Markets

Akeem ReachnaijaNovember 9, 2018
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3min00

FSDH Merchant Bank Plc has predicted that about N2.82 trillion coming from matured government securities and Federal Account Allocation Committee (FAAC) are expected to hit the Nigerian money market this month.

The bank also projected a total outflow of approximately N1.03 trillion from various sources, including government securities and statutory withdrawals, leading to a net inflow of about N1.79trn.

The Head of Research and Strategy at FSDH Merchant Bank Limited, Mr. Ayodele Akinwunmi, while speaking on the firm’s latest monthly economic and financial market outlook report released recently.

The report was titled: “Local Competitiveness: A Prerequisite for Inclusive Growth.”

Presenting the highlight of the report, the Akinwunmi, reiterated the need for the diversification of the economy in order to drive inclusive growth and competitiveness.

According to him, the Nigerian economy has the potential to grow faster than the projection by the International Monetary Fund (IMF) and other organisation.

He added: “Even though FSDH is of the opinion that the Nigerian economy has the potential to grow faster that the projection of the IMF, this can only happen where we have coordinated set of policies that will unleash the economy: paying attention to power, paying attention to our infrastructure, involving the private sector, paying attention to our education system, paying attention to adoption of information and communication technology (ICT), to ensure that we are not lagging behind in the fourth industrial revolution which is digital revolution.

“We need to involve private sector operators in ensuring that we lay the foundation for a sustainable growth of the Nigerian economy and to diversify the revenue streams of the economy.”

According to him, “the more we create local competitiveness to make our local economy attractive, the better for us.

“And it comes in various ways: in terms of infrastructure, in education, right policies to develop the right education skills training to make people employable, right health facilities.”

Akinwunmi anticipated an uptick in inflation, to be, “driven by the escalation in price of food and account of the food shortage, the clash between herdsmen and farmers, the flooding issue that we had across the country. And maybe, if the minimum wage is approved for payment, it may likely have some little additional increase to it.”

He noted that if the ongoing agitation for an increase in minimum wage is approved and it leads to upsurge in liquidity in the system, the Monetary Policy Committee may intervene by adjusting the Cash Reserve Requirement (CRR) to soak the liquidity.

On capital flight, Aknwunmi said: “The capital flight will continue to increase because of the increase in rates in developed countries, which we call a saving haven. And it’s putting a lot of pressure on foreign exchange.”


Akeem ReachnaijaOctober 16, 2018

3min00

A bi-monthly update report on the state of Nigeria’s economy prepared by Lagos-based economic research and analyses firm, Financial Derivatives Company (FDC), has disclosed that with the rising prices of crude oil at the international market, petrol subsidy will exceed $3.85 billion initial estimate by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu.

The October 2018 edition of the report was obtained yesterday by THISDAY in Abuja, and it explained that Nigeria’s low capacity to locally refine the petrol it uses to run its economy would deny her the benefits she could have got from the rising price of crude oil.

Recent petrol supplies figures sighted by THISDAY indicated that the amount of financial subsidy Nigeria currently absorbs to keep petrol pump price at the government rate of N145 per litre had gone up to about N65.6k.

The surge followed the increase in landing cost of a litre of petrol to N196.3k, which when added to the N14.3k which is charged as distribution margin in the pricing template of the Petroleum Products Pricing Regulatory Agency (PPPRA), would amount to an open market price per litre of petrol of N210.6k and not the N145 the government pegged it.

In its analysis however, the FDC said: “Rising crude oil prices are set to send Nigeria’s bill for fuel subsidies rocketing, threatening to exacerbate the already precarious economic situation of Africa’s largest oil producer as it heads into election season.”

wThe further stated: “The government has to make a decision of whether to increase fuel prices domestically. That’s a very politically charged issue.”

Similarly, in his review of the situation in the report, Jubril Kareem, an energy analyst at Ecobank, explained that at the moment, no one knows exactly what the NNPC pays itself for such under-recovery.

Kareem said: “NNPC is just too big a company, and the opaqueness of the operations is actually aided by its own structure. It produces crude, buys crude, sells fuel as well as regulates itself.

“At least before, we knew what NNPC was paying in subsidy (because of monthly reports that the NNPC no longer regularly issues). Now you don’t know that. You would understand why a government would want to keep it that way.”

The report reiterated that petrol subsidies have long been the subject of abuse and corruption, adding that it equally encourages smuggling into neighbouring countries which include Cameroon and Benin, where fuel can be sold for twice the price, and even more as international oil prices rise.


Akeem ReachnaijaOctober 14, 2018
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6min00

The federal government has expressed concern over the continued closure of shops owned by Nigerians in Ghana, two weeks after President Koffi Nana-Akudo gave an order that they be reopened.

Senior Special Assistant to the President on Foreign Affairs and Diaspora, Mrs Abike Dabiri-Erewa said this in Abuja, when she played host to the National Association of Nigerian Traders (NANTS) led by its President, Ken Ukuoha.

Ukuoha led the Nigerian and Ghanaian Chapters of the Union to present a petition over the continuous closure of their shops to President Mohammadu Buhari through the Anime’s Office.

Recall that Nigerian traders in Ghana have been shutout of their business premises in pursuance of the eviction order issued to them and dated 27th July 2018.

The Ghanaian authority, said to be was demanding that traders must have one million dollars as minimum foreign investment capital to do business in Ghana as stipulated by its Ministry of Trade and Industry(GIPC) Act, 2013.

The Senior Special Assistant to Mr. President expressed worry that in spite of the promise by the Ghanian president to Buhari, those shopshave remained unopened, after the September 27 dateline .

She said, “ I am just going to start by appealing to you, I know it is painful , frustrating and emotional. In fact, it is deep but I just urged you all to remain calm.”

She said, `I am surprised that after the announcement of President of Ghana on the reopening of the locked shops, they still remained under lock up till now.

“The president of Ghana paid a courtesy call on our president during the UN General Assembly in New York and he assured him that Nigerian traders were not being targeted”

According to her, “When they said foreigners, he assured that Nigerians were not the target; sadly, the September 27, dateline has elapsed I am very surprised that as at today over 400 shops are still under lock in Ghana.”

Dabiri-Erewa expressed dismay that Ghanaian president yet to honour his promise to reopen the closed shops 13 days after.

The presidential aide promised to convey the union’s message to the president who he said was the Chairman of the ECOWAS about what their petition.

She said that President Buhari as the ECOWAS chairman would ensure that the matter is resolved once and for all

She urged the traders not to take laws into their hands no matter how provocative the situation may but to remain calm

“I am sure that the matter will be resolved between the two presidents and will be treated as ECOWAS matter.

“I know it is not only Nigerians that are affected but other ECOWAS nationals as well but I know that Nigerians are the largest.

“On behalf of the government I advised and urge to remain calm because this is an ECOWAS matter and we cannot be doing this to ourselves,” she said.

While noting that millions of Ghanaian traders in Nigeria were treated as brothers she appealed to the union not to even think about retaliation but rather be calm and obey their laws.

“It is only a matter of time when this would resolved, it is a matter of days these long faces would soon smile because President Buhari would surely intervene,” she assured them.

Ukuoha said that in 2018, the Ministry of Trade and Industry(GIPC) and Ghana Union of Traders Association (GUTA) in a joint operation established a taskforce with specific mandate to clamp down on Nigerian traders.

He said that this had eventually resulted in the ongoing closure of over 400 Nigerian Traders’ shops in Kumasi and the Ashanti region of Ghana.

“We are deeply worried with the high level of government complicity and state sponsored incitement and xenophobic attacks on Nigerians on the street of Ghana.

“We can provide evidence based on information in video clips and recorded attacks leaving countless Nigerian traders at various hospitals.

He noted with concern that Ghanaian security continually expressed helplessness by turning their eyes the other way, when Ghanaian hired thugs and criminals unleash mayhem on Nigerians, molesting and looting their goods and properties.

He said among NANTs demand, is the immediate reopening of the over 400 Nigerian owned locked shops in Ghana, as well as the immediate return of all seized goods.

He said the government should undertake to protect and provide security for all Nigerian traders and families and be held accountable for any ill treatment on Nigerian traders, or Nigerian citizens residing in Ghana.

Nigerians should not be subject to arbitrary and punitive taxation. GIPC Act should not be applied on Nigerian traders as we are not foreigners in Ghana but bonafide community citizens under ECOWAS Law, he stated.


Akeem ReachnaijaOctober 12, 2018
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2min00

Oil prices slumped to more than two-week lows yesterday, as global stock markets fell, with investor sentiment made more bearish by the United States government data that showed domestic crude inventories rose more than expected last week.

Brent crude futures fell by $2.08 or 2.5 percent to $81.01 a barrel. The contra posted a session low of $80.69, its weakest since September 24. The global benchmark has retreated after hitting a four-year high of $86.74 on October 3.

U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.81, or 2.5 percent, to $71.36 a barrel. WTI hit a session low of $71.08, the lowest since September 21.

Crude inventories rose by six million barrels in the week to October 5, data from the Energy Information Administration showed yesterday. Analysts had expected an increase of 2.6 million barrels.Refinery crude runs fell by 352,000 barrels per day, EIA data indicated, while utilisation rates dropped by 1.6 percentage points.

Falling U.S. equity markets and a global risk-off environment also weighed on crude futures. On Wednesday, U.S. stock markets tumbled, with the S&P 500 and the Dow Industrials indexes posting their worst day in eight months, as solid economic data reinforced expectations of multiple interest rate hikes next year.

OPEC cut its forecast of global demand growth for oil in 2019 for a third straight month, citing headwinds facing the broader economy from trade disputes and volatile emerging markets.


Akeem ReachnaijaOctober 9, 2018
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2min00

Price of Brent crude oil fell more than 1 percent on Monday after Washington said it may grant Iran some waivers next month.

Brent crude oil declined from over $86 a barrel recorded last week to $83.53 a barrel on Monday. While the U.S. West Texas Intermediate (WTI) drop 54 cents to $73.80 per barrel.

U.S. sanctions are expected to target Iran’s crude oil exports from November 4 and further cut global oil supplies. A move experts believe will push global oil prices to $90 a barrel by Christmas and $100 a barrel by the New Year.

However, in an effort to force lower oil prices as largely demanded by President Trump, a U.S. government official said on Friday that the administration is considering some exemptions for countries that have already reduced their imports of Iranian oil.

A sign Iran oil exports won’t drop to zero in November as India alone is expected to buy 9 million barrels in November, according to a report by Reuters.

Accordingly, hedge funds cut their bullish bets on U.S. crude to the lowest level in almost a year, data showed on Friday.

Again, the ongoing trade war between the US and China also weighed on crude outlook on Monday, especially after data showed the world’s largest importer of crude oil, China’s, manufacturing purchasing managers index grew slower than expected for a second consecutive month.

Chinese stocks declined on Monday despite the People’s Bank of China lowering its bank’s reserve ratio. Another indication of weak business sentiment amid rising uncertainty.


Akeem ReachnaijaOctober 4, 2018
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11min00

The World Bank has once more reduced its growth projection on Nigeria in 2018 to 1.9 per cent, down from the 2.1 per cent it had estimated for the country in April.

The Bank hinged its decision on the contraction in the agricultural sectoras a result of the farmers and herders’ crisis recorded by the country most part of this year.
It explained: “In Nigeria, declining oil production and contraction in the agriculture sector partially offset a rebound in the services sector and dampened non-oil growth, all of which affected economic recovery.”

“Nigeria’s recovery faltered in the first half of the year. Oil production fell, partly due to pipeline closures.
“The agriculture sector contracted, as conflict over land between farmers and herders disrupted crop production, partially offsetting a rebound in the services sector and dampening non-oil growth.”

This is coming as the Central Bank of Nigeria (CBN) yesterday allayed worries over the fluctuation in Nigeria’s external reserves, assuring that with its current level at over $44 billion, there is no cause for alarm.
The multilateral institution stated this in its October 2018 ‘Africa Pulse,’ a bi-annual analysis of the state of African economies released yesterday.

In April, the World Bank had predicted growth of 3.1 per cent, up from 2.3 per cent last year.
But it anticipated that growth in the region would increase from 2.7 per cent in 2018, to 3.3 per cent in 2019, rising to an average of 3.6 per cent between 2020 and 2021.

“The slower pace of the recovery in sub-Saharan Africa (0.4 percentage points lower than the April forecast) is explained by the sluggish expansion in the region’s three largest economies, Nigeria, Angola, and South Africa.
“In Nigeria, declining oil production and contraction in the agriculture sector partially offset a rebound in the services sector and dampened non-oil growth, all of which affected economic recovery.

“A decline in oil production, due to underinvestment and key fields reaching maturity, weighed on growth in Angola. South Africa’s economy slipped into a technical recession following two consecutive quarters of contracting economic activity, with agriculture, mining, and construction acting as major drags on growth,” it added.

The World Bank noted that several oil exporters in the Economic and Monetary Community of Central Africa (CEMAC) saw an uptick in growth. With higher oil prices and an increase in oil production, both Chad and the Republic of Congo were expected to climb out of recession.

According to the Washington-based institution, growth in non-resource-rich countries remained solid, supported by agricultural production and services on the production side, and household consumption and public investment on the demand side.

“With fiscal deficits narrowing, government debt levels appear to have stabilised, but vulnerabilities remain. Compared to 2012 to 2013, the median public debt level remains high, especially in oil-exporting countries. Debt rose in about two-fifths of the countries in 2017 and was above 60 per cent of GDP in one-third of the countries.
“The external environment facing Sub-Saharan Africa is more challenging for several reasons. These include moderating economic growth among its main trading partners, the stronger US dollar, heightened trade policy uncertainty, and tightening global financial conditions.

“While the tightness of oil supply suggests that oil prices are likely to remain elevated through the rest of 2018 and into 2019, metals prices have been softer than previously forecast and may remain subdued in 2019 and 2020 amid muted demand, particularly in China.

“Against this backdrop, the economic recovery in Sub-Saharan Africa is expected to continue at a gradual pace, supported by a rebound in oil production in Nigeria and Angola, the easing of drought conditions that had depressed agricultural output, and a rise in domestic demand in some countries,” it stated.

“Growth in the region is projected to increase from 2.7 per cent in 2018 to 3.3 per cent in 2019, rising to an average of 3.6 per cent in 2020–21. However, per capita income growth would remain below its long-term average in many countries, highlighting the need for comprehensive policy measures to raise potential output.
“The inefficiencies in the way the region combines its factors of production has become increasingly relevant in explaining Sub-Saharan Africa’s lower aggregate productivity compared to industrialised countries.”

CBN Allays Concerns over Declining Reserves
In a related development, the Central Bank of Nigeria (CBN) yesterday allayed worries over the fluctuation in external reserves, assuring that with its current levels at over $44 billion, there’s no cause for alarm.
The apex bank further assured that it will continue to ensure that finance is provided for all Small and Medium Scale Enterprises (SMEs) which may require support to be able to produce and grow the economy.

CBN acting Director, Corporate Communications, Mr. Isaac Okoroafor, said not only does the apex bank have the reserves to defend the naira, it is also sufficient to encourage small businesses to produce to boost the economy.

He further explained that the current instance of reversal of capital flows was not peculiar to the country as some other economies are also affected following the recent hike in interest rate by the United States’ Federal Reserve.
Speaking at the CBN special day at the ongoing 13th Abuja International Trade Fair, the apex bank’s spokesman added that the country’s current reserves level could support between 17 to 20 months of import compared to the international standard, which stipulated for at least three months of import to remain at a comfortable level.

“And I also want to make it clear: it’s also on social media that our reserves dropped by $1.45 billion in one month…We are not politicians- of course, I want you to understand that the reserves level is a moving figure; at times, it rises and other times, it comes down. And as we speak, it’s a little over $44. Giving reasons for the fluctuation in external reserves, Okoroafor said,”You’ll recall that there was a time we survived on even $23.2 billion; the economy was running. “Now, we are over $44 billion and the reason why it is going down gently is because there’s a global squeeze on emerging markets: the Central Bank of the USA which is the FED had been raising interest rate and you know international capital goes to where it earns better returns.

“So, those who came into our economy to take advantage of the returns here seems to have found better returns in the US- and it’s not just in Nigeria- it’s happening to South Africa, Egypt, Pakistan, Iran, Argentina, Brazil, Turkey even China.”

According to him:”China has lost over 1.3 per cent of its currency, Argentina lost 134 per cent; Iran, India, some of them lost 18 percent, 17 percent- but here in Nigeria, our currency has gained 6 percent in the last one year.
“You can see that the reversal of capital flows which is eating most economies and bringing about depreciation in their currency is not affecting us for two reasons- we’ve built enough buffers of reserves to be able to tackle situations like these.

“Secondly, we are using the reserves to defend the value of our currency- so that also accounts for why it’s dropping.
“Investors who brought in dollars- of course, we’ve a capital importation policy- if you bring your dollars, when you’re leaving, we give it to you. And so they brought their dollars and they want to leave to the US, we give them because our word is our bond and so that has tended to make the reserves drop a little.”

He, however, assured that, “At $44 billion, we still have between 17 and 18 months of import cover, meanwhile, the international standard is three months of import cover.
“We are very comfortable- we have the reserves to defend the value of the naira, and we have the local support to also encourage our SMEs to go into production.”

The CBN director also seized the opportunity to counsel the trade fair participants on how best they could access the various interventions by the bank.
He said,”Unfortunately, we cannot do it (the financial interventions) directly, we’ve to do it through banks.
“And that’s why we say again, people who engage in business should open an account with a bank, run that account and demonstrate that you are in business.

“Once you keep your record and you show evidence that you are in business, banks will always give you loans.
“But in a situation where people do not keep records, and there’s no difference between the money in their pocket ad their working capital, it’ll be difficult for banks to be able to do an examination and given you loan.”


Akeem ReachnaijaOctober 4, 2018
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3min00

The bears maintained dominance at the end of yesterday’s transactions on the equity sector of the Nigerian Stock Exchange (NSE), following price losses incurred by most highly capitalised stocks, as market capitalisation depreciated further by N94 billion.

Specifically, the All-Share Index (ASI) shed 257.62 absolute points, representing a decline of 0.79 per cent to close at 32,454.03 points. Also, the market capitalisation declined by N94 billion to close at N11.848 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Dangote Cement, Nigerian Breweries, Unilever Nigeria, FBN Holdings, and Access Bank.

Analysts at Cordros Capital said: “Our outlook for equities in the near to medium term remains conservative, in the absence of a near term one-off positive catalyst; and more so, amidst political uncertainty ahead of the upcoming general elections. However, stable macro-economic fundamentals remain supportive of recovery in the long term.”

However, market breadth closed slightly positive, with 15 gainers versus 14 losers. Diamond Bank recorded the highest price gain of 5.08 per cent to close at N1.24 per share. Cutix gained 4.88 per cent to close at N4.30, while Dangote Sugar appreciated by 4.32 per cent to close at N14.50 per share. Lasaco Assurance rose by 3.23 per cent to close at 32 kobo, while Fidelity Bank gained 2.78 per cent to close at N1.85 per share.

On the other hand, Niger Insurance led the losers’ chart by 8.82 per cent, to close at 31 kobo per share. Mutual Benefits Assurance followed with a decline of 7.14 per cent to close at 26 kobo, while Sovereign Trust Insurance depreciated by 4.35 per cent to close at 22 kobo per share. Jaiz Bank declined by 3.85 per cent to close at 50 kobo, and Aiico Insurance also shed 3.75 per cent to close at 77 kobo per share.

The total volume traded depreciated by 25.93 per cent to 136.73 million shares worth N1.43 billion, traded in 2,801 deals.Transactions in the shares of FCMB Group topped the activity chart with 38.38 million shares valued at N65.72 million. United Bank for Africa (UBA) followed with 20.81 million shares worth N172.54 million, while Fidelity Bank traded 19.18 million shares valued at N35.34 million.Access Bank traded 7.9 million shares valued at N64.15 million, while Zenith Bank transacted 6.71 million shares worth N145.77 million.


Akeem ReachnaijaOctober 4, 2018

2min00

Nigeria has lost opportunity of exporting 1.4 million tons of coal from the middle belt area of the country to Ghana annually, the Nigerian Export Import Bank, NEXIM has said.

Speaking at the Sub-regional workshop and joint committee meeting organized by the Union of African Shippers Council in conjunction with the United Nations Conference on Trade and Development, UNCTAD, Technical Adviser to the Managing Director of the bank, Hope Yongo, said that the logistics of moving the consignment from Nigeria to Ghana is hindered.

Yongo explained that the Ghanaian government needed 2,000 tones every month to power its second coal plant which would have brought the annual coal demand from Nigeria to 1.4 million tones.

He said there is no shipping link along the sub-region, noting that cargo movement amongst the countries in the region had to first go to Europe before finding their way back resulting in very expensive transportation cost.

He also stressed that there is no rail link in the region and that the only means of transportation of goods presently is by road which is more expensive as a result of the condition of the roads and the hindrances along the route.

He further noted that to move 2,000 tons of coal by road every month will require 43,000 trucks, a situation which is unimaginable.

As a result of the hindrances, the Ghanaian government had to resort to shipping the needed cargo from Australia.


Akeem ReachnaijaSeptember 19, 2018
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2min00

Prices of oil at the international market dropped yesterday as the latest escalation in the Sino-US trade war clouded the outlook for demand, although concerns over tightening supply offered prices some support. Brent crude futures had declined 27 cents, or 0.35 per cent, to $77.78 per barrel while US West Texas Intermediate (WTI) crude fell 32 cents, or 0.46 per cent, to $68.59 per barrel. US President Donald Trump on Monday said he would impose 10 per cent US tariffs on about $200 billion worth of Chinese imports. US Treasury Secretary Steven Mnuchin last week invited top Chinese officials to a new round of talks on the dispute, but thus far nothing has been scheduled. “The growing trade dispute has hurt trading sentiment. The impact on economic growth is slowly dripping in, which again hurts oil prices,” Wang Xiao, head of crude research at Guotai Junan Futures, said on Tuesday. But supporting crude futures were potential supply cuts from US sanctions on Iran. Sanctions affecting Iran’s petroleum sector will come into force from Nov. 4. Iranian crude oil export loadings have declined by 580,000 barrels per day in the past three months, Bank of America Merrill Lynch analysts said in a note to clients. Meanwhile, oil output from seven major US shale formations is expected to rise by 79,000 barrels per day to 7.6 million bpd in October, the US Energy Information Administration said. Elsewhere, Russia’s energy minister, Alexander Novak, said on Monday that the country was ready to discuss cooperation with the United States to balance the oil market.


Akeem ReachnaijaSeptember 18, 2018
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5min00

The Central Bank of Nigeria (CBN) has stepped up the campaign to rid the country of dirty notes, make lower denominations available and stem the tide of racketeering in new notes, as it approved a disbursement to traders at the Tejuosho Ultra-modern Market, in Lagos.

The lower denominations approved by the management of CBN for the disbursement include N200, N100, N50, N20, N10 and N5 denominations to economic agents.’

This is in continuation of a series of direct disbursements to marketers, merchants, shopping malls, supermarkets, tollgates, among others, with a searchlight on the recipients to ensure compliance to rules.

A top source at the apex bank told The Guardian that those direct disbursements were matched with unique numbers to a particular recipient and would easily be flagged when used for wrong purposes, like selling the notes at events’ venues.

The Director, Currency Operations Department, Mrs. Priscilla Eleje, at the weekend in Lagos, during the sensitisation programme at the market, said the traders at the market would be entitled to N5000 worth of the lower denominations weekly, which would be done through their bank accounts.
She said that the piecemeal disbursement was to guard against possible abuse or diversion and curtail the scarcity of the lower naira denominations due to hoarding and sale by unscrupulous people.
“In recent time, the bank has observed the inadequate circulation of the lower denomination banknotes and difficulties encountered by economic agents despite huge volume of banknotes injected into circulation on yearly basis.
“Any beneficiary found to violate the procedure would be delisted”, she warned.
She added that CBN ‘recognizes the important role markets play in economic growth, hence the need to ensure accessibility to lower denominations to carry out legitimate economic transactions.

Explaining the framework for the disbursement of these lower denominations, she reiterated that this would be made through commercial banks at no extra cost, while the beneficiaries should ensure that their accounts are funded before any withdrawal would be made.
“Therefore, market associations are not expected to add any cost to their members. In order to guard against possible abuse or diversion of these banknotes, the bank has developed a monitoring framework to ensure the judicious utilisation of the funds disbursed.
“The exercise consists of on the spot-checks to the premises of the beneficiaries after the receipt of disbursement as well as mystery shopper approach to shops, markets and toll gates and any beneficiary found to violate the procedure would be delisted.
The Branch Controller, CBN Lagos, James Iyari, urged the traders not to continue to recycle dirty or mutilated Naira notes, but return such to their banks.
“I want to use this opportunity to urge you to handle the Nigerian banknotes properly.
It is important to let you know that the CBN spends a lot of money to print and process the notes, which is meant to sustain daily economic transactions.
“I I also remind you that it is a criminal offence to abuse the Naira, which is punishable under the CBN Act 2007, by six months imprisonment or a fine of N50,000 or both, when convicted of the sale, spraying or mutilating the banknotes.
It is also a criminal offence to counterfeit the Naira, which attracts five-year imprisonment without an option of fine.”
Speaking on behalf of the traders, the market Leader of Tejoshuo Model Market, Alhaja Titilayo Noyimot, expressed gratitude to the apex bank for making lower denominations available to traders in Lagos markets.
Lamenting that the challenge of getting lower denominations has become real problem for the petty traders in the market, she thanked CBN for making the market the first in Lagos to benefit from the initiative.