The Nigerian naira has experienced a significant depreciation, losing 26.36% of its value against the US dollar at the official Investor and Exporter window of the foreign exchange market. This comes despite the Central Bank of Nigeria (CBN) announcing the clearance of $2 billion as part of its backlog obligations.

The CBN, in a bid to alleviate pressure on the country’s exchange rate, revealed on Monday that it had disbursed $61.64 million to foreign airlines as part of matured foreign exchange obligations. Acting Director of Corporate Communications, Hakama Sidi Alia, emphasized that these payments aimed to settle all remaining valid forward transactions.

However, since the announcement, the naira has traded above ₦1000 against the dollar, closing at ₦1082.32/$ on Wednesday, according to data from the FMDQ Securities Exchange. This marks a 0.66% increase from Tuesday’s closing rate of ₦1089.51/$.

Despite renewed efforts to boost liquidity in the foreign exchange market, including a $2.25 billion foreign exchange support facility received by the Federal Government from the African Import-Export Bank, the naira’s volatility persists. Dr. Ayo Teriba, CEO of Economic Associates, attributes the naira’s decline to inadequate foreign exchange supply, emphasizing that government efforts to attract investments must materialize to address the shortage.

Prof. Adeola Adenikinju, President of the Nigerian Economic Society, anticipates increased stability in 2024. He cites factors such as the local refineries’ operation, improved revenue generation, and increased oil production as potential contributors to a more stable naira. However, Financial Derivatives Company warns that the naira is likely to remain under pressure in 2024, potentially falling towards ₦1,350/$ before a rebound in the second quarter.

In a significant development, the Central Bank of Nigeria (CBN) has taken immediate action to dismiss the entire Board of Directors of Polaris, Titan, Union, and Keystone Banks. This decision was made during a meeting led by CBN Governor Yemi Cardoso on Wednesday in Abuja.

Sources within the CBN indicate that an official statement officially dissolving the boards will be released shortly. The decision is believed to be a response to the recommendation of the Special Investigator, Jim Obazee, appointed by President Bola Tinubu in July 2023 to investigate the activities of the CBN and other relevant establishments.

The special investigation report accused the former CBN governor, Godwin Emefiele, of acquiring banks for personal gain through proxies. It alleged that Emefiele utilized proxies to acquire Union Bank of Nigeria for Titan Trust Bank Limited and Keystone Bank without providing evidence of payment.

As a result of these findings, the report recommended that the Federal Government reverse the sale of the banks and take over their operations. Further details are expected to be communicated officially in the upcoming statement from the CBN.

Reporting by [Your Name].

***Joint Technical Committee to Finetune Areas of Partnership

TOYIN ADEBAYO, ABUJA

In a significant move towards advancing the development of solid minerals amid the global transition to cleaner energy, Nigeria and the Kingdom of Saudi Arabia have pledged to strengthen collaboration.

The commitment was made during a bilateral meeting held on the sidelines of the Future Minerals Forum (FMF) in Riyadh, Saudi Arabia, led by the Minister of Solid Minerals Development, Dr. Dele Alake, and his Saudi Arabian counterpart, Bandar AlKhorayef.

Dr. Alake emphasized the importance of forging partnerships, noting the abundance of critical minerals in Nigeria crucial for the global energy transition.

He stated, “For us to maximally utilize, exploit, and derive maximum revenue for our economic and infrastructural development, we need to have a very solid partnership with nations like Saudi Arabia.”

Highlighting the need for investments in exploration, exploitation, and local value addition, Dr. Alake expressed Nigeria’s openness to collaboration, especially in the mining sector.

He urged Saudi Arabia to consider investments in local value addition, which would lead to the establishment of factories in Nigeria, generating employment and fostering economic growth.

Dr. Alake also outlined incentives for foreign investors, including President Bola Tinubu’s policy on repatriation of profits, tax waivers on imported mining equipment, and an upcoming enhanced security architecture to secure mining areas in the country.

Mr. AlKhorayef affirmed Saudi Arabia’s commitment to diversifying the economy, echoing the emphasis on local value addition. Both countries agreed to establish a joint technical committee to follow through on areas of partnership, with a defined action plan and timelines to harness comparative advantages for mining sector development.

The Nigerian delegation included key figures such as Hajia Fatima Shinkafi, Executive Secretary of Solid Minerals Development Fund (SMDF), Dr. Obadiah Nkom, Director-General of Mining Cadastral Office (MCO), Dr. Abdulrasak Garba, DG of Nigeria Geological Survey Agency (NGSA), and Ime Erikpo, Director of Investments Promotion and Mineral Trade (IPMT). Representing Saudi Arabia were Minister of Industry and Mineral Resources, HE Bandar AlKhorayef, Vice-Minister, Mining Affairs, Engr. Khaled AlMudifer, and other government officials.