BIG STORY

Diversion Of Diaspora Remittances To Parallel Market Weakens Naira — CBN

Published

2 years ago

August 11, 2023

The diversion of remittances from the diaspora to the black market, according to the Central Bank of Nigeria (CBN), is the cause of the naira’s free decline versus the dollar.

At the National Institute for Security Studies in Abuja, acting governor of the CBN Folashodun Shonubi gave a presentation on “Diaspora Remittances and Nigeria Economic Development.”

An earlier story claimed that on Thursday, two months after the currency’s flotation, the naira plunged to an all-time low of N950/$ on the parallel/black market.

The naira gained somewhat at the investors and exporters (I&E) window, rising 0.13 percent to close at N781.34/$.

Speaking at the occasion, Shonubi claimed that many funds sent back to Nigeria by diaspora workers end up in the black market without being formally documented.

“With those remittances, the dollars have come in, we know the dollars have come in but we don’t see them in the official system. So, they must be going somewhere and somewhere,” Shonubi said.

“And the challenge with the black market, unofficial market or parallel market or whatever name you want to call it, it is not regulated, and it becomes an easy place to have criminal activities.

“We investigate bankers, not just bankers, anybody who has committed an offense, the first thing they want to do is to run to the black markets, change it to the dollars because it is less money to carry around.

“Some of the funding in the black markets are actually from diaspora remittances. That’s why it important we need to know a lot of what’s going on there.

“We can’t play the sentiment game. If we don’t understand the dynamics, we usually go with the literature which does not necessarily work for us.”

Shonubi said the amount of inflows coming through many unapproved channels and eventually ending up in the parallel market contributed significantly to Nigeria’s foreign exchange (FX) crisis.

He said that implementing measures within the country to manage illicit remittances and detect these channels would be beneficial.

This, he said, would ensure remittance flows into the proper channels, and harness maximum benefits to grow the economy.

“We talk about black markets, which also create their own problems. Management of the foreign exchange market and the efficacy of our policies to manage the exchange rate becomes difficult due to the insignificance of our diaspora remittances which are going to other markets,” the CBN boss said.

“Today, someone called me privately and said that this thing (naira) has gone up to some levels in the black markets, my question was, what do you want me to do? Do I operate in the black markets? I don’t know the basis of pricing in the black markets.

“The other thing people don’t realise is that, because you don’t have full information, and I will give you an example since we started the I&E window. We found out that some people would deliberately wait until the last minute and do one transaction of $5,000 and that becomes the closing rate.

“We can’t do without diaspora remittances. For many countries, that’s their main source of income.”

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BIG STORY

NAF Airstrikes Kill Scores Of Terrorists, Destroy Hideout In Borno

Published

58 minutes ago

September 18, 2025

PorscheClassy News

The Nigerian Air Force (NAF) says recent air interdictions carried out by the Air Component of Operation Hadin Kai have killed several terrorists and destroyed their hideout in Borno State.

This was disclosed in a statement issued on Thursday in Abuja by the Director of Public Relations and Information, NAF, Air Commodore Ehimen Ejodame.

Ejodame explained that the airstrikes took place on Wednesday at about 10:50 a.m. in the Bula Madibale and Gezuwa general areas of the state.

He said intelligence and surveillance had earlier confirmed unusual activity at the location, where about 45 terrorists were seen gathering, with some arriving on motorcycles and bicycles from different directions.

According to him, reconnaissance also showed two terrorist flags raised at the site, indicating it was being used as a stronghold and rallying point for insurgents.

“Acting on this credible intelligence, the Air Component launched precision strikes, eliminating several terrorists, while the flagged structure and other hostile assets were destroyed,” he said.

Ejodame added that the operation disrupted the insurgents’ ability to regroup, reinforce, or launch fresh attacks on communities in the North-East.

He reaffirmed that the Armed Forces remain committed to restoring peace and stability in the region.

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BIG STORY

BREAKING: Lagos Directs Immediate Suspension Of All Reclamation Projects Across The State With Or Without EIA And Drainage Clearance

Published

2 hours ago

September 18, 2025

PorscheClassy News

The Lagos State Ministry of the Environment and Water Resources (MOE&WR) has observed with grave concern the proliferation of reclamation activities on Wetlands, Floodplains and the Lagoons across the State, particularly around Parkview, Banana Island, Osborne and other parts of Ikoyi, Victoria Island Extension, Lekki, Ajah, Oworonshoki, Lagos Mainland, Ikorodu, Ojo and Badagry axis, without consideration of the adverse Impacts on the Environment and the Wellbeing and Safety of the good people of the State.

These indiscriminate Reclamation projects are being executed without requisite Environmental Impact Assessment (EIA) Approvals and Drainage Clearance from this Ministry.

While reclamation may provide space for Housing and Infrastructure development, it also poses significant Environmental and Social risks including increased vulnerability to flooding, coastal erosion, disruption of livelihood (especially fishing), loss of wetlands and biodiversity, constriction of the Lagoons and their capacity, impairment of water quality amongst others.

With the low-lying topography of the State and its fragile ecosystem, the State Government cannot afford to allow this indiscriminate reclamation of the Lagoons, Wetlands and floodplains to continue unabated.

Consequently, the Ministry is by this Notice directing all Reclamation Projects across the State with or without EIA approval and Drainage Clearance to be SUSPENDED IMMEDIATELY.

All approved Reclamation Projects across the State must be submitted for proper

Documentation and Monitoring, while all on-going and intending ones must be subjected to the Environmental Impact Assessment (EIA) process with issuance of Approval Letter and Drainage Clearance from the Ministry of the Environment and Water Resources.

Failure to comply with this directive within the next 7 DAYS after this publication shall leave the Ministry with no other option than to deploy APPROPRIATE machineries to decommission the reclaimed sites including excavation and removal of fill, reconnecting of already blocked water channels on the Lagoon and the arrest and prosecution of anyone involved and or found on the site of the illegality.

ENOUGH IS ENOUGH!

Signed:

Mr Tokunbo Wahab

Honourable Commissioner,

Ministry of the Environment and Water Resources,

Lagos State.

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BIG STORY

BREAKING: Tinubu Suspends Emergency Rule In Rivers, Asks Fubara To Resume Tomorrow

Published

18 hours ago

September 17, 2025

PorscheClassy News

President Bola Tinubu has lifted the emergency rule imposed in Rivers State.

In a statement released on Wednesday, the president directed Siminalayi Fubara, the suspended governor, to return to office on Thursday, September 18.

Tinubu also instructed Ngozi Nma Odu, the deputy governor, along with members of the Rivers State House of Assembly, to resume their official responsibilities.

The state had been under emergency rule for the past six months.

More to come…

Post Views: 124