Naira stabilizes at N480/$2 as CBN eases rate

‘With more powers, Shippers Council can penalise defaulters’

The Naira has stabilized at N480/$1 at the bureau de change market after the Central Bank of Nigeria (CBN) removed the peg on the Naira.

The CBN, it was learnt, removed the official peg on the Naira to the dollar a few days back in a bid to allow for exchange rate harmonisation.

Before then, the naira was pegged at N381/$1. However, trading at the Nigerian Autonomous Foreign Exchange (NAFEX) window showed the Naira trading between N426.67/$ and N411.67.

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, had three months ago confirmed the official depreciation of the naira at the official market to N410 against the dollar.

The CBN decision is also part of measures to ease the pressure on the naira.

Emefiele, while speaking at a special summit on the economy in Lagos in February 2021 confirmed this saying it was due to the drop in crude oil earnings and the associated reduction in foreign portfolio inflows significantly affecting the supply of foreign exchange into Nigeria.

“In order to adjust for the decrease in the supply of foreign exchange, the naira depreciated at the official window from N305/$ to N360/$ and now hovers around N410/$,” Emefiele had said.

The federal government has been urged to consider a stronger empowerment of the Nigerian Shippers Council (NSC) as the ports economic regulator to address such anomalies.

The call became necessary in order for the Council bring to an end all forms of illegalities being introduced by shipping service providers against importers and exporters,

Such powers

according

to the Rivers/Bayelsa Shippers Association (RIBASA) would play a tremendous role in helping the ports economic regulator check shipping companies and terminal operators who have over the years been in the habit of imposing illegal charges in the ports.

President of the Association, Mr Ofon Udofia, who spoke to newsmen yesterday, said the situation would change automatically if it (NSC) were accorded more strong political will and constitutional powers.

The shipping expert said NSC should be empowered in the same manner as the Nigerian Communications Commission (NCC), which has unconstrained constitutional powers to bring to book erring telecom service providers.

Udofia particularly referred to some service providers who, according to him, have glaringly displayed disobedience, adding that this will change once the NSC starts acting like NCC in checking their excesses at the ports.