Capital Outflows Force Nigeria’s External Reserves Down to $41.995bn (This day pg. 12)
Nigeria’s external reserves fell to $41.995 billion at the end of October, representing a decline by $5.793 billion or 12.12 per cent, compared with the $47.788 billion it was as at the end of June, 2018, data compiled from the Central Bank of Nigeria’s (CBN) website has shown.
The development was largely attributed to interest rate normalization in some advanced economies.
According to analysts at CSL Stockbrokers Limited, the decline suffered from the country’s reserves, derived majorly from the proceeds of crude oil earning, was as a result of reversal of capital flows, which has increased the demand for dollars in the forex market, therefore, forcing the central bank to step up its intervention in a bid to stabilise the currency.
Source: This day
FG restates commitment to ease of doing business in Nigeria (This day pg. 42)
The Minister of Information and Culture, Alhaji Lai Mohammed, has reiterated the Federal Government’s commitment to improving Nigeria’s ranking in the World Bank Ease of Doing Business Index, saying the current ranking of 169 out of 190 countries is unacceptable.
The Minister, who gave the pledge in Abuja on Thursday when he received Dr. Jumoke Oduwole, the Coordinator and Secretary to the Presidential Enabling Business Environment Council (PEBEC) on a courtesy visit to his office, lauded the various initiatives being implemented by the Council to move Nigeria 20 steps upwards in the index.
“It’s unsatisfactory that today we are ranked 169 out of 190. That is not very good and the things that we don’t take seriously, like a file staying for 14 days on somebody’s desk, add to this poor ranking.
Source: This day
Operators intensify push for payment of EEG backlog (The Nation pg. 13)
Nothing would gladden Mrs. Mojisola Adenekan’s heart than to see her processed nuts and oil export business blossom into a vibrant, large scale enterprise. To her, the starting point to making this happen is for the National Assembly to promptly approve the payment of the backlog of exporters’ claims under the Export Expansion Grant (EEG) scheme, which stands at over N1 trillion.
The budding entrepreneur said prompt settlement of the outstanding bills would trigger increased activities in the non-oil export sector. She added that offsetting the bills incurred under the EEG scheme was important so as not to hamstring entrepreneurs, who have already incurred huge expenses in respect of the scheme managed by the Nigerian Export Promotion Council (NEPC).
Source: The Nation
CBN tightens noose on BDCs, introduces new corporate governance rules (Daily trust pg. 17)
The Central Bank of Nigeria (CBN) has introduced new code of corporate governance rules for Bureaux De Change (BDC) In the country.
The code shall take effect from December 1 2018, the apex bank said yesterday.
In a circular, signed by Mr. Kevin N Amugo, Director Financial Policy and Regulation Department, CBN and posted on its website, the CBN said the new corporate governance regulation is to further strengthen the institutions and reposition them to perform their statutory roles.
The regulation said the Board shall be accountable and responsible for the performance and affairs of the BDC and members of the Board are severally and jointly liable for the activities for the BDC.
Source: Daily trust
Pressure piles on economy as CBN pursues naira stability at high cost (Business day pg. 1)
The Central bank of Nigeria is showing it will do all it takes to keep the naira from weakening against the dollar even if comes at a cost of starving the private sector of credit or burning through the country’s external reserves at a record pace.
Keeping the naira as strong as possible against the dollar is popular in Nigeria, which imports the bulk of its needs from other countries. That has been a priority for most central bank governors whose fixation on exchange rate stability is also a recognition of its impact on price stability, a core mandate of any central bank.
Source: Business day
Nigeria, Morocco to discuss development opportunities (Punch pg. 35)
The Nigeria Economic Summit Group, the Africa Economic Development Policy Initiative and the OCP Policy Centre of Morocco have announced the launch of the first edition of the Morocco-Nigeria Strategic Dialogues, which focuses on enhancing opportunities for growth and development.
The partnership, according to a statement, aims to play a pivotal role in bringing the two countries together, and catalyzing debate and new ideas related to the future economic and other relationships between them.
The objective of the joint initiative, it stated, was to provide a platform for comparative analysis of the challenges and potential of the two economies as well as possible actions to promote complementary exchanges and synergies between them.
Naira depreciates to N360.54/$ in I&E window (Vanguard pg. 41)
The Naira commenced the week with 12 kobo depreciation to N360.54 per dollar in the Investors and Exporters (I&E) window of the foreign exchange market.
Data from the Financial Market Dealers Quote (FMDQ) showed that the indicative exchange rate for the I&E window rose to N360.54 per dollar, yesterday, from N360.42 per dollar on Friday last week, translating to 12 kobo loss in the value of naira.