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The Governor of the Central Bank of Nigeria CBN, Olayemi Cardoso, says inflationary pressure has started dropping as a result of the central bank’s policy measures, which aim to reduce the current inflation rate of 33.69 per cent.

This was as he revealed that the country recorded a total foreign exchange inflow of about $24bn in the first quarter of 2024, which is about 50 per cent above the inflows recorded in previous quarters up to 2021.

The governor also declared that the days of excessive naira volatility were over, highlighting the positive impact of the monetary policy tools employed by the apex bank to tackle the challenges facing the forex market.

Cardoso made this disclosure during an interview with Bloomberg TV on Tuesday in London which was monitored by our correspondent, stressing that the Monetary Policy Committee sees inflation as an impediment to the future of Nigeria and would do everything in its control to tackle it.

An analyst, however, criticised the projection, arguing that assessments of the economic situation and inflationary pressures should reflect the views of the average Nigerian.

Since assuming office in September 2023, the CBN governor has undertaken a series of steps to restore orthodox monetary policy aimed at confronting hydra-headed inflation, attracting foreign inflows and stabilising the nation’s currency.

Interest rates have been increased by 750 basis points this year to 26.25 per cent, a foreign exchange backlog of $7bn has been cleared, and the country’s exchange rate policies have been overhauled with new guidelines.

This month, the naira has stabilised trading in a narrow range between N1,473 and N1,490, according to data from the FMDQ securities exchange.

However, Nigerians are concerned because the policies have not resulted in a reduction in the prices of basic commodities, despite the widespread hunger among the population.

Cardoso, speaking in a 20-minute interview, noted a deceleration in the month-on-month inflation rates, highlighting it as a positive development.

He assured that the Monetary Policy Committee members remained vigilant in monitoring inflation trends and ensuring a moderation of inflation numbers.

He said, “The MPC has been very clear in stating that they see inflation as a major impediment to the future of Nigeria and would do everything possible to ensure that they keep inflation in check and bring it down as reasonably as they can. I don’t see that changing. So far from what we’re seeing, there’s a deceleration in inflation rates, which is good news. And my intuition is that with the measures that have been taken in the recent past, and with the confidence of the MPC members to watch the interest rate trajectory very closely. We should see a continuation of the moderation in the inflation rate.”

“Again, let’s watch the numbers but my intuition is that the MPC is determined to ensure that they put inflation in control.

Moreover, the governor refused to be drawn into whether this could signal the end of the tightening cycle that began in May 2022, when the central bank’s monetary policy committee meets in mid-July.

“Data will direct whether they see further hikes or not. The MPC has been very clear in stating that they see inflation as a major impediment to the future of Nigeria, and they will do everything possible to ensure that they keep inflation in ch and k  bring it down as reasonably as they can and I don’t see that changing.”

“Let’s not forget that the MPC is an independent-minded group of people who deal with data. So, what I will say is that depending on what data they see at a particular point in time will direct how they see the hikes or not,” he added.

On the relative stability enjoyed in the exchange market, the former Lagos commissioner for Finance said the bank was relatively pleased with the progress it has made in stabilising the naira and would encourage measures to drive down the rates, adding that the worst was over for the Naira’s fluctuations.

Cardoso’s optimism stems from the CBN’s multi-pronged approach to stabilizing the naira before the recent interventions, speculation and manipulation in the FX forward contract market were contributing to naira volatility.

“We do believe that we have more or less seen the worst in terms of volatility. You recall that months ago when I assumed office in September of 2023, we did have a crisis on our hands and the naira was, you know headed in a direction that everybody didn’t like.

“There was a lot of fear, panic, loss of confidence and trust. And it was vitally important that we addressed those issues of confidence and trust. We are relatively pleased with how far we have gotten up to now. In the past two, or three weeks, after a period of volatility, we have seen a lot of stability in the market and there has hardly been any movement in the currency.”

“Several things were done, which included appreciating the fact that there were a lot of distortions within the foreign exchange system that did not give people the confidence to want to invest or want to keep their money in Naira. Everybody exchanged into dollars and held dollars and we addressed those issues using a flurry of different circulars, addressing some to the banks and some to the operations of the system itself. One of which is the fact that more confidence was going to come back into the market. A lot of inflows have come back because there’s very little liquidity at the time.

“In terms of liquidity, especially on the foreign exchange side, we have seen an increase. The first quarter of this year has resulted in a total inflow of about $24bn. Now, this is almost about 40 to 50 per cent more than the quarters up to about 2021.”

Cardoso noted that the rise in FX liquidity in the first quarter of 2024 is the highest in any quarter since 2021.

“The tools are having a positive impact. So we believe that continuing on this trajectory, we believe that liquidity will continue to grow,” he noted.

In April, Nigeria recorded a total foreign portfolio inflow of N93.37bn against a foreign outflow of N119.81 billion, marking a 415 per cent increase compared to the same period in 2023.

Portfolio inflows refer to the movement of capital into a country’s financial markets from foreign investors.

In addition, the country’s foreign reserve surged to its highest in three months in June since March 2024, indicating a massive increase in liquidity in the foreign exchange market.

According to the latest data published by the Central Bank of Nigeria, the reserves now stand at $33.58 billion as of June 19, 2024.

The rise in FX inflow means there will be sufficient stability in the market and, by extension, the currency which has experienced huge fluctuation since last April.

Speaking further in the interview, Cardoso said the apex bank has set up a committee to facilitate more inflow of diaspora funds into the official FX market.

He said the committee reported directly to him with the sole objective of doubling the inflow of foreign exchange from the international monetary operations.

According to him, this committee has begun to yield positive outcomes with an increase in inflow from Nigerians in the diaspora.

“We’ve had a recognition of the huge role the Nigerian diasporans play in remitting tremendous amounts of money into the system over some time.

“We set up a committee which reports directly to me to double the amount of foreign exchange inflow coming from the IMTO who service that segment the autonomous players.

“Capital inflows are very important. And the reason why it is is that in the case of Nigeria, the pass-through from the foreign exchange rate into inflation is quite significant. We believe that this is an area outside of the normal day-to-day operations that NNPC and exporters will help in closing the gap.

“Already, it’s beginning to bring about results. Again, we are confident that with these kinds of measurements, liquidity will increase in our market,” Cardoso added.

Commenting on the governor’s positive appraisal, a professor of Economics at Babcock University, Segun Ajibola, said the CBN policies though commendable have not solved the problem of the average Nigerian on the street.

The former President and chairman of the  Council, Institute of Chartered Institute of Bankers, in an interview with our correspondent on Tuesday, said the quality of life is measured by the affordability of necessities of life, securities of lives and properties and projections into a better tomorrow which is deficient in the country.

He said, “You know when those in positions of responsibility talk, it is assumed that they have the data and can serve information received and can make educated guesses into the future based on the facts available to them. However, the taste of the pudding is in the eating, it is the end that would justify the means. Let the man on the street see the improvement that we are talking about. Let him say food is now cheaper than before. He can heave a sigh of relief that things are improving and that the quality of life he is living is gradually retiring to normal.

“I don’t know if an average Nigerian that is irking out a living is already feeling the positive impact of all these projections. The man on the street should give this type of assessment, not the governor.

“Associations like the Manufacturing Association of Nigeria, Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture and other Small-Medium businesses should be the ones to say as a result of the CBN policies, their cost of production has reduced not the regulators.”

The professor added, “Did the governor give reasons for stopping forex allocation to Bureau De Change because I see them flexing muscles with capitalisation lurking. What will be the impact of that? I think we should focus our attention on reducing our thirst for imported items because demand will always affect the rate of the naira.”

Meanwhile, the CBN has permitted eligible International Money Transfer Operators to sell foreign exchange on Nigeria’s official window.

This directive, effective immediately, is part of CBN’s plan to ensure greater remittance flows through formal channels and improve the efficiency of the foreign exchange market.

The circular read, “As part of CBN’s commitment to the smooth functioning of the foreign exchange markets and enabling greater remittance flows through formal channels, the Bank has implemented measures that will allow eligible International Money Transfer Operators to access Naira liquidity through the CBN. These measures are aimed at widening access to local currency liquidity for the timely settlement of diaspora remittances.

“Henceforth, eligible IMTO operators will be able to access the CBN window directly or through their Authorized Dealer Banks to execute transactions for the sale of foreign exchange in the market.”

 

 

 

The Federal Government FG, on Tuesday, declared that there was no importation of dirty fuel into Nigeria, countering the recent position of an official of the Dangote Petroleum Refinery.

It declared this after meeting with oil marketers and local refiners of crude oil in Abuja, where parties at the meeting discussed issues about refined products’ pricing, issues of competition and the importation of products that are produced in Nigeria.

Also at the meeting, oil marketers stated that though local refineries were producing some of the refined products, this would not stop marketers from patronising other sources, while also buying products from the indigenous producers.

Speaking through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, while reacting to claims of dirty fuel importation to Nigeria, the government stated that refined petroleum products with high-sulphur contents were last imported in February, stressing that this had since been addressed by the regulator.

The Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, Ogbugo Ukoha, disclosed this to journalists after the regulator concluded its meeting with the oil marketers and local crude oil refiners, which had officials from Dangote refinery and modular refineries.

“There is no dirty fuel that is being brought into Nigeria,” Ukoha declared when asked to react to the allegations levelled against the NMDPRA by a senior official of the Dangote refinery.

It was reported on Monday that the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of granting licences indiscriminately to marketers to import dirty refined products into the country.

He had stated that even though Dangote was producing and bringing diesel into the market, complying with the regulations of the Economic Community of West African States, “licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian market.”

“Some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa recently. Sadly, the country is giving import licences for such dirty diesel to be imported into Nigeria when we have more than adequate petroleum refining capacity locally.”

But responding to this on Tuesday, the Federal Government’s agency insisted that it had adopted all the stipulated procedures required for the importation of refined petroleum products into Nigeria to halt the inflow of dirty fuels.

It further stated that refineries in Nigeria were also taking steps to see that the refined products that they produce conformed with the standards approved by ECOWAS for the region.

Ukoha said, “NMDPRA takes very seriously its statutory mandates to ensure that only quality petroleum products are supplied and consumed in Nigeria. A lot of people do not know the backgrounds that I’m to provide now.

“The ECOWAS heads of states in 2020 endorsed a declaration adopting a fuel roadmap that requires that certain products should have as a minimum 50 parts per million litres of sulphur. Whilst it encouraged almost immediate enforcement against imports to comply with standards, the same treaty deferred enforcements for local refiners up to December 31, 2024.

“Now the PIA (Petroleum Industry Act), when it was passed in 2021, section 317 also captured and upheld these ECOWAS treaties. So as an authority, what have we done since we came into being? We started by engendering compliance. We saw a downward trend up to 2022 till December 2023.

“However, in December 2023 and January this year, we noticed a spike in the sulphur contents of products being imported and we again began strong enforcement from February 1. But I am happy to tell Nigerians that up until June, and till now as we speak, the average sulphur content in every AGO that is brought into Nigeria is below the 50ppm position in the law.”

With the local refiners, Ukoha stated that the declaration deferred it, adding, “So they continue to produce at a higher level, but we are not very anxious about that because even the new refineries that are coming in have within the design of their plants, the sulphurisation units that will see in the nearest future that sulphur goes down to as low as 10ppm.

 

 

The Lagos State Emergency Management Agency has hinted at the possibility of demolishing the Christ Embassy building located on Billings Way, Oregun, in the Ikeja area of Lagos State, which was gutted by fire in the early hours of Sunday, if it fails an integrity test.

This is just as the President and founder of LoveWorld Incorporated, also known as Christ Embassy, Rev Chris Oyakhilome, said it would rebuild a better and bigger structure to replace the affected building.

LASEMA’s Permanent Secretary, Olufemi Oke-Osanyintolu, gave the hint while fielding questions from journalists at the scene of the fire incident on Sunday.

Our correspondent who visited the scene of the incident gathered that the fire started at about 7:30 am but the quick intervention of emergency responders prevented it from escalating to adjoining buildings.

PUNCH Metro also observed that some parts of the building were pulled down by an excavator so that sections that were engulfed in fire could be accessed.

Speaking on the incident, Oke-Osanyintolu disclosed that the intensity of the fire had caused cracks in the wall of the building, which therefore required that an integrity test be conducted on the building.

In his words, “We have seen a lot of structural defects; there are cracks on the walls, and we are carrying out evacuation so that the place will be safe.

“We will ensure to subject the building to an integrity test where we can determine the next line of action. We cannot demolish at this moment until an integrity test is carried out. If it is not safe, then we will take the next action.

“We are working with the church, and they have been cooperating with us, which is why we were able to swiftly combat the fire. We have the structural design of the building with us, and we will investigate thoroughly to ascertain the cause of the fire.”

The Lagos emergency management boss noted that though there was basic firefighting equipment in the church at the time of the fire, the presence of highly flammable materials contributed to the intensity of the fire.

He added, “As a professional, I realised that maybe there were lots of flammables in there in terms of the curtains and other materials. However, from what I have seen, they have basic firefighting equipment, trained men to curtail fire, and fire hydrants.

“One way or the other, we work as a team with them, and that’s why despite the fire being massive, it did not spread, and there was no casualty.”

In his reaction, Oyakhilome, during a live Sunday service at the church’s campground in Asese, Ogun State, disclosed that the fire incident at the church’s headquarters in Lagos is an opportunity to rebuild the razed building in a bigger and better way.

He said, “Nothing happens in the life of a child of God by accident. During the 2001 Ikeja cantonment bombing incident, the building vibrated so much, that we thought it was going to collapse. I thought to myself that if it collapsed, I was going to build a bigger, better one. At the end of the day, it didn’t collapse, and we called the engineers to see if there was any need to bring it down and rebuild, but it was still okay.

“Now that this has happened, we will build a bigger, better, and more glorious one, and the devil will lick his wounds.”

Also speaking on the incident, the Head of the Search and Rescue Unit of the Lagos Territorial Office of the National Emergency Management Agency, Ibitayo Adenike, noted that the absence of worshippers at the time the fire started prevented casualties from occurring in the incident.

She said, “At the time of the fire, there were no worshippers in the building. There were only a few people who were having a meeting, which was what helped to prevent casualties that might have occurred with a crowd.”

Meanwhile, the Lagos State Fire and Rescue Service said an investigation had commenced into the cause of the fire.

The Director of LSFRS, Margaret Adeseye, in a statement on Sunday, added, “The cause of the fire has not yet been determined, and investigations are underway to ascertain its origin.

“No casualties have been reported at this time. Updates will be provided as more information becomes available.”

 

 

Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, has accused International Oil Companies in Nigeria of plans to frustrate the survival of the new Dangote Oil Refinery and Petrochemicals.

Edwin said the IOCs were “deliberately and willfully frustrating” the refinery’s efforts to buy local crude by hiking the cost above the market price, thereby forcing the refinery to import crude from countries as far as the United States, with its attendant high costs.

Speaking to journalists at a one-day training programme organised by the Dangote Group on Friday, Edwin also accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of granting licences indiscriminately to marketers to import dirty refined products into the country.

According to Edwin, the Federal Government issued 25 licences for the construction of refineries in Nigeria, but only the Dangote Group delivered on its promise.

While calling for the government’s support, the vice president noted that more than 3.5 billion litres of diesel and aviation fuel had been exported to Europe by the refinery in the past few months.

The exported fuel, it was said, represented about 90 per cent of its production.

“The Federal Government issued 25 licences to build refineries and we are the only one that delivered on our promise. In effect, we deserve every support from the government. It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported. We are calling on the Federal Government and regulators to give us the necessary support to create jobs and prosperity for the nation,” Edwin stated.

He added that though the Nigerian Upstream Petroleum Regulatory Commission was trying its best to allocate crude oil for the 650,000-capacity refinery, “the IOCs are deliberately and willfully frustrating our efforts to buy the local crude.”

The Dangote official said the IOCs sometimes made the refinery pay $6 over and above the market price, saying this has forced the company to reduce its output as well as import crude from countries like the United States at a higher cost.

He said, “Recall that the NUPRC recently met with crude oil producers as well as refineries’ owners in Nigeria, in a bid to ensure full adherence to Domestic Crude Oil Supply Obligations as enunciated under section 109(2) of the Petroleum Industry Act. It seems that the IOCs’ objective is to ensure that our petroleum refinery fails. It is either they are deliberately asking for a ridiculous/humongous premium or they simply state that crude is not available. At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production.

“It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports crude oil and imports refined petroleum products. They (IOCs) are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their Gross Domestic Product, and dumping the expensive refined products into Nigeria – thus making us to be dependent on imported products. It is the same strategy the multinationals have been adopting in every commodity, making Nigeria and Sub-Saharan Africa to be facing unemployment and poverty, while they create wealth for themselves at our expense.”

“This is exploitation – pure and simple. Unfortunately, the country is also playing into their hands by continuing to issue import licences at the expense of our economy and at the cost of the health of the Nigerians who are exposed to carcinogenic products.”

It was said that even though Dangote is producing and bringing diesel into the market, complying with the regulations of the Economic Community of West African States, “licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian market.”

Edwin explained, “Since the US, European Union and the United Kingdom imposed a price cap scheme from February 5, 2023, on Russian petroleum products, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel and they are being purchased and dumped into the Nigerian market.

“Some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa recently. Sadly, the country is giving import licences for such dirty diesel to be imported into Nigeria when we have more than adequate petroleum refining capacity locally.”

He recalled that in May, Belgium and the Netherlands adopted new quality standards to halt the export of cheap, low-quality fuels to West Africa, harmonising its standards with those of the European Union.

These measures, according to Edwin, synchronised fuel export standards with the European domestic market, specifically targeting diesel and petrol with high sulphur and chemical content.

Historically, he recounted that these fuels with sulphur content reaching up to 10,000 ppm, were exported at reduced rates to countries like Nigeria and other West African consumers.

He mentioned that Belgium’s Minister of Environment, Zakia Khattabi, announced that his country followed the Netherlands, which in April 2023 also prohibited the export of low-quality petrol and diesel to West Africa via the ports of Amsterdam and Rotterdam.

He quoted Khattabi as saying, “For far too long toxic fuels have been departing from Belgium to destinations including Africa. They cause extremely poor air quality in countries such as Ghana, Nigeria, and Cameroon and are even carcinogenic.”

 

 

The headquarters of the Christ Embassy Church, located in the Oregun area of Ikeja, Lagos State, reportedly caught fire on Sunday morning.

  

This was revealed in multiple videos from the scene shared on X.com on Sunday.

Officials of the Lagos State Fire and Rescue Service are also said to be at the scene in efforts to salvage the situation.

 

Sharing a video from the location, Augustine tweeting as Chief_Augustin1 on X.com wrote, “Christ Embassy Church on Billings Way, Oregun, is on fire.

“Serious fire is raging, and men of the Lagos State Fire Service are working hard to put it off. Thank God service hasn’t commenced fully.”

Watch videos here

However, the President and founder of LoveWorld Incorporated, better known as Christ Embassy, Pastor Chris Oyakhilome, has said the fire incident at the church’s headquarters was not an accident but an avenue for bigger and better things.

He said this during a live Sunday service at the church’s campground in Asese, Ogun State.

PUNCH Online earlier reported that the church headquarters, located in the Oregun area of Ikeja, Lagos State, caught fire on Sunday morning.

This was revealed in multiple videos from the scene shared on X.com on Sunday.

Speaking on the incident, Oyakhilome said, “Nothing happens in the life of a child of God by accident. During the 2001 Ikeja Cantonment bombing incident, the building vibrated so much and we thought it was going to collapse.