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Lagos seals church, firm for noise pollution

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The Lagos State Government has sealed off Landcraft Industries Nigeria and Word of Light Christ Ministry (Camp of Light), for noise and environmental pollution-related offences.

The state Commissioner for Environment and Water Resources, Tokunbo Wahab, made this known in a statement released on his handle on Wednesday.

Wahab said Landcraft Industries Nigeria, situated at Odogunyan, Ikorodu, Lagos, was sealed off due to gross environmental pollution, while the Word of Light Christ Ministry (Camp of Light), located at Oriokuta, also in Ikorodu, was sealed off due to noise pollution.

“The enforcement operation, led by Deputy Director Enforcement Department, Babatunde Gbenga, was aimed at ensuring compliance with the Lagos State Environmental Laws 2017,” he said.

The General Manager of Lagos State Environmental Protection Agency, Dr. Babatunde Ajayi, said, “The agency took these decisive actions after issuing repeated warnings to both establishments to address their respective environmental concerns, which were disregarded.

“The sealing demonstrates LASEPA’s unwavering commitment to safeguarding the environment and public health.”

The LASEPA GM expressed the readiness of his agency to take action against any establishment that failed to comply with the state’s environmental regulations.

He, therefore, urged all industries and establishments in Lagos to prioritise environmental sustainability and adhere strictly to regulations to avoid clampdown.

LASEPA shut down no fewer than five churches and 19 hotels over noise pollution between March 23 and April 26, according to a tally by The According.

Checks by our correspondent also showed that no fewer than four markets and shopping complexes were also shut down over noise pollution and other environmental infractions.

Two persons jailed for vandalising IKEDC transformers

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The Lagos State Magistrate Court in Ejigbo has sentenced two men for vandalising transformers belonging to Ikeja Electricity Distribution Company.

A statement by the IKEDC spokesperson, Kingsley Okotie, on Wednesday, stated th the convicts, Abubakar Alido, received a one-year sentence for vandalising a 500KVA transformer on Michael Aladesuyi Street, Egbeda, Lagos, under the Omo Osho 11KV Feeder.

The second convicted person, Ishola Olatunji, was sentenced to six months for attempting to vandalise a transformer on Karimu Laka Street, Egbeda, Lagos, under the Orelope 11KV Feeder.

Okotie disclosed that Alido was apprehended by a security guard and handed over to the police.

According to him, Alido was found tampering with the transformer cables and he was arraigned Alido at Magistrate Court 1, Ejigbo, on June 14, 2024, for wilful damage to transformer cables, contrary to Section 339 and punishable under Section 350 of the Lagos State Criminal Law of 2015.

He added that Alido had pleaded guilty when the charges were read to him and was sentenced on July 2.

In a similar case, Olatunji was reportedly caught by members of the Karimu Laka community while attempting to vandalise a 500KVA transformer.

The community members handed him over to the police and he was arraigned at Magistrate Court 1, Ejigbo, Lagos, on March 11, but he was granted bail after pleading not guilty

However, he later changed his plea to guilty and the court sentenced him to six months imprisonment, counting from his arraignment date.

Speaking on the judgments, the Manager of Akowonjo Business Unit, Abayomi Bolorunde, expressed satisfaction and hope that the sentences would serve as a deterrent to other potential vandals.

He reiterated Ikeja Electric’s commitment to curtailing the vandalism of its assets, emphasising the significant damage such activities cause to the company’s operations and the inconvenience they bring to customers.

He urged communities to remain vigilant and report any suspicious activities, as vandals continue to devise new methods to disrupt the electricity supply and plunge customers into darkness.

Apapa Customs generate N1.2tn revenue in seven months – NCS

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The Nigeria Customs Service, Apapa Area Command has said it generated a total of N1.23tn as revenue between January and July 2024.

In a statement on Wednesday, the command also said it collected N202bn as revenue for July, stressing that the figure is the highest monthly collection in the history of the service.

The Customs Area Controller of the command, Babatunde Olomu, said the command is committed to surpassing the existing records of revenue collection.

He said the revenue collected in the first seven months of 2024 is higher than the total revenue collected for the whole of 2023.

“For the first seven months of 2024, that is January to July this year, the Apapa Area Command generated a total of N1.23tn. What has been generated so far for seven months is above the total collected revenue by the command in 2023, which was N1.17tn,” he said.

Olomu attributed the success to the implementation of the time release study by the Comptroller-General of Customs, Adewale Adeniyi, which aimed to facilitate trade without delay.

According to Olomu, the move yielded outstanding results, which reflected in the command’s revenue collection.

Expressing confidence in the command’s ability to do better, Olomu said, “I am optimistic about the possibility of beating this record as we look forward to surpassing it in months to come.

“Worthy of note is the interventions from the tariff and trade department, which has contributed immensely to the successes achieved thus far.”

The Apapa Customs boss vowed that the command is committed to doing more in line with the directives and motivating examples of the CGC.

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Family announces Abimbola Aboderin’s passage

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The families of Aboderin and Dada have announced the passing of Chief Abimbola Aboderin.

A statement, on Wednesday, titled, ‘Glorious Home Call’ said Aboderin died on July 31, 2024.

“With gratitude to God for a life that was lived to the fullest and full of generosity, the families of Aboderin and Dada announce the transition of our beloved father, grandfather, brother, uncle, in-law, and friend, who passed away unto glory on Wednesday 31st of July 2024,” the statement said.

Chief Abimbola, a businessman, a notable Ibadan politician, and a diehard supporter of June 12,  was a member of Ikoyi Club, Boat Club, Yacht Club and Island Club.

He was the first son of the late Maye Olubadan of Ibadan land, Olola Moyosore Akinloye Aboderin, who was the third Mogaji and head of the Aboderin family.

The deceased was also the first grandson of the late Olota of Otta, Oba T.T. Dada, who died in 1992.

According to the Wednesday statement, Chief Abimbola was survived by  Seun Aboderin, Omilola Oshikoya and Mayode Aboderin.

“Chief Abimbola Aboderin attended Ibadan Grammar School, International School Ibadan, Redrice School, Hampshire UK and University of San Francisco, California. USA.

“He organised the first Reggae sunsplash in Africa. He was the publisher of Guru Magazine. He loved life and lived well,” the statement said.

Ibibio group urges Tinubu to cut governance cost by implementing Oronsanye report

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A socio-cultural organisation of Bio ethnic nationality in Akwa Ibon State, Mboho Mkparawa Ibibio, has urged President Bola Ahmed Tinubu, to drastically reduce his over-bloated Federal Executive Council and faithfully implement the Stephen Orosanye’s Report to reduce the high cost of governance in the country.

It further advised the All Progressives Congress-led government to scrap the bicameral legislative structure and plough back the savings arising from the exercises towards improving the welfare of the citizenry.

This was contained in a communiqué issued at the 54th General Assembly of the organization held at its secretariat along Udo Udoma Avenue, Uyo, Akwa Ibom State, on Saturday.

The communique which was made available to our correspondent in Uyo on Tuesday was endorsed by the International President of the group, Akparawa James Edet, and Secretary Akparawa Bassey Bassey among others.

Recall that President Tinubu had, earlier this year pushed for the implementation of the Stephen Orosanye Report, to reduce the cost of governance in the country

But in a move that suggested that he had ignored the report, the President approved two new commissions: the South East Development Commission and the North West Development Commission.

The communiqué reads, “The 54th General Assembly called on the government at all levels to reduce the cost of governance and plough back the savings at improving the welfare of citizens.

“Mboho called on the Federal Government to consider scrapping the present bicameral legislature system in favour of the unicameral structure, drastically reduce the over bloated Federal Executive Council as well as fully implement the Orasanye Report on the realignment of Ministries, Departments and Agencies in the country.”

The group called on the Federal Government to take proactive steps towards reducing the untold burden, pains and hardship confronting the Nigerian masses.

The group particularly called on political office holders and elected representatives of the people both at the national and state levels to “make sacrifices, initiate people-oriented policies and legislations that would ameliorate the suffering Nigerians are currently passing through.”

On the ongoing protests in some parts of the country, Mboho Mkparawa Ibibio noted that it was the right of the citizens to protest but however, warned that such protests should not be allowed to be hijacked by the hoodlums.

The communiqué added, “Mboho acknowledged the inalienable rights of citizens to protest, but appealed for caution to guide against hoodlums highjacking the protest and causing mayhem in the process.”

Reiterating its commitment and resolve to continually uphold the founding tenets and ideals of the organization, and strengthen the bond of unity and brotherhood amongst its members, the organization specially commended Akwa Ibom residents, particularly the youths for choosing the path of peace and dialogue instead of protest.

It also commended the state governor, Umo Eno, for successfully steering the ship of the state for the past 14 months, appealing to the state government to direct the contractor handling the erosion control project along Nelson Mandela street-Calabar Itu Road to speed up and deliver the job to ameliorate the suffering residents and users of the all-important road are passing through.

Government inefficiency marring NIN-SIM linkage

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MANY government agencies in Nigeria are bogged down in inefficiency. For years, the Nigerian Communications Commission has tried to register citizens for the National Identity Number. At one point, it mandated citizens to link their NIN to the Subscriber Identity Module. The linkage policy, too, has continued to be fraught with challenges. It is unacceptable for the government to put citizens through registration hardship because of its inefficiency.

After many aborted deadlines, the NIN-SIM linkage issue provoked outrage again last week as telcos blocked SIMs not linked with the owners’ NINs just before the July 31 deadline mandated by the NCC. This generated confusion among the affected Nigerians, who lamented that the blockage disrupted their everyday activities, businesses, and lives. Angry phone users besieged telco customer care centres in many states, trying to reactivate their blocked lines, leading to frustration and protests.

Introduced in December 2022, the NIN-SIM linkage policy was part of the government’s effort to enshrine a Know-Your-Customer regime, to ensure that no mobile phone user is anonymous in Nigeria. This is to curb identity theft, kidnapping, cybercrime, and other criminal activities.

Before the NIN-SIM policy, kidnappers who had been on the rampage in the country demanded ransoms using unregistered SIMs.

The Inspector-General of Police, Kayode Egbetokun, in April, said 214 kidnappings and 141 terror cases, among other cases, were recorded in just eight weeks. Many of these kidnappings and attacks were planned with unregistered SIMs.

The NCC claims Nigeria loses $500 million annually to all forms of cybercrime, including hacking, identity theft, cyber terrorism, harassment, and Internet fraud. Hence, the government ordered the NIN-SIM verification, among other KYC schemes.

According to the National Identity Management Commission, 105 million Nigerians had enrolled for NIN as of April 2024. The NCC says the country’s total active mobile subscriptions were 219 million in the first quarter of 2024.

In April 2022, following a directive from the NCC, over 72.77 million active mobile lines were barred. During that period, the country had 197.77 million active telecom lines.

The NCC issued a notice in December 2023 instructing telcos to bar SIMs not linked to their owners’ NINs by February 28, 2024. The deadline for the SIM-NIN linkage, earlier slated for April 15, was postponed to July 13, 2024.

While millions have successfully linked their SIMs to their NINs, many suddenly discovered that their SIMs have not been successfully registered.

MTN Nigeria had, in its first-quarter 2024 financial report, said 8.6 million lines had been barred.

Though Airtel, Glo, and 9mobile have yet to give a figure for barred lines, industry sources estimate that over 40 million lines may have been barred between February and April.

The NCC order that all blocked lines be restored following public outcry represents but a temporary respite.

The agencies involved and the telcos have failed to give Nigerians the confidence that things can be done properly. The NIN registration centres are crowded with registrants waiting for days and, sometimes, weeks to register for their NINs before even considering linking their SIMs.

Poor internet connectivity and epileptic power supplies are challenges bedevilling the registration centres.

Citizens are being punished for the government’s inefficiency and sometimes extorted before they can be registered. This must stop.

The NCC and NIMC need to collaborate more, while telcos should be ordered to ensure data NIN-SIM linkage becomes more seamless.

No subscriber deserves to be told about an unsuccessful NIN-SIM linkage after going through the rigour of capturing at the NIMC centres and linking the same with their SIMs. It is just untidy.

Every new SIM must be registered, and the government must ensure the multiple biometric databases in the country are protected from hackers, identity thieves, and breaches.

The government should harmonise the various existing databases.

7,975 applied for student loan in 24 hours – NELFUND

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The Nigeria Education Loan Fund, on Wednesday, announced what it described as a significant milestone, receiving the highest number of student loan applications within a 24-hour period since the launch of its portal on May 25, 2024.

In a statement on Wednesday, NELFUND said it “recorded 9,687 student registrations, with 7,975 completed loan applications,” on August 7, 2024.

The statement noted that the surge in “interest highlights the crucial role NELFUND plays in enabling access to higher education” for students facing financial challenges.

It further noted that the high number of applications underscored the pressing need for financial assistance among Nigerian students.

“Since the portal’s opening, NELFUND has seen a steady influx of applications, demonstrating the importance of its mission to support students struggling with tertiary education financing. This achievement aligns with President Bola Ahmed Tinubu’s vision and actions,” the statement said.

NELFUND further urged eligible students experiencing financial difficulties to take advantage of the loan opportunity.

It said the fund’s streamlined application process was designed to be user-friendly, with a dedicated support team available to assist applicants.

NELFUND for the first time on Wednesday, July 31, 2024 reeled out data supporting disbursements of student loans, a move which its Managing Director, Akintunde Sawyerr, said was to ensure accountability.

The implementation of the student loan scheme is President Bola Tinubu’s flagship project in the education sector.

Barely a month after his inauguration as President, Tinubu signed the Access to Higher Education Act, which created a legal framework for granting loans to indigent or low-income Nigerians to facilitate the payment of their fees in Nigerian tertiary institutions.

The law, reenacted earlier this year, created NELFUND, saddled with the responsibility of handling all loan requests, grants, disbursement, and recovery.

The fund, according to the Act, is to be funded from multiple streams and will engage in other productive activities.

EFCC quizzes Ogun officials over govt funds

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The Economic and Financial Crimes Commission, Ibadan Zonal office, on Tuesday, reportedly invited some officials of the Ogun State government in connection with an ongoing investigation.

The Head of Media and Publicity of the EFCC, Dele Oyewale, confirmed the development in a phone conversation with our correspondent on Wednesday.

‘’I just called our Ibadan zonal office and it was confirmed that some officials of the state government were invited for a chat in respect of an ongoing investigation and they have since gone back to their state. Nobody was also detained,” Oyewale said.

Asked to confirm that those invited were indeed Ogun State officials, the EFCC spokesman said, “I can only tell you that they are officials of the Ogun State government and it was in connection with an ongoing investigation. It’s not more than that.”

But when contacted,  Governor Dapo Abiodun’s Special Adviser on Media and Publicity, Kayode Akinmade, said, “I am currently out of town, so I am not aware of what you are talking about but in any case, anyone can write petition but that doesn’t mean that what you have written is the truth. The EFCC can also invite anyone but that doesn’t mean such a person has been indicted.”

Meanwhile, our correspondent gathered from a reputable source that five officials of the government were quizzed.

Their invitation was said to be on the strength of a petition written by the former Chairman of the Ijebu East Local Government Area,  Wale Adedayo.

Adedayo had last year August accused Governor Dapo Abiodun of diverting about N10.8bn meant for the 20 local governments in the state.

Speaking with our correspondent on condition of anonymity for fear of being victimised, a top government official said, “It is true that some officials of the state government were invited by the EFCC on Tuesday. I learnt it was about the finance of the state government but I don’t know which of them”.

Ex-LG chairman, Adedayo, had written what was supposed to be a private letter to a former governor of the state, Chief Olusegun Osoba, last year August, accusing Governor Abiodun of diverting about N10.8bn meant for the development of the council areas.

The letter, however, found its way into the media becoming a matter of public discourse.

Adedayo had also forwarded a petition to the EFCC calling for an investigation of the state government for the alleged financial infraction.

The state government, however, denied the allegation, explaining that it rather augmented the monthly Federal Government allocations sent to the local governments or else many of them would have found it impossible to fulfil their financial obligations like payment of salaries, among others.

Adedayo after his reported allegations against the state government was later impeached and he is currently standing trial before an Abeokuta Magistrate Court for raising false allegations and character defamation against Governor Abiodun.

Speaking with our correspondent on Wednesday, Adedayo said he heard about the invitation of some state officials by the EFCC over the matter.

 “Yes, I heard about it on Tuesday. I am sure it is about the petition I sent to the EFCC. A lie can travel a thousand miles, the truth will catch up with it within a few seconds.

“A friend told me they were granted an administrative bail so they could return with some documents, which they claimed would exonerate them.”

Think like Tinubu for a change

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Since Sunday, when the president finally addressed the country in response to the ongoing #EndBadGovernance protests, analysts and critics have not stopped rewriting his speech. They think he should have proposed more than the usual platitudes he blandly delivered, and I agree. He offered neither reprieve nor concessions, just vaunted some chest-thumping achievements that have had little bearing on the reality of those for whom the initiatives were allegedly designed.

For a man whose managerial prowess was sung to the high heavens, Bola Tinubu serially comes up short in anticipating and responding to national issues with the panache of someone who is interested in his job and invested in seeing tangible outcomes. His lack of charisma makes him come across as a man who will shrug off failures because he has invested no real stake in success anyway.

But beyond trying to resolve what is wrong with his administration, is it possible to get into the president’s mind and ask, “If I were Tinubu, what would I do differently?” Asking us to hypothesise from his angle is not a spurious exercise in fantasy that merely imagines how the world can be reset. It is to seriously ask, if you were Tinubu and you found yourself in power at such a difficult time in the country’s history, what would be the motivation to act any otherwise than what he is presently doing?

Some might want to argue that Tinubu will try hard because he will want to live up to expectations and not be labelled a “failure.” But that would be assuming he cares about your opinion of him. Why would a man who has been called all sorts of unprintable names bother if anyone labels him a “failure”? That will just be one more label, and he will simply absorb it into the list of other unpalatable names he has been called. And no, I would not think he loses any sleep over how his legacy will be shaped either. If you are a leader in a society that does not demand accountability, and people have a low bar for promotion to power, why struggle to build any long-lasting legacy?

Besides, Tinubu has always maintained a payroll of spinners. They will outdo themselves in the bid to write books that will say he succeeded. The whole #EndBadGovernance protests and his lacklustre response to it just become a chapter in the silly little books they will write about his time in power.

Even Muhammadu Buhari’s aide wrote a book that included 80 pages of his supposed achievements in office. Everyone agrees that Buhari was a disaster; who needs a book to convince them otherwise? Definitely not the victims of his failed administration nor even the politicians still hanging around Buhari hoping for endorsement (and who do not typically read anyway). Such writings are for Buhari to convince him he was what he was not. Tinubu’s legacy will be similarly written. History will grovel before him because he will pay the hagiographers handsomely.

Tinubu cannot also be pushed to pursue a transformation agenda any more keenly because of the threat of not winning a second term. The man has been a part of the machinations of political power long enough to understand that no Nigerian leader is elected solely because of performance, and none loses election simply because they fail to perform. There is no transformational ethos in this administration’s essence. The best it will achieve is to keep house through basic management of national affairs. Like Buhari who assumed that the sheer force of his personality would be enough to right everything wrong with this country only to discover that reality outweighs his ideological vacuity, this one too will not stretch itself. Those who think he will disturb himself because he could be ambushed during his pursuit of a second term are mistaken.

If a leader spent the weeks building up to the protests meeting this and that person to see if they could pull their weight to dissuade the protesters but never came up with either an active plan that can salvage the nation or even a concession to the protesters, then best believe that you have seen all there is to be seen about him. There is no other card up their sleeve. Let us not forget that he has been close enough to government to know all the problems of Nigeria and he won the election early enough for him to get started on them as soon as possible. Yet, he started poorly. On the first day, he announced the fuel subsidy removal policy, not because he had laid out a coherent framework to ensure the feasibility of the policy, but because some spirits possessed him.

Saturday will culminate the activities of the past 10 days, and we will need to figure out what comes next. I would have been optimistic about the potential of the protests to generate coalitions that would have been useful to push the government towards specific reforms, but the manner the hunger plaguing the people (and which drove them to the streets in the first place) has been ethnicised is despairing. In the South-East and the South-South, you have people who did not join the protests to avoid accusations of a sectional agenda (we have enough history on our side to know how that usually pans out).

On the other hand, northerners who do not typically protest hit the streets and beckon to anti-democratic agents for rescue. I expected Bayo Onanuga to bark at them like he did Obidients, but even a rabid dog knows its master. Meanwhile, the South-West is divided along multiple agenda that make whatever point they might want to register with the protests incoherent.

While there have been too many casualties and needless destruction, I still cannot in good conscience blame those who embarked on the protests. Leaders took too much for granted, pushing out one enervating policy after another without considering that people have limits. What else were they expected to do? To continue gorging on the fluff promises of “e go better” the administration was pushing out through its spin doctors?

By holding on to his ground despite the upsets, Tinubu has shown the shape of things to come. He will mostly not budge; he has little reason to do so. So, where do we go from here? For the protesters on the streets campaigning to #EndBadGovernance, what happens on August 11 when they wind up? People cannot protest perpetually; it will cease at some point. What practical steps of political and community organising should accompany the protests?

For us not to merely suffer, it is up to each one of us to make our plans for survival. Anyone who reads this column knows that I am not particularly a fan of turning issues best resolved through policies into a matter of individual responsibility, but that is what Nigeria almost always boils down to. We have been asked to figure out our own infrastructure of education, transport, health, public facilities, water, energy, and even security. Now we must plan how to survive this government.

There is enough about Nigeria, precedents to Nigerian politics, and even Tinubu’s character to determine that he does not have—and unlikely to stimulate—enough motivation to act differently. He will, of course, try to enact policies. If they work, they work. If they do not, they do not. He will not get off his high horse and sacrifice himself to make his policies effectual. He is an old man; he cannot come and die. Not even when he has achieved his ultimate ambition, and simply wants to enjoy the power for which he sold his soul. Why should he now start bothering himself on Nigerians’ behalf?

CBN dumps 12-month forex policy with $876m auctionF

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The Central Bank of Nigeria has auctioned $876.26m to end users whose bids were submitted by 26 commercial banks in the apex bank’s latest attempt to strengthen the ailing naira.

The policy impacted the foreign exchange market on Wednesday as the naira appreciated against the United States Dollar, trading at N1,596.52/$ from N1,601/$ it traded on Tuesday.

The auction process was conducted on August 6, 2024, to enhance foreign exchange liquidity in the market, alleviate demand pressure, and support price discovery in alignment with the apex bank’s objectives.

The CBN said this in a statement posted on its website on Wednesday and signed by the Director of the Financial Markets Department, Omolara Omofunde Duke.

The naira has traded within the range of N1,450 and N1,600 in recent months. However, the bank approved a cut-off rate of N1495/$ for the Retail Dutch Auction.

The statement read in part, “The Central Bank of Nigeria undertook the sale of foreign exchange to end users through a Retail Dutch Auction System to reduce the demand pressure in the FX market and promote price discovery on Tuesday, August 06, 2024.

“A total bid valued at $1.18bn was received from 32 Authorized Dealers Banks, of which, bids valued at $876.26m from 26 banks qualified, while bids valued at $313.69m from six banks were disqualified.

“In line with the objective of the CBN to boost FX liquidity to the market as well as promote price discovery, the bank approved a cut-off rate of N1495/$ for the Retail Dutch Auction where bids valued at $876.26m from 26 banks qualified.”

It noted that all end-user accounts will be funded with the naira equivalent of their bids by Wednesday, August 7, 2024, while settlement for the successful bids is scheduled for Thursday, August 8, 2024.

Explaining the auction process, the director said a total bid valued at $1.18bn was received from 32 authorised dealers banks while bids valued at $313.69m from six banks were disqualified.

Of the disqualified bids, four banks submitted their bids after the cut-off time of 3:00 pm, while two banks did not provide bids in the template submitted.

Also, all bids with Form Q, and unverifiable Form A and Form M on the Trade Portal were disqualified.

The statement added that “Authorised Dealer Banks were required to submit a comprehensive template that contains the details of Forms A and M of all the outstanding trade-backed unmet FX demand of their customers via email on Tuesday, August 06, 2024, between 9:00 am and 3:00 pm.

“The templates were all password protected with the passwords submitted to the CBN after the deadline for the submission of the bids. Thereafter, the bids were opened and collated.”

It further stated, “To ensure the transparency of the process, the total bids submitted by banks and all qualified bids for payment will be published on the website of the Central Bank of Nigeria for the information of the general public.”

Last week, the CBN unveiled plans to implement a Retail Dutch Auction System to address the mounting unmet foreign exchange demand from end users.

It said the aim was to alleviate the growing pressure in the FX market and stabilize the naira’s exchange rate.

The sale follows “growing unmet foreign exchange demand” which has “continued to increase the demand pressure in the foreign exchange market, with adverse impact on the exchange rate of the naira,” the Abuja-based Central Bank of Nigeria said in a circular to lenders last week.

The naira has come under pressure through seasonal demand from summer tourism as well as businesses seeking the greenback to bring in goods in the import-dependent nation.

Commenting, the Chief Executive Officer of Cowry Treasurers Limited, Charles Sanni, stated that the intervention to improve liquidity in the foreign exchange market will shore up the naira against the United States dollar but constitute a potential loss for speculators.

Sanni said the intervention was important but not sustainable as the apex bank may not possess the required war chest due to low foreign reserves.

He also said the gain would be short-lived if the government fails to take advantage and implement strategic fiscal policies to boost economic productivity.

He said, “What CBN has done is improved liquidity by the way of supply to the market. So its expected impact, which we are already seeing, is that the naira will begin to firm up, meaning that it would trade at a better exchange rate.

“Two things it creates immediately is that for the guys who are speculating, it is a loss position for them so they may have to come to the market to sell. So, you are likely to see some level of panic trading on those who are speculating on the naira which will massively drop the rate.

“There is also the neutral position where people will say they are not going to sell immediately because it is still unsure if CBN has the war chest to continue to intervene looking at their reserve. How well they can sustain it is the critical issue which is a function of the supply. If you look at our reserves, this auction system doesn’t look sustainable.”

On his part, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, applauded the intervention by the apex bank, stressing that the naira volatility has negatively impacted the economy and business and reduced investors’ confidence.

He said, “The intervention is welcome because the CBN is the custodian of our major FX inflows, especially from the oil sector. To ensure stability and reduce volatility in the foreign exchange market. The CBN must intervene from time to time at an exchange which the CBN thinks is sustainable. This is what we have advised all along, and it is good that the CBN is doing that.

“Volatility is very bad for the economy, for business and investors confidence. So what the CBN is doing is to see how it can ensure some stability in the exchange rate.

“The Dutch option perhaps is trying out different models or intervention because we are still contending with volatility, so maybe it is a question of looking at another model that may work better to ensure stability.”

Meanwhile, the impact of this policy was immediately felt at the foreign exchange market on Wednesday as the naira appreciated against the United States dollar, trading at N1,596.52 per dollar from N1,601 per dollar it traded on Tuesday, data from the FMDQ Securities Exchange Limited showed.

This means a marginal appreciation of 0.3 per cent or N5. The naira traded at an intra-day high of N1,628 and a low of N1,520 to a dollar.

Dollar supply between willing sellers and willing buyers also increased to $93.92m from $61.90m recorded on Tuesday, which was the lowest since January.