E-Financial
Nigerians Fear Political Crisis, Dump Naira for Dollars, Pounds
Nigerians are dumping the naira currency as it skids lower by the day, driven by fear of the unknown after authorities pushed back the date of a presidential election.
They are reportedly buying up dollars, pounds sterling as well as other major foreign currencies while wealthy elite looks at property abroad, according to Reuters.
The report claimed that, already mauled by a halving of oil prices since last June, the naira this week fell through the key level of 200 to the dollar, forcing people like Boyin Akinteye to seek ways of protecting their savings.
In the up-market Dunes shopping mall in the capital Abuja, the freelance gift designer and mother of two young children was buying dollars and moving them into her Bank of America account in the United States.
“The naira’s way down,” she said. “We’re uncertain when or where it’s going to end so my husband and I, we took action.”
When Attahiru Jega, electoral commission chairman revealed on Saturday that national security chiefs had urged him to delay the poll by six weeks to March 28, it reminded many of the cancellation of a 1993 election by the military government then in power. Some wonder if the vote will take place at all.
Nigerian author Chimamanda Ngozi Adichie wrote in an editorial that “it has cast, at least for the next six weeks, the darkest possible shroud over our democracy: uncertainty.”
That uncertainty has already sent foreign portfolio investors scurrying for the exit. But for Nigerians that exit is not always easy to find.
Wiring money abroad is difficult as the central bank caps transfers at $10,000 a day and other countries often ask for proof of how the money was earned and taxed, said a wealthy Lagos-based businessman who asked not to be named.
Since a lot of the big bucks in Nigeria are earned in shady or corrupt business deals, using shell companies to avoid tax, such proof can be hard to produce.
Spot checks on Nigerians at airports mean smuggling cash out in a suitcase is not an option, the businessman added.
While some middle-class Nigerians keep dollars in onshore accounts, he said he and his friends were worried about the risk of capital controls that could limit withdrawals later. Some, he said, were taking their dollars out now and stuffing them under the mattress.
MARKET ALARM
Despite a call for calm by Central Bank Governor Godwin Emefiele, the markets are jittery: foreign exchange dealers suspended electronic trading in two consecutive sessions on Wednesday and Thursday because of the pace of the naira’s fall.
The currency is already over 20 percent weaker than the central bank’s target rate of 168 to the dollar, and black market traders are selling for around 210.
Rates on derivatives contracts suggest the naira could fall another 30 percent in the next 12 months.
One well-connected member of the elite, who declined to be named, said friends were looking at property in London, Dubai and the United States. Dubai is favoured since authorities ask fewer questions about where the money came from, he said.
Nasser Mohammed, the chief executive of a small oil and gas firm, is holding much of his savings in dollars and pounds, while opting not to repatriate cash from operations in London.
“The only way to save your money right now is to keep it in dollars or pounds. Otherwise, it’s going to vanish,” he said, tucking into a roast chicken lunch at an Abuja restaurant.
The head of strategy at one bank said he was approached by a customer with 3 billion naira ($14.7 million) who wanted to hold some of it in dollars. He advised her against it in case the naira stabilises and she loses out, especially with a wide spread and high bank charges.
The central bank last devalued the currency in November but a further devaluation has already been priced in, he said. On Thursday the bank said it had burned through $1 billion in nine trading sessions in its efforts to defend the naira.
Foreign companies with earnings in local currency are likely to take a hit, although most try to hedge against currency declines by recycling naira locally.
Soap maker PZ Cussons told Reuters: “While there is uncertainty surrounding the election, PZ Cussons remains confident about the medium- and long-term opportunities.”
Diageo, for whom Nigeria is the biggest market for Guinness stout, declined to comment.
Many Nigerians are greeting uncertainty, as they often do, with a fatalistic shrug of the shoulders.
“The rich guys are moving money out but I earn in naira, so I’m keeping it in naira,” said construction engineer Michael Akinyemi. “What’s the point unless you’re fleeing the country?”
Kudirat Kekere-Ekun, chief Justice of Nigeria and chairman of the Board of Governors, National Judicial Institute Justice has blamed telecommunications companies for the glitches experienced in the country’s banking sector.
Kudirat Kekere-Ekun, chief Justice of Nigeria
Kekere-Ekun said this in her keynote address at the 2024 National Workshop for Justice and Judges on Legal Issues in Telecommunications with the theme, ‘The Role of the Judiciary in Accelerating Digital Transformation in Nigeria.’
The blame on telcos comes in the wake of multiple glitches in online services. On August 14, 2024, customers reported that the Guaranty Trust Bank (GTBank) website was down, leading to speculation that it had been cloned and customer data intercepted.
The CJN said, “I will like to quickly bring our attention to two issues which I consider to be pivotal and which revolve around cyber security and the attendant challenges of exploring the digital space.
“The first is the increased risk of the personal data of consumers being misused or compromised by unscrupulous persons, thus necessitating the need for improved strategies and innovation for consumer protection in the telecommunications sector.
“Also, worth noting are deficiencies in the Banking Sector and which are attributable to reliance on digital services provided by the Telecommunications Sector. There is for instance the major challenge posed by electronically backed transactions which is commonplace in the Banking Sector.”
The CJN said these glitches have led to several issues including hacking of online banking platforms as well as banks being compromised.
“Concerns in this regard include the spate of customers whose online banking platforms have been hacked, as well as banks being compromised due to technological glitches not factored into their day-to-day operations. Consequently, these and several other challenges have resulted in a number of disputes which frequently require adjudication,” she said.
Kekere-Ekun said the deployment of technology in telecommunications plays a pivotal role in the advancement economic system of any country.
She, however, said there is a need to proffer solutions to legal issues arising from digital services provided by the telecommunications sector.
“It is also my expectation that the forum will equip Judicial Officers with the technical skills required for adjudicating disputes arising from the sector and keep them abreast with global standards and best practices,” she added.
Ecobank Nigeria has alerted its customers to an upcoming brief service disruption due to scheduled system maintenance on its card services.
The maintenance is set to occur from 11:00 p.m. on Thursday, November 7, 2024, until 1:00 a.m. on Friday, November 8, 2024.
In a notification to customers, the bank explained that during the maintenance window, cardholders might experience intermittent issues when using Ecobank cards on other banks’ channels.
However, the bank said all its specific channels, including ATMs and POS terminals, will remain operational.
Additionally, other digital platforms—such as the Ecobank Mobile App, USSD *326#, Ecobank Online, Omni Lite, and Omni Plus—will be fully accessible throughout the maintenance period.
The bank expressed apologies for any inconvenience, reaffirming its commitment to providing seamless banking experiences across Africa.
E-Financial
Zenith Bank Commends Customers After Successfully Unveiling Upgraded Enhanced Tech infrastructure
Zenith Bank Plc has announced that it now boasts the best technology infrastructure in the banking industry, positioning itself to provide an exceptional customer experience and superior service delivery moving forward. This upgrade follows a recent comprehensive technology enhancement.
The bank expressed its heartfelt gratitude to customers for their support and patience throughout the upgrade process, while also extending apologies for any inconveniences experienced during this time.
This announcement was made in a social media post on Wednesday, signed by Dame Dr. Adaora Umeoji, OON, the Group Managing Director/CEO.
In her message, the GMD/CEO emphasized the bank’s commitment to delivering an unparalleled service experience, stating, “We undertook this upgrade to ensure we can offer our customers the best possible service.”
Umeoji pledged that Zenith Bank will continue to innovate, ensuring that customer needs are met swiftly, safely, and conveniently.
The post read in part: “On behalf of the Board, Management, and Staff of Zenith Bank PLC, I would like to thank you for your patience and support during our IT infrastructure migration to a new and more robust operating system.
“We are truly grateful for the trust and confidence you have placed in us. The primary reason for undertaking this extensive endeavor was to better position Zenith Bank PLC for improved service delivery to all our valued customers and to create memorable banking experiences at all our touchpoints.
“While I regret the inconveniences and challenges you faced during and immediately after our migration, I am pleased to inform you that Zenith Bank PLC now has the best technology infrastructure in the industry. We are committed to ensuring you experience superior service delivery going forward.
“Rest assured, you remain our top priority, and Zenith Bank will continue to innovate and offer value-added products and services to meet all your banking needs quickly, safely, and conveniently.”
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