The governor of the CBN, Godwin Emefiele, has said that the regulator is committed to implementing its policy on restriction of foreign exchange issued for the importation of food items into the country. This follows the controversy over President Buhari’s disclosure that he had directed CBN to stop providing foreign exchange for importation of food. The restriction on foreign exchange means importers in the country who depended on banks for foreign currency to import food items into the country would have to source from alternative dealers. Speaking at the induction retreat of Buhari’s ministers-designate, Emefiele said Buhari’s directive is in line with the CBN’s foreign exchange policies that started since 2016, and added that it’s pointless for the country to waste foreign exchange importing items that could be produced locally.
Chad’s President Idriss Deby has ordered the closure of the border with Sudan and declared a three-month state of emergency in the east of the country following clashes between herders and farmers that left more than 109 people dead this month. Conflict over grazing land is increasing in West and Central Africa due to a combination of climate change, population growth and political instability. Deby, who in May had pledged to send 15,000 soldiers to the east, said in comments broadcast on national radio that the situation was “disastrous,” before listing measures to end the inter-communal conflict. The closure of the Sudan border is meant to cut the circulation of arms in a region where guns are extremely cheap and easy to get.
Babatunde Fowler, outgoing chairman of the FIRS, has said that the recession experienced by Nigeria’s economy in 2016 and lower oil prices affected the revenue collected by the agency collections for the period 2015 to 2018. Fowler was responding to the request by President Buhari asking for an explanation of the discrepancies in tax collected by the agency in the period. According to Fowler, amid the challenges, non-oil revenue such as VAT and company income tax have been on the increase compared to pre-2015 figures. He explained that Total actual collection for the said period was ₦14.528 trillion, while total actual collection between 2016 to 2018 was ₦12.656 trillion. Out of the ₦14.52 trillion, oil revenue accounted for ₦8.322 trillion (57.28%) while non-oil accounted for ₦6.206 trillion. During the latter period, 2016 to 2018, out of the ₦12.656 trillion, oil revenue accounted for ₦5.146 trillion (40.65%) and non-oil revenue accounted for ₦7.51 trillion.
The CBN Governor Godwin Emefiele met fund managers in London last week in an effort to lure investors back into the naira. Reuters quoted two sources to back up a report. The FG is hoping to boost liquidity in the forex market after the naira weakened. A fund manager said that Emefiele told investors about the intention of continuing the stability of the currency. The naira weakened to ₦364 last week as oil prices fell. The CBN auctioned treasury bills on last week Wednesday at higher rates to try to lure foreign investors, hours after it was announced that President Buhari told the regulator to ban access to foreign exchange for food imports.