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Experts: What $2.5bn China currency swap means to Nigeria



Financial experts across the country have welcomed the $2.5billion currency swap curdeal signed by the Central Bank of Nigeria (CBN) and the People’s Bank of China (PBoc.) The deal, which is aimed at enhancing foreign reserve management and facilitating trade between the two countries, was signed in Beijing on Friday, April 27, by Governor of the CBN, Mr. Godwin Emefiele, and PBoC Governor, Dr. Yi Gang, according to a statement released by CBN spokesman, Mr. Isaac Okorafor, yesterday.

The CBN said it had been in discussions with China on the deal for more than two years, adding that Nigeria is the third African nation to agree a currency swap deal with China. Reacting to the deal in a chat with New Telegraph,Managing Director/Chief Executive Officer, Bic Consultancy Services, Dr Boniface Chizea, said the arrangement was a positive development as it would provide adequate local curdearency liquidity to Nigerian and Chinese companies, thereby boosting trade between both countries. He said: “The deal will help to eliminate the challenges associated with having to use a third currency. It is not like the CBN will start providing cash to businesses but there will be something like a book keeping arrangement in which the CBN will keep a record of the yuan (Chinese currency) requests of Nigerians.

Another advantage of the deal is that it will further improve our foreign exchange reserves because with the opportunity to access yuan directly from the CBN, there will be less demand for dollars.”

He, however, pointed out that the deal could face challenges with regard to clarity about the exchange rate that would be used for transactions and the risk that it could further put China at an advantage over Nigeria in terms of trade between both countries. Also, Developmental Economist, Mr. Odillim Enwagbara, said:”Currency brings to an end multiple exchange rates from naira to dollars and dollars to yuan. This reduces the current high cost of transaction associated with dollar as the world’s de facto reserve currency since the swap arrangement bypasses the dollar”.

Similarly, former Unity Bank MD, Rislanudeen Mohammed,said:”In the context of minimizing concentration risk of having our foreign exchange denominated in United States dollar alone, this is a positive development. Secondly, in view of our huge imports from China, this agreement will help in reducing time as well as transaction cost by eliminating third party currency deals.

However, there is no impact on the economy as far as the balance sheet of central bank is concerned.” Managing Director, Crane Securities, Mr. Mike Eze, also welcomed the deal

. He said: “The deal is in line with the Federal Government’s desire to attract foreign investment. This will definitely boost our economy.” “By the time you study the nitty-gritty of the deal, you will realise that it also favours Nigeria,” he stated. But prominent economist and Chief Executive Officer, Financial Derivatives Company, Limited, Mr. Bismarck Rewane, argued that the deal would have no significant impact on the economy.

He said: “There is no difference. As far as I’m concerned, the difference is between 6 and half a dozen. If it is a currency swap, why is it denominated in dollars? The reason is that you will have to sell your oil to earn dollars, which you will use to buy yuan. So, there is no difference.”

The CBN had stated in its statement that the transaction, which is valued at Renminbi (RMB) 16 billion, (about $2.5billion), is aimed at providing adequate local currency liquidity to Nigerian and Chinese industrialists and other businesses, thereby reducing the difficulties encountered in the search for third currencies.

It explained: “With the operationalisation of this agreement, it will be easier for most Nigerian manufacturers, especially Small and Medium Enterprises (SMEs) and cottage industries in manufacturing and export businesses to import raw materials, spare-parts and simple machinery to undertake their businesses by taking advantage of available RMB liquidity from Nigerian banks without being exposed to the difficulties of seeking other scare foreign currencies.

It would be recalled that Nigeria added the yuan as part of its foreign reserve in 2011 and agreed a swap deal with Industrial and Commercial Bank of China Ltd (ICBC), the world’s biggest lender in 2016 as part of strategies to reduce the huge dollar demand and pressure on the local currency at the time. China has yuan swap arrangements with over 28 countries worldwide, including Britain and Germany.

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Inside Abuja

VIDEO: Sunday Igboho steals show as Moshood Adeoti declares to succeed Aregbesola



One of the leading aspirants in the race to Abere government house for the September 22nd governorship election in Osun state, Alhaji Moshood Olalekan Adeoti popularly addressed as “SHEU” by his admirers has officially declared his intention to contest for the post of the governor, to succeed his boss, Ogbeni Rauf Aregbesola under the platform of the All Progressives Congress APC.

He made his intention known when he visited the state secretariat of the party in Osogbo, accompanied by his teeming supporters, loyalists and well-wishers gathered from all local governments of the state, in his words at the occasion, “Mr. Chairman, I have come forward today as a disciplined and active party member of APC to declare my interest in contesting for the governor of Osun, I have gathered valuable experience over the years, starting from my humble political background as a councilor in Iwo to the state party chairman of Action Congress AC, Action Congress of Nigeria ACN, and now the secretary to the state government in the last eight years, i am most experienced and qualified among all the contestants from both the PDP and APC ” he said.

My interest primarily is to make success out of everywhere Governor Rauf Aregbesola has failed as we have many shortcomings as an administration but government is a continuum, our party APC made many promises which we cannot fulfill but I vow to fulfill all of them if elected as governor. I also want to align with the six integral action plan of Aregbesola and I am totally committed to fulfilling them all provided the APC will give me the platform to contest as its flag bearer, he stressed further.

Speaking at the short ceremony, one of the notable personality who accompanied Adeoti to the ceremony, Chief Sunday Igboho Adeyemo, a chieftain of PDP in Oyo State and a former ally of former Governor, Prince Olagunsoye Oyinlola who affirmed his total readiness to work assiduously for the emergence and success of Adeoti at the polls categorically assured that all known and prominent thugs within and outside Osun will be mobilized to support the ambition of Adeoti. Igboho, a known confidant of Senator Rashidi Ladoja said he has gotten approval of Ladoja to support the APC aspirant.

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One of the party elders from Ejigbo who accompanied Adeoti to the event but prefers to stay anonymous expressed shock about the missed opportunity and lack of cohesion displayed by the grassroot politician of Adeoti caliber, this was an opportunity for Sheu to itemize his manifesto to the party and people, prove bookmakers wrong that he has the capacity needed to administer our state, he also failed to showcase to the public the achievements of the administration in which he served as SSG for eight years, instead was hammering on areas of weaknesses and failures of Aregbesola, the former AD councillor lamented.

“We have over 50 party leaders here, and Sunday Igboho who is not a resident, citizen or voter in Osun state was the one of the persons recognized by the SSG to address the gathering, Igboho that was in Osogbo 2months ago for the PDP state Congress where Adagunodo was elected chairman, this is an insult to our collective sensibility in Osun, the septuagenarian questioned.

When asked when he will resign his present appointment, he simply answered, there is no place in Nigeria or APC constitution where it was written that I have to resign because I want to contest for governor, I’m still the SSG, he boasted.

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I built my demolished house with gratuity, says landlord



Landlords and residents of Iyeri community, located at Imota, Ikorodu area of Lagos State, have cried out over what they described as the illegal demolition of completed and uncompleted buildings in their communities.

The Iyeri community chairman, Mr Tony Aghedo, said that all the buildings in the community were demolished on April 4, 2018, by the Lagos State Building Control Agency. According to them, they were shocked to see that the bulldozers, which pulled down their homes, were escorted by hundreds of policemen and soldiers.

The community chairman said that he was disallowed to evacuate his property out of his house by the policemen and soldiers, leading to destruction of his property. Tony, who noted that it was the state Ministry of Agriculture that directed the state building control agency to demolish all buildings in the community, added that the community lawyer had already been alerted and that a protest had been held at the state government house.

Tony further said: “It was a tragic day for us. Every landlord and landlady in the community bought their land from the Shupori family. We don’t know the genesis of this land. We only heard that there had been an agreement between the Ministry of Agriculture and the family in question, which was not supposed to affect us.” In a voice filled with emotion, Tony cried out: “I built my now demolished house with my gratuity. I’m just a retired civil servant.

There should at least be a compensation of a sort for us. We must not allow this ministry to intimidate us because we are very sure there has been a conspiracy.” A landlady, who gave her name as Iyaafin Adekola, said: “On the day of the demolition, the policemen were power drunk due to the extent that phones of those who tried to defend their homes were snatched and smashed.” Adekola, a petty trader, said that she was able to raise money, buy and built her now demolished house by working to the bones.

She was said to have collapsed when bulldozers rode through the walls of her two-bedroom apartment, pulling everything to the grounds. She added: “The next place I found myself after witnessing the horrible incident was in the hospital.

I had received two drips. My children and I, live in an uncompleted building.” Comfort Oladeji, 57, implored the government to compensate the affected community members. Oladeji said that it took her 10 years to build her house, which, was demolished within seconds.

The community secretary, Mustapha Akeem, said that necessary actions had been taken, stressing that those who were affected had staged a protest to the Lagos State House of Assembly and other vital places.

He added: “I’m sad because I’m a civil servant, working under the Lagos State Government. We have staged a protest and we are happy that the Governor Akinwunmi Ambode, has given us an appointment date. We wished to be compensated.”

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Fani-Kayode’s wife delivers triplets on her birthday



Precious, wife of former Aviation Minister, Dr. Femi Fani-Kayode, was yesterday delivered a set of triplets. Precious, who gave birth to three boys, made the announcement on her Instagram page on yesterday.

The former beauty queen further revealed the names of her new babies. She wrote via her handle @snowhiteey: “Thank you Lord for these special birthday gifts. My target was 35 weeks and exactly today, Ragnar, Aiden and Liam just arrived. “I’m doing fine and so are my boys. Thanks for your prayers and wishes, I really do appreciate.”

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