Godwin Emefiele, Governor of the Central Bank of Nigeria, (CBN), has said that the country is working on merging its exchange rate on the various markets.
Emefiele, said that the foreign exchange needed for the importation of petroleum products will decline by the end of this year when the Dangote Refinery commences operation.
Emefiele, was speaking on the sidelines at the ongoing World Bank/International Monetary Fund 2022 Spring Meetings in Washington DC, in reaction to the president of the World Bank, David Malpass, who had mentioned on Wednesday, at a press conference that, the multiple exchange rates in the country is not encouraging to investors and also not an effective way of managing the country’s exchange rate.
Emefiele, however said the CBN is working on a home grown solution at merging the exchange rates even as he emphasised the need to first merge the level of demand with that of supply.
He said: “What we do expect is that to develop a home grown solution that will lessen the situation.
“Nigeria is on a managed float and what that also means is that we cannot adopt what is being proposed that we go on a free float, doing that will create an exchange rate spiral for Nigeria as long as the demand surpass the supply of foreign exchange in Nigeria.
“With the Dangote Refinery coming up with the 650,000 barrels per day hopefully by around the end of the year. That will also start to also reduce the demand for foreign exchange that will normally will go for importation of petroleum products.
“I have often said between the importations of refined products alone, importation or whether it is rice or sugar or wheat, consumes close to about 40 per cent of foreign currency that is needed to fund imports in Nigeria. And if we find for instance, a situation were by around the end of this year, we’re able to begin to see we are no longer going to be needing foreign import petroleum products.
“We have been at this since 1986 and that is why we are saying that whereas, we are doing something to adjust the currency like for instance between 2015 and now, you would observe that we have adjusted the currency from about N155 to about N420 that it is today.
So, we cannot be accused of not adjusting the currency that we are trying to adopt a very gradual approach towards adjusting the price to the level that it is today but at the same time. We have to be given a chance to also look at while we are adjusting price, we must also do something about demand and supply.
“That is the reason we are saying that we need to do something on demand to make sure that those things that we can produce in the country we restrict access to foreign exchange for them so, that that will encourage people to produce locally.
When that happens, what it will mean is that the demand for foreign exchange will reduce and when demand for it reduces ultimately you will find that price will not rise beyond the expectation of Nigerians and we are achieving that.
“Today, we have done a lot in intervention in agriculture. Is it your rice, we have stopped the import of rice. We have stopped import of maize. Right now no foreign exchange for importation of rice or maize, very little amount for wheat.
“I believe that demand will drop as demand drops, what you will find is that whatever supply we have is able to merge with demand and then we can see a stable exchange. That is what we’re trying to do and I imagine that by the time we achieved this, we will continue to engage with World Bank or the IMF”.
Nigeria to begin processing of raw gold, others — Minister
Nigeria has begun the process of refining gold, gemstones and other mineral resources in the six geo-political regions of Nigeria.
The Minister of Mines and Steel Development, Mr Olamilekan Adegbite said this when he appeared on the News Agency of Nigeria (NAN) Forum in Abuja.
According to him, adding value to the country’s mineral resources will go a long way in creating jobs and wealth for Nigerians.
He said six plants were being set up in the various regions to process mineral resources deposited in those regions.
“We have set out to do six regional projects and one of them is the gold souk in Kano, the North West region.
“Before now, our gold was being exported in its raw form for close to nothing to foreign counter for processing and we end up buying them expensively.
“We have trained people who will make jewellery and they will be resident in the plant,” he said.
He said similar plants had been set up in the North East, Bauchi for processing kaolin, while in the North Central Kogi State was chosen for establishment of a gold smelting plant .
Adegbite also said in the South West, in Ibadan, gemstone plant had been established while in the South East, lead processing plant was established in Ebonyi.
The minister said in the South South region, baryte processing plant had been established, adding that “Nigeria imports baryte to the tune of 300 million dollars every year.
He said the six regional projects were at advanced stage of completion and would be commissioned soon.
Dangote plans 300,000 fresh jobs for Nigerians
Africa’s foremost industrialist, Aliko Dangote, is optimistic that the new multibillion Naira investment in the sugar sub-sector would help provide no fewer than 300,000 jobs in Nigeria.
A statement from the Corporate Communication Department of the company, said that the Group’s President, Dangote said the company was providing fresh funds for expanding its operations in the sugar sub-sector.
Dangote, who was speaking at the Flag-off Ceremony of the 2022/2023 Crushing Season and Outgrower Scheme Awards in Numan, Adamawa, said the opportunities would include both direct and indirect jobs.
He said: “We are making massive investment in Adamawa State through expansion of DSR Numan’s sugar refining capacity from 3000tcd to 6000tcd, 9800tcd, and to 15,000tcd.
”DSR will be able to create about three hundred thousand jobs, direct and indirect, with positive multiplier effects on the economy nationwide.”
The Dangote Group is the biggest employer of labour in Nigeria outside the government.
Dangote was appointed Chairman, National Job Creation Committee in 2010 to assist the Federal Government in providing more employment opportunities for Nigerians.
The Dangote President had also announced that his company was doubling its spending on CSR schemes in host communities in Adamawa State, the location of its 32,000 hectares integrated sugar complex.
Speaking in Numan, Minister of Industry, Trade, and Investment, Otunba Adeniyi Adebayo, described the Dangote Sugar Refinery as the biggest contributor to the development of the sugar development effort of the Federal Government.
The Minister also commended Dangote for the massive support through his Corporate Social Responsibility scheme.
In the same vein, the Dangote Refinery and Petrochemicals is expected to create some 250,000 job opportunities when completed next year.
Already Dangote Cement Plc is one of Africa’s biggest job providers in the manufacturing sector.
Federal Allocation: FG, States, LGs Shared N736.8bn In October – FAAC
The Federation Account Allocation Committee (FAAC) has distributed a total of N736.782 billion to the three tiers of government as federation allocation for the month of October 2022.
The funds are inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Exchange Gain and augmentation from Non-Oil Revenue.
Of the sum, the Federal Government received N293.955 billion, the states got N239.512 billion, and the Local Government Councils got N177.086 billion, while the oil-producing states received N26.228 billion as Derivation (13 per cent Mineral Revenue).
A communiqué issued by the Federation Account Allocation Committee (FAAC) indicates that the Gross Revenue available from the VAT for October 2022 was N213.283 billion, which is an increase compared to what was distributed in the preceding month.
It also shows that the Federal Government got N31.992 billion, the states received N106.642 billion, Local Government Councils (LGCs) got N74.649 billion.
The Gross Statutory Revenue of N417.724 billion distributed was lower than the sum received in the previous month, from which the Federal Government was allocated the sum of N206.576 billion, states got N104.778 billion, LGCs got N80.779 billion, and Oil Derivation (13 per cent Mineral Revenue) got N25.591 billion.
The communiqué stated that N70 billion augmentation was distributed to the three tiers of government, including the Federal Government (N36.876 billion), states (N18.704 billion), LGCs (N14.420 billion).
In addition, another extra N30 billion augmentation from non-oil revenue was distributed with N15.804 billion allocated to the Federal Government, N8.016 billion to the states, and N6.180 billion to LGCs.
According to the FAAC, N5.775 billion from Exchange Gain was shared to the Federal Government (N2.707 billion), states (N1.373 billion), and LGCs (N1.058 billion), while Derivation (13 per cent of Mineral Revenue) got N0.637 billion.
It also revealed that Oil and Gas Royalties, Petroleum Profit Tax (PPT) and Import Duty recorded considerable decreases, while VAT, and Companies Income Tax (CIT) increased significantly, and Excise Duty increased marginally.
The total revenue distributable for the current month of October was reportedly drawn from Statutory Revenue of N417.724 billion, VAT of N213.283 billion, Exchange Gain of N5.775 billion, and N100 billion augmentation from Non-Oil Revenue, bringing the total distributable for the month to N736.782 billion.
However, the balance in the Excess Crude Account (ECA) as of November 23, 2022 is said to stand at $472,513.64.
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