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Economy: Dollar Hits N600 At Parallel Market, Forex Supply Shrinks

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The dollar exchanged at N600 on Monday at the parallel market, heightening fears of a further devaluation of the nation’s currency.

The rate at the Importers and Exporters Window was, however, N415.75 on Monday, widening the exchange rate spread to N184.25.

At Zone 4 in Abuja, which is the hub of the parallel market in the Federal Capital Territory, two Bureau de Change Operators, Mohammed Isa, and Abu Abdullahi, told The PUNCH that the rate was N599/$ at 10 am and 11.14 am respectively.

However, the rates for both BDCs changed to N600/$ when they were separately contacted at N3.13pm and N5pm respectively on Monday.

“If I reduce this by N1, I will not be able to make any profit,” one of the two BDCs, Abu Abdullahi, said.

At the Lagos airport on Monday, a BDC operator, Adamu Haruna, told The PUNCH that the rate was “N600/$, no more, no less.”

A BDC operator at Amuwo-Odofin in Lagos, Bala Usman, gave an initial rate of N598/$ in the morning but changed to N599 at 2.53 pm when contacted.

“The demand is increasing and the dollar is very scarce now,” he said.

Naira has weakened in the parallel market due to increased speculations, falling external reserves, and low foreign exchange inflows into Africa’s biggest oil producer.

The country’s external reserves fell by $313m in March, according to figures obtained from the Central Bank of Nigeria.

Politics is also a key factor, as experts see politicians mopping up dollars for election primaries this month.

The President, of the Association of Bureaux de Change Operators of Nigeria, Alhaji Aminu Gwadabe, told The PUNCH that the situation was caused by several factors, including elections, loss of confidence, and demand/ supply.

“It is a market where demand and supply determine the price. Do not forget that election years are associated with foreign exchange volatility, coupled with supply squeeze. External reserves, inflation, cost of inputs, and the Russia-Ukraine war are also key issues,” he said, arguing that there was indeed a loss of confidence, saying that “once people see the exchange rate rising, the confidence will also fall.”

The Director of Research and Strategy, Chapel Hill Denham, Mr. Tajudeen Ibrahim, told The PUNCH that the issue in the foreign exchange market could be attributed to falling external reserves and uncertainty in the economy.

“The parallel market is speculative. One of the causes is the foreign exchange reserves. Secondly, there is no indication that Nigeria is going to see an inflow of foreign exchange that can underpin the FX reserves any time soon,” he said.

“There is nothing like Eurobond. There are no indications for other borrowings, so there is no clear indication of inflows. This is also one of the reasons for what we see in the market,” he said.

He explained that the market might have been seeing an election-related demand.

He urged the Central Bank of Nigeria to devalue the naira to match the parallel market rate, while also managing the market to ensure that unforeseen circumstances did not happen.

On his part, the Chief Executive Officer of the Centre for the Promotion of the Private Sector, Dr. Muda Yusuf, urged the CBN to float the exchange rate market to provide clarity for investors and allow the market to be determined by the forces of demand and supply.

Yusuf said the CBN’s current approach would continue to deepen distortions in the economy, perpetuate round-tripping, fuel speculation, and suppress forex supply.

On the other hand, Nigeria is a deeply import-dependent economy, relying on crude oil for over 80 percent of the foreign exchange.

The non-oil sector inflows are still 10-20 percent and most of the export products are raw materials and agricultural commodities.

The Manufacturers Association of Nigeria said only a strong manufacturing sector could raise the productive capacity of the country, reduce importation and increase FX inflows from non-oil exports.

BIG STORY

JUST IN: Police Confirm Arrest of ‘Fake’ Agency DG Adeniyi Adeyemi in Osun

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Operatives of the Nigeria Police Force (NPF) have arrested Adeniyi Adeyemi, director-general of the “controversial” Presidential Foreign Intervention Promotion Council (PFIPC).

Abiodun Ojelabi, police spokesperson in Osun, confirmed the arrest to the media, saying Adeyemi was apprehended in the state on Tuesday.

Earlier, a federal high court in Abuja ordered Adeyemi’s arrest after he failed to honour the court’s summons in the alleged forgery case.

The spokesperson of the Osun Police Command, Abiodun Ojelabi, told newsmen that Adeniyi was arrested in his hideout in Osun by the Intelligence Response Team from Abuja. He is likely to be transferred to Abuja later today.

“Yes, it is confirmed. The Intelligence Response Team from Abuja arrested him here in Osun,” Ojelabi said.

A video of the arrest showed Adeyemi dressed in a light blue traditional outfit while surrounded by security operatives.

In the footage, he appeared serious and visibly concerned as he responded to questions from officers.

When asked to identify himself, Adeyemi initially declined to give a direct response.

“I’ve mentioned it, sir,” he said.

The officers insisted that he state his name again.

“Mention it for us, please. What is your name? What is your name?” one of the officers asked.

Adeyemi replied, “I’ve said it several times.”

His arrest came hours after Justice Mohammed Umar of the Federal High Court in Abuja ordered his arrest following his failure to appear for arraignment over alleged conspiracy, forgery and impersonation.

According to the court, the defendant would be compelled to appear and face trial.

The judge subsequently adjourned the matter until September 30, 2026, for arraignment.

Adeyemi’s arrest comes barely a day after he publicly denied reports that he was evading security agencies.

Speaking during an interview on Channels Television on Monday, he had insisted he was not hiding.

“I’m ready to show my face. I’m not hiding. I’m only fearing for my life because I have it on good authority that my life is in danger.

“There have been several attempts on my life.”

He also repeated his allegation that he paid ₦400 million through an intermediary to secure his appointment as Director-General of the disputed council and called for an independent investigation into the controversy.

The police had accused Adeyemi of forging several official documents, including a purported presidential appointment letter allegedly signed by the Chief of Staff to the President, Femi Gbajabiamila, as well as other government documents used to present the council as a legitimate federal agency.

Investigators also alleged that Adeyemi falsely presented himself as the Director-General of the council and operated from an office within the Federal Secretariat Complex in Abuja.

If convicted on the forgery-related charges, he faces up to 21 years’ imprisonment without the option of a fine, while the impersonation charge carries a maximum sentence of three years’ imprisonment or a fine.

 

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Final South Africa Repatriation Flight to Arrive Lagos Wednesday

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The federal government’s final evacuation flight from South Africa will land in Lagos on Wednesday.

In a statement on Tuesday, Kimiebi Ebienfa, spokesperson of the Ministry of Foreign Affairs, said the flight, operated by Air Peace, is expected to depart Johannesburg with 315 returnees at 1:30 am.

Ebienfa pegged the estimated time of arrival at the Murtala Mohammed International Airport at 6.30 am.

It would be the government’s fifth evacuation flight and the seventh batch of Nigerians to be repatriated from South Africa following the xenophobic violence.

Over 1,000 Nigerians were said to have indicated interest in returning.

The fourth evacuation flight arrived on July 9 with 282 returnees, bringing the total number of Nigerians repatriated from South Africa since the evacuation flights began on June 11 to 1,141.

Bianca Odumegwu-Ojukwu, minister of foreign affairs, asked Nigerians to take advantage of the ongoing exercise to return home.

Odumegwu-Ojukwu’s call came as two more Nigerians were reported dead in South Africa, bringing the official death toll of Nigerian citizens in the country since the latest xenophobic violence to four.

Some repatriated Nigerians have alleged that the figures are higher.

The minister assured that the federal government would ensure that no citizen who expressed interest in returning home would be left behind.

 

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‘No Immigrant Should Stay in the UK Forever’ — Kemi Badenoch Sparks Fresh Row

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Leader of the UK Conservative Party, Kemi Badenoch, has said immigrants who arrive in Britain on temporary work visas should not automatically be allowed to remain in the country permanently, urging the Labour government to retain its proposed 10-year qualifying period for indefinite leave to remain.

Badenoch made the remarks in a post shared on her X handle on Monday while releasing a letter addressed to the UK’s Home Secretary.

In the post, she criticised calls by some Labour lawmakers for the government to soften its planned immigration reforms.

“People who come to Britain on temporary work visas should not automatically be able to stay forever.

“This Labour government was right to make that harder. Now their MPs want them to u-turn.

“Conservatives will back Labour’s original plan to help get it through Parliament,” she wrote.

The letter, jointly signed by Badenoch and the Shadow Home Secretary, Chris Philp, expressed concern over reports that the Labour government was considering exempting around two million migrants who entered the United Kingdom on work visas between 2021 and the present from the proposed extension of the qualifying period for indefinite leave to remain.

The Conservative leader described such a move as “a grave mistake,” insisting that Britain had previously experienced the consequences of allowing migrants to obtain permanent settlement too quickly.

“As Conservatives learned to our cost, five years is too short a time to obtain the indefinite right to remain in the UK,” the letter read.

She argued that many migrants currently working in low-paid and low-skilled jobs could be replaced by economically inactive British citizens if appropriate opportunities were created.

“Many of these immigrants are working in low-wage, low-skilled jobs which could be done by some of the 9 million economically inactive British citizens,” she stated.

According to Badenoch, migrants who fail to make what she described as a significant economic contribution over a decade should return to their home countries once their temporary work visas expire.

“Individuals who are not making a significant economic contribution over a ten-year period should not be allowed to stay indefinitely. Those not working, or working in low-paid jobs, should be required to go home at the end of their temporary work visa,” she added.

The Conservative leader also argued that granting indefinite leave to remain after only five years would place additional pressure on the UK’s welfare system because successful applicants become entitled to social benefits and can subsequently apply for British citizenship.

“Receiving ILR currently carries full entitlement to receive benefits. Even if this were restricted for an additional qualification period as some have called for, as things stand, the migrants concerned would become eligible for British citizenship a year after receiving ILR, and it would be very difficult to restrict benefits for citizens,” the letter said.

She further noted that there was currently no provision in the Immigration and Asylum Bill or existing legislation that would allow the government to alter welfare entitlements for people granted indefinite leave to remain.

Badenoch maintained that extending the qualifying period from five years to 10 years would not amount to a retrospective change because temporary work visas do not guarantee permanent settlement.

“The government is perfectly entitled to decide at any time the rules on indefinite rights of settlement, including in relation to those here already.

“No one who has come here on a temporary work visa should have the automatic right to stay forever, and changing the rules to extend the qualification period and add conditions for new applications does not constitute a retrospective change,” she wrote.

In the letter, Badenoch also offered the Conservative Party’s support if Labour decides to proceed with its original proposal without amendments.

“If you table the proposals set out last autumn in undiluted form, either in the Immigration Rules or as part of the Immigration and Asylum Bill, we will support them.

“In government we would of course go further, but on this time-sensitive matter we make this offer to cooperate in the national interest,” she stated.

She said the government’s decision on the matter would ultimately show whether Labour was genuinely committed to reducing immigration and strengthening border controls.

“Whether or not you stand by your own proposals is a test of whether the Labour Party is serious about controlling our borders — or not,” the letter added.

The letter was also copied to Andy Burnham, whom Badenoch referred to as the anticipated incoming Prime Minister, as political debate over the future direction of the UK’s immigration policy continues.

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