Analysts at Financial Derivatives Company Limited have made a strong case for a unified exchange rate regime, saying this is critical to jump starting the nation’s economy. Bismarck Rewane Among other things they said that a unified exchange rate impacts the economy positively more than the current multiple exchange rate regime, which they noted creates opportunity for arbitrage and can trigger hyperinflation, as experienced by Venezuela. Noting the the number of countries maintaining multiple exchange rates has been declining since 1990s; they argued that the possibility of exchange rate convergence in Nigeria is now less remote. They made this observation in an article titled Floating Exchange Rate: A Road to Perdition – CBN (Matters Arising)”, published in the FDC Bi-monthly update. The article was in response to recent comments by the CBN Governor, Mr. Godwin Emefiele, who in his response to the presidential candidate of the Peoples Democratic Party, Alhaji Atiku Abubakar’s desire to float the naira, said that floating the naira will lead to economic perdition. Atiku’s forex policy
In November 2018, Alhaji Atiku Abubakar had the said that if elected president he would abolish the current multiple exchange regime and instead float the naira. In an interview with the Africa Report, Atiku said: “I would prefer to float the naira because I believe that will bring about a more stable exchange rate. Therefore, foreign investors are more likely to return to Nigeria and invest as much as possible. We have to create more incentives for foreign investment and relax conditionality, remove regulations as much as possible,” said. When asked about the possibility of this approach driving up inflation, he said: “There could be devaluation and there could be a lot of inflow of foreign currency into the country. The devaluation that is likely to result can be balanced with the relatively huge (sums of) foreign currency that will be coming into the country. “We had that situation prior to the departure of (former president) Goodluck Jonathan. At that time, we had a pile of foreign investment in the country, and there was stability of the naira. So people did not have to go to the central bank to look for foreign exchange because there was foreign exchange in the market and in the banks. So it could turn out to be a win-win situation.” Mr Godwin Emefiele answering questions during his screening by the Senate for Central Bank Governorship in Abuja on Wednesday Emefiele’s response The CBN Governor, Mr. Godwin Emefiele however responded saying that floating the naira as intended by Atiku is a road to perdition. “The MPC reviewed it and concluded that it would be wrong. It is as good as saying that we should go back to the era of Structural Adjustment Programme (SAP) in Nigeria,” he said. “The implication can better be imagined. It will certainly lead to capital flight, lead to massive depreciation or devaluation of the currency and ultimately to currency crisis in Nigeria and I think we should all know that it is a road to perdition to ever go in that direction”, Emefiele said during a press briefing at the end of the Monetary Policy Committee (MPC) in last month. Nigeria’s romance with fixed exchange rate Weighing on this debate, analysts at FDC said: “The CBN has used a managed-fixed exchange rate since the introduction of the Investors and Exporters foreign exchange (IEFX) window in April 2017. “Like Nigeria, most economies operate within the intermediate points of a fixed and floating ex-change rate. The slant towards either of the two regimes depends on the exchange rate policy of the country’s monetary authority and the political manifesto the government seeks to achieve. “The International Monetary Fund (IMF) is a key proponent of a free floating exchange rate due to the benefits of an independent monetary policy. However, short-term speculation and inadequate fiscal discipline continue to undermine the potentials of a free floating exchange rate. “In the 1980s, more than 85 percent of economies adopted a fixed exchange rate which was pegged against the dollar, while the dollar was pegged against gold. Very few countries adopted a free floating exchange rate, as most transactions at the time were dollar-based. Today, the paradigm shift and the emergence of new world powers have tilted the exchange rate regimes in favour of a free floating and managed floating exchange rate. Fixed exchange rate regime is quickly losing its relevance, as it now accounts for less than 13% of exchange rate regimes in the world. Unified vs Multiple exchange rates “A multiple exchange rate regime is a systemic policy tool adopted by emerging markets to pro-mote certain activities through subsidies. This price adjustment mechanism involves the use of different exchange rates for different transactions. This creates an official rate for selected trans-actions and a parallel market rate. For a unified exchange rate, only one market rate will be at play at which all transactions will be embarked on. “Nigeria currently operates a multiple exchange rate system with seven different rates and at-tempts to unify these rates have predominantly been abortive. The difference between the extreme bands has narrowed in the last half decade. This suggests that the possibility of an ex-change rate convergence is now less remote.” Former Vice President Atiku Abubakar Venezuela’s experience with multiple exchange rates Citing the experience of Venezuela as example of the dangers of multiple exchange rates, the FDC analysts said: “ Like Nigeria, Venezuela maintained a multiple exchange rate regime and its oil revenue accounts for 95 percent of forex earnings. A move to hedge against exchange rate volatility prompted the monetary authorities in Venezuela to peg its currency against the dollar. This was also complemented by a multiple exchange rate policy to subsidize importation of basic amenities such as food and medicine. “However, this created room for currency arbitrage as cabals sourced for the Bolivar at a subsidized rate and subsequently sold in the black market at a premium (forex round-tripping). The general shortage of forex and the lack of discipline led to the currency instability and the world’s highest inflation rate of 1,300,000 percent in November 2018. “Similarly, the adoption of a multiple exchange rate regime also implies that some sort of subsidy exists, which is an indirect tax. When juxtaposed with the four canons of taxations, it only meets one criterion, economy. The fact that the bourgeoisie and proletariat are charged the same makes exchange rate subsidy unfair, inconvenient and uncertain.” Way Forward Highlighting the many benefits of a unified exchange rate regime to the Nigerian economy, the FDC analysts said: “To jumpstart Nigeria’s economic growth and sustain stability, the monetary authorities need to shift from a bailout provider to a proactive reformer. This emphasizes the need to anticipate financial market developments and provide incentives for market players. “Similarly, transparency in exchange rate objectives will bolster confidence in the forex market. For instance, increasing market information on the sources and uses of foreign exchange will improve information sym-metry, a move towards efficient market hypothesis. “A well functioning forex market allows the exchange rate to respond to market forces and reduce market distortions. In order to gradually move towards a unified exchange rate, the monetary authorities need to cut the seven-tier exchange rate system considerably. “This will ease the capacity strain on manpower, and reduce compliance and enforcement costs of maintaining a multiple exchange rate. This will also reduce the pressure on Nigeria’s external reserves and the frequency of the CBN’s interventions. “A floating exchange rate remains a critical input towards achieving currency convertibility, which is poised to drive financial flows. A convertible currency also promotes international commerce and lifts barriers to investment flows. This would further deepen trade relations, improving Nigeria’s prospect to reach its potential growth rate.”
How Nestlé and the Swiss Consulate in Nigeria are upskilling and creating job opportunities for Nigerian youth
For the thirteenth consecutive year, Nestlé Nigeria has empowered more than twenty young Nigerians through the Technical Training program in its factory at Agbara.
The participants received scholarships and training to attain the highly recognized City & Guilds certifications.
In addition, the top five students were given the opportunity to conclude their training with an eight-week apprenticeship at two of Nestlé’s technical sites in Switzerland (Orbe and Broc).
Equipped with their newly acquired skills, the graduating batch are ready to embark on their engineering careers with Nestlé in Nigeria.
The Nestlé Technical Training Program in Nigeria is part of Nestlé’s global Needs YOUth initiative. Its objective across the three centres in Agbara, Abaji and Flowergate is to enhance the employability of young Nigerians by providing them essential skills in Mechanical, Electrical, and Automation Engineering. The Agbara training centre is run in collaboration with the Swiss State Secretariat of Migration (SEM).
“Africa has the largest population of young people globally, with 70% of sub-Saharan Africa under the age of 30,” commented Remy Ejel, Nestlé Executive Vice President and Chief Executive Officer for Zone Asia, Oceania, and Africa. “It is crucial to help the younger generations reach their full potential and support economic growth by offering opportunities for skill development and employment.
Nigeria is an important country to Nestlé. We’ve been there for more than 60 years and are proud of our contributions to its development.
This partnership not only helps meet the demand for skilled labor in Nigeria but also supports the local economy and aligns with Nestlé’s broader objectives of enhancing youth employability.”
Since its inception in 2011, the program has received an overwhelming response, with an average of 10,000 applications annually. Each year, up to 60 apprentices are selected through a rigorous assessment process to ensure quality training and personalized attention.
The program includes 18 months of intensive theoretical and practical training for participants, who receive certifications in level 3, 4 and 5 of City & Guilds of London upon completion.
Dolapo Adedoyin Okunola, 25, is a program graduate aspiring to become a Technical Manager. The highlight of her experience was participating in impactful projects aimed at improving energy efficiency and machine validations, while collaborating with a diverse and talented team.
She also enjoyed the opportunity to learn basic French and explore the picturesque Swiss landscapes. “The Nestlé Technical Training Program has significantly enhanced my abilities and expanded not just my skills and academic knowledge but also my experiences of different cultures and languages,” Dolapo explained. “The comprehensive training I received in Nigeria, combined with my internship in Switzerland provides me a competitive edge in the corporate world. I am confident that this program has laid a strong foundation for my career.”
The program not only enhances the technical skills of talented young Nigerians but also fosters cultural understanding and knowledge sharing between Switzerland and Nigeria.
His Excellency Osuobeni Rawlings Krobari, Chargé D’Affaires of Nigeria to Switzerland and Liechtenstein added: “I am delighted to see the program’s success in enhancing the employability of young people in Nigeria. A skilled workforce is vital for our long-term growth.
I extend my heartfelt congratulations to the graduates on their achievements. I encourage them to view their new skills as not only a foundation for their careers but also an opportunity to be ambassadors for their generation, by sharing knowledge and best practices with their peers.”
To date, the program has benefited close to 230 trainee graduates, with 98% securing employment at Nestlé Nigeria. Nestlé and SEM jointly invest in the program, reflecting their commitment to provide more economic opportunities to youth.
Ms. Valérie Gass, Policy Advisor, State Secretariat for Migration SEM, said: “This program was launched the same year as the migration partnership between Switzerland and Nigeria, which aims, among other things, to create greater economic opportunities locally.
The program is an excellent example of a successful Swiss public-private partnership that effectively addresses challenges and creates meaningful opportunities. We take great pride in this initiative and remain committed to supporting youth in Nigeria.”
The Nestlé Technical Training Program consists of three programs run by Nestlé Nigeria in its factories in Agbara, Flowergate, and Abaji. In 2024, a total of 70 top-performing young Nigerians from these programs completed apprenticeships.
This initiative is just one example of how Nestlé is helping youth become more employable across Asia, Oceania, and Africa. Drawing inspiration from the Swiss dual education system to combine theoretical and practical training, Nestlé aims to create a positive impact in the countries where it operates by leveraging global expertise alongside local insights.
The global Nestlé Needs YOUth program was launched in 2013 and aims to help 10 million young people around the world access economic opportunities by 2030. As part of this ambition, it aims to reach more than 5 million youth across Asia, Oceania and Africa.
Access Holdings Plc (“Access Holdings”) is pleased to announce that its banking subsidiary, Access Bank Plc (“the Bank”), has entered into a binding agreement with South Africa-based Bidvest Group Limited for the acquisition of a 100% equity stake in Bidvest Bank Limited (“Bidvest Bank”).
This agreement reflects the Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Founded in 2000, Bidvest Bank is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products. As of its financial year ended June 2024, Bidvest Bank reported total assets equivalent to USD665.0 million and audited profit before tax of USD20.0 million.
The acquisition is expected to close in the second half of 2025, subject to regulatory approvals. Upon conclusion of this acquisition, Bidvest Bank will be merged with the Bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
Roosevelt Ogbonna, Managing Director/CEO of Access Bank Plc, commented:“This acquisition supports our ambition to expand across Africa and solidify our presence in key markets, with South Africa being a top priority.
It underscores our commitment to establishing a more resilient, diversified, and sustainable business model that leverages technology to meet evolving customer needs. Bidvest Bank provides a unique opportunity to blend its strong local expertise with Access Bank’s robust trade and retail banking capabilities, creating a platform for long-term growth and value creation.”Mpumi Madisa, Chief Executive of The Bidvest Group, added:
“As a well-respected, experienced, and prominent financial services entity, I am pleased that Access Bank meets our objectives and provides reassurance for the continued sustainability and prosperity of the bank.
It will enable the bank to advance, scale, and sustainably grow in today’s fast-changing, technology-driven, and highly competitive sector.”The transaction aligns with Access Bank’s expansion objective to build the scale needed to become a major player in its market.
By leveraging Bidvest Bank’s robust local capabilities and Access Bank’s established pan-African presence, the Bank will have increased capacity for intra- and inter-Africa trade, connecting businesses and creating new opportunities for regional integration.
The trial of four bloggers: Precious Eze, Olawale Rotimi, Rowland Olonishuwa, and Seun Odunlami, charged with allegedly blackmailing Guaranty Trust Holding Company and its Group Chief Executive Officer, Segun Agbaje, was on Thursday adjourned to January 13 and 14, 2025.
They were dragged before Justice Ayokunle Faji of the Federal High Court, Lagos by the Special Fraud Unit of the Nigeria Police Force.
They are facing a 10 count amended charge for allegedly publishing false information about GTCO and Agbaje through various social media platforms.
They had pleaded not guilty to the charges and were denied bail because Eze was accused of being a serial offender.
However, Justice Faji ordered an accelerated trial of the four bloggers.
At the resumed hearing of the matter on November 13 and 14, 2024, Justice Faji dismissed their bail applications, citing the serious nature of the alleged offences, which included charges that could lead to up to 14 years in prison.
The judge also held that Eze has shown the tendencies of committing the offence again if let out as he is currently charged with a similar offence in another court and was only out on bail when he went ahead to commit the alleged offence for which he is now standing trial.
He also highlighted the potential destabilising impact such actions could have on the banking sector, particularly since some of the charges involved cross-border activities on the internet.
He also noted that the defendants’ actions challenged the authority of regulatory bodies, including the Central Bank of Nigeria, which had approved GTCO’s audited statements.
At the resumption of trial on Thursday, the defence counsel, O. A Afolabi, called Eze, the 1st defendant, to the witness box to give his testimony concerning the circumstances surrounding the recording of his statement at the police custody after his arrest.
The witness said: “I was arrested on September 21, 2024 at Gbagada and was taken to the SFU office in Ikoyi.
“When we got there, I was taken to the office on the first floor by the right, where we met someone called Abu, who later called Mr. Yakubu to conduct my interrogation.
“He then took me to another office where there were many files.
“He then asked me if I knew why I was arrested and I answered that I had no idea.
“A file was then shown to me and I didn’t know how the file applied to me.
“Yakubu then replied that it was a petition written against me and a few others from GTB.
“We sat down and discussed.
“He told me my name was mentioned that I wrote a story against the bank and he said if I should cooperate with him, the issue will be settled seamlessly.
“He said if I give the full details of the issues, I’d be free to go.
“He said I should write my statement and I asked that my lawyer has to be here before I write and he replied that it doesn’t matter since all that he asked was for me to write what happened.
“I was insistent on having my lawyer around and he got offended.
“He said I should write my statement If I want to leave the station that same day.
“I agreed eventually and he brought a sheet of paper for me to write.”
On whether the interrogation room captured in the video played for the court was the same room he was taken to immediately he got to the SFU office, the witness replied that he had seen the video and the room was different from the initial one he was taken.
Afolabi further asked the circumstances surrounding the writing of the two statements shown in court.
Eze replied: “The statement I wrote in the first office I was taken to was the same one I was given to rewrite the same thing in another form.”
Objecting, the prosecution counsel, Chief Ajibola Aribisala (SAN), urged the court to play the video recording of the statement to ascertain the authenticity of the witness’s claims that he copied his first statement in his second.
Chief Aribisala informed the court that the two statements, in contrast to what the witness said, were two different statements without same narration and meaning.
In continuation of his cross-examination, the prosecuting counsel urged the court to allow the witness to read out a few lines from the two statements to determine if it was copied or rewritten.
The defence counsel raised an objection to the suggestion of reading out the content of the statements to the court by the prosecuting counsel.
Aribisala insisted that the statement is yet to be admitted before the court and as such cannot be read out.
After few deliberations, the trial judge admitted the statement as evidence to be used in the trial within trial.
The prosecuting counsel, after the careful comparing and contrasting of the two statements, asked the witness the similarities between the two statements to ascertain it as being copied or rewritten.
The witness replied: “I’m not a child and I’m learned to know that I’m not expected to write the statement verbatim.
“And as a writer, I can write on the same subject matter or topic with different approaches or words.”
Eze added that the initial part of the second statement he was seen writing in the video played in the court was dictated to him by Investigating Police Officer Yakubu, who later gave him the first statement to copy into the second one he wrote.
Opposing, Chief Aribisala told the court that the two statements are the original thoughts of the witness and not dictated as the witness had alleged in his testimony.
Justice Faji thereafter adjourned the case until January 13 and 14, 2025 for further cross-examination of witnesses.
The Eagle Online recalls that at the resumption of trial on Tuesday, a police witness, M. Yakubu, who was still under oath, was cross-examined by the defence counsel.
Adeniyi had asked him: “Are you familiar with international laws and practices that guide investigators and the implications of not adhering to such laws and practices?”
The witness replied: “I am aware,” adding that he had been an investigator since 2001.
On whether he knew that each column in a statement form has its importance to the investigator and the suspects and as well familiar with his right to guide and not induce or promise the suspect through the process, the witness replied that he was certainly aware.
Adeniyi further asked for the starting and ending time of each statement recording of the defendants from the 1st to the 4th and the reason for the process without the presence of their lawyers
The witness replied that the maximum time spent in recording the statement of each defendant was an hour and it was done in the absence of their legal representatives, which he said was as the defendants agreed to do.
He further probed: “How many interrogation rooms do you have at your station?”
Witness replied: “We have only one.”
Defence counsel: “How did you record the statement of the four defendants?”
Witness: “It was done one after the other and I was the one who conducted it.”
Defence counsel: “Do you have an observation room at your station? How many?”
Witness: “We only have CCTV footage of the interrogation room, which can only be viewed from the office of the CP, DSP and ACP.”
The defence counsel then prayed the court to give room for more witnesses for cross examination.
Opposing the application, Chief Aribisala urged the court to reject the request or mandate the defence counsel to make available the list of witnesses before they appear in court.
In delivering his ruling, Justice Faji ordered the defence counsel to update the prosecuting counsel on the list of the witnesses that will be summoned at the next hearing slated for Thursday, December 12, 2024.