"New Policy Actions in The Foreign Exchange Market" Nigerians Patiently Await Windfall!

Weeks after Nigeria's Central Bank's decision to "reduce the difficulties encountered by Nigerians in obtaining foreign exchange transactions" through its "New Policy Actions in The Foreign Exchange Market"....not much can be said to have being felt on that initiative, except the recent appreciation of the Naira against the U.S Dollar which stood at =N=460 as at Friday, March 10th, 2017. The Pounds Sterling and Euro reportedly traded at =N=550 and =N=476 respectively. 

The CBN's controlled rate was at =N=399, while Interbank market floor saw the Naira closed at =N=306 to one Dollar. 

Following this development Nigerians were ecstatic to what appeared to be 'the end of the jostle for Dollar and other hard foreign currencies'; and commend the present administration for this try.  

It's essential to note that =N=450/ =N=460 was the alarming rate the Naira traded against the Dollar between November/ December 2016. This is a currency that traded against the Dollar at =N=150/180 before mid 2015 to be precise. Hence, this so called 'solace' is in my opinion pointless. But like Nigerians will always say "at-all, at-all nah eim bad pass". (meaning...It is better than nothing at all)

Confronted with this level of frustration, what could be the impediment(s) to the actualisation of the New Policy Actions? 

....Could it be that Nigeria's Financial Institutions are shunning CBN's directive to open foreign exchange branches at major Airports across the country to trade in Dollars and other foreign currencies...

....Could it be that logistics has not permitted such act...

....or Could it ultimately be that they isn't even any Dollars to trade?

I sincerely hope this is not a case of "the more you look, the less you see" act played by past, present administrations on vulnerable citizens. What ever the reason for this inexplicable delay is, Nigerians as usual, patiently await the promised and deserving "windfall".

In its effort to ensure compliance, Nigeria's Central Bank issued a circular "TO ALL AUTHORISED DEALERS UPDATE TO FOREIGN EXCHANGE DIRECTIVES dated March 3^rd, 2017, and it reads:

"In view of the CBN's willingness, capability, and determination to meet FX demand in the market, and in order to further increase foreign exchange availability to all end-users and ensure that a fair and verifiable exchange rate operates in the market, all banks are hereby directed as follows:

1. Open a teller point for retail FX transactions, including buying and selling, in all locations in order to ensure access to foreign exchange by their customers and other users, without any hindrance;

2. All banks must have an electronic display board in all their branches; showing rates of all trading currencies, and customers must insist on processing FX transactions based on the displayed rates;

3. Banks are mandated to process and meet the demand for Travel Allowances (PTA/BTA) by end-users within 24 hours of such application, as long as the endusers meet basic requirements already outlined in earlier directives;

and 4. Banks are mandated to process and meet demands for school fees and medical bills within 48 hours of such application.

Please note that this directive is effective immediately, and non-compliance would attract sanctions, including but not limited to being barred from all future CBN foreign exchange interventions."

We pray the CBN do not hesitate to come down hard on non-compliant Financial Institutions...to serve as a deterrence to others. 

Enough is enough.

Lagos Market Calls For Serious Hygiene Check!

This is Line 1, of Berlin Shopping Complex, along Marina road, one of the numerous shopping complexes at the famous Lagos Island Market, in Lagos, Nigeria.

This 'eye-saw' of over-flowing refuge has been in this state for about 2 weeks running and obviously being neglected by the Waste Management organisation responsible for making sure this particular area is clean, for reasons best known to them. 

This calls for serious hygiene check in public places to avoid epidemic out-break.

Nigeria's CBN Cash-less Policy Reviewed!

The Nigerian Central Bank (CBN) recently re-introduced and reviewed charges on cash deposits and withdrawals in the already existing cash-less states: Abia, Anambra, Ogun, Lagos, kano, Rivers and the Federal Capital territory, Abuja with effect from April 1, 2017.

This cash-less policy has also been extended to the 30 remaining states in Nigeria with commencement dates stated below: 

Bauchi, Bayelsa, Delta, Enugu, Gombe, Imo, Kaduna, Ondo, Osun, Plateau states: commences on May 1st, 2017.

Edo, Kastina, Jigawa, Niger, Oyo, Adamawa, Ebonyi, Akwa-ibom, Taraba and Nasarawa states commence on: August 1, 2017.

Kebbi,Sokoto, Bornu, Yobe, Benue, Kogi, Ekiti, Kwara, Cross-River, and Zamfara states commence on: October 1, 2017.

Charges for all cash deposits and withdrawals are as follows:

Individuals: 

Amounts less than 500,000 attracts no charges for savings and withdrawals. 

500 - 1,000,000 attracts 1.5% for deposits and 2% for withdrawals

1,000,000 - 5,000,000 attracts 2% for deposits and 3% for withdrawals

Above 5,000,000 attracts 3% for deposits and 7.5% for withdrawals.

Corporates:  

Less than 3,000,000 attracts no charges

3,000,000 - 10,000,000 2% for deposits and 5% for withdrawals

10,000,000 - 40,000,000 35 for deposits and 7.5% for withdrawals

40,000,000 and above attracts 5% for deposits and 10% for withdrawals.

Multilateral and Aid Donor Agencies, Embassies and Diplomatic missions in Nigeria are however exempted from all processing fees relating to cash-less policy implementation.

Revenue Generating Accounts of the Federal, States and Local Governments in Nigeria are equally exempted on cash deposits.

HOW WELL DO YOU KNOW THE EARTH: SILICON DISCOVERED AS LAST 5% PART OF EARTH'S COMPOSITION!

According to a World Economic Forum report, in collaboration with Business Insider, scientists may have made a milestone discovery that can help determine the order which formed the earth. Results from decades long research conducted by a team of Japanese Geophysicists posits that the final 5% part of the Earth is made from silicon. 

Due to its ability to its ability to bond well to metals, silicon has been a top contender in the missing element research. Hence it's emergence as the 5% only confirms the assertion. It is generally believed that the about 85% of the earth's innermost part is made from Iron, Nickle consists of about 10% while the final 5% composition remained a mystery.

The result was revealed during  a recently concluded meeting of American Geophysical Union in San Francisco, United States.

A Look At CBN's Act On Forex!

Nigeria's Apex Bank recently released information on its "New Policy Actions in The Foreign Exchange Market" where it directed all financial institutions in the country to open Foreign Exchange outlets at major Airports to trade in Dollars and other foreign currencies. 

This directive, signed by the acting Director, Corporate Communications, Mr. Isaac Okoroafor, is aimed at reducing the difficulties currently encountered by Nigerians in obtaining foreign exchange transactions. 

This directive however comes with a condition..."as soon as Logistics permit". ....We wait patiently till when "Logistics permits".

Back to the news: To facilitate this initiative, the CBN is providing direct additional funding to banks to meet the needs of Nigerians for Personal and Business Travel, Medical needs and School fees...

This part of the initiative is believed to be "effective immediately".

...Kudos!

Such retails transactions according to the CBN, is expected to be settled at a rate not more than 20% above the inter-banking market rate. 
....Another kudos!

With regards to Travel allowances" the statement read: 
"Having cleared the historic backlog of matured letters of credit at the inception of the current flexible exchange rate system, the CBN would immediately begin to provide foreign exchange to all commercial banks to meet the needs of both personal travel allowances (PTA) and business travel allowances (BTA) for onward sale to customers. all banks would receive amounts commensurate with their demand per week, which would be sold to customers who meet usual basic documentary requirements." 

On "School Fess and Medical Fees": 

"Similarly, the CBN would meet the needs of parents, guardians and sponsors who are seeking to make payments of school and educational fees for their children and wards. Such payments must be made by commercial banks directly to the institution specified by the customer. The CBN would ensure that this process is as smooth as possible and that as many customers as possible get the foreign exchange they genuinely demand. This would also apply to customers seeking to make payments, or purchase foreign exchange, for medical bills and paid directly to hospitals. The supply of FX to retail end-users (PTA, BTA, School fees, medical bills, etc) would be sustained by the CBN." 

On "Forward Sales Tenor": 

"In order to further increase the availability of foreign exchange to all end-users, the CBN has decided to significantly reduce the tenor of its forward sales from the current maximum cycle of 180 days, to no more than 60 days from the date of transaction." 

On "FX Sales at Major Airports": 

"In order to further ease the burden of travellers and ensure that transactions are settled at much more competitive exchange rates, the CBN hereby directs all banks to open FX retail outlets at major airports as soon as logistics permit". 

On "Increase Efficiency of FX Market":

"In order to maintain confidence in the FX market, the CBN will immediately take the following steps:

 a. Begin implementing its articulated program to clear all the unfilled orders in the interbank FX market; 

b. Given our plan to meet all unfilled orders, and while provision of FX to the manufacturing sector would remain the CBN’s strong priority, we will no longer impose allocation/utilization rules on commercial banks; 

c. Implement an effective intervention programme to support the inter-bank market to ensure adequate liquidity necessary to deliver an efficient FX market; d. Advise FMDQ to activate its FX Order-Book systems as soon as possible and also accelerate the on-boarding of FX clients on the FX Relationship Systems to ensure total transparency of the FX market." 

The statement concludes with the following: "Given the CBN’s objective to continuously and vigorously pursue a transparent, liquid, and efficient FX Market, the Bank reiterates it would neither tolerate unscrupulous actions nor hesitate to bring serious sanctions on offenders, be they banks or their staff. The Bank therefore encourages market participants to assist in ensuring that these new measures engender the preservation of our external reserves, stability of our financial system, and growth of our economy to the benefit of all Nigerians."

Having stated its laudable initiative to "ease the difficulties encountered by Nigerians in obtaining funds for foreign exchange transactions" the cachets lies with its execution and actualisation. 

May God grant the CBN and participating institutions the Will-Power to do so.

Dry, Dusty, Windy February In Lagos!

The picture below captured what the past couple of days has been like around Lagos - Nigeria.

Dusty and windy.

It is mid February but the weather appears as though it is early or mid January. Is this the situation in other parts of the country? 

Weather forecasters..over to you.

Photos From Across Africa: A Visit to Lome!

Photos from a visit to Lome, the capital city of Togo, a small country in west Africa, along the Gulf of Guinea. 

Coming into Lome city on a road journey, one is greeted with the alluring view of the Atlantic Ocean on the left and some momentous sights of the city on the right.

A major street off Boulevard du mono, Lome

As part of the Beach beautification, Palm trees are planted in an arranged order and protected until they are big enough to stand on their own. These palm are arguably one of the most fascinating sights in Lome.

The Palm Beach front which is a sight to behold serves as haven for tourists, and traders.   

A fisherman at the Beach

A group rehashing their dance moves at the Beach

Monument de l'independance,  Ave 2 Fevrier, Lome, Togo

In Lome, a common meal, especially breakfast is bread sold with Eggs or Baked, beans, Sardines, mayonnaise, Butter etc..

 

Baskets made from cargo package plastics is a growing trend in Lome. They serve for multiple purpose usage...ranging from refuge baskets, to carrier baskets etc.

A street off the major Boulevard in Lome

Part of the popular Asigame market where art works ranging from Leather works, clothes etc.. are sold. 

A dead fish washed ashore the beach