Business
Trans-Border Traders Reject Naira Over Depreciation
Following the depreciation of the Nigerian currency (Naira) in the past few months, trans-border traders have started rejecting the currency, thereby constituting further trade setbacks.
The Tide’s source’s findings across the Seme border revealed that the traders on both sides now prefer either the CFA or the domestic currency of the non-francophone countries.
Until now, Naira ruled the sub-region as the dominant currency accepted as a medium of exchange by traders across the borders due to the high volume of trade between those countries and Nigeria.
The Nigerian currency traded in the status of convertibility in the unofficial payment systems of the countries.
However, the source’s findings indicated that the Naira began sliding from that status in February, hitting the point of outright rejection in March 2024.
Some of the traders interviewed included Nigerians, who lamented that holding Naira has become a huge risk as the value keeps depreciating since last year with the worst rate of depreciation recorded last month.
Official reports indicate that Naira, which traded above N1/1.5CFA in the first quarter of 2023 dropped sharply to N1/0.9CFA in the second quarter and N1/0.8CFA in the third quarter of 2023.
After a moderate stability through the fourth quarter of 2023, it opened 2024 at N1/ 0.66067CFA in January 2024.
However, following a second wave of depreciation in February, the sub-regional fortune went down drastically to N1/0.38308CFA before hitting a new low of N1/0.37595CFA last week.
The traders are already hedging against further depreciation although there’s a slight improvement in the last few days.
However, the Naira is still not close to what it used to be in the subregion some years ago.
The development is adversely affecting the cost of goods imported into Nigeria through the West African economies.
Consequently, the traders are recording a lull in business activities on both sides of the border towns in Nigeria and the Benin Republic.
Some border markets in Benin-Nigeria visited showed that most of the money changers or Bureau De Change, do not display the Nigerian currency like they did last year.
Even transporters and bike riders otherwise known as Okada in Nigeria, across the borders declined payment in Naira, saying that by the time they return to convert Naira to CFA, they would have lost some fraction of their earnings. Consequently, they said CFA was safer to hold.
A bike rider, Ibrahim Yakubu, who took the source from the Seme border into the ‘Misebo’ market (about 45 kilometres from the border) refused to accept Naira and insisted on collecting his payment in CFA.
Yakubu also said before now, the Naira was strong, adding that it was easily accepted as a means of payment for goods and services.
A money changer, Taiye Ekiti, blamed the development on the United States Dollar, adding that the cost of Dollar was the reason for the depreciation of the Naira in Benin Republic and other countries including Togo and Ghana.
He added that they as Bureau De Change are equally as helpless as other business people.
A Nigerian trader who deals in fairly used clothing, Mr. Achi Collins, said most traders do not accept Naira anymore, adding “that is how much the Naira has lost value over time”.
Collins also said most traders would tell their customers to change their money to CFA before they can accept it as payment for goods.
He, however, added that around the border town of Seme, there could be few traders that still accept Naira for payment but their goods cost more.
He also noted that inside the cities of Benin Republic, Naira is not acceptable because of the value when compared to the strengthening of the CFA.
He further stated: “If you want to buy something here you will go and change your Naira to CFA before you buy whatever you want”.
Before now, Naira was accepted on the west coast, up to Ivory Coast and Senegal. Traders freely spent Naira in many countries of West Africa.
###
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter