CBN bows to the order of the Supreme Court
After struggling with naira swap for six weeks, the Central Bank of Nigeria (CBN) is finally bowing to the Supreme Court order to extend the deadline for using old naira notes to December 31, 2023. Nigerian residents can now do business with the old notes of N1,000, N500 and N200 alongside the newly designed naira notes. The recent development follows weeks of unnecessary power shifts between the apex bank and the country’s highest court, in a new cash swap policy that has caused untold hardship for many Nigerians.
During the heat of the money crunch in February, the Supreme Court ordered the CBN to extend the naira deadline given the severe hardship it was causing residents. But the CBN protested that the court lacked the legal authority to preside over matters related to its activities while awaiting orders from the presidency. But a statement from the Nigerian presidency on Monday night said the CBN had no reason not to follow court orders under the pretext of waiting for directives from the president.
The new cash policy was rolled out by the Federal Government in October 2022 to prevent counterfeit notes, corruption, vote buying during elections and terrorist financing while stabilizing and strengthening the Nigerian economy. In three months, Nigeria has recovered more than N1.3 trillion (more than $4 billion) in old banknotes, mostly hidden in people’s private vaults.
Emirates is really angry with Nigeria
In his latest statement, Dubai-based Emirates Airlines has vowed never to resume operations in Nigeria after the CBN’s delay in releasing some of its tied-up funds in Nigeria. Apparently, CNB is yet to make 50% of the approved amount available for settlement within the arrears of the airline’s funds tied up in the country.
As of 2022, Emirates Airlines had $85 million tied up in Nigeria and has been required to repatriate for months. After several dialogues, it ended its operations in the West African country in September 2022 to limit further losses and impact on its operating costs that continue to accumulate in the market.
Nigeria is heavily dependent on oil for its foreign exchange reserves. But last year, sluggish oil and gas production dug a deep hole in the foreign treasury. The tied up funds of the airlines are currently estimated for years $10 million per month interested.
Uranium barrels missing in Libya
On Wednesday, the International Atomic Energy Agency (IAEA), the nuclear watchdog of the United Nations (UN), reported that about 2.5 tons (10 barrels) of natural uranium have disappeared from a Libyan site not under government control. Security risks in the region prevented the IAEA from inspecting nuclear metals last year.
The missing barrels of uranium are part of the 2,000 tons of light processed uranium that former Libyan ruler Muhammer Gadaffi bought from Niger as part of a nuclear weapons program he ended in 2003.
According to the IAEA, the loss of knowledge about the current location of nuclear material could pose a radiological risk, as well as nuclear safety concerns. The UN-backed organization promotes the peaceful use of nuclear energy and prohibits its use for military purposes, such as the production of nuclear bombs.
ICYMI: Market overview
The NGX All Share Index and market cap fell -0.00% to close the week ending March 17, 2023 at 54915.39 points. The biggest gainers were United Capital +9.91%, Prestigious Insurance 0.45 +9.76%, Royal Exchange +7.46%. Animal feed +6.86% and RT Briscoe +4.17%. On the other hand, the biggest fallers were Multiverse -9.92%, Veritas Capital Insurance -4.76%, Fields -4.00%, Nigerian Breweries -2.57% and Access Holdings -2.33%.
The naira rose to close out the week at N458.74/$1 on Friday compared to the N461.50/$1 recorded the previous week.
Brent closed the week up $72.47while US West Texas Intermediate (WTI) crude closed up $66.24.
The global cryptocurrency market cap was $1.18 trillion, as of Sunday, March 19, 2023 at 6:13 p.m. Bitcoin was at $28,016.90 (up 35.91% in 7 days), Ethereum was at $1,824.40 (up 23.14% in 7 days), and Binance coin was at $339.55 (an increase of 22.04% in 17 days).
NuruDRC-based energy startup raises $1.5 million in funding.
Flat6Labs Launches $95M VC Fund to Expand Impact in Africa.
Almentor, an Egyptian ed-tech startup, raises $10 million in Series C round funding to accelerate growth in the MENA region.
