By Chico Mies Yahaya Bello, the former Governor of Kogi State, has formally accepted an invitation from the Economic and Financial Crimes Commission (EFCC), as confirmed by his media office on Wednesday, following consultations with family members, legal advisors, and political associates. According to a statement issued by Ohiare Michael, Director of the Yahaya Bello Media Office, the former governor's decision to appear before the anti-corruption agency underscores his commitment to transparency. Bello faces 19 charges related to money laundering amounting to N80.2 billion. Notably, he has sought to enforce his fundamental rights to ensure due process. The former governor has expressed his support for President Bola Ahmed Tinubu's administration and its anti-corruption initiatives. EFCC Chairman Ola Olukoyede had previously pledged to resign if Bello was not prosecuted, reaffirming the commission's commitment to pursuing the case to its logical conclusion.
Breaking: August was the largest decrease in foreign exchange reserves in four months, falling by $505.68 million.
By Chico Mies
In August 2024, Nigeria's foreign exchange (FX) reserves decreased by roughly $505.68 million (1.37%).
The Central Bank of Nigeria's (CBN) most recent reserve data supports this. The Nigerian government issued a $500 million domestic dollar bond at the same time that the country's external reserves marginally declined.
This domestic dollar bond is intended to give the foreign reserves much-needed boost.
What the information indicates
By August 29, 2024, the reserves will have decreased by $505.68 million, according to the CBN, from $36.827 billion on August 1 to $36.321 billion.
The CBN's data show a steady fall in August, with a considerable decline in the last week of the month. As the weeks went by, the reserves, which were $36.827 billion at the start of the month, progressively declined.
The reserves fell to $36.848 billion on August 8th, and by August 15th, the mid-month low had been reached at $36.529 billion.
The decrease persisted, hitting $36.444 billion on August 22 and $36.321 billion at the conclusion of the month.
For the first time in four months
The decrease marks the most significant monthly drop in Nigeria's foreign exchange reserves since April 2024.
This ongoing reduction follows a four-month span during which the external reserves experienced an increase of approximately $4 billion. Consequently, the reserves have diminished by roughly 12.64% of their four-month gain as of August 2024.
This also underscores the challenges encountered by Nigeria's financial authorities in sustaining reserve levels in the face of persistent economic pressures, which include the necessity to fulfil import requirements, meet debt obligations, and ensure liquidity for the stability of the naira.
Essential Information You Should Be Aware Of.
During the first week of August, the Central Bank of Nigeria (CBN) conducted a Retail Dutch Auction, selling $876.26 million at an exchange rate of N1,495 per dollar to 26 eligible banks.
The CBN reported that it received total bids amounting to $1.18 billion from 32 dealer banks. However, six banks were disqualified from the bidding process; four failed to meet the submission deadline, while two did not adhere to the required bidding templates.
In the context of declining foreign exchange reserves, the Nigerian official foreign exchange market witnessed a significant reduction in turnover throughout August, despite the CBN's initial Retail Dutch Auction.
Data sourced from the FMDQ by Nairalytics, the research division of Nairametrics, indicates a decrease of $1.08 billion, resulting in a total turnover of $3.25 billion, down from $4.34 billion recorded in July 2024.
This 25% decline underscores the persistent challenges confronting the official foreign exchange market regarding liquidity and stability.
The average daily foreign exchange turnover fell from $189.42 million in July to $144.71 million in August, marking a reduction of 23.61%. This downturn points to a notable decrease in market activity, reflecting growing difficulties in obtaining foreign currency.
On August 19, 2024, the Nigerian federal government officially launched a $500 million domestic dollar bond.
This bond, part of the government's financing strategy, carries an interest rate of 9.75% per annum and is scheduled to mature in 2029.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, remarked that the $500 million domestic dollar bond will bolster external reserves and contribute to stabilizing the foreign exchange environment in the nation.
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