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Home Blog Page 5411

Once Again, Nigeria’s Central Bank Devalues the Naira

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Central Bank Governor, Nigeria

The Central Bank of Nigeria (CBN) has once again devalued the naira, this time, from N411 to N413.49/$1, adding to the many times the Nigerian currency has been devalued in 2021.

The devaluation followed CBN’s adjustment to the official exchange rate on its website, changing it from N411/$1 to N413.49/$1.

The CBN confirmed the devaluation through the response of its spokesperson, Osita Nwasinobi, who told The Cable upon inquiry: “If you see N413, then that’s what it is. The market determines the rate.” The devaluation pushed the naira to its all-time high in parallel market on Friday.

Under the leadership of governor Godwin Emefiele, the central bank has been working to tame the tides of multiple exchange rates, which has been fingered as an obstacle to Nigeria’s economic growth. In May last year, the CBN adopted the Importer & Exporter window (I&E), in an attempt to heed the repeated calls by the International Monetary Fund (IMF) and experts for Nigeria to have a unified foreign exchange rate. The naira was adjusted from N379 to N411.

The CBN has tried many regulatory policies in an attempt to stabilize the naira, which has been free-falling for years now. Recently, the apex bank cut off dollar supply to Bureau de Change operators, accusing them of inflating dollar price in the parallel market. Also, AbokiFX, an online forex aggregator, was in September, declared a ‘person’ of interest in Nigeria’s forex crisis. Emefiele accused the online outlet of being responsible for the free-fall of the naira by manipulating market prices, and vowed to go after it.

AbokiFX was forced to shut down as the pressure from the central bank heightened. The outlet said then it hopes its decision to suspend operation will boost the naira’s value in the foreign exchange market.

“We will not be publishing any form of rates on our platforms for now. We sincerely hope this suspension will lead to the Naira appreciation,” it said.

Months after AbokiFX closed its foreign exchange rates publishing, the naira is yet to show any indication that the aggregator was manipulating the forex market. The naira’s value has continued to plummet, compounding the challenges of doing business in Nigeria.

Though in its latest move to quell the forex crisis, the CBN shifted its dollar supply to commercial banks, mandating them to sell to qualified applicants at the I&E rate.

However, business owners who rely heavily on FX to run their businesses, are still lamenting that insufficient dollar supply in the Nigerian market is resulting in high cost of goods and services, nearly crippling their businesses. On Friday, December 31, 2021, the naira closed at N435/$1 after opening at N420/$1 at the official market, according to FMDQ OTC Securities Exchange, a forex data platform.

Experts said that the continuous crash of the naira is as a result of insufficient dollar liquidity in Nigeria. Increase in demand for dollars is said to be forcing the CBN to deplete Nigeria’s dollar reserve, fueling the fall of the naira. With depleted oil output and reduced diaspora remittances, the naira is expected to undergo more devaluation in 2022.

Starting the year on a legal note

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Start the year by going big on your goals and plans. If you have a start up, business or nurturing a dream of owning a startup or running a business of your own, creating values and becoming an employer of labour, this year is the best year for you to kick off. This is the best year to initiate and execute your plans.

All you need to start is by registering the business with the corporate affairs commission (CAC) to give the business or startup a legal face and background. You can either register your startup as a business name or as a company, depending on how big the startup is. Whenever your business or startup is registered, it becomes a legal personality, separate legal entity, separate from you the founder, it can sue and be sued, acquire properties, employ staff and agents and do other things a legal personality is legally entitled to do. 

Kick off your 2022 by registering that startup or business you had in mind since or that startup you have been operating since without incorporation. It is when you are duly incorporated that you can properly expand the business. 

An investor or big clients won’t take you seriously if the business or startup you are pitching to them is yet to be incorporated with the corporate affairs commission. An investor who knows his onions will definitely not want to invest in an unincorporated startup or business for the risk of losing his or her money.

We planned for our marriage in the metaverse

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I was discussing with one of my female friends over the phone and we had a very long conversation talking about our relationship and my love for her. Tadaa!! ? While we were discussing, I told her I really love her and would want us to get married. So I went ahead to propose to her over the phone. You must be saying this guy is crazy. Yea, you need to be crazy sometimes.

These were mere jokes though. She went ahead asking me,

Is that how you propose to a lady in your place?

Then I proceeded to present my defense.

I explained, the world has gone digital and it has changed the way we interact. Classes, meetings, and occasions are being held virtually. So we need to catch up with things”. “How can you be proposing to a lady over a call? It doesn’t make any sense. Men propose with an engagement ring. So where is the ring now?”, She asked.

Me: That’s a good one. Since we live in a digital world, the ring also will be a digital ring.

Her: You must be crazy, How will you give me a digital ring for our wedding?

Me: Okay, what if I transfer 1BTC(Bitcoin) to you as a ring, or even better an NFT?

Her:  (laughs profusely).Well…..

Me: You now see what I’m saying. It doesn’t matter where we are. As far as there is a connection between both of us, that’s all.

The world has changed, digital activities are taking over our daily lives, our social life is being defined daily by the internet.

The metaverse has now skyrocketed and concerts are taking place in the metaverse. Artists are making millions way more than physical shows. One will begin to wonder, where are we heading to?

It will be of no doubt that the entertainment industry will become a virtual world where one will have to go into the metaverse before he can watch some classical shows, movies and more; moreover, movies are a digital asset.

The incursion which the metaverse will introduce into our social lives will be devastating. After all, we are humans, we have emotions, we are meant to feel, love and sense. But will the metaverse offer these things to us?

Different aspects of our lives will step in, Marriages may begin to be conducted in the metaverse with web3.0 being the pioneer of this game. Blockchains, crypto, NFTs and all of that. We are all going insane!

Street car racing is illegal in Nigeria

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A lot of people don’t know that street car race is banned in Nigeria and it’s been so since the promulgation of the Federal Road Safety Commission (Establishment) Act of 2007 and the National Road Traffic Regulations of 2012 and those that engage in it are either ignorant of these laws or they are just blatant law breakers. These laws were enacted to stop street car races due to the danger it poses to the society and to enforce that these law breakers who engage in street car racing are brought to book.

The sole reason for this enactment prohibiting street car racing is because of the reckless and dangerous driving of those engaging in the sport which they regard as fun and cruising but very risky and dangerous for themselves and for other road users.

The FEDERAL ROAD SAFETY COMMISSION (ESTABLISHMENT) ACT, 2007 and NATIONAL ROAD TRAFFIC REGULATIONS, 2012 are the laws that are enacted chiefly to make street car race illegal. S.228 of this act which is titled: prohibition of car and speed races provided thus: No person shall drive or cause to be driven, a vehicle on any public road for any car race, drag race, acceleration contest, test of physical endurance, exhibition of speed, speed competition or for the purpose of establishing a speed record, except in an area designated or authorised for that purpose by the Commission.

 To this effect, public display of car driving skills, car racing on public roads, streets or on government owned facilities are highly prohibited unless the area has been designated for the purpose of the race either for sport or educational purpose as that time after obtaining necessary authorities and licenses from the law enforcement agencies.

People engage in car races for fun especially in big cities like Federal Capital Territory, Lagos, Port Harcourt etc. Infant car racing is a big game in Abuja; weekly the major location where this contest usually takes place in the Federal Capital Territory  is beside the central mosque, Central Area, Abuja. This race has caused a lot of accidents to the racers, onlookers and other road users hence the need for the strict enforceability of this S.228 of the National Road Traffic Regulations, 2012.

The wheels of this law was put to drive when the police accosted car racers in their full force in the Federal Capital Territory on 25th December, 2021, who decided to spend the Christmas racing and contesting expertise in driving skills and car maneuvering. The law enforcement agents  arrested and detained about five of the racers and impounded about 21 sport cars used for the race.

The road safety commission and the police commission are using it as a sound warning to emphasize that the laws that banned street car races in states in Nigeria are not for fancy, not repealed, and are still in force and will be enforced to the letter subsequently. 

Ndubuisi Ekekwe To Speak At TREM Port Harcourt Wealth Summit

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Good People, I write daily here using Bill Gates, Mark Zuckerberg, Aliko Dangote, Tony Elumelu and other business leaders as case studies on business and entrepreneurial capitalism. But as a teacher of the Word and a Scripture Union kid, I also teach business with case studies from the Bible, drawing from the management and leadership experiences of Nehemiah, Jesus, Paul and others.

Join me at TREM Port Harcourt as noted. For members in Lagos, one is coming for Deeper Life in April. 

As we say in the Scripture Union, the next praise will be better because more songs will be delivered. Yes, 2022 will be great professionally because newer business models will be invented.

Happy Sunday.