Obinna Chima with agency report
 
The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele has maintained that CBN policies aimed at managing demand for foreign exchange were beginning to have the desired impact.

He also dismissed calls for the devaluation of the naira amid growing domestic and international concerns about the tough outlook facing the Nigerian economy after the collapse of oil prices last year.

Speaking in an interview with the London-based Financial Times (FT) newspaper, Emefiele said demand management of forex arising from limited supply and the exclusion of certain items from accessing forex from the official market was working, adding however that there was no ban on the importation on the said items.

The CBN last month had listed importers of 41 items and barred them from accessing forex from the interbank market, arguing that the products could be produced in the country.

Emefiele, in an attempt to shore up the naira and preserve the country’s foreign reserves, argued that the country was exporting jobs by importing items, which ordinarily could be produced locally.

However, the decision has been criticised by some analysts and the Lagos Chamber of Commerce and Industry (LCCI), who have contended that the policy was in the near-term inflationary, could negatively impact retail trade and lead to job losses.

However, Emefiele, in the interview with FT, said: “First of all, when you talk about how it will increase prices or increase inflation, any option (devaluation) or (currency curbs) you adopt will cause inflation, right?

“If we adjust our currency further, which is what I have heard people talking about, it will still lead to inflation, it will lead to an increase in prices.

“What we are saying is that those 41 items are items that can be produced in Nigeria. Having done an adjustment of the naira by almost 22 per cent, now we are also looking at the supply side, that is our reserves and our revenues. Yes, we are constrained as a result of the drop in crude prices.

“But we are blocking leakages. And we are gradually, as a result of the commitment by the president, building our reserves gradually, and we are working very hard to avoid a scenario where the reserves are badly eroded.
“Now, the third part is demand, with demand management which we are also working on. So the question is, are they working? My answer is yes. The demand management arising from the exclusion [the import restrictions], are they working? Yes.

“But let me tell you, these are not import restrictions, they are foreign exchange exclusion… The president came on board and said that we will work very hard to reduce importation of petroleum products by ensuring that our refineries work.

“Our refineries are working now. Warri and Port Harcourt have started producing, they have not obtained the optimal capacity but they will. Kaduna refinery will start working this month.”

Emefiele said that given the major hit to state revenues for the continent’s top oil producer, there was no way to avoid “bad times” for now. But he insisted his policies — and not the naira devaluation traders and analysts call for — would curb inflation and bolster depleted foreign reserves.

“We have begun to get people to refocus . . . the challenges of the dwindling reserves [are] making people change their paradigms because we are telling people our story and they are beginning to look inwards,” he said.

Asked if he was worried about food shortages if local manufacturers or producers could not move quickly enough to supply adequate quantities of rice, tomato paste and other foods, such as tinned sardines, the governor replied: “We are praying that there will not be shortages. But when there is a shortage, that shortage provides business opportunity for Nigerians and foreigners to come and jump in and fill the gap.”

Emefiele also dispelled fears that the central bank was overreaching itself and getting involved in industrial policies, stating that beyond the mandate of the CBN to provide price and monetary stability and forex management, it was also the responsibility of the central bank to take actions that would achieve macroeconomic stability.

“In an attempt to achieve macroeconomic stability, you must take actions that impact positively on the lives of your people. And any monetary or fiscal authority will do that. In the United States, everything is (about) ‘jobs, jobs, jobs’.

“The Federal Reserve talks about jobs. Every month, Janet Yellen comes and talks about employment. So if you are saying that it is not within the mandate of the central bank governor to put in place policies that will increase job creation, reduce unemployment, increase economic growth and development then you are not right.

“So what we are doing is taking actions and decisions that will improve the lives of the people and that will make our people look inwards. And those things we are importing right now, we are taking action to say produce them locally, and in the process you create jobs for our people and in the process you are growing the economy.”

On the current volatility in the parallel forex market, the CBN governor maintained that informal market was shallow and should not serve as a benchmark for determining the real value of the naira.

“I’ve always said that the parallel market is a shallow market. The parallel market constitutes just about 5 per cent of the (forex) market. It should not be a basis or a benchmark for determining the real value of Nigeria’s currency.

“A situation where the bank vaults are full with cash and then banks on their own said, we don’t want the dollar cash, because we don’t know how to get real value for those dollars sitting in our vaults… because they don’t want it, then market has crashed, from about 240 to as low as 210, 208. That shows you how shallow that market is,” he said.

Emefiele also insisted the restriction placed on importers of the 41 items had not added depth to the parallel market, stating: “It’s not the policy we introduced in June that is causing it. It is because of the speculative activities, the round-tripping and rent-seeking activities of certain people in the economy that is creating this.

“The parallel market is not growing as a result of any restrictions because we’ve said that those items are excluded from foreign exchange.

“By their exclusion, you cannot get foreign exchange from the CBN, from the interbank or from the parallel market so if you have your own funds somewhere in the UK or US you can use that to import the items, we are not going to stop you. But we don’t want you to access those funds here.”

On efforts by the central bank to assist the Buhari administration in its fight to stem corruption, the CBN governor said the bank will be happy to play a role once the opportunity presented itself and will be happy to receive recovered funds as they would improve the country’s reserves, but no money has been recovered to date.


http://www.thisdaylive.com/articles/emefiele-cbn-s-forex-demand-management-is-starting-to-work/216805/

I thought APC said some ministers, aides and associates of GEJ have already returned millions of dollars.

This people will sink to any level to keep the sheeple in line. They, the APC seem not to be aware of the fa t that they are no longer in opposition. Seems like they are both in power and in opposition.

where people dey hear those rumors?

Oga Lalasticlala, kindly do the needful.

Nor will be returned at the end of 4 years

sunnyb0b0:
I thought APC said some ministers, aides and associates of GEJ have already returned millions of dollars.

.

do you have proof where APC said so? Dieziani Madueke who it was rumoured to have planned to return some of her loots was stopped because she has to be probed first. So which beer parlour did you hear your own news?

No escape route

Beremx:
do you have proof where APC said so? Dieziani Madueke who it was rumoured to have planned to return some of her loots was stopped because she has to be probed first. So which beer parlour did you hear your own news?

Since you, like all other APC sheep are now suffering from amnesia, let me help you;

http://www.premiumtimesng.com/news/more-news/184721-jonathans-men-returning-stolen-money-el-rufai.html

this govt is full of criminals.

sunnyb0b0:


Since you, like all other APC sheep are now suffering from amnesia, let me help you;

http://www.premiumtimesng.com/news/more-news/184721-jonathans-men-returning-stolen-money-el-rufai.html

I think you are the one suffering from Amnesia.

APC govt will ask looters to return money – El-Rufai
MAY 13, 2015 : GODWIN ISENYO
Governor Nasir el-Rufai
Kaduna State
Governor-elect and
former Minister of the
Federal Capital
Territory, Nasir el-
Rufai, said on Tuesday
that the incoming
government of Muhammadu Buhari would ask corrupt
politicians to return every kobo stolen by them.
He also said that the Buhari administration would inherit a
huge debt from the Goodluck Jonathan government.
The governor-elect told executive members of the National
Union of Textile Garments and Tailoring Workers of Nigeria,
who visited him in Kaduna, that such politicians must be
ready to return all ill-gotten funds after May 29.
He however said those (politicians) who were not corrupt
had no cause to fear.
According to him, the measure was imperative because the
All Progressives Congress-led government would be in a dire
financial strait on assumption of office.
El-Rufai said, “We will politely ask those who stole
government money to return the funds. This is because the
people, who are in government now, are there to work for
themselves. But the APC government is made up of people
who are ready to work for the masses and the betterment of
the country.
“We will work with the textile unions to ensure that the lives
of the average Nigerians get better.”
The ex-minister also decried the poor state of the textile
industry in Kaduna State and gave assurance that his
administration would revamp it.
He lamented the current employment figure of 1,600 people
in the textile sector, describing it as unacceptable.
El-Rufai added that the textile industry in Kaduna alone used
to employ about 33,000 workers.
According to him , the APC government will revive the
industry so that it can generate employment and impact on
the lives of the people.
He said, “We have met at a forum of northern governors-
elect and we decided to ensure the revival of the textile
industry. It is a shame that the largest economy in Africa
imports textile materials from Senegal and other countries.”
The President of the union, Oladele Hunsu, recalled el-
Rufai’s feat as minister of the FCT and urged him (el-Rufai) to
take steps towards reviving the textile industry.

http://www.punchng.com/news/apc-govt-will-ask-looters-to-return-money-el-rufai/

so between Punch and PremiumTimes,who is wrong?

So all na wash ?

ammyluv2002:
So all na wash ?

Oh so you believed that propaganda party?

ShowYourCertificate:
Oh so you believed that propaganda party?

Yeah, I did

ammyluv2002:
Yeah, I did

It's a pity. Take solace in the fact that you were not the only one that was deceived. You now know the truth.

sunnyb0b0:
I thought APC said some ministers, aides and associates of GEJ have already returned millions of dollars.

This people will sink to any level to keep the sheeple in line. They, the APC seem not to be aware of the fa t that they are no longer in opposition. Seems like they are both in power and in opposition.

APC revels in sensationalism as their new weapon to convince the gullible that Buhari is working.

Beremx:
I think you are the one suffering from Amnesia.



so between Punch and PremiumTimes,who is wrong?

You posted news from May 13, 2015 and I posted news from June 9, 2015. Which one supercedes the other?

Go school you no go go.

sunnyb0b0:
The new government of Muhammadu Buhari has started receiving money stolen by the cabinet members of former President Goodluck Jonathan.

This was disclosed by the Kaduna State Governor, Nasir El-Rufai, in an interview with the journalists on Monday.

He said it was true that they have recovered some money from many people who agreed to do so in the interest of Nigeria.

Mr. El-Rufai, who refused to disclose the identity of those returning the money and how much was so far returned, said the action was a welcome development.

http://www.premiumtimesng.com/news/more-news/184721-jonathans-men-returning-stolen-money-el-rufai.html

sunnyb0b0:


You posted news from May 13, 2015 and I posted news from June 9, 2015. Which one supercedes the other?

Go school you no go go.

since the CBN governor said no money has been returned,I will believe him. Its either Nasir El-Rufai is lying or PremiumTimes misquoted him.
I don't see how money can be refunded without a proper probe done.

Beremx:
do you have proof where APC said so? Dieziani Madueke who it was rumoured to have planned to return some of her loots was stopped because she has to be probed first. So which beer parlour did you hear your own news?

WAILERS ENJOY BEER PALOUR GISTS

Beremx:
since the CBN governor said no money has been returned,I will believe him. Its either Nasir El-Rufai is lying or PremiumTimes misquoted him.
I don't see how money can be refunded without a proper probe done.

Accept that your party, APC thrives on propaganda.

Beremx:
do you have proof where APC said so? Dieziani Madueke who it was rumoured to have planned to return some of her loots was stopped because she has to be probed first. So which beer parlour did you hear your own news?

And you believe the lie you just narrated?


You have to work on your instinct and stop believing those beer parlour gist from APC sympathetic media meant to project a sterile government as active.

Nobody wants to return anything and every information on Diezani Madueke so far are all false and fabricated.

Like anyone believed that rubbish anyway
Lalasticlala

Hmmm, Gaskiya akwai Magana
Cos this is serious magana.

Baba BuBu, do something abeg

abuayman:
Hmmm, Gaskiya akwai Magana
Cos this is serious magana.

Baba BuBu, do something abeg

Akwai magana mana!