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Economy Reform : All exchange rate segmentation is “abolished with immediate effect,” Says CBN Director

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…Market-driven currency regime excites financial experts

The Central Bank of Nigeria (CBN) yesterday unified all exchange rates within the economy into the Investors and Exporters (I&E) window.
In a circular to authorised dealers signed by CBN Director, Financial Markets, Angela Sere-Ejembi, the regulator said all exchange rate segmentation is “abolished with immediate effect”.

The CBN said all segments of the foreign exchange market are now collapsed into the I&E window.

It added that applications for medicals, school fees, Business Travel Allowance/Personal Travel Allowance and SMEs would continue to be processed through the I&E window.

Experts spoken to by our correspondence welcomed the development, saying it will remove corruption, increase Forex inflow and boost economic development.

The apex bank action is in line with the directive by President Bola Ahmed Tinubu in his inauguration day speech, which was yet to be carried out by suspended CBN Governor Godwin Emefiele before he was edged out of office last week.

Emefiele is currently under probe for his conduct during his nine years in office.

Under Emefiele, the CBN resisted the pressure from World Bank and the International Monetary Fund (IMF) that the naira should be floated to determine its real value and eliminate the corruption embedded in the multiple exchange rates regime.

In the circular, the CBN also said that the operational changes to the foreign exchange market include the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window.

“Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017 and referenced FMD/DIR/CIR/GEN/08/007.

“All eligible transactions are permitted to access foreign exchange at this window,” it stated.

According to the circular, all operational rates for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two decimal places.

“Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures limits on overbought positions shall be zero.

“Re-introduction of order-based two-way quotes, with bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).

“Re-introduction of Order Book to ensure transparency of orders and seamless execution of trades.

“The operational hours of trades shall be from 9 am to 4 pm, Nigeria time,” the circular said.

Also, there is a cessation of the RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30 June 2023.

Market-driven naira value excites financial experts

The Finance and economic experts, who welcomed the floating of the Naira are the President, the Association of Capital Market Academics, Prof. Uche Uwaleke; Chief Executive Officer, Centre for the Promotion of Private Enterprise [CPPE], Mr Muda Yusuf; Fiscal Policy Partner and Africa Tax Leader, PwC, Taiwo Oyedele; Chief Economist, PwC Nigeria, Andrew Neven; Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe; and President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe.

Others are Senior Credit Research Analyst, REDD Intelligence, Mark Bohlund; former Executive Director, Keystone Bank, Richard Obire; Director General, Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi-Kadiri; Financial analysts, Renaissance Capital, Charles Robertson; and Managing Director, SD & D Capital Management Limited, Mr Gbolade Idakolo.

Uwaleke, who said that the unification of exchange rates would lead to “ a more transparent forex market,” however, advised the CBN to implement the policy ”in a way that it would not cause massive distortions in the general price level.”

He said: “The unification of exchange rates should not be a one-step process but should be implemented over a period of time however short it may be. Empirical evidence suggests that reforms are more successful when they are sequenced and implemented in phases. This is against the backdrop of the oil subsidy removal which, taken together, can result in galloping inflation and rising poverty levels. So, while fiscal and monetary policy reforms are welcome, absolute care should be taken to strike the right balance and minimise their unintended consequences.”

Yusuf said the policy would facilitate the mopping up of naira liquidity in the economy in the short to medium term.

That, according to him, will impact positively on inflation outlook and deepen the autonomous foreign exchange market through the liberalisation of inflows from export proceeds, diaspora remittances, multinational oil companies, diplomatic missions, etc.

He added that “the erstwhile foreign exchange policy regime was for all practical purposes, a fixed exchange rate regime that created distortions and negative outcomes.”

Yusuf said the distortions included “widening the gap between the official, other multiple windows and parallel market exchange rates, collapse of liquidity in the foreign exchange market and high demand for forex .”

He added: “It is important to reiterate that this is not a devaluation policy, it is a normalisation of the foreign exchange policy regime and an adjustment of rate to reflect the fundamentals of demand and supply. It would be dynamic, and the naira will appreciate or depreciate depending on the fundamentals.”

The expert advised the CBN to ”position itself for periodic intervention in the forex market, as and when necessary.”

Oyedele said the decision was a positive move that should bring more benefits than pains to the economy.

He outlined that with the market-driven rate, the aggregate demand for forex across markets should reduce as round-tripping incentive is removed, noting that avenues for corruption such as people who fake foreign travels just to get forex at discounted rates would be.

“Also, Nigeria’s sovereign credit rating should improve if this is complemented with the right fiscal and monetary policies thereby attracting more forex inflows and lowering the cost of borrowing,” Oyedele said.

In a 10-point impact analysis, Oyedele explained that while the decision expectedly would have some negative implications, the overall impact would be positive for the economy, government revenue and the capital market.

Neven expressed support for the policy as it would remove uncertainties and ensure transparency in the forex market.

“We had stated in a report to the CBN that as long as we don’t have a unified exchange rate, and there is a lack of transparency, nobody will invest in Nigeria. We will continue to have insufficient investment and growth and consequently remain poor. What we said years ago came to pass.

”During the (Muhammadu) Buhari Administration, the average growth rate was 1.5 per cent and the population growth was 2.7 per cent. So, it is a necessary condition to get enough investment into the country when we have a unified exchange rate.

“A situation where you have multiple exchange rates, where you don’t know how to have access to foreign exchange or at what price, simply is unworkable. Any system where you have to go to the CBN in order to access foreign exchange or get approval simply isn’t going to work. That is what has been proved over the last decade.

“I think the reaction to President Tinubu’s inauguration statement was very positive, and this latest statement is very positive. We view these as a necessary step toward economic recovery in Nigeria. We’re very much in favour of the unification of the exchange rate,” Neven said.

Ajayi-Kadiri said it was a “positive development and an indication of a far-sighted strategic choice”.

He said the policy, among other range of fiscal measures to promote domestic manufacturing, was borne out of a deep reflection on the current inclement manufacturing environment and the need to stop the drift into inglorious de-industrialization of the Nigerian economy.

The MAN chief, however, said in addition to pursuing the unification of the exchange rate, the CBN should be prevailed upon to take effective action to give priority to the allocations of forex to the productive sector, particularly to manufacturers to import raw materials, spares, and machinery that are not locally available.

Also, Amolegbe said the market-driven rate was another painful reform that needed to be done noting that the multiple exchange rate regime was not doing the economy any good.

“Not only did the former multiple exchange rate system discourage the inflow of much-needed foreign investments, but it also encouraged massive corruption. Harmonizing the rates should lead to better price discovery and hopefully lead to more transparent commerce. That is why the markets responded to it positively,” Amolegbe, a former president of the Chartered Institute of Stockbrokers (CIS) said.

Gwadabe said the removal of the rate cap would allow a true market clearance rate which has been the agitation of several stakeholders in the economy.

He said the move will harness and increase various sources of supply of dollars into the economy like foreign portfolio investment, foreign direct investment, diaspora remittances, and export proceeds, among others.

“The new directive, in my opinion, is to checkmate various illegal economic behaviours like rent-seeking, currency substitution, forex holding positions and frivolous demand in the market,” Gwadabe said.

Obire said eradicating multiple exchange rates would bring about increased dollar supply, and exchange rate stability.

Also, Bohlund said the unification would help the federal government to better balance its books as it is still highly dependent on dollar-linked oil revenue while spending is in naira.

While Robertson said that “Nigeria has become investable again, adding that attracting foreign money is wise when local savings are in short supply.”

Idakolo said the floating of the naira would lead to a free market system that allows market forces to determine the rate.

“This would allow availability to determine the rate and eliminate hoarding,” Idakolo said.

He added that the development “would also encourage foreign direct investment into the economy as restrictions limiting free flow has been lifted. In the long run, as the economy becomes stronger, the naira would begin to appreciate against the Dollar and the economic activities would now determine the strength of our currency going forward.”

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BATTLE FOR NIGERIA’S PGA LEADERSHIP THREATENS THE BODY’S EXISTENCE!

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For the first time in recent memory, the Professional Golfers’ Association of Nigeria is facing a crisis so severe it’s not just the trophies at stake—it’s the organization’s very survival.

At the center of this storm is the current Executive Committee, led by Tony Philmoore.

What was supposed to be a standard leadership run has turned into a high-stakes standoff. A growing, vocal faction within the membership has levelled explosive accusations against Philmoore, claiming he has morphed into a “high-handed” leader intent on overstaying his tenure.

The drama boils down to a classic case of “he-said, she-said” regarding the rulebook. The facts are these: Philmoore’s team was sworn in back in November 2023for what everyone understood to be a two-year term.

One senior member told our correspondent in no uncertain terms: “This is not how you run a professional body. Members were not properly represented in the decision for tenure elongation. You cannot wake up one morning and add three years to your mandate. Where is the governance? Where is the constitution?”

The member, who preferred not to be named for fear of further marginalisation within the association, revealed that formal letters have been circulated, legal opinions sought, and pressure quietly applied on the leadership to vacate or call for fresh elections. So far, Philmoore’s team has shown little sign of budging — and therein lies the stalemate that is strangling Nigerian professional golf.

However, in a move that has sent shockwaves through the greens, the leadership now claims they received an endorsement during their Annual General Meeting (AGM) for a five-year tenure proposal that was thrown up at the AGM, which members claimed hadn’t been endorsed.“It’s a power grab, plain and simple,” mutters another disgruntled member “There was no formal approval, no consensus, and certainly no transparency. We are looking at a leadership that wants to rule, not represent.”

A chance for truce had been blown when rather than heed a call for election, Philmoore initiated a court order that halted members’ proposed meeting to pass a ‘vote of no confidence’ in Lagos. The resolution would have forced the Executives’ hand and made and EGM obligatory but it got thwarted by the court order advising to stay action on the matter.

Earlier too, the apex ruling body for the game in Nigeria, Nigeria Golf Federation, had also attempted to broker peace and proposed terms to return normalcy through its President, Olusegun Runsewe. It obviously hasn’t worked.

While the executives trade accusations in boardrooms and WhatsApp groups, it is Nigeria’s professional golfers — the men and women who have dedicated their lives to the sport — who are paying the most devastating price.

Our correspondent spoke to Yusuf (not real name), an aggrieved professional player who expressed his frustration as this:

“We have lost one of our key regular year opening events in January due to this situation,” he revealed, his voice heavy with disappointment. “I heard that sponsors said we should go and put our house in order first.”

He paused. Then the real pain surfaced.

“It is a shame that the leadership are busy fighting for position, while the little channel for members to showcase their talent and earn their livelihood is being destroyed. I joined this career with so much hope. I am confident in my ability — but this situation has really made me depressed.”

The deeper and more alarming question swirling among golf industry insiders is this: how long can the PGA of Nigeria survive this self-inflicted wound?

Professional sporting bodies live and die by two things — credibility and continuity. The PGA is currently haemorrhaging both at an alarming rate. Without tournaments, players cannot earn. Without earnings, talent migrates or gives up. Without talent, there is no product to sell. Without a product, there are no sponsors. Without sponsors, there is no organisation.

It is a vicious spiral, and those watching from the outside say the end point, if nothing changes, is institutional collapse.

The PGA of Nigeria since formation in 1969 has survived economic downturns, infrastructure deficits, and the general turbulence of Nigerian sporting administration. But this — a leadership crisis born entirely of ambition and alleged constitutional overreach — may prove to be its most dangerous hour yet.

As of the time of filing this report, no resolution is in sight. Tony Philmoore’s camp remains entrenched, dismissing critics as a disgruntled minority. The opposition faction, meanwhile, is adamant and reaching out to the broader sporting governance community for intervention.

In the middle of it all stand Nigeria’s professional golfers — talented, ambitious, and utterly let down by the very institution created to serve them.

The greens are still beautiful. The clubs are still sharp. But the game, for now, is being played in the boardroom — and nobody is winning.

 

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Just IN : Relief in Kaduna as Soldiers Rescue 31 Kidnapped Easter Worshippers

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Troops of the Nigerian Army have rescued 31 civilians abducted during an Easter church service in Ariko Village, Kachia Local Government Area of Kaduna State.

The rescue followed a distress call reporting that terrorists had invaded an ECWA Church in the community and abducted worshippers during the service.

In a statement posted on its X handle on Sunday, the Army said that upon receiving the information, troops swiftly mobilised to the scene and, with the support and guidance of members of the Ariko community, advanced in pursuit of the fleeing attackers.

The Army said the troops engaged the terrorists in a fierce firefight, overpowering them with superior firepower.

“Troops of the Nigerian Army, through a swift response, successfully foiled a terrorist attack, leading to the rescue of 31 civilians abducted during an Easter church service in Ariko Village, Kachia Local Government Area of Kaduna State.

“The swift response followed a distress call reporting the abduction of worshippers during an Easter service at an ECWA Church in Ariko Village. The troops, on receipt of the information, promptly mobilised to the scene. With the support and guidance of members of the Ariko community, they advanced in pursuit of the fleeing terrorists and engaged the criminals in a fierce firefight, overwhelming them with superior firepower.

“The pressure mounted by the advancing troops forced the terrorists to abandon 31 hostages, including one injured victim who is currently receiving medical attention,” the statement partly read.

However, the army disclosed that troops also recovered the remains of five victims already killed by the terrorists at the scene.

“Regrettably, the remains of five victims already killed by the terrorists were also recovered at the scene. The fleeing terrorists are believed to have sustained significant casualties, as evidenced by blood trails along their escape routes.

“Troops have since intensified pursuit operations to track the fleeing elements to their enclaves, with ongoing efforts aimed at rescuing any remaining captives and ensuring the perpetrators are brought to justice,” the statement added.

The army said additional troops had been deployed to the area to reinforce ongoing operations, enhance security presence, and prevent further threats to lives and property.

“To consolidate the gains recorded, additional troops have been deployed to the area to reinforce ongoing operations, enhance security presence, and prevent further threats to lives and property.

“The Nigerian Army reaffirms its unwavering commitment to the protection of citizens and the defence of Nigeria’s territorial integrity, in collaboration with other security agencies and local stakeholders. Troops remain resolute in sustaining offensive operations against all threats to national security.

“Members of the public are encouraged to continue supporting the Nigerian Army and other security agencies by providing timely and credible information, as collective vigilance remains vital to achieving enduring peace and stability,” the statement concluded.

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Breaking : Tinubu Moves to Fix Power Crisis with N3.3tn Debt Clearance

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President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at resolving long-standing debts in Nigeria’s power sector and boosting the reliability of electricity supply.

The plan addresses legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.

Following a comprehensive review, the government agreed on ₦3.3 trillion as a full and final settlement, ensuring transparency and fairness.

A statement issued on Sunday by the special adviser to the president on information and strategy, Bayo Onanuga, stated that implementation of the repayment plan has already begun, with fifteen power plants already signed settlement agreements totalling ₦2.3 trillion.

The statement read, “President Bola Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.

“The debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade.

“The long-standing debts accumulated between February 2015 and March 2025. Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution.

“Implementation has begun, with 15 power plants signing settlement agreements totalling ₦2.3 trillion. The Federal Government has already raised ₦501 billion to fund these payments. Out of the amount, N223 billion has been disbursed, with further payments underway.

“What this means for Nigerians: With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve.”

Commenting on the development, the Special Adviser on Energy to the President, Olu Arowolo-Verheijen, explained that the settlement would improve electricity reliability by stabilising the power value chain.

“This programme is not just about settling legacy debts. It is about restoring confidence across the power sector — ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably,” she said.

The adviser added that the reforms are part of broader initiatives, including better metering and service-based tariffs that link consumer payments to the quality of electricity received.

Priority will also be given to supplying electricity to businesses, industries, and small enterprises to support job creation and economic growth.

“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” Arowolo-Verheijen said.

President Tinubu commended all stakeholders involved in resolving the legacy issues and confirmed that the next phase of the reforms, Series II, will commence this quarter.

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