The National Security Adviser, Nuhu Ribadu, has directed operatives of the Nigeria Police Force, Economic and Financial Crimes Commission, Nigeria Customs Service and Nigeria Financial Intelligence Unit, to clamp down on forex market speculators.
Ribadu gave the directive in a statement issued by the Head, Strategic Communication, Office of the National Security Adviser, Zakari Mijinyawa, on Tuesday.
He said ONSA and the Central Bank of Nigeria have teamed up to clamp down on forex speculators across the country in order to address the challenges impacting the nation’s economic stability.
According to the NSA, the partnership was aimed at safeguarding Nigeria’s foreign exchange market and combat speculative activities.
“In a concerted effort to safeguard Nigeria’s foreign exchange market and combat speculative activities, the Office of the National Security Adviser (ONSA) and the Central Bank of Nigeria (CBN) are joining forces to address challenges impacting the nation’s economic stability
“The CBN’s proactive measures to stabilize the foreign exchange market and stimulate economic activities have been commendable.
“However, the effectiveness of these initiatives is being undermined by the activities of speculators, both domestic and international, operating through various channels, thereby exacerbating the depreciation of the Nigerian Naira and contributing to inflation and economic instability.
“Recall that, to address the exchange rate volatility, the CBN initiated a comprehensive strategy to enhance liquidity in the forex market, including unifying FX market segments, clearing outstanding FX obligations, introducing new operational mechanisms for Bureau De Change operators, enforcing the Net Open Position limit for commercial banks, and adjusting the remunerable Standing Deposit Facility cap.
“To reduce the pressure on the naira, the Economic and Financial Crimes Commission (EFCC) has raised a 7,000-man special task force across its 14 zonal commands to clamp down on dollar racketeers.
“Yet, recent intelligence reports have highlighted continued illicit activities within the Nigerian foreign exchange market; the ONSA and CBN are therefore embarking on this collaborative approach to tackle these infractions
“This partnership will involve a coordinated effort with key law enforcement agencies, including the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service and the Nigeria Financial Intelligence Unit (NFIU).
“The primary objective of this alliance is to systematically identify, thoroughly investigate and appropriately penalize individuals and organizations involved in wrongful activities within the FX market,” the statement read.
Ribadu noted that by leveraging the expertise of these agencies, “we aim to deter malicious practices, protect investor interests, and promote sustainable economic growth.”
“This joint effort underscores the commitment of the Nigerian government to improving its Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) framework and exiting the grey list of the Financial Action Task Force.
“In addition, the efforts will make progress in ensuring a stable and transparent foreign exchange market, fostering investor confidence, and advancing the nation’s economic well-being,” he added.
The forex crisis has led to economic distress in recent times, sparking protests across the country as citizens can no longer afford basic needs.
Tinubu appoints Ms. Bakari head of NFIU
Meanwhile, President Bola Tinubu has approved the appointment of Ms. Hafsat Abubakar Bakari to serve as the Director/Chief Executive Officer of the Nigerian Financial Intelligence Unit, pending her confirmation by the Senate.
Ms. Bakari is a lawyer and financial intelligence expert with years of experience in anti-money laundering, counter-terrorism financing, and counter-proliferation financing (AML/CFT/CPF).
Before her appointment as the Chief Executive Officer of the NFIU, she served as Deputy Director at the Nigerian Financial Intelligence Unit, and was at different times the Head of the General Services Unit; Head of the Strategy and Reorientation Unit, and Head of the Board Secretariat of the Economic and Financial Crimes Commission.
According to a statement on Tuesday night by the presidential spokesman, Ajuri Ngelale, “The President anticipates that Ms. Bakari will bring her wealth of experience and expertise to full discharge in this critical role, especially in view of his administration’s war against illicit financial flows and other sharp practices currently prevalent in segments of the nation’s foreign exchange markets.”
Investors lose N730bn as index sheds 1.30% on domestic bourse
The value of investment on the Stock market dropped by N729.16bn on Tuesday as market capitalisation closer at N55.30 trillion.
Consequently, the ASI’s year-to-date return fell to 35.16 percent.
On Tuesday, the domestic bourse extended losses from the previous session, bringing the All-Share Index down by 1.30 percent to close at 101,060.67 points.
Bearish sentiment in BUACEMENT (-9.98%), ZENITHBANK (-0.14%), and GTCO (-0.38%) overturned the gains in GEREGU (+3.68%), WAPCO (+1.25%) and ETERNA (+6.17%) causing the drag in the market.
Analysis of market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 10.90 percent.
A total of 256.16m shares valued at N6.63bn were exchanged in 8,783 deals. TRANSCORP (-5.80%) led the volume chart with 39.75m units traded while GEREGU (+3.68) led the value chart in deals worth N1.11trn.
Market breadth closed negative at a 6.00-to-1 ratio with declining issues outnumbering the advancing ones. HONYFLOUR (-10.00%) topped forty-one (41) others on the laggard’s table while ETERNA (+6.17%) led six (6) others on the leader’s log.
At the Currency market on Tuesday, the naira appreciated by 3.1 percent to N1, 551.24/$ at the Nigerian Autonomous Foreign Exchange Market.
Activities at the Fixed Income market showed that the overnight lending rate expanded by 644bps to 23.9 percent, in the absence of any significant funding pressure on the system.
The Treasury bills secondary market traded on a mixed note, albeit with a bullish tilt, as the average yield declined by 1bp to 15.44 percent. Across the curve, the average yield closed flat at the short end but pared at the mid (-1bp) and long (-1bp) segments due to demand for the 170DTM (-1bp) and 352DTM (-1bp) bills, respectively. Similarly, the average yield contracted by 1bp to 17.8 percent in the OMO segment.
The Treasury bonds secondary market closed on a bullish note, as the average yield dipped by 4bps to 16.2 percent. Across the benchmark curve, the average yield declined at the short (-14bps) end as investors showed interest in the MAR-2024 (-83bps) bond. Meanwhile, the average yield was unchanged at the mid and long segments.
DMO raises over N1.4trn debt via bonds
In the same vein, the Debt Management Office says it has raised the sum of N1.495 trillion Federal Government of Nigeria Bonds at its monthly Auction for February 2024.
The DMO disclosed this in a statement it issued via its official X handle on Tuesday, describing the development as unprecedented.
The statement reads, “In an unprecedented development, the Debt Management Office (DMO) raised N1.495 trillion Federal Government of Nigeria (FGN) Bonds at its monthly Auction for February 2024.
“The DMO offered N1.25 trillion seven-year FGN Bond maturing in 2031 and another N1.25 trillion 10-year FGN Bond maturing in 2034.”
It added, “For the Offer, the DMO received total Bids of N1.9 trillion, making it the highest it has received in any one FGN Securities Auction. At the close of the Auction, a total of N873.53 billion was allotted for the 2031 FGN Bond and N621.38 billion for the 2034 FGN Bond, making a total allotment of N1.495 trillion.
“The relatively large amount on Offer was based on the FGN’s financing need, the opportunity to attract foreign investors, as well as, the premise that some local investors may be able to access pools of funds.“
