Debt threatens FG’s economic recovery plan

Nigeria’s recently launched Economic Recovery and Growth Plan (ERGP2017-2020) appears to have been generally well received by industry experts. However, the country’s already high debt service ratio in proportion to income, is raising concerns in some quarters about government’s ability to fund the scheme. TONY CHUKWUNYEM writes   Nearly two years after he assumed office, President Muhammadu Buhari last Wednesday, launched what his administration has tagged the Nigeria Economic Recovery and Growth Plan (NERGP2017-2020). Although the event came about a month after the Ministry of Budget and National Planning posted…

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Lenders undersubscribe apex bank’s forex offer by $55m

Authorised forex dealers only picked $45 million out of $100 million offered by Central Bank of Nigeria (CBN) on the wholesale spot market, New Telegraph has learnt. The slump in subscription of forex has heightened imminent crash of dollars in coming days as the banking watchdog sustained tempo of liquidity pump into the forex market. Experts noted that it is only a matter of time before the dollar begins another round of crash. They also attributed the new trend to the general cash crunch in the financial system. The dollar…

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CBN raises banks’ forex limits to resolve breaches

Central Bank of Nigeria

The Central Bank of Nigeria (CBN) has increased the limit on banks’ foreign currency borrowings to 125 per cent of shareholders’ fund after some lenders breached its regulatory limit due to the recent fall in the naira, Reuters reported yesterday. The new regulation replaces a 2014 rule capping foreign borrowings, including Eurobonds, at 75 per cent of shareholders’ funds as the country tries to manage widespread capital shortfalls at lenders due to a currency crisis and bad loans. According to the news agency the apex bank said in a circular:…

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CBN injects additional $250m for forward market

Central Bank of Nigeria

             …offers $100m on spot market   In line with its efforts to boost dollar liquidity and bolster the naira, the Central Bank of Nigeria (CBN) yesterday released additional $250 million for 7 to 30 day forwards for agriculture, airline, petroleum products and raw materials. The banking watchdog also called for bids for wholesale spot for $100 million for basic/personal travelling Allowance, medicals and tuition fees. CBN’s Acting Director, Corporate Communications, Mr. Isaac Okorafor, confirmed the bank’s directive yesterday. He said the lender has commenced heavy injections into the spot…

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Nigeria auctions fresh $100m, shortens FX settlement period

In continuation of its efforts to inject liquidity into the official market and boost value of the naira, the Central Bank of Nigeria (CBN) yesterday auconed $100 million to be settled between one week and 30 days, as against 60-day contracts it had written previously, traders said. According to traders, the new move by the apex bank to sell shorter-dated dollar forwards was an indication that the regulator was stepping up its intervention in the forex market and bolstering the naira. The local currency initially fell to N328.50 on the…

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Importers to FG: Remove raw materials from forex ban

Importers have urged the Federal Government to review the Central Bank of Nigeria (CBN)’s policy on 41 items barred from the official foreign exchange window. Director General, Manufacturers Association of Nigeria (MAN), Mr. Segun Ajayi- Kadir, made this call in Lagos after the association’s meeting with officials of Nigerian Shippers Council (NSC). He said that the operating environment was not  competitive for business because of government’s import policy. Specifically, he said there were 680 tariff lines in the 41 items. He explained that 95 of them were raw materials not…

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