This was despite the apex bank selling to deposit money banks for onward sales to parents looking to pay school fees and small and medium businesses.

Experts have said the central bank is protecting the foreign reserves, especially with revenue generation presently low and the reserves at about $34 billion.

The drop in global demand for crude oil and the inability of the federal government to find buyers for Nigerian oil continue to hurt the nation’s revenue generation and impacted CBN’s ability to intervene in the foreign exchange market.

The situation is expected to further weigh on the Nigerian Naira, push inflation rate above the current level given that Nigeria is an import-dependent economy, hurt new job creation and consumer spending.

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 to Boost Foreign Revenue Through Methylformate Production

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FG to Enhance Methylformate Production

The Federal Government has started unlocking domestic capacity to up foreign revenue generation and deepen domestic productions through various means including enhancing the production of methylformate.

The Minister of Environment, Dr. Mohammad Abubakar, disclosed this during the inauguration of Systems House of Vitapur Nigeria Limited on Tuesday in Ikeja.

He said the Federal Government was committed to improving the nation’s foreign reserves by unlocking domestic capacity in methylformate productions.

Speaking further he said domestic capacity in methylformate would help in phasing out ozone depleting substances and mitigate climate change, adding that such technological innovation also has potential to enhance Nigeria’s foreign revenue generation, among others.

According to him, such domestic production have advantages, including availability of ozone-friendly and low global potential blowing agents in the production of rigid foam, generation of forex for the country from export of methylformate and forex savings from local production, building of local capacity in the formulation of methylformate-based systems and consequently generation of employment and wealth.

The methylformate systems will serve as source of raw material to ice making machine manufacturers. The project will lead to increased capacity utilisation in enterprises that will be using the methylformate being produced by Vitapur,” Abubakar said.

He reiterated the commitment of the government towards creating enabling environment that will enhance the global competitiveness of manufacturers, especially through fiscal incentives.

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N-Power Beneficiaries Receives N13.3bn in Kwara State

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NPower Beneficiaries in Kwara States Received N13.3bn

The National Social Investment Programme (NSIP) has said N-power beneficiaries in Kwara State received a total sum of N13.3 billion.

The amount was paid to 15,246 beneficiaries from both batches A and B that exited the programme.

Hajia Bashirah Abdulrazaq, the Focal Person of the programme in the state, said batch A beneficiaries were paid N7.4 billion for the 42 months period they were engaged.

She said batch B beneficiaries who were engaged for about 24 months received a total sum of N5.7 billion.

Non-graduates received the sum of N10,000 every month and were engaged for a period of 24 months with a total sum of over N24 million spent,” she added.

Abdulrazaq also said Kwara state government had created a replica of the empowerment programme, codenamed K-power, in order to support beneficiaries after exiting the N-power programme.

She said around 10,000 of N-power beneficiaries benefited from “trader moni’ programme in the state with over N1.3 billion disbursed to them.

She, however, said the people are not willing to repay the loan.

Said she: “Poor masses are not ready to repay the loan after collection because of the attitude of Nigerian to anything from the government thinking it is national cake. Also, those that disbursed the money do not have records of beneficiaries like phone numbers and addresses. Thus, making it difficult to track them for repayment.

“The programme is designed to provide soft loans to boost small scale businesses in the markets which Vice President Yemi Osinbajo flagged off sometime last year to support women with N10,000 as soft loans to
be paid back and then enjoy the next stage of N50,000.

“Unfortunately, many beneficiaries didn’t pay back or the channel for payment was not identified, therefore, beneficiaries could not fulfill their pledges. Though, the component is going through restructuring to
seeing it achieves its objectives,” she said.

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Npower News on Permanency for Batch A, B

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Npower News on Permanency for Batch A and Batch B

Hajiya Sadiya Umar Farouq, Minister of Humanitarian Affairs, Disaster Management and Social Development, recently said the exited and eligible N-power beneficiaries will be absorbed into government programmes and by private organisations for a permanent job.

On N-power Permanency, she said “We have directed Focal Persons of National Social Investment Programmes in the states to submit an updated list of the exited N-Power beneficiaries that are interested in participating in the transition plans of the ministry.

On stipend, she said the payment has been approved by President Muhammadu Buhari and outstanding stipends paid to exited N-power beneficiaries of Batch A and B.

“Meanwhile, approval has been given for the payment of the outstanding stipends for the exited N-Power Batches A and B beneficiaries.

“The approval for payments for up to the month of June, 2020 for the two Batches has already been forwarded to the office of the Accountant General of the Federation (AGF) for final checks and payments.

“The only outstanding approval waiting to be forwarded to AGF’s Office is for the payment of July Stipends for batch B beneficiaries,” she said.

The minister said she has requested the details of those affected and the reasons for their rejection. She promised to communicate that to the affected beneficiaries.

Several organisations and stakeholders have called on Federal Government not to disengage Batch A and B beneficiaries but rather absorbed them into government parastaNpower News on Permanencytals to further ease the unemployment rate.

Appealing to Federal Government, Umuahia, National Chairman of Isun Multipurpose Cooperative Society, Sir Isaac Nkole said, ”The introduction of N-Power stands out as one of the best policies of the Federal Government under President Muhammadu Buhari. A lot of graduates have been engaged through the scheme. Some of them are in N-Teach, N-Agro, N-Tax and N-build. I appeal to President Buhari not to listen to anyone advising him to disengage the beneficiary as being speculated that the programme will be stopped by the 26th of this month.

“The questions are; If you disengage these graduates that are helping to improve the quality of education in primary schools, where do you want them to go? Is it to the over-saturated labour market or the crime industry?

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