Tightened liquidity in banks pushes up interest rates

LAGOS— Interest rates may come under fresh pressure as Central Bank of Nigeria, CBN, continued its contractionary monetary policy measures last week, squeezing out about N441.2 billion from the financial system, thereby pushing rates up to 25.6 per cent for interbank overnight funds. The rate had opened last week at 24.8 per cent. Last week, the first tranche of the CBN operation came at previous week’s rate of 18 percent for N205 billion worth of treasury instrument on Tuesday, but money market dealers said the apex bank spiked the rate two days later to 18.5 per cent for N236.1 billion worth of instrument, a development which did not only push up the overall market rates but also signalled further rise in lending rates to banks’ credit customers in the days ahead, if the spike rate continues. Banks had raised their lending rates last month, following the jerk up in Monetary Policy Rate, MPR, to 14 per cent by the CBN, which was followed by steady rise in rates at the fixed income market and government securities. Prime lending rates had since spiked beyond 20 per cent with most banks at over 25 per cent, while other categories of borrowers were slammed over 30 percent interest rates. Treasury executives in banks explained that with the increasing rates in fixed income securities and government securities which are near-zero risk, banks would rather channel their funds to those areas rather than private businesses, though they still lend to secured and profitable businesses at new interest rates. They also explained that the financial system does not have the luxury of liquidity to go round all the prospective borrowers given the current monetary policy regime which has been tightening liquidity in recent weeks.  

Bayelsa CJ’s Son Dies in Swimming Pool

Mr. Wariebi Abiri, son of Justice Kate Abiri, the Chief Judge of Bayelsa State, has died under circumstances described as mysterious.

A Law graduate and student of the Nigerian Law School, Abuja, Abiri reportedly died in a swimming pool last Friday night in the Federal capital.

The Bayelsa State Governor, Seriake Dickson, however, yesterday expressed deep shock over the untimely death of the young man.

A statement by his Chief Press Secretary, Daniel Iworiso-Markson, said Dickson had also called on the authorities to immediately probe the death.

The governor made the call during a condolence visit to the chief judge at her residence in Yenagoa, the state capital.
He regretted the circumstances under which the judge’s son died and pledged the state government’s collaboration with the police and other relevant agencies to unravel the cause of his death.

Dickson described Wariebi as a focussed and promising young man, who was preparing to make a wonderful career in the legal profession, adding that his demise was a painful loss to the Abiri family and the state.

While urging the family to see what has happened as the will of God, Dickson prayed to God to strengthen and grant them the grace and fortitude to bear the loss.

“As a government, rest assured that we will stand with you shoulder to shoulder in this very, very challenging period, especially in working with the police and other relevant agencies of the government to unearth the real cause of his death,” the governor said.

Banks’ Returns on FX Utilisation Show Reduction in Capital Outflows

The returns on foreign exchange (FX) utilisation published by some of the international banks have revealed that the pressure on capital outflows has gradually subsided.

Unlike in the past when FX purchases for repatriation of capital used to feature prominently on returns of FX utilisation published by Stanbic IBTC and Standard Chartered, the report for the week ended August 12, 2016 published last week showed gradual easing of FX outflows.

For instance, while Stanbic IBTC returns on FX utilisation showed that the bank sold $62,646,491.70 to 135 customers (both individuals and corporates), the FX purchased by foreign portfolio investors that included The Northern Trust Company, SNNL/JP Morgan Chase Bank, HSBC Bank Plc, and the Bank of New York Mellon was just $2,699,545.98. Previously, FX transactions by the aforementioned investment banks used to dominate Stanbic IBTC’s FX returns publication.

The Central Bank of Nigeria (CBN) ditched its 16-month old peg on the naira in June and introduced a flexible exchange rate regime to allow the currency to trade freely on the interbank market.

But dollar liquidity has remained a concern in the system with periodic intervention by the central bank. The naira, which closed at N316.55 to the dollar on the interbank FX market, has remained volatile as it continues to search for an equilibrium price.
Meanwhile, the returns on source of funds by Stanbic IBTC showed that it bought $69,536,289.25 from the CBN and other autonomous FX sources.

Similarly, Standard Chartered Bank of Nigeria’s returns on FX utilisation showed that the bank sold the greenback it bought from both the CBN and autonomous market sources to its customers for school fees, Visa Card settlement, interest on loan repayment and certificates of capital importation (CCI) settlement. The bank’s publication showed that it sold dollars to 144 customers.

In the same vein, Zenith Bank Plc’s returns on FX utilisation showed that it sold $57,799,674.06 to 414 of its customers, both firms and individuals. The bank also entered into significant amount of non-deliverable forward (NDF), a foreign exchange hedging strategy where both parties agree to settle the profit or loss in a foreign currency futures contract prior to the expiration date of the contract, with Nigerian Breweries Plc. Other FX transactions between Zenith Bank and its customers were for the payment of school fees, and importation of industrial raw materials, among others.

Also, Diamond Bank Plc sold $19,945,172.18 to 181 customers. Majority of its customers purchased the greenback for PTA, while others were for payment of tuition abroad, importation of industrial plastic, pharmaceutical machinery, Visa Card settlement as well as to Bureau De Change (BDC) operators.

For First Bank Nigeria Limited, its publication showed that it sold $70,295,756.22 to its customers. Of the total, $60,405,164.7 were for FX Futures contract between the bank and some of its customers, mostly those in the manufacturing sector. The firms were PZ Cussons Nigeria Plc, Multipro Consumer Product Limited and TG ARLA Dairy Products Limited.
Skye Bank Plc sold $681,295.95 to 66 firms for PTA, payments of medical bills, school fees as well as the importation of plants and machinery.

Keystone Bank Plc’s returns also showed that the bank sold $1,317,082.04 to its customers.
Similarly, First City Monument Bank Limited’s returns showed that the bank sold the greenback it purchased from the CBN as well as autonomous sources to 333 customers, for PTA, BTA, school fees, and software payment among others.
Access Bank Plc’s returns also showed that it sold dollars to 687 customers for export proceeds remittances, and homeward remittances, among others.
While FBN Merchant Bank Limited sold $402,444 to its customers, Rand Merchant Bank Limited also sold $563,246.09 to its customers.

Banks’ Electronic Transactions Hit N33.8tn

The banking sector transacted a total of about N33.8 trillion through electronic payment channels in 2015 and the second quarter of the year (Q2 2016), according to the National Bureau of Statistics (NBS).
According to the report on Electronic Payment Channels in the Nigeria Banking Sector (2015-Q2 2016), which was released by the statistical agency yesterday, the Nigeria Interbank Settlement Instant Payment System (NIP) recorded a total amount of N19.3 trillion and accounted for the highest settlement made by banks.

This was followed by Nigeria Electronic Fund Transfer (NEFT) with N7.67 trillion, while payment through cheques and Automated Teller Machines (ATMs) stood at N3.3 trillion and N2.59 trillion respectively.
Others are payments through Point of Sales Terminal (POS) — N367 million, Internet/web payments — N67 million, mobile payments — N381million and electronic bills payments — N171 million.

A month-by-month breakdown of the payments showed that the sums of N339.2 billion and N350.1 billion were paid through ATMs in January and February, while March, April, May, June and July had N380.6 billion, N381.6 billion, N382.3 billion, N370.5 billion and N394.3 billion respectively.

For cheque transactions, the report said the N3.3 trillion were paid as follows: January N465.5 billion, February N501.1 billion, March N487.5 billion, April N472.4 billion, May N480.4 billion, June N488.6 billion and July N436 billion.

CBN, NBET Negotiate Fresh N180bn Fiscal Stimulus for Power Sector

The Nigerian Bulk Electricity Trading Plc (NBET) and Central Bank of Nigeria (CBN) are currently negotiating new financial stimulus worth N180 billion to support electricity operators in Nigeria’s power sector, THISDAY has learnt.

The paper gathered from an exclusive interview with the acting Managing Director of NBET, Mr. Waziri Bintube, at the weekend in Abuja that negotiations on the new package had advanced with the CBN favourably disposed to it.

NBET is a government agency responsible for the bulk purchase of electricity from generation companies (Gencos) for resell to distribution companies (Discos). It acts as a financial stabiliser in power trades between the Gencos and Discos.

Bintube, however, told THISDAY that the CBN had in addition to the N213 billion it approved in its Nigerian Electricity Market Stabilisation Facility (NEMSF) for disbursement to operators at a concessionary term, agreed to put another N180 billion into the facility.

He also said NBET had not touched its capitalisation fund, and that while the CBN expects to wrap up its first N213 billion to the market, the new N180 billion would immediately kick in.

“The NBET has a working capital, up to $350 million was given to us under the Euro bond facility and we have that amount in our kitty which we can deploy in exceptional situations. In addition, the government has given us N50 billion from its privatisation proceed on Egbin, and which we have put in our escrow account, the purpose of that is to breach the time difference when the Gencos want their money and when they can be paid.

“In addition, there are some off-the-line supports like the Central Bank’s Nigerian Electricity Market Stabilisation fund that was granted by the CBN to cover obligations in the market from the date of privatisation. That was another form of support to the market.

“We are currently negotiating with the CBN again to come in with a second tranche. They have some amount that they are yet to disburse but even after that, we are looking at getting the board to approve another second tranche on top of the N213 billion that has already been approved. We are looking at about N180 billion,” said Bintube.

Asked if the negotiations have largely being positive, he said: “Yes, we have the assurance of the CBN governor. He is very dedicated to resolving the logjam and ensuring that all the key pillars of the economy work because they are interrelated.”

He added: “If the power plants work, the manufacturers will have lesser problems, the banks will get paid for their products and then there will be less need for foreign products to come in and that reduces the request for foreign exchange. Just imagine that if our refineries are working, we will not need to depend on importation which takes away a lot from us including profits and jobs.”

Bintube also disclosed that NBET in conjunction with United States’ President Barack Obama’s Power Africa Initiative, recently trained key government agencies and officials involved in evaluating, reviewing and regulating power projects in the country on understanding Power Purchase Agreements (PPAs) and Put Call Options Agreements (PCOAs).

He said the training was done to help the agencies and its officials understand the contents and significance of the PPAs and PCOAs considering that they would always have to come across it for review and approvals for investors who are interested in building power plants in Nigeria.

According to him, the ministries of power, finance, justice and Bureau of Public Procurement (BPP), as well as the Nigerian Electricity Regulatory Commission (NERC) and Nigerian National Petroleum Corporation (NNPC) were some of the agencies that were trained on the use of the industry documents.

“Over the past several months, NBET has been negotiating PPAs and PCOAs with numerous gas and solar independent power project developers who are actively developing utility scale projects which will create circa 5,000 megawatts of new generation capacity for the country.

“The NBET PPA-PCOA training was designed to familiarise key government officials with the PPA and PCOA documents which will then be submitted to their respective offices for approval,” Bintube added.

Avengers’ Ceasefire Offers Hope for Resolution of N’Delta Crisis

•   Ijaw Youths Council hails cessation of hostilities

Sylvester Idowu in Warri, Emmanuel Addeh in Yenagoa

The ceasefire announced by the militant group, the Niger Delta Avengers, on Saturday night has offered new hope for the resolution of the crisis in the oil-rich region as several stakeholders welcomed the development on Sunday.

Leading the pack of supporters of the ceasefire, which came a day after a stakeholders’ conference in Warri, facilitated by a former Minister of Information, Chief Edwin Clark, is the Ijaw Youths Council, which hailed the cessation of hostility as a step towards the restoration of peace.

Niger Delta elders, including leaders of thoughts, traditional rulers and senior government officials from the region had met on Friday to deliberate on the resurgence of militancy and increasing violence in the region.

The meeting, which was addressed by Clarke and Governor Ifeanyi Okowa of Delta State, called for, among others, an end to militancy and withdrawal of troops from the region. It also resolved to support the clamour for the restructuring of the federation as recommended by the 2014 National conference held in Abuja. It resolved to form a Pan Niger Delta platform to represent the region in the proposed negotiation between the federal government and the militants.
In an apparent response to the Niger Delta elders’ appeal for peace, the Avengers said it had decided to lay down its arms for a moment pending discussions with the federal government.

The Ijaw Youths Council (IYC) hailed this declaration of ceasefire against attacks on oil installations in the region yesterday in a statement by its spokesperson, Eric Omare, and said was a welcome development.

It said the council had always advocated dialogue as the means to the resolution of the Niger Delta crisis.
“We welcome the conditional declaration of ceasefire by the Niger Delta Avengers if it is actually from them,” it said.
The Avengers, the militant group that had claimed responsibility for bombings of several oil facilities, had weekend formally declared cessation of hostilities in the Niger Delta region.

It declared support for any negotiating team that Chief Edwin Clark’s Niger Delta elders and stakeholders’ conference held last Friday might raise to negotiate with the federal government and multinational oil companies on modalities for de-escalating conflicts in the region.

The Avengers, in a statement by its spokesperson, Mudoch Agbinibo, had said it would continue to observe its unannounced cessation of hostilities against all interests of oil companies but warned it would engage in asymmetric warfare during the period if the federal government use security agencies to harass or intimidate its suspected members.

“We are going to continue the observation of our unannounced cessation of hostilities in the Niger Delta against all interests of the multinational oil corporations, but we will continuously adopt our asymmetric warfare during this period if the Nigerian government and the ruling political APC continues to use security agencies/agents, formations and politicians to arrest, intimidate, invade and harass innocent citizens, suspected NDA members and invade especially Ijaw communities,” it stated.

The Ijaw youths however called on the federal government, especially President Muhammadu Buhari, to take advantage of the ceasefire to aggressively dialogue with the people of the region to address the issues affecting the region.
“For the umpteenth time, we call for a bipartisan and sincere dialogue to resolve the root causes of the recurrent Niger Delta crisis. The dialogue should be issue-based and not to solve immediate problems and massage the ego of personalities.

“President Buhari must avoid listening to political hawks around him at the expense of the country’s unity and development,” it concluded.

This development came up shortly after Leaders of Gbaramatu kingdom in Warri South West Local Government Area of Delta State raised the alarm about the planned invasion of the kingdom by the military under the guise of searching for members of the Avengers.

The Benenibowei of Gbaramatu Kingdom, Chief Godspower Gbenekama, who raised the alarm at a press conference in Warri, said people had been fleeing the various Ijaw communities when it became known that the military had concluded arrangements to invade the kingdom.

“Please help us tell the whole world that the military has concluded plans to invade Gbaramatu communities under the guise of looking for members of the Niger Delta Avengers. It is the innocent people of our communities that will suffer should the military go ahead to bombard our communities. We don’t harbour members of the Niger Delta Avengers. The agitation cuts across the region so why singling out only Gbaramatu kingdom?” he asked.
Gbenekama, who is also the spokesperson of the Gbaramatu Traditional Council, said information available to them was that the kingdom might be invaded by the military, noting that soldiers had already been massed in the region ready to launch attack any moment from now.

Also sunday, the Movement for the Emancipation of the Niger Delta (MEND), which had recently claimed to be in the forefront of the peace process has disparaged the meeting convened by elder statesman, Chief Clark, and urged the federal government to discountenance all efforts by the committee.

According to MEND, the meeting jointly convened by Clark and Governor Ifeanyi Okowa of Delta State in Warri on Friday, would not give the region the much needed calm, which would enable government to develop the area.
It was learnt that the alleged linkage of former President Goodluck Jonathan to the formation of the Avengers might have set several militant groups in the region against one another.

While the Reformed Niger Delta Avengers (RNDA), a splinter group from the NDA, and MEND have recently spearheaded the campaign, some of the groups in the Niger Delta were also said to have been riled over the reports of the linkage.
Over a week ago, the RNDA, believed to be sponsored by MEND, published names of 20 alleged sponsors of the NDA, the group it broke away from, naming the ex-president as well as former and serving governors of southern states as the pillars behind the renewed militancy in the region.

But sunday, a splinter Niger Delta ex-militants’ group, the Reformed Egbesu Avengers (REA), vowed to go after those it said have recently begun a smear campaign against ex-President Jonathan by linking him with the current violent militancy in the region.

In a statement issued in Yenagoa, Bayelsa State, by the group’s spokesman, ‘General’ Columbus Okolobo, the group specifically pledged to hunt down the leadership of the RNDA, which it said had become the mouthpiece of politicians who are bent on rubbishing the ex-president’s ‘rising profile’.

It particularly singled out one Cynthia Whyte, spokesperson of the RNDA, the arrow head of the campaign, for ‘peddling falsehood’ and challenged the spokesperson to reveal his/her true identity.
The Egbesu Avengers described the purported security/intelligence report linking Jonathan with the rising militancy in the area as a cover for the accusers’ sinister motives and advised the group to return to the original tenets of the struggle.

“The lid has blown open over Cynthia Whyte, as Nigerians now understand that the same person is the spokesperson for MEND and the RNDA. We urge them to quit acting scripts because they can no longer masquerade, the carpet is off their feet.
“The cordial relationship between RNDA and other militant groups with security agencies points to the fact that there is a romance to hatch devilish allegations and machinations against perceived political foes,” the Egbesu group alleged.

Meanwhile, oil companies and even Nigerian officials are losing faith in a deal anytime soon with militants who have slashed the nation’s oil output, casting doubt on a production recovery in what is typically Africa’s largest oil exporter, Reuters has reported.

In the six months since the first major attack on Nigeria’s oil – a sophisticated bombing of the subsea Forcados pipeline – dozens of attacks have pushed outages to more than 700,000 barrels per day (bpd), the highest in seven years.
Talk in the country has shifted from ceasefire optimism and oil companies’ assurances that repairs were underway, to hedged comments from the government and radio silence from oil majors.
Yesterday, the Avengers, which have claimed several major pipeline attacks, said in a statement they were ready to give dialogue a chance.

But highlighting the fracturing of militants into small groups, the previous day, a group called Niger Delta Green Justice Mandate claimed an attack on a gas pipeline in the southern swamps lands.

Without a unified command and groups dominated by “generals” unable to fully control their own fighters, it is difficult for the government to identify the right people to talk to or enforce any ceasefire.

“People are giving up in the short term,” one oil industry source told Reuters of a resumption in exports of key Nigerian grades such as Forcados or Qua Iboe, adding you “can’t get anything” out of the majors, including Shell, Chevron, ExxonMobil or ENI, about when the oil might come back.

Shell declined to comment, while the other companies did not immediately respond to a request for comment.
In June, Nigerian government officials said privately it had a ceasefire with militants. But pessimism crept in, with even Oil Minister Emmanuel Ibe Kachikwu telling journalists this week “we are talking but (it) is not an easy thing,” and “we need a ceasefire” – a contrast to the belief that a ceasefire was underway.

He has also said another challenge to brokering a ceasefire is that there were several militant groups to talk to.
The problems reflect deep-seated issues in the Niger Delta, which produces the bulk of oil but whose local communities complain of pollution, a lack of opportunities and what they say is an insufficient share of petro dollars. These problems are compounded by an economic crisis and a government battle with Boko Haram militants in the north.

“This is likely the beginning,” Elizabeth Donnelly, deputy head and research fellow of London think-tank Chatham House’s Africa Programme said of the unrest, adding that “the resolution that will come will not come quickly”.
The government this month resumed cash payments to militant groups that it stopped in February, just before the launch of the worst violence since the payments began under a 2009 amnesty. But attacks continued anyway.

The Avengers claimed the bulk of them, announcing strikes on Twitter even before oil majors themselves knew their remote pipelines had been hit. Twitter shut the group’s account, but sources said the Avengers have extensive knowledge of oil sites, and follow the media closely to track companies’ actions.

“With the Avengers, you don’t want to say ‘we’ll be back up next Wednesday’, because then you’ll get a bomb next Tuesday,” one oil executive said. “They have to be careful.”

But new groups, such as the self-styled Revolution Alliance, which claimed an attack on a Shell-owned oil line, loom, while non-violent local protests have also exacted a toll.

Collings Edema, a local youths leader of the Itsekiri group that has blocked access to Chevron’s Escravos tank farm for almost two weeks, said “the oil companies have not shown any sign that they are ready to improve our lives”.

Experts warned that as long as people are unhappy, militants and their targets could evolve in unpredictable ways.
“This is also about frustrations of younger people coming up in the Niger Delta and needs not having been addressed,” Donnelly said. “This isn’t just about militancy, though the political and economic context feeds it.”

Adding to the division of the militant scene, MEND, another group which agreed to a ceasefire in 2009, denounced the Avengers due to its “criminal and treasonable activities”.

“MEND reiterates its full support for the ongoing military presence in the Niger Delta,” it said in a statement, referring to a recent military campaign to hunt down the Avengers.

Naira vulnerable to further losses in future – FXTM

Mr. Lukman Otunuga is Research Analyst at Forex Time, FXTM,  a global online foreign exchange broker, specialising in forex trading, stocks, commodities and spot metals. In this interview with Michael Eboh, he talks on a wide range of issues on the Nigerian and global financial and currency markets and the implications of some of the economic policies of the Federal Government and the monetary policies of the Central Bank of Nigeria, CBN, on the economy and lives of the people. Excerpts. Can you give us an overview of the international and local financial markets and their impacts on the lives of individuals, countries and the world in general? Mr. Lukman Otunuga The global markets have been flung onto a chaotic rollercoaster ride in 2016 as the ongoing concerns over slowing global growth, depressed oil prices and persistent Brexit uncertainties have weighed heavily on investor sentiment. Stock markets started the year pressured, but have been surging higher on hopes of potential stimulus measures while risk aversion continues to keep Gold buoyed. Expectations continue to heighten over the Federal Reserve raising US rates in 2016 which has bolstered the Dollar consequently sending shockwaves across the globe. The wild movements in the financial markets have had an impact on individuals, businesses and even central banks. With the global landscape negatively warped by uncertainty and anxiety, risk aversion could encourage investors to flock to safe-haven safety. Do you think the recent exit of Britain from the European Union, EU, would negatively or positively affect the Nigerian foreign exchange market and the economy in general? It should be kept in mind that the impact of the recent Brexit outcome goes far beyond the borders of the UK economy and most other nations may potentially feel the burn. With Nigeria being a member of the British Commonwealth, the negative impacts of the Brexit could indirectly have an effect on the Nigerian economy. Fears have already heightened over a potential Brexit fuelled economic slowdown in the UK economy and this could cause a decline in the amount of foreign investment towards Nigeria. Naturally a decline in external investment may punish Nigeria’s GDP growth while potentially reinforcing further pressures on the nation, which is currently entangled in a losing battle with depressed oil prices. Although the persistent post Brexit uncertainty has heavily weathered the value of the Sterling, it is still somewhat stronger than the vulnerable Naira. What other international occurrence(s) do you see impacting Nigeria’s currency market? The combination of declining oil prices and a resurgence in the Dollar could leave the Naira vulnerable to further losses in the future. It must be remembered that Nigeria still remains heavily dependent on oil export for a chunk of its government revenues while the value of the Dollar has a strong impact on Nigeria’s currency markets. Oil prices have been depressed for an extended period and the oversupply concerns could haunt investor attraction consequently weakening the Naira further. With expectations heightening over the Federal Reserve raising US rates in 2016, the increasing Dollar could make Nigeria imports more expensive, ultimately weathering the Naira even more. What are your assessments of the Central Bank of Nigeria’s, CBN, recently introduced flexible foreign exchange regime and what do you think are the implications for the Nigerian economy? Sentiment towards the Nigerian economy was uplifted following the Central Bank of Nigeria’s decision to de-pegging the Naira against the Dollar in a bid to bolster economic growth. For an extended period, depressed oil prices eroded the nation’s government revenues while the previous Dollar peg rapidly diminished reserves which simply punished Nigeria further. With concerns elevated over a slowdown in domestic economic growth, the Central Bank of Nigeria may have taken the right steps to act consequently alleviating some fears. Although there are anxieties that the Naira depreciates to painful levels as the natural forces of supply and demand determine the equilibrium value, this could attract foreign investors. The short term pain from the initial devaluation may be dwarfed by the long term benefits which could promote future economic stability and growth. Nigeria recently signed a currency deal with the Chinese government. Do you consider this deal to be beneficial to Nigeria? What do you think will be the implication in the short, medium and long term? Nigeria entered a currency swap deal with China in an attempt to reduce the persistent pressure on the demand for the Dollar. This deal was enforced to aid businesses that traded with China as over 70% of Nigeria’s imports come from China. With the possibility of an increased ease for manufacturers to do business with China on the back of the currency swap deal, some demand for the Dollar could be reduced. Although there may be concerns over the People’s Bank of China intervening to devalue the Yuan in the  medium term, this could reduce some pressures on the Dollar demand in the longer term. Do you see the economic policies of the present administration bringing about a stronger naira, an increase in the country’s foreign reserves and an even stronger economy? The current policies that have been enforced by the present administration are aimed at diversification with the intent to steering away from being heavily oil export dependent. Efforts in revitalizing the agricultural sector, fixing the infrastructure and even expanding taxation could have a positive impact on the Nigerian economy in the future. Once the nation succeeds in its tough mission to diversify, it automatically becomes self-reliant consequently boosting GDP. With economic growth potentially stabilizing post diversification, the country’s foreign reserves should increase while the improved investor risk appetite towards Nigeria should naturally cause the Naira to appreciate on the free floating currency exchange.  

‘Boko Haram killed 23,000, displaced 2.2 million’

The Boko Haram insurgency in the North East has claimed the lives of more than 23,000 people and displaced 2.2 million others.

Ambassador Ahmed Shehu, Chairman and Executive Director of the Network of Civil Society Organisations (NECSO), made the disclosure in Maiduguri, Borno State, at the weekend.

At the North East Humanitarian Summit designed to mark World Humanitarian Day, Shehu regretted that the region, particularly Maiduguri metropolis, continues to face severe humanitarian crisis following the displacement of entire communities.

“The present security challenges in Borno have forced thousands of families away from homes and loved ones. The Internally Displaced Persons (IDPs) are not well taken care of by both national and international actors, as they don’t exist in the framework and thematic areas of most interventions,” he said.

He noted that the purpose of the summit was to “guide and support” a comprehensive and coordinated humanitarian effort in concert with broader and immediate responses, adding: “The overall goal is to harness commitments, support and investments that are driven by the affected population, to respond to humanitarian crisis and honour those who lost their lives in humanitarian services, including the ones that continue to bring assistance and relief to millions of displaced persons.”