Naira suit design

Nigeria’s currency sank to a record low after the central bank auctioned dollars at a naira rate that was almost 30% weaker than on the tightly controlled official market. Faced with heavy demand from industries and importers for the greenback, the central bank of Africa’s biggest economy sold dollars at 645 naira apiece, adding to speculation that a devaluation may be in the cards after the inauguration of a new president last month.

The Supreme Court on Friday nullified President Muhammadu Buhari’s led government’s naira redesign policy, declaring it as an affront to the 1999 Constitution. The court, therefore, ordered that old N200, N500, and N1,000 notes remain in circulation till December 31, 2023. The Supreme Court delivered judgment in the suit brought against the Federal Government on the naira redesign policy. Sixteen states of the Federation instituted the suit to challenge the legality or otherwise of the introduction of the policy. The suit initially instituted by Kaduna, Kogi, and Zamfara states has been slated as the first case on the cause list for final verdict. Justice John Inyang Okoro who led a seven-man panel of Justices of the Court had on February 22 fixed today for the court to make its decision known on the suit. They accused President Muhammadu Buhari of usurping the function of the Central Bank of Nigeria (CBN) in the introduction and implementation of the policy and asked that the directive issued by Buhari be voided. On its part, the Federal Government challenged the jurisdiction of the Apex Court on the grounds that the CBN was not joined as a party and that the dispute on the policy ought to be directed at the CBN so that the suit can be referred to the Federal High Court. Governor Nasir El-Rufai of Kaduna State and his Kogi State counterpart, Yahaya Bello were in court to witness the judgement on Friday. Latest News• Residents cry out as oil spill hits several villages in ...

Nigeria’s central bank dismissed a report that it had devalued the naira as traders raised bets for it to weaken by almost a third, days after President Bola Tinubu said his administration will seek to end the nation’s multiple-currency regime The Central Bank of Nigeria said a media report claiming it had devalued the naira by 26% to 630 per dollar was inaccurate. The exchange rate is 465 naira per dollar and “has been stable around that rate for a while,” it said on Twitter.

Cadbury Nigeria Plc says a unified exchange rate in Nigeria is needed to lower the cost of raw materials and level the playing field for companies operating in Africa’s largest economy. The Lagos-based chocolate maker’s finance chief said the company has been getting only a fraction of the foreign currency it needs for imports like milk and sugar at the official naira-dollar exchange rate set by the Central Bank of Nigeria, forcing it to turn to more expensive sources of hard currency. That creates a mismatch because local cocoa farmers demand payment for the commodity at prices based on the black-market rate, which is 60% higher.