VenturesNow

Nigerians stranded, Cenbank adamant, as apex court postpones hearing on old Naira deadline

Published

2 years ago

February 15, 2023

Nigeria’s apex court has adjourned hearing in a suit filed by Kaduna, Kogi and Zamfara states against the federal government over set deadline for the use of old Naira notes.

The three states are seeking a restraining order to stop the full implementation of the naira redesign policy of the Central Bank of Nigeria (CBN) until Feb. 22.

Meanwhile, nine other states have requested to be joined as parties in the suit challenging the propriety of the naira swap policy of the Federal Government.

As a result, the nine-member panel of the Supreme Court, led by Justice John Okoro, joined the Attorneys General of Katsina, Lagos, Ondo, Ogun, Ekiti, Cross River and Sokoto States as co-plaintiffs, while the Attorneys General of Edo and Bayelsa states were joined as co-respondents.

The court ordered the original plaintiffs and the respondent – the Attorney General of the Federation (AGF) – to amend the processes already filed to reflect the new parties.

The apex court last Wednesday nullified the High court’s ruling (a lower court) issued two days earlier which stopped the Federal government of Nigeria from extending deadline for the use of the old ₦200, ₦500 and ₦1,000 notes.

Despite the Supreme court’s position, the CBN has maintained that the old currency has seized to be legal tender with commercial money banks already refusing the notes as deposits. Some Nigerians have been left stranded as the new notes remain scarce while the few old ones available are beginning to be refused.

It has been said in some quarters that the redesigning the country’s currency and the limited supply of the new note is a deliberate plot by the outgoing president, Muhhamadu Buhari, who has vowed to deliver a free and fair election to frustrate “vote buying” which has been characteristic of recent elections in Nigeria.

Related Topics:CBN Featured Naira Naira redesign Nigeria

Click to comment

VenturesNow

IMF, Egypt reach agreement for fourth review of Egypt’s $1.2 billion loan request

Published

12 hours ago

December 26, 2024

Ifeoluwa Dada

Egypt and the International Monetary Fund (IMF) have reached a staff-level agreement over the fourth review of the Extended Fund Facility arrangement, which might lead to a $1.2 billion payout under the program.

In March, Egypt, struggling with rising inflation and cash shortages, consented to the $8 billion, 46-month facility. Its economic problems were made worse by a precipitous drop in Suez Canal revenue over the last year due to regional tensions.

Over the next two years, Egypt’s government has committed to raising its tax-to-revenue ratio by 2% of GDP, according to the IMF, emphasising removing exemptions rather than raising taxes.

According to a statement from the IMF, this would allow it to expand social expenditure to support vulnerable populations.

“While the authorities’ plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilization efforts,” the statement said.

According to the IMF statement, Egypt had also committed to maintaining its commitment to a flexible currency rate and to taking more urgent action to guarantee that the private sector became the primary driver of development.

The IMF’s executive board still has to accept the fourth review’s staff-level agreement.

VenturesNow

Libya’s eastern govt accepts petrol subsidy elimination

Published

12 hours ago

December 26, 2024

Ifeoluwa Dada

In a recent statement, the eastern government of Libya claimed it had reached a consensus on a plan to eliminate gasoline subsidies and would draft a mechanism to carry out the accord.

Additional information on the idea was not released by the administration led by Osama Hamad, a challenger to the internationally acknowledged Tripoli-based government.

However, it is uncertain if Hamad’s government would be able to carry out the plan in the divided nation.

According to the Global Petrol Prices online tracker, a litre of gasoline costs just 0.150 Libyan dinars ($0.03) in OPEC member Libya, making it the second-cheapest in the world.

Following an uprising against former ruler Muammar Gaddafi in 2011, smuggling networks have thrived in the ensuing political unrest and armed fighting. In 2014, conflicting eastern and western governments separated the nation.

A World Bank analysis estimates that the annual value of fuel smuggling from Libya is at least $5 billion.

In a meeting with Mari Barrasi, the deputy governor of the Central Bank of Libya (CBL), located in Tripoli, and four members of the bank’s board of directors, Hamad in Benghazi supported the idea of removing subsidies.

The CBL’s Benghazi branch offices served as the venue for the conference.

The eastern parliament appointed Hamad in 2023 to succeed Abdulhamid Dbeibah, who had been put in position in 2021 under a U.N.-backed procedure that the parliament said had lost its legitimacy.

Dbeibah, who is located in Tripoli, stated in January that he will conduct a public poll on the topic of eliminating gasoline subsidies, but he hasn’t done anything about it since.

According to CBL figures, gasoline subsidies cost 12.8 billion Libyan dinars between January and November of this year. 4.8 Libyan dinars to $1 is the official exchange rate.