MAN backs CBN withdrawal of Forex from BDCs

• As Apex bank defers eNaira launch to mark independence

Manufacturers Association of Nigeria (MAN) has thrown its weight behind the recent policy of the Central Bank of Nigeria (CBN) to withdraw foreign exchange from Bureaux De Change (BDCs) in the country.

MAN President, Engr Mansur Ahmed said this yesterday in Ilorin, Kwara state capital at the Annual General Meeting (AGM) of Kwara and Kogi states branch of the association.

The MAN boss who lamented the effect of activities of the BDCs on the manufacturing sector further noted that CBN policy would temporarily hike the exchange rate, the country’s economy would be better for it.

Mansur said: “In the last few months, there have been efforts by the central bank to control the flow of foreign exchange for us to get more Forex in the manufacturing sector.

“The decision by the CBN to withdraw supply of foreign exchange from the Bureaux De Change is one that the manufacturing sector is fully in support of.

“Foreign exchange is not a commodity that should be taken to the market and traded. Its availability is intended to allow those that are producing goods and services to bring in the necessary materials and equipment required in order to produce those goods and services at affordable prices”, he added.

He said the action of the CBN on foreign exchange is most welcome even if it is belated.”In this regard, I affirm the support of the MAN for this policy as well as others policies in the infrastructure sector executed by the FG. The art of getting foreign exchange in the market, to me, does not make sense.

“And yet we know that this process has indeed made a huge sum of forex into the BDCs. We do not see how that will help the economy.

 “Certainly, if the foreign exchange is made available to our manufacturing companies, more young people will be employed and the companies will operate at higher capacity and more industries will be created while lot of the raw materials needed will be readily available

 “So if you have to sell forex to traders in the market as if it is a commodity, you are denying the manufacturing sector these vital resources. The law of forex as it was being done is not sustainable.

“Those who are using it for importation of drugs and arms and ammunition will pay anything to get it. Our message is that the CBN should remain resolute and continue to look for ways that those illicit flows can be contained for more forex to be directed to industries and to genuine legitimate users which it is supposed to be for”, he added.

Apex bank defers eNaira launch to mark independence

 Ahead of the anticipated launch of Nigeria’s Central Bank Digital Currency (CBDC), known as eNaira, the Spokesman of the Central bank of Nigeria (CBN), Mr. Osita Nwanisobi, says the planned unveiling on October 1, 2021 has now been deferred due to other key activities lined up to commemorate the country’s 61st Independence Anniversary.

Speaking with newsmen in Abuja yesterday, Nwanisobi explained that the CBN took the decision to postpone the launch, which had been initially planned to coincide with the Independence anniversary, in deference to the mood of national rededication to the collective dream of One Nigeria.

Court okays  launch of eNaira

The Federal High Court 8, Abuja, presided over by Justice Taiwo Obayomi Taiwo has given the go-ahead for the Central Bank of Nigeria (CBN) to launch the digital currency in the nation’s interest and the economic advancement of the country.

Recall that a cease and desist notification was sent to the CBN concerning the use of the name “eNaira” in a do document seen by Daily Trust titled: “Infringement of Trademark & Violation of Corporate Name cease and desist Notification to the Central Bank of Nigeria”, signed by Olakule Agbebi Esq for Olakule Agbebi & Co.

This development comes after the successful deployment of the eNaira website days away from the activation of the eNaira itself.

The “eNaira Payment Solutions Limited vs Central Bank of Nigeria (FHC/ABJ/CS/113/2021)” came up yesterday at the Federal High Court 8, with Principal Counsel, D. D. Dodo (SAN) leading the team for the defendant.

CBN’s counsel urged the court to strike out the plaintiff’s motion ex parte seeking to restrain the launch of the defendant’s digital currency in view of its significance to the nation’s economic advancement.

The court was not disposed to strike out the plaintiff’s motion ex parte but was of the view that the launch of the digital currency should go ahead in the nation’s interest and the economic advancement of the country, especially as the plaintiff could be adequately compensated in damages.

 The case was adjourned to October 11, 2021, for further hearing.