By Charles Ebi 

Central Bank of Nigeria ,CBN, has said that the results of its policy measures are becoming evident, with net foreign exchange flows rising to $25.4 billion between January and June, marking a 55% increase year-over-year. 

A statement from the apex bank on Wednesday added that this growth has been fueled by a rise in capital importation, which reached $6 billion in June 2024, and record inflows from diaspora remittances through formal channels. 

The statement noted: “The CBN’s policy objectives are yielding tangible results and bolstering market confidence. Net foreign exchange flows rose to $25.4 billion between January and June, marking a 55% year-over-year increase. This growth has been driven by a rise in capital importation, which reached $6 billion in June 2024, and record inflows from diaspora remittances through formal channels”.

Over $305 million sold to authorized dealers in the past three weeks 

The CBN further noted that over $305 million of foreign exchange has been sold to authorized dealers in the last three weeks through a two-way quote system, which has been deployed over the past few months to enhance liquidity in the interbank market. 

In the statement, it was also stated that the CBN offered $876 million to meet bids submitted by customers during an auction concluded on Wednesday, August 7, 2024.  

This was done through the Retail Dutch Auction System ,RDAS, which is designed to facilitate FX sales to end users directly, promoting a more transparent market, reducing information asymmetry, and aiding in price discovery. 

The statement read: “In the latest testament to the Central Bank of Nigeria’s ,CBN, ongoing commitment to support the proper functioning of the foreign exchange market by enhancing liquidity when necessary, the apex bank offered $876m to fulfil bids submitted by customers at an auction concluded on Wednesday, August 7, 2024. 

“In line with its pledge to provide transparent access to foreign exchange for all legitimate customers, the CBN’s leadership has introduced an additional mechanism through the Retail Dutch Auction System ,RDAS, to directly facilitate FX sales to end users. 

“This approach aims to foster a more transparent market, reducing information asymmetry and supporting price discovery. It complements the two-way quote system deployed over the past few months to enhance liquidity in the interbank market, through which over $305 million of foreign exchange has been sold to authorised dealers in the last three weeks”.

The CBN also said that it contributed less than 5% of the $43 billion foreign exchange ,FX, turnover recorded on the official market as of July 2024. 

In its statement, the CBN noted that the FX market is showing signs of improvement and increased depth, with more robust and diversified sources of liquidity contributing to the sustained convergence of exchange rates across all market segments. 

The statement read: “The foreign exchange market is also showing signs of improvement and increased depth, with more robust and diversified sources of liquidity contributing to the sustained convergence of exchange rates across all segments of the market. 

The official market recorded a turnover of $43 billion in customer transactions by the end of July 2024, with CBN-supplied liquidity representing less than 5% of total market activities”.

The CBN also stressed that it is committed to fostering a transparent, market-driven foreign exchange environment and will continue to strengthen the market’s capacity to meet the needs of all legitimate participants. 

This ongoing effort is expected to further bolster market confidence and support the overall stability of the Nigerian economy. 

The Central Bank of Nigeria ,CBN, sold $876.26 million at N1,495/$1 to 26 qualified banks in its latest Retail Dutch Auction.

This is according to a statement signed by Dr Omolara Omotunde Duke, Director, Financial Markets Department.  

In the statement, it disclosed the auction was done to reduce the demand pressure in the foreign exchange ,FX, market and promote price discovery. 

According to the statement from the CBN, a total bid of $1.18 billion was received from 32 dealer banks. However, bids from six banks were disqualified, as four banks did not meet up with the deadline while two did not provide bids in their submitted templates.  

Only about 75% of the total bid amount was supplied by the apex bank at the latest auction.  

The latest FX auction is the biggest so far under Yemi Cardoso as the CBN governor.  

Credit Direct Finance Company Limited ,Credit Direct, the consumer finance arm of FCMB Group Plc and one of Nigeria’s leading digital-first non-bank financial services providers, has recently received an upgrade to its credit rating from Agusto & Co. to BBB+.  

According to Agusto & Co., “The upgrade reflects Credit Direct’s dominant position in the industry and its good and consistent profitability, which compares better than most peers in the consumer lending segment”.

Chukwuma Nwanze, Managing Director/CEO of Credit Direct, commented on the upgrade of the Company’s credit rating by Agusto & Co, saying”, We are honored and proud to announce that Agusto & Co. has upgraded Credit Direct’s rating to BBB+, a remarkable achievement considering the high inflationary and turbulent macroeconomic environment we are navigating.

This upgrade which puts us among the highest rated FinTech lenders in the country is not only a testament to our robust financial health and strategic agility but also reflects our resilient business model focused on expanding financial inclusion for Nigerians, our sound risk management practices, and the trust we have built with our customers and stakeholders”. 

Furthermore, Credit Direct announced the successful payout of its N6.9 billion Series I and II commercial paper issued in November 2023 on the FMDQ Securities Exchange.  

Nwanze thanked the investor community for participating in the series I and II commercial papers saying “The strong investor confidence demonstrated through their participation and support underscores our position as one of Nigeria’s leading digital-first non-bank financial services providers. 

We extend our deepest gratitude to our investors for their trust, and we remain dedicated to delivering exceptional value and fostering long-term partnerships that is critical in achieving our ambition to expand financial inclusion for all Nigerians”.

Commenting on the financial performance of the business in the first half of 2024, Kolawole Omoniyi, the Chief Financial Officer at Credit Direct explained that the company is continuing its growth trajectory despite a tough business clime. 

Omoniyi stated, “We delivered a strong financial performance in 2023 and have continued the momentum in the first half of 2024. In our H1 2024 unaudited financial performance, we achieved a 105% YoY growth in interest income. 

This helped to raise our profitability by 154% in the first six months of the year compared with the corresponding period last year. 

We also continued to see significant improvements in our cost efficiency and asset quality ratios as our cost to income ratio declined by 370bps while our NPL ratio had also declined 221bps as at end of H1 2024. 

Our return on average equity improved to 65.6% while our return on average assets also improved to 10.5% wrapping up a strong H1 2024 financial period”.

Beyond the strong financial performance, the company reported that it had also made significant progress in its digital transformation implementation to ensure that the company is ready for the future. 

Nwanze explained that “Our strong performance in the first half of 2024 is a clear indication of the transformative power of our digital initiatives. 

Our commitment to digital transformation has significantly enhanced our operational efficiency, improved customer experience, and boosted employee productivity. 

About 95% of our loan book at the end of June 2024 were originated through our digital channels, a significant improvement from the 62% reported as of June 2023. We introduced four new digital channels and upgraded our existing digital channels, enabling our customers have 24/7 access to our services”.  

Nwanze emphasized that digital transformation initiatives such as the deployment of self-service loan origination channels, automated customer profiling and credit decisioning have contributed to improved asset quality and a reduced cost-to-income ratio, even in the face of high inflation.  

Credit Direct expects to build on this momentum in H2 2024 and deliver even greater value to its customers, and stakeholders. Its focus remains driving financial inclusion and providing innovative financial solutions to meet the evolving needs of its customers. 

Credit Direct is a wholly owned subsidiary and consumer finance arm of the FCMB Group, offering lending and retail investment products to individuals and businesses. Licensed by the Central Bank of Nigeria, Credit Direct has proudly served millions of customers nationwide since 2007.

By Aliyu Galadima 

Federal Government has halted the plan to the sell subsidized 50-kilogram (kg) bags of rice to public servants priced at N40,000.  

This is contained in a circular titled, “Withdrawal of internal circular on sale of subsidized rice to public servants”, and signed by the Permanent Secretary of the Ministry of Special Duties and Inter-Governmental Affairs Human Resources Management Department. 

The circular which was directed to the Directors and Heads of Departments, said the initial circular ordering the sales of the N40,000 bag of rice is hereby withdrawn.  

There was no reason given in the circular for halting the plan.   

“I am directed to refer to our internal circular in the Ministry (Federal Ministry of Special Duties and Inter-Governmental Affairs) of August 1, 2024 on the above subject matter and to inform you that the Internal Circular is hereby withdrawn. Further details will be communicated in due course. 

“Please bring the contents of this internal circular to the attention of staff in your respective Departments and Units for their information and proper guidance”, the letter read.  

Following the announcement by the Minister of Information, Idris Mohammed, that the Federal Government is planning to sell 50kg rice for N40,000, the Ministry of Special Duties and Inter-Governmental Affairs Human Resources Management Department asked civil servants to register for the sale of the subsidized food item.  

In a letter dated August 1, the Ministry said the staff should pay for the purchase of the bag of rice, adding that a staff member is entitled to only one bag.  

The memo signed by Mrs. Jaiyesim Abimbola Aderonke (Mrs.) Director, Human Resource Management, stated the following: 

“As part of Federal Government’s efforts to alleviate the current food crisis in the country and its effects on the general population, I am directed to inform you that 50kg bags of rice will be sold at subsidized rate of Thousands Naira ,N40,000, only per bag to interested public servants in Abuja. 

”For effective implementation, all interested staff are required to complete a Google form on the OHCSF website. https//www.ohesf.gov.ng. print and submit some to Director HR for endorsement payment and distribution of the rice will be coordinated by designated officials while the chairman, Joint Union Council of the Ministry is required to serve as an observer during the period of the exercise for the purpose of transparency. 

”I am to further add that each staff is only entitled to purchase one bag. Two or more staff may also jointly pay for a bag for sharing among themselves. 

“Please bring the contents of this circular to the attention of staff in your respective Departments/Units for information and guidance”.

It Is important to note that the Minister of Agriculture, Senator Abubakar Kyari, had earlier announced that the sales of the bag of rice will begin from the civil servants before it is extended to other citizens in the country. 

According to the Nigeria Bureau of Statistics ,NBS, food inflation stood at 40.87% year-on-year as of June 2024.  

This significant increase in food inflation is due to the rising prices of various items, including millet flour, garri, bread, prepackaged wheat flour, and semovita.  

In response, the Federal Government has introduced several policies to combat food inflation, such as releasing grains from reserves and donating fertilizers to farmers.   

However, these measures have yet to impact food inflation, as food prices continue to soar across the country. 

By Charles Ebi 

Nigerian Guild of Editors ,NGE, has called on citizens to demand accountability from state governments on how they utilized over N570 billion disbursed by the administration of President Bola Tinubu to expand livelihood support.

NGE also berated attacks on journalists covering the #EndBadGovernanceInNigeria protests by some security personnel.

It would be recalled that President Tinubu had revealed during a televised national broadcast to Nigerians following nationwide hunger protests that over N570 billion was released to the 36 states of the federation to expand livelihood support to vulnerable citizens.

The NGE’s General Secretary, Iyobosa Uwugiaren, called on citizens to demand accountability of the Support Funds during an anti-corruption radio programme, “PUBLIC CONSCIENCE”, produced by the Progressive Impact Organization for Community Development, PRIMORG, Wednesday in Abuja.

Uwugiaren, who stressed that active citizenship was critical to entrenching, said, “It is high time Nigerians started holding leaders accountable”. Additionally, the onus is now on the citizens, civil society organizations, and the media to get explanations for the utilization of resources at the subnational level.

He lamented the failure of the state legislatures to check the excesses of state governors as they are doubtful to question how the over N570 billion released to the 36 states of the federation was spent.

“We have to start holding the governors accountable. The Federal government recently disbursed about N570 billion to 36 state governors, and I can assure you that that money will not get to the local government purse.

“The question we should be asking is how do we engage the governors to find out what they do with the internally generated revenue funds they collect with the local governments. The Federal Government should stop behaving like Father Christmas because that’s why people think the FG has the solution to all Nigeria’s economic problems when the solution lies in the hands of some State Governors.

“Nigerians must take back this country from the political elites who wants to destroy this country, and the only way we can continue to do that is by holding them accountable, by being actively involved in what they are doing.

“Civil society groups need to do a lot of job along the line in enlightening the citizens that they also elected their local government chairmen and governors to better their lives”, Iyobosa stressed.

Speaking on the fallout of the #Endbadgovernance protests, Iyobosa berated the Inspector General of Police, Kayode Egbetokun, for absolving personnel of wrongdoings and attacks on journalists while calling for more training and equipping of Police men and women in such situations.

“I have many of my colleagues who were brutalized. We , the NGE, documented  16 journalists who were harassed.

“As a point, the President of the Nigerian Guild of Editors – Eze Anaba, was in touch with the IGP and asked him to call his men to order.

“The Police didn’t behave very well; they were not professional in managing the scenario, and I was shocked that even the Military and the State Security Service were more professional than the police”, he said.

On her part, Human Rights Lawyer, Mojirayo Ogunlana criticized attacks on journalists and peaceful protesters in some instances while noting that the nationwide protests have increased citizens’ awareness and have awakened the consciousness of holding elected leaders to account.

She emphasized that the August 2024 protests achieved a lot as the government is seen trying to address many people’s problems. While stressing that “As enshrined in the Nigerian Constitution, journalists are critical to improving good governance in the nation, hence the need for security agencies to protect them”.

Speaking on accountability of N570 billion disbursed by the administration of President Bola Tinubu to state governments, Ogunlana said: “To entrench good governance, the people cannot go to sleep, you must follow all these politicians bumper to bumper whether at the local strata, the states and the federal level; everywhere you have to be on their case and hold them accountable”.

Public Conscience is a syndicated weekly anti-corruption radio programme PRIMORG uses to draw government and citizens’ attention to corruption and integrity issues in Nigeria.