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CBN Bans Sale Of Dollars To Bureau De Change Operators

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External Reserves Fall By $610m

Piqued by Bureau De Change operators (BDCs)’s abuse of their role as channels of financial transactions, the Central Bank of Nigeria (CBN) has banned the sale of dollars to them.

The ban was announced on Tuesday by the CBN Governor Godwin Emiefele at a press briefing which held after a meeting of the Monetary Policy Committee of the bank.

Emefiele said the N5. 7 billion allocated to BDCs had become unsustainable as $20,000 is allocated to over 5500 BDCs, amounting to $110million per week.

READ ALSO: Buhari Signs N982b Supplementary Budget

He decried a situation where the BDC operators have become a conduit for illegal financial flows.

Emefiele also said the CBN would no longer continue the registration of new BDCs and the current allocation would be channelled to commercial banks.

He disclosed that all commercial bank branches would create a separate desk for sales of forex.

 

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CBN Retains MPR At 11.5 Per Cent

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CBN Retains MPR At 11.5 Per Cent

Central Bank of Nigeria (CBN) Governor Godwin Emefiele has disclosed that the Monetary Policy Rate remains 11.5 per cent.

Emefiele spoke with journalists after the first Monetary Policy Committee meeting for the year held in Abuja on Tuesday.

Other parameters left unchanged are the Cash Reserve Ratio and Liquidity Ratio at 27.5 per cent and 30 per cent respectively.

READ ALSO: Buhari Approves Suspension Of Fuel Subsidy Removal

Announcing the committee’s decision, Emefiele said : “After a careful balancing of the benefits and the downside risks of the policy options, the MPC decided to hold all parameters constant, believing that a whole stance will enable the continuous permeation of current policy measures in supporting the recorded growth recovery and further boost production and productivity which will ultimately rein in inflation in the short to medium term.

“The MPC thus decided by a unanimous vote, the MPC voted as follows, one, retain MPR at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent; and retain the Liquidity Ratio at 30 per cent.”

 

 

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Dangote Refinery To Begin Operations Before End Of Third Quarter Of 2022

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Dangote Refinery To Begin Operations Before End Of Third Quarter Of 2022

The Dangote Refinery and Fertiliser projects is set to come on stream before the end of third quarter of this year.

This was disclosed by Alhaji Aliko Dangote, President of Dangote Group, when Dr. Akinwumi Adesina, President of the African Development Bank (AfDB) led a delegation of the bank to the project site in Lagos.

“The refinery will commence operation by the third quarter of 2022. On the mechanical completion, we are almost finished but we have started hydro testing, almost 70 per cent gone, hopefully before the end of Q3 operation will commence,” Dangote said.

READ ALSO: Dangote Tells Court American Ex-mistress Trying To Extort $5m

Group Executive Director, Strategy, Portfolio Development & Capital Projects, Dangote Industries Limited, Devakumar Edwin, said the refinery complex, which includes a refinery, petrochemical plant, a fertiliser plant and a subsea pipeline project, is the largest single-train refinery in the world.

Edwin stated that the 650,000 barrels-per-day refinery would stimulate economic development in Nigeria.

According to him, Dangote Petroleum Refinery can meet 100 per cent of the Nigerian requirement of all liquid products (Gasoline, Diesel, Kerosene and Aviation Jet), and also have surplus of each of these products for export.

He stated that this would create a market for $11 billion per annum of Nigerian crude and foreign exchange savings/earnings $9.9 billion.

“We have impacted on job creation with 3,580 Nigerian personnel on site, excluding employment by the various contractors and subcontractors at the site,” he noted.

Commending Dangote for the initiative, the AfDB President said, “One of the things I admire the most about Alhaji Dangote is that, he actually believes in Nigeria, and he invests his money in Nigeria. He believes in Africa and invests in Africa. Nobody could invest the type of billions of dollars that is here, unless the person not only has the vision but also the commitment and passion for his country. We are extremely proud of you and of your commitment to the continent.

“I am completely blown away with what I saw here today. I can’t believe what I saw. This project will reverse the huge sum the nation spends on foreign exchange. When you look at how much we import, it is about $57 billion worth of different products and we export only about $50.4 billion, so we have to balance that with about $7 billion and talking to them here, they showed us that they can have a domestic market of about $11 billion and that is an incredible market and that will save Nigeria about $9 billion, a year from importing petroleum products. So, this is huge for Nigeria and even for Africa as a continent.”

 

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AMCON Seizes Ibadan Electricity Company

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AMCON Seizes Ibadan Electricity Company

The Assets Management Corporation of Nigeria (AMCON) has taken over the Ibadan Electricity Distribution Company (IBEDC) Ltd.

This was disclosed on Friday by the Chief Operating Officer, John Ayodele, in an internal memo to members of staff.

“Further, to the judgment wherein the Federal High Court on the 8th of September 2021 granted preservative orders in favour of Asset Management Corporation, AMCON, (being the Receiver/Manager of Integrated Energy Distribution and Marketing Limited); the court has appointed Mr Kunle Ogunba Esq.SAN to act as Receiver/ Manager Nominee in the receivership action,” Mr Ayodele said.

Mr Ayodele also disclosed that the receiver appointed, Mr Ogunba, had already held a meeting with the management staff.

The action follows the judgement by the Federal High Court on September 8, 2021, which granted orders in favour of AMCON as Receiver/Manager of Integrated Energy Distribution and Marketing (IEDM) Limited, IBEDC’s core investor, over defaults in a Loan Service Agreement with Polaris Bank.

READ ALSO: Appeal Court Rejects Jimoh Ibrahim’s Bid To Repossess Assets Seized By AMCON Over N70bn Debt

The takeover also includes the assets of IEDM, including shares and interests in related companies and entities, in addition to the monies kept in banks.

In 2018, the NERC in an order on June 19, 2018, directed IBEDC to commence the process of dissolution of its Board within 21 days period, citing alleged delay in the repayment of some loans by IBEDC investors.

The loan was granted by IBEDC from funds released to all DisCos by the CBN under the Nigeria Electricity Market Stabilisation Funds (NEMSF) for the purpose of improving the networks and reducing aggregate technical, commercial and collection losses.

The IBEDC, led by Tunde Ayeni, responded that the electricity company had completely fulfilled its financial commitments.

In response, the directors of the electricity company sued NERC for its decision to suspend them from the Board of IBEDC.

In July 2020, the Federal High Court in Abuja set aside the order from NERC that removed the Tunde Ayeni-led Board of Directors of the IBEDC.

 

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