17 Jun

Daily Watch – CBN believes naira will settle at 250 per USD, Five states qualify for FG loan

  • A report by Reuters says that the CBN is “reasonably optimistic” that the naira will settle at around ₦250 to the US dollar. Quoting a letter from CBN governor, Godwin Emefiele to President Buhari, Reuters noted that the regulator projected an initial period of weakness following the flotation of the naira. The naira is expected to fall sharply when interbank trading begins on Monday, but the CBN said it did not have a target for the currency and the price would be “purely” market-driven. The naira was trading on the black market at around ₦370 to the dollar yesterday.
  • A group of former Niger Delta militants have issued a 14-day ultimatum to oil companies operating in the Ekpeye area of Rivers state to leave the area or face massive vandalism of their assets. The group, using the moniker, Ekpeye Liberation Group, claimed to be behind the attack on Well 5 in Akara Olu, Ahoada West Local Government Area of Rivers State. They explained that the eviction notice was due to the oil companies’ refusal to sign an MOU with Ekpeye communities. They named the firms covered by the ultimatum as Agip, Shell, NLNG, and Niger Delta Petroleum Resources.
  • Kastina State Governor, Aminu Bello Masari and six others have been chosen by the leadership of the APC to conduct the Edo State governorship primaries scheduled to hold tomorrow. The party also inaugurated an election appeal committee which will be chaired by Opeyemi Bamidele, a former member of the House of Representatives. Other members of the appeal committee are Mustapha Salisu and Ekwy Onyido. 2873 delegates are expected to vote at the primaries that will be contested by twelve aspirants.
  • Five states have completed processes to access the FG’s ₦90 billion credit, Governor Udom Emmanuel of Akwa Ibom has said. The money is to be disbursed in two tranches, with an initial ₦50 billion released in three months and another ₦40 billion in nine months, and will be shared among qualified states at a 9% interest rate. Kemi Adeosun, finance minister, had said the rationale behind the proposed facility which she said was not a bailout, was to assist the states to balance their portfolios. The government had on Wednesday announced 22 conditions states must meet to access the funds. Governor Emmanuel however, did not give names of the states that qualified for the facility.