Connect with us


BIG STORY

FOREX: Dollar Hits N615, Local Raw Materials Sourcing Drops To 52%

Published

on

The pressure on the foreign exchange market keeps growing, with the dollar exchanging at N615 at the parallel market in Lagos and Abuja.

This is even as the percentage of local raw materials sourced by Nigerian manufacturers declined to 52.4 percent in 2021, from 57.5 percent obtained in 2020, according to data from the Manufacturers Association of Nigeria.

Market research showed that a dollar sold for N613 and N614 at Zone 4 in the Federal Capital Territory, Abuja, but the rate was N615 at Amuwo Odofin and Lagos airports on Tuesday.  At Abuja airports, a dollar was sold for N615. The situation was different at the Importers and Exporters window where a dollar went for N415.64, putting the margin between the official and the parallel markets at N199.36.

Bureau de Change players said dollars were becoming increasingly scarce and the price could get to N700 before the end of the year.

“We are looking for dollars to buy, but we can’t find it anywhere. People are hoarding their dollars and waiting for prices to rise further,” Aminu Bala, one of the BDCs in Zone 4, Abuja, said in pidgin English.

Abdullahi Isah, a BDC at Amuwo-Odofin in Lagos, lamented that they bought at N610-N612, saying that scarcity of dollars was hurting their business and the economy.

According to the President, of the Association of Bureaux de Change Operators of Nigeria, Alhaji Aminu Gwadabe, no sensible person would like to sell his or her dollar when prices could rise within the shortest possible time.

Gwadabe noted that the naira was facing a war of attrition, worsened by currency substitution, speculation, politics, and exclusion of BDCs from the FX market.

He said due to the one-month notice given to travelers who needed basic allowances, many of them were finding their way to the parallel market, putting further pressure on the market.

Gwadabe called for the reinstatement of BDCs to the FX market, stressing the need for market liberalization.

Nigeria is facing a dollar crunch, coupled with declining government revenue and oil production. The revenue of the Federal Government has declined from N970.57 billion in July 2021 to N680.783 billion in May 2022.

Nigeria earned about $10bn in non-oil exports in 2021, but this is just about 30 percent of what Bangladesh earned from its textile exports last year. Oil production fell to 1.2 million barrels per day in April 2022 from 1.238 million barrels in March, according to OPEC Monthly Oil Market Report. This is far from the oil benchmark of 1.88 million barrels per day in the 2022 budget.

Manufacturers are also in the mix, scrambling for dollars to import inputs, spare parts, and machinery.

According to the Manufacturers Association of Nigeria, the decline of local input sourcing from 57.5 percent to 52.4 percent was attributed to the scarcity of raw materials.

“Since the full opening of the economy following the lockdown associated with the COVID-19 pandemic, local raw materials and other manufacturing inputs have been relatively scarce and costly. This has also affected the output of the sector negatively,” MAN said.

Professor of Ceramics Engineering, Patrick Oaikhinan, explained that his experience in ceramics-related raw materials showed that Nigeria was still far from developing its raw materials.

“The major reason companies are sourcing raw materials from abroad is the absence of details about chemical and mineralogical compositions of raw materials. Firms are also unaware of the physical and mechanical properties and areas of applications in various industries of these raw materials,” he said.

“We do not know the extent of the deposits, much less the chemical and mineralogical compositions of our raw materials. We do not have the laboratory to characterize the raw materials. If you do not know these compositions, you cannot formulate the products. If you are using trial and error, you cannot get the desired quality. Many local industries do not have the laboratories to characterize the raw materials before use because it is expensive,” he explained.

He called for a policy to develop the local raw materials and make them more marketable.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, who interacted with manufacturers while he was the director-general of the Lagos Chamber of Commerce and Industry, said it was high time Nigeria addressed the issue of its core industries.

“If we want to promote industrialization and self-reliance, we need to address the issue of our core industries. When I say core industries, I mean industries that form the pillar for other industries.

“Iron and steel is number one. Look at how much investment we have made in Ajaokuta Complex. The whole vision was to have an iron and steel sector that will support industrialization. The country wanted to get flat sheets, spare parts, and iron rods, among others, from Ajaokuta, but we didn’t make any headway. The second major one is petrochemicals. Look at the packaging industry. Almost 90 percent of packaging products are plastics.  Next is the Aluminium Smelter Company of Nigeria. It was a gas-based industry and the vision then was to use it to support cable and wire industries, but again we made a complete mess of it.”

He said Nigeria must fix these industries urgently before talking about the industrialization of any kind.

BIG STORY

COALITION: Peter Obi Will Be Expelled From Labour Party — Arabambi

Published

on

The Labour Party has announced its intention to expel former presidential candidate Peter Obi over his participation in an opposition coalition seeking to remove President Bola Tinubu.

During a live appearance on Channels Television’s The Morning Brief on Tuesday, a party chieftain, Abayomi Arabambi, said Obi’s involvement with the coalition while remaining a Labour Party member was “unconstitutional” and “unacceptable.”

“Let me make it very clear: we are convening a NEC [National Executive Council] meeting where he [Obi] will be expelled. It is unconstitutional for you to belong to two political parties at a time. They have deceived him to their side, and there he shall remain,” Arabambi said.

He explained that the NEC would recommend Obi’s expulsion, which would then be formally approved at the party’s convention in line with its constitution.

“Obi will be expelled from our party. He is no longer a member. It is not within his right to claim, ‘I am still a member of the Labour Party,’ and at the same time be hobnobbing with what we call the ‘yahoo yahoo’ coalition. We are not going to accept that,” he said.

In a critical statement, Arabambi rejected claims that Obi was responsible for the Labour Party’s rise, saying, “I want to correct a very wrong notion—Obi did not make the Labour Party; the Labour Party made Peter Obi. It was just a chance of circumstance because of the #EndSARS protests and the failings of past administrations. Nigerians were simply tired.”

He insisted that it was the party’s credibility that gave Obi the platform that elevated his political image in 2023.

“It’s because of our own integrity. That was what gave Obi what he is today. He should be banking on our goodwill, not the other way around. He started the crisis in the Labour Party,” he said.

Arabambi also accused Obi of having an authoritarian approach, saying, “If he can fight party members to do his will, then he is not fit to run the party.”

He emphasized that the Labour Party had only one recognized leadership, stating, “Let me also make it clear: we do not have groups in the Labour Party. We have only one leadership under Julius Abure, our national chairman.”

Arabambi’s comments came after the Julius Abure-led faction of the Labour Party gave Obi a 48-hour deadline to formally resign from the party over his alleged “bromance” with the coalition.

In a statement dated 3 July, LP’s Obiora Ifoh said, “Labour Party is not part of the coalition. Therefore, any of our members who are part of the coalition are given within 48 hours to formally resign his membership of the party.

Labour Party is not available for people with dual agendas or deceptive personas. We will not allow individuals to have one leg in our party and the other elsewhere.”

Ifoh accused coalition members of being opportunistic politicians “interested in relaunching themselves into the circle of power.”

This situation arose after the opposition coalition met on Wednesday, 2 July, in Abuja, where the ADC was adopted as its platform for the 2027 elections.

The coalition appointed former Senate President David Mark as interim national chairman and former Osun governor Rauf Aregbesola as secretary.

The meeting was attended by many prominent politicians, including Atiku Abubakar, Nasir El-Rufai, Rotimi Amaechi, Dino Melaye, Dele Momodu, Gabriel Suswam, Ireti Kingibe, Emeka Ihedioha, and Sadique Abubakar—along with Obi.

 

Credit: Channels TV

Continue Reading

BIG STORY

JUST IN: JAMB Sets 150 As Cut-Off Mark For Universities

Published

on

The Joint Admissions and Matriculation Board has approved 150 as the cut-off score for university admissions in the country.

The decision was reached on Tuesday during the 2025 Policy Meeting on Admissions, held at the Bola Ahmed Tinubu International Conference Centre in Abuja.

It also announced that the cut-off score for colleges of nursing is 140, while both colleges of agriculture and colleges of education have a cut-off score of 100.

“The minimum admissible scores for admissions for the next academic session have been fixed at 150 for universities, 100 for polytechnics, 100 for colleges of education, and 140 for colleges of nursing sciences by the stakeholders (Heads of Tertiary Institutions),” JAMB wrote on its X handle.

Continue Reading

BIG STORY

Over 100 Killed In Texas Flood, Bodies Recovered As Search And Rescue Operations Continue

Published

on

The number of deaths from severe flooding in Texas climbed to more than 100 on Monday, as rescue teams continued their difficult search for individuals swept away by the rushing waters.

Among those who died were at least 27 girls and counsellors who were at a youth summer camp located by a river when the disaster struck during the Fourth of July holiday weekend.

Weather experts have cautioned about further flooding risks as rain continues to fall on already saturated ground, making recovery operations harder for the roughly 1,750 personnel involved, using helicopters, boats, and dogs.

“There is still a threat of heavy rain with the potential to cause flooding,” Texas Governor Greg Abbott stated on Monday, warning that the death toll could still increase.

President Donald Trump confirmed plans to visit Texas on Friday, as the White House pushed back against accusations that his administration’s cuts to weather agencies weakened the flood warnings.

“Blaming President Trump for these floods is a depraved lie, and it serves no purpose during this time of national mourning,” said Press Secretary Karoline Leavitt on Monday.

She noted that the National Weather Service, which The New York Times reported had several vacancies in Texas prior to the floods, issued “timely and precise forecasts and warnings.”

Trump described the floods that hit early Friday as a “100-year catastrophe” that “nobody expected.”

Although the president has previously argued that disaster relief should be handled by state governments, he signed a major disaster declaration to release federal funds and provide additional resources.

At least 104 deaths linked to the flooding have been reported throughout central Texas.

Kerr County, where the Guadalupe River flows, suffered the greatest losses, with at least 84 deaths reported, including 28 children, according to the local sheriff’s office.

Among the dead were 27 people who had been staying at Camp Mystic, an all-girls Christian camp hosting around 750 individuals when the floodwaters struck.

Camps are a cherished part of summer in the United States, with children often spending time in rural areas such as parks and woods.

Texas Senator Ted Cruz described the camps as opportunities to make “lifetime friends — and then suddenly it turns to tragedy.”

However, some locals have raised concerns about the lack of stronger flood-warning systems in this region of south and central Texas, often referred to as “Flash Flood Alley” due to its frequent and severe flooding.

Experts have emphasized that the NWS provided timely forecasts, while climate scientist Daniel Swain pointed to failures in “warning dissemination.”

San Antonio resident Nicole Wilson, who almost sent her daughters to Camp Mystic, launched a petition on Change.org urging Governor Greg Abbott to approve a modern warning system.

“Five minutes of that siren going off could have saved every single one of those children,” she told AFP.

During a candlelight vigil in San Antonio on Monday night, people gathered to pray for the victims and express ongoing concerns.

“I was pretty shocked on the gravity of the situation and how big it was, and I wouldn’t necessarily expect that our rivers would rise so quickly,” said Rebeca Gutierrez, 29.

“Hopefully there’s preventative efforts happening in similar areas to make sure nothing to this degree happens.”

In a devastating demonstration of nature’s force, the swollen Guadalupe River rose to the level of treetops and cabin roofs while girls were sleeping inside the camp.

Blankets, teddy bears, and other personal items were left coated in mud.

Cabin windows were smashed, likely from the powerful water currents.

Volunteers assisted in sifting through debris along the river, with some being driven by personal connections to the victims.

“We’re helping the parents of two of the missing children.

The last message they got was ‘We’re being washed away,’ and the phone went dead,” said Louis Deppe, 62, to AFP.

Several months’ worth of rainfall poured down in just a few hours from Thursday night into Friday, with additional rainfall since then.

The Guadalupe River surged by about 26 feet, roughly equivalent to a two-story building, within just 45 minutes.

Flash floods happen when the ground cannot absorb sudden heavy rainfall.

Human-induced climate change has intensified the frequency and severity of extreme weather events such as floods, droughts, and heatwaves in recent years.

Continue Reading



 

Join Us On Facebook

Most Popular