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Osinbajo Criticises CBN Over Forex Policies

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Osinbajo Criticises CBN Over Forex Policies

Vice-President Yemi Osinbajo has criticised the Central Bank of Nigeria’s (CBN) foreign exchange (forex) policies.

Speaking at the opening of a two-day Mid-Term Ministerial Performance Review Retreat organised to assess progress made towards the achievement of the nine key priorities of President Muhammadu Buhari government, Osinbajo said the current dual exchange rates allowed for arbitrage and blocked inflow/supply of dollars from investors.

Osinbajo said Nigeria could not get new dollars into the system, adding that the artificially low exchange rate was deterring investors from bringing foreign exchange into the country.

His words: “As for the exchange rate, I think we need to move our rates to be as reflective of the market as possible. This, in my own respective view, is the only way to improve supply.

“We can’t get new dollars into the system, where the exchange rate is artificially low. And everyone knows by how much our reserves can grow. I’m convinced that the demand management strategy currently being adopted by the CBN needs a rethink, and that is just my view.

“Anyway, all those are issues that when the CBN governor has time to address, he will be able to address in full.”

Osinbajo also suggested that the central bank was competing with the fiscal side of the economy, which includes the ministries, departments, and agencies of government.

He explained, “There must be synergy between the fiscal and the monetary authority. We must be able to deal with the synergy; we must handle the synergy between the monetary authority, the CBN, and the fiscal side.

“Sometimes, it appears that there is competition, especially on the fiscal side. If you look at some of the interventions, you will find that those interventions are interventions that should be managed by ministries.

“The Ministry of Industry, trade, and investment should handle MSME interventions, and we should know what the CBN is doing.

“In other words, if the CBN is intervening in the MSME sector; it should be with the full cooperation and consent of the ministry of industry.

“Sometimes you will get people who are benefiting more than once because we simply have no line of sight on what is going on, on one side.”

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Economy

Why NRC Suspended Abuja-Kaduna Train Indefinitely

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Why NRC Suspends Abuja-Kaduna Train Indefinitely

The Nigerian Railway Corporation (NRC) has suspended the Abuja-Kaduna train from resuming operations on Monday, May 23, 2022, as earlier announced.

In a statement cited by Newsrand on Friday, May 20, NRC announced that the suspension is indefinite, as no new date was communicated.

Since NRC announced that the Abuja-Kaduna train would resume three days from now, relatives of the March 28 attack on the Abuja-Kaduna train have been protesting the move, saying it is insensitive while their loved ones are in captivity.

Announcing the suspension, NRC, however, apologised and assured the families of the kidnapped victims that it was working very hard to safely rescue them.

The statement read: “In the same vein, we once again identify with the relatives of those in captivity on the account of the recent attack on AKTS to be rest assured that the Federal Government is alive to its responsibility for the safe rescue of all persons being held hostage.

We, therefore, appeal, particularly to the relatives of persons held hostage to be patient and cooperate with the Corporation and the Security Agencies as the Federal Government is exploring all possible ways and means to ensure the safe release of their loved ones from captivity, soonest.

The NRC expresses its profound gratitude to the security agencies for the continued support.”

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Business

Osinbajo Drums Support For FIRS Digitisation Agenda

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Osinbajo Drums Support For FIRS Digitisation Agenda

The Chartered Institute of Taxation of Nigeria (CITN) has been urged to support the Federal Inland Revenue Service (FIRS) in its drive towards full digitalisation of tax administrative processes.

Vice President Yemi Osinbajo SAN made this call in his speech at the Chartered Institute of Taxation of Nigeria’s (CITN) 24th Annual Tax Conference held at the International Conference Centre, Abuja.

The Vice President was represented at the event by the Executive Chairman of the FIRS, Muhammad Nami who delivered the address on his behalf.

Professor Osinbajo noted that the theme for the tax conference, “Global Disruption, Taxation and Digitalisation: Implication for Socio-Economic Development” aptly captures the prevailing realities within the national and global fiscal space.

He said, “Nigeria’s economy is fast digitalising. The digitalisation of the Nigerian economy means that the ways and manners of organising and doing businesses have changed. Indeed, the radical changes brought about by digitalisation have displaced the traditional approach to tax administration. Consequently, the digitalisation of tax administration is unavoidable, that is why our government has continued to heavily invest in the automation of tax administrative processes and digital infrastructure.

He further noted that the government had provided the enabling environment for digitalised tax administration by making necessary tax policy changes, developing rules for taxation of the digital economy, enactment of required legislation, and providing necessary political backing for the team negotiating the new international tax rules for the digitalised economy.

The Vice President urged the institute to see its role in society as a pillar for the country’s socio-economic development.

The possible impact of non-compliance by taxpayers—whom you hold briefs for—on the government’s revenue and the larger society is crucial and must be given topmost priority while holding briefs for them.

In doing so, you must always bear in mind the pronouncement of the Court of Appeal in Phoenix Motors v. National Provident Fund Management Board (1993) that it is in the best interest of the society at large that government be in revenue.

It is through this prism that I see your Institute as a pillar for the socio-economic development of Nigeria and the emancipation of the downtrodden of our society. Without a doubt, your members will continue to discharge the solemn and sacred responsibility of ensuring that the interest of the larger society in Nigeria is not trodden upon; and this you must do with patriotic zeal,” he noted.

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Economy

Dollar To Naira Exchange Rate Today (Fri. May 20, 2022)

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Dollar To Naira Exchange Rate Today (Thur. May 12, 2022)

Dollar to naira, on Friday, May 20, 2022, opened at (undisclosed) at the Investors & Exporters FX window ( I&E FX Window), where the currencies officially trade.

According to the data at the FMDQ Security Exchange where forex is traded officially, dollar to naira exchange rate stood at (undisclosed).

This would mean that the Nigerian currency either gained or lose against the United States dollar, as foreign exchange (forex) trading closed at N415.12 per $1 on Thursday, May 19.

How much is dollar to naira at the black market today?

Going by sources at the Bureau De Change (BDC) in Lagos, dollar to naira was bought for N570 and sold for N586 in the black market in the state.

It is however pertinent to note that the Central Bank of Nigeria (CBN) does not recognise the parallel market (black market), as it has directed individuals who want to engage in forex to approach their respective banks.

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