Latest CBN News & Dollar to Naira Update Today 16 September 2023

President Tinubu Nominates New CBN Leadership

President Bola Ahmed Tinubu has made significant appointments in the leadership of the Central Bank of Nigeria (CBN). Here are the latest developments:

Dr. Olayemi Michael Cardoso Appointed as CBN Governor

President Tinubu has approved the nomination of Dr. Olayemi Michael Cardoso as the new Governor of the Central Bank of Nigeria.

Dr. Cardoso’s term will initially be for five years, pending confirmation by the Nigerian Senate.
This appointment aligns with Section 8 (1) of the Central Bank of Nigeria Act, 2007, which grants the President the authority to appoint the Governor and Deputy Governors of the CBN, subject to Senate confirmation.

New Deputy Governors for CBN

Additionally, President Tinubu has nominated four new Deputy Governors for the Central Bank of Nigeria:

Mrs. Emem Nnana Usoro
Mr. Muhammad Sani Abdullahi Dattijo
Mr. Philip Ikeazor
Dr. Bala M. Bello

These nominees are also set to serve for an initial term of five years, subject to Senate confirmation.

CBN Finance Director Arrested by DSS

The outgoing Finance Director at the Central Bank of Nigeria (CBN), Benjamin Fakunle, has been arrested and detained by the Department of State Service (DSS). This development is related to the recently published seven-year audited accounts of the CBN, which allegedly did not follow prescribed accounting and reporting guidelines.

Fakunle was arrested during his retirement party in Abuja.
He is being questioned about the use of accounting guidelines that deviated from the International Financial Reporting Standards (IFRS) and the alleged payment of N401 million for the document, contrary to the rules of the Financial Reporting Council of Nigeria.
This arrest is part of an ongoing investigation led by Jim Obazee, the Special Investigator appointed by President Tinubu to probe the CBN.

Naira Falls to All-Time Low Amid Dollar Shortage

The Nigerian Naira has faced challenges in the foreign exchange market, falling to an all-time low of N955 per dollar. Here’s the latest update:

This represents a 0.53 percent depreciation in less than a day.
At the Investors’ and Exporters’ (I&E) forex window, the naira weakened by 2.88 percent, with the dollar quoted at N780.00.
Increased demand for dollars for various purposes, including business travel, school fees, medical expenses, and tourism, has contributed to the naira’s decline.
Vetiva Research suggests that measures such as a medium-term multilateral loan and the reintroduction of Bureau de Change operators may not be sufficient without organic FX supply and sterilization.
The report notes that Nigeria’s reserves are sufficient to cover its current account, and measures to boost crude supplies and grow external reserves are required.

In conclusion, these recent developments in the CBN leadership and the foreign exchange market highlight the challenges and changes in Nigeria’s financial landscape. Stay informed to navigate these dynamics effectively.

Conclusion

In the ever-evolving financial landscape of Nigeria, staying updated with the latest news and developments is crucial. The recent appointments in the CBN leadership and the fluctuations in the Naira’s value against the dollar demonstrate the need for vigilance and adaptability. As the nation strives for economic stability and growth, it’s essential for individuals and businesses to make informed decisions.

FAQs (Frequently Asked Questions)

What is the significance of Dr. Olayemi Michael Cardoso’s appointment as CBN Governor?
- Dr. Cardoso’s appointment signals a significant change in the leadership of the Central Bank of Nigeria. His role is instrumental in shaping the country’s monetary policies and financial stability.
Why was the outgoing CBN Finance Director, Benjamin Fakunle, arrested by the DSS?
- Fakunle’s arrest is related to the alleged discrepancies in the CBN’s audited accounts and the use of accounting guidelines that deviated from international standards.
What is the impact of the Naira’s fall to an all-time low against the dollar?
- The depreciation of the Naira against the dollar can have various consequences, including increased costs for imports and potential inflationary pressures.
What measures are being considered to address the Naira’s decline?
- Measures such as a medium-term multilateral loan and the reintroduction of Bureau de Change operators are being discussed. However, boosting crude supplies and growing external reserves are also deemed necessary.
How can individuals and businesses navigate these financial challenges?
- Staying informed and seeking professional financial advice can help individuals and businesses make informed decisions in response to the evolving financial landscape in Nigeria.