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Home > Archives for > Page 199
Author

Folarin Kehinde

Folarin Kehinde

Business

BREAKING: Prices to increase as FG raises exchange rate for cargo clearance to N1.356 per Dollar

by Folarin Kehinde February 2, 2024
written by Folarin Kehinde

The Bola Tinubu-led federal government, through the Central Bank of Nigeria (CBN), has increased the exchange rate for cargo clearance from N952 per dollar to N1.356 per dollar.

This adjustment follows recent increases in the exchange rate for cargo clearance, reflecting a continuing trend of fluctuations in the country’s foreign exchange policies.

The exchange rate for cargo clearance was initially raised from N757 per dollar to N783 per dollar in November, representing a 3.4% increase.

Subsequently, it was further increased to N952 per dollar in December.

According to Punch newspaper, the rate has now been adjusted to N1.356 per dollar.

Members of the Association of Nigerian Licensed Customs Agents and other stakeholders have expressed concerns over the frequent changes in exchange rates, emphasizing the potential impact on the cost of clearing and, subsequently, on commodity prices.

According to them, the adjustments could also have broader implications for importation and exportation activities, influencing trade dynamics in the country.

A member of the Association of Nigerian Licensed Customs Agents, Remilekun Sikiru, said, “How do we explain this? From N952/$ to N1.4/$ as of Friday morning with about N404 increase?

“It’s quite unfortunate that the prices of goods and commodities will automatically increase. Importation would further decrease and depreciate; vehicle prices would skyrocket again.

“Since this unification of a thing, the government has refused to look inward and critically into the maritime industry as regards importation and exportation.

“The sector have been neglected and things are getting worse daily. The question now is, how would freight forwarders and customs brokers agents cope with this new rate?”

Also speaking, an agent, Ben Anya, said that they woke up to the new rate, “which was before now set at N951 per dollar,”

Anya explained that with the latest increase in the exchange rate, the cost of clearing would increase.

“And this would also affect the cost of goods in the market. It would also lead to a drop in importation,” he said.

February 2, 2024 0 comments
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FG will start publishing airlines delaying flights next week – Keyamo

by Folarin Kehinde February 1, 2024
written by Folarin Kehinde

The Federal Government through the Ministry of Aviation and Aerospace Development has promised to begin the publication of flights delayed or cancelled by local airlines next week.

“Every week, we will start publishing the list of flights that were delayed or cancelled and the reasons and action taken. We will start publishing them next week. We will name and shame erring airlines,” the Minister of Aviation and Aerospace Development, Festus Keyamo, said when he featured as a guest on Channels TV’s Politics Today on Wednesday.

Delayed flights without explanations or compensation have been a bane in the nation’s aviation in the recent past.

The issue lingering through the tenure of past ministers was left unresolved, causing more pain to air travellers already haunted by the exorbitant prices of travel tickets.

But Keyamo speaking during the interview, said the issue was a delicate one and should handled carefully so as not to discourage potential investors.

He added the ministry is ready to enforce laws on the delay and compensation packages for customers as stipulated by international laws.

He said, “I feel the pains of Nigerians who go through the pangs of flight delays. I see a lot of messages on my phone concerning it and it is sad.

“It is difficult and you could see that all my predecessors in office could not address that issue but I am trying to get a reasonable bend on this issue. do you sanction the airlines by closing them down? That would create more chaos because we don’t have enough local airlines. how do you proceed with all of that?

“And that’s why we have to handle it delicately because what we are trying to solve should not be escalated. The most important thing is that the customers must have succour. We must take steps to alleviate that pain.

“There are flight cancellations all over the world but in other climes, they keep to the rules on how to treat customers and refunds. We have to enforce those rules and that’s what we are thinking.

“We’ve engaged a couple of insurance companies to insure passengers and their flight tickets. They will be present at every airport in the country and will swing into action whenever there is a flight delay or cancellation to ensure passengers are not stranded.

“Do not forget that it is a bit more complicated than that and to be honest, sometimes we are complicit. it is not always the fault of the airlines, weather, or bird strikes. It is the responsibility of FAAN to clear those bids because the airlines paid for parking space and utility, so we should make the atmosphere good for them. sometimes it is the lack of jet AI fuel and other times, it is the airlines’ fault.

“And I have instructed starting this year to get a weekly report on all flights delayed or cancelled and the reasons or actions taken.”

Continuing, the minister stated that there is no going back on the relocation of the headquarters of the Federal Airports Authority of Nigeria from Abuja to Lagos.

Keyamo, a Senior Advocate of Nigeria, said the movement of the FAAN headquarters would save the government and the people of Nigeria half a billion naira wasted on air tickets by officials of the Authority who have to commute from Lagos to Abuja and back.

Keyamo said the whole issue was compounded by the fact that FAAN is not yet digitalised and so, in one year, they spend half a billion naira on flight tickets between Lagos and Abuja alone.

“You see them flying every day to and fro Abuja to get one file signed. They fly every day back and forth. In one year, they spent close to half a billion naira on flight tickets. N450m on flight tickets alone,” he said.

February 1, 2024 0 comments
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Tinubu’s Govt Failed to CommenceStudent Loan Scheme slated for January despite assurance

by Folarin Kehinde February 1, 2024
written by Folarin Kehinde

The Federal Government’s Student Loan Scheme is yet to commence despite the assurance of the Minister of State for Education, Dr Yusuf Sununu that the January take-off date will be achieved.

Leading reporters recalls that the minister who briefed State House Correspondents two weeks ago after the first Federal Executive Council meeting for 2024, had stated that the website for application was almost done and will be open for students soon.

“January is a reality. Already, the website is almost done. Application for beneficiaries is going to be online, and you can access your loan within 30 days,” he had said.

However, the website for the scheme is yet to be opened to Nigerian students who are eagerly waiting to apply for the loan.

President Muhammadu Buhari signed the Student Loan bill into law last year. The Act allows Nigerian students in tertiary institutions to access interest-free loans from the Nigerian Education Loan Fund (NELFUND).

However, President Bola Tinubu recently instructed the management of NELFUND to expand its focus area to Nigerian students interested in skills development programme.

“I am not sure if expanding this scheme to cover skill development was part of the current Act but if the Federal Government feels this scheme should cover other parts of education and not just tertiary education, then this will have to be effected and amended in the Act.

“They will have to propose this amendment and we will look at it and see how it fit in the overall objective of the student loan scheme.

“The Student Loan Act says tertiary education, skill acquisition is not a tertiary education so if we are extending this scheme to look at skill acquisition, then we might have to look at how to completely rewrite or re-do the Act.

“As it is currently written, I don’t think it is a bad idea but I think that we have to look at it holistically so that we don’t just throw in policies and ideas that may be at variance at what the student loan scheme hopes to achieve,” he said.

Ugbor however stated that arrangements are being made for the scheme to take off in March after some amendments have been made.

February 1, 2024 0 comments
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Nigerian Govt wastes N1bn yearly on FAAN officials shuttling between Abuja and Lagos – Keyamo

by Folarin Kehinde February 1, 2024
written by Folarin Kehinde

The Minister for Aviation and Aerospace Development, Festus Keyamo, says the Nigerian Government spends N1 billion on Duty Tour Allowance (DTA) and air tickets for Federal Airports Authority of Nigeria, FAAN, officers who travel back and forth from Abuja to Lagos, annually.

Keyamo disclosed this on Thursday in a statement clarifying his ‘N500 million FAAN workers’ DTA’ comment on Channels Television.

According to him, in 2023, FAAN workers spent N493,678,620.37 on DTA and N451,058,950.09 for air tickets.

“When I did my Channels TV interview yesterday, I was not briefed about the amount FAAN spent last year alone on DTA (Duty Tour Allowance) for the principal officers who travelled back and forth from Lagos to Abuja almost daily.

“The amount came up to N493,678,620.37. Aside from the air tickets, which I mentioned amounted to N451,058,950.09.

“So, in total, because of insistence on naming Abuja as the headquarters of FAAN (when there are no offices in Abuja to accommodate all the principal officers), FAAN spent close to N1 billion in one year,” he said.

February 1, 2024 0 comments
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Trouble for Sirika as EFCC begins probe on Nigeria Air

by Folarin Kehinde February 1, 2024
written by Folarin Kehinde

The Economic and Financial Crimes Commission (EFCC) is investigating the failed Nigeria Air project inaugurated by former president Muhammadu Buhari.

The minister of Aviation and Aerospace Development, disclosed this in an interview on Wednesday.

Recall that the Nigeria Air deal was sealed by Hadi Sirika, the immediate past minister of aviation, on behalf of the Nigerian government.

However, Keyamo expressed reservations about the Nigeria Air deal.

“First of all, I have said it before and I will still say it. It was not a deal that was good for Nigeria in the long run,” the minister said.

“The whole composition and totality of that deal was merely Ethiopian Air flying the Nigerian flag. It was not a national carrier. Two things. A flag carrier is different from a national carrier.

“So while we were being told that a national carrier was coming, it was not a national carrier, it was a foreign airline trying to fly the Nigerian flag.

“The EFCC is investigating that deal. There is a criminal investigation going on. I have called for the report.”

“Keyamo insisted that no local airline would be designated as a national airline, noting that “we will establish a proper national carrier,” he added.

February 1, 2024 0 comments
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BREAKING: Gunmen kidnap top government official near military camp in Abuja

by Folarin Kehinde February 1, 2024
written by Folarin Kehinde

Some heavily armed men have kidnapped Aondo Ver, a director at Federal Housing Authority (FHA), Abuja, in the wee hours of Thursday, February 1.

The incident occurred around 12:30am at Pambara New Extension, a stone throw from a military camp and checkpoint in Bwari Central Area of the FCT.

The kidnappers were said to have gained access through the fence after cutting the barb wires.

Details shortly…

February 1, 2024 0 comments
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JUST IN: CBN orders banks to sell excess dollars in 24 hours

by Folarin Kehinde February 1, 2024
written by Folarin Kehinde

Amid its fresh moves to stabilise the nation’s volatile exchange rate, the Central Bank of Nigeria has ordered Deposit Money Banks to sell their excess dollar stock latest February 1, 2024.

The CBN, which made the disclosure in a new circular released on Wednesday, also warned lenders against hoarding excess foreign currencies for profit.

According to officials, the central bank believes some commercial banks hold long-term foreign exchange positions to enable them profit from the volatile movements of exchange rates.

The new circular introduces a set of guidelines aimed at reducing the risks associated with these practices.

In the circular titled, “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks”, the CBN raised concerns over the growing trend of banks holding large foreign currency positions.

The latest circular came barely 48 hours after the CBN released a circular, warning banks and FX dealers against reporting false exchange rates, among others.

The new development also came on the heels of the adjustment of the methodology used for the calculation of the nation’s official exchange rate by the FMDQ Exchange.

The review has pushed the Nigerian Autonomous Foreign Exchange Market rate (official exchange rate) from approximately N900/dollar to N1,480/dollar. The naira closed at 1,450/dollar at the parallel market on Tuesday.

The move which is aimed at unifying the official and parallel market exchange rates has been hailed by economists and other stakeholders.

They however challenged the CBN to clear FX backlogs estimated at over $5bn and also fund FX demands at the official market. This, they said, would forestall a situation whereby the parallel market rate would move away from the official rate again.

Apparently as part of the moves to fund FX request at the official window, the CBN in its latest circular released on Wednesday accused banks of holding excess foreign exchange positions.

As a result, the central bank gave lenders until February 1, 2024 (today) to sell off excess dollar positions.

The circulated, dated January 31, 2024, was signed by the Director, Trade and Exchange, CBN, Dr. Hassan Mahmud, and representative of the Director, Banking Supervision, CBN, Mrs. Rita Sike.

The circular read in part, “The Central Bank of Nigeria has noted with concern the growth in foreign currency exposures of banks through their Net Open Position (NOP). This has created an incentive for banks to hold excess long foreign currency positions, which exposes banks to foreign exchange and other risks.”

To address these issues, the CBN in the circular issued prudential requirements that banks must follow. A key focus of these requirements is the management of the Net Open Position (NOP).

The NOP measures the difference between a bank’s foreign currency assets (what it owns in foreign currencies) and its foreign currency liabilities (what it owes in foreign currencies).

The circular mandates that the NOP must not exceed 20 per cent short or 0 per cent long of the bank’s shareholders’ funds.

This calculation, the apex bank said, must be done using the Gross Aggregate Method, which provides a comprehensive view of the bank’s foreign currency exposure.

Furthermore, banks with current NOPs exceeding these limits are required to adjust their positions to comply with the new regulations latest by February 1, 2024.

Additionally, banks must calculate their daily and monthly NOP and Foreign Currency Trading Position (FCT) using specific templates provided by the CBN

February 1, 2024 0 comments
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BREAKING: BDC Operators Shut Down Business In Abuja

by Folarin Kehinde February 1, 2024
written by Folarin Kehinde

The Abuja chapter of Association of Bureau De Change (BDC) Operators has announced the closure of their business premises indefinitely from Thursday, February 1, 2024.

The chairman of the Association, Abdulahi Dauran, said the scarcity of US Dollars was responsible for their decision while adding that online banking transactions and cryptocurrency were behind of the scarcity of dollars.

Details Later…

February 1, 2024 0 comments
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BREAKING: Court orders arrest of Fubara’s new chief of staff, others over Rivers Assembly fire

by Folarin Kehinde January 31, 2024
written by Folarin Kehinde

The Federal High Court sitting in Abuja has issued a warrant of arrest for Edison Ehie, the chief of staff to Governor Siminalayi Fubara.

Justice Emeka Nwite, who issued the arrest warrant, noted the Ehie and five others were allegedly involved in the burning of the State House of Assembly last year.

Ehie, who is the immediate past Speaker of Rivers State House of Assembly, was ordered to be arrested along with five other persons based in Port Harcourt for allegedly participating in some criminal activities.

Those ordered to be arrested along with the former Speaker are Jinjiri Bala, Happy Benedict, Progress Joseph, Adokiye Oyagiri and Chibuike Peter also known as Rambo.

Justice Nwite granted an order on Wednesday for their arrest while delivering ruling in an ex-parte application brought before him by the Inspector General of Police IGP.

The ex-parte application was predicated on sections 37, 113, 114, 84 and 184 of the Administration of Criminal Justice Act (ACJA) 2015 and section 35 of the 1999 Constitution as well as 32 of the Police Act 2020.

In the ex-parte application argued by a Deputy Commissioner of Police, Simon Lough, the six defendants were said to be at large.

The DCP who is also a Senior Advocate of Nigeria, submitted that the defendants are involved in conspiracy, arson, terrorism, attempted murder and murder of a Superintendent of Police SP Bako Agbashim and five other police informants.

The five police informants they are alleged to have killed are Charles Osu, Ogbonna Eja, Idaowuka Felix, Paul Victor Chibuogu and Saturday Edi.

Justice Nwite granted the request of the IGP to declare the defendants wanted and upon their arrest and investigation, bring them before the court for trial.

The IGP had two weeks ago put five Port Harcourt-based person’s on trial on terrorism charges and were remanded at Kuje Prison upon their arraignment.

They were ordered to remain in prison custody till February 2 when their respective bail applications would be determined by another Judge, Justice Mobolaji Olajuwon.

The five defendants are Chime Eguma Ezebalike, Prince Lukman Oladele, Kenneth Goodluck Kpasa, Osiga Donald and Ochueja Thankgod.

In the 7-count charges, the defendants were accused of committing alleged terrorism offences by invading, vandalizing and burning down Rivers State House of Assembly during the wake of political crisis that rocked Port Harcourt in October last year.

Justice Olajuwon ordered their remand at the Kuje Prison.

Meanwhile, the Port Harcourt Division of the Rivers State High Court has granted an ex-parte order restraining the Nigeria Police Force and other security agencies from arresting, detaining, and or harassing Ehie.

January 31, 2024 0 comments
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BREAKING: Senate summons CBN governor, Cardoso, over free fall of Naira

by Folarin Kehinde January 31, 2024
written by Folarin Kehinde

The Senate on Wednesday, January 31, summoned the Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, to appear before it on Tuesday next week over the state of the economy and free fall of the Naira.

The Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, Senator Tokunbo Abiru (APC- Lagos East), handed down the summon after the panel met in Abuja.

Speaking with reporters after the emergency meeting of the Committee held behind closed doors, Abiru said the state of the nation’s economy, especially the inflation index was of great concern to the Senate.

Abiru said: “We have held a meeting this afternoon essentially to focus on the direction of the Nigerian economy.

“We are all living witnesses of what is going on. Underlining the major issue of the economy is the way the inflation index has been and of course, it is a major concern to us.

“We have deliberated among ourselves. Critical issues were addressed and we believe that the next line of action is to summon the Governor of the Central Bank of Nigeria on Tuesday at 3 pm to brief us properly on the state of the economy.

“That we have resolved and will communicate to the Governor of the Central Bank after which we will have further communication with members of the press.”

The Naira was said to have plummeted to about N1,500.00 to the US dollar as at the time of filing this report.

January 31, 2024 0 comments
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