CBN kicks against panic withdrawals, Third Mainland Bridge closure… 7 business stories to track

Here are the seven top business stories you need to track this week — November 6 to November 10.

LAGOS TO SHUT DOWN THIRD MAINLAND BRIDGE NOV 6

The Lagos state government has announced the closure of some sections of the Third Mainland Bridge for five weeks starting from November 6.

Sola Giwa, special adviser on transportation to Babajide Sanwo-Olu, the state governor, said repair works will start on some sections of the road by 7am on Monday.

He said work will begin on the ramps connecting Oworoshoki to Adekunle and Lagos Island, adding the fixing of these sections would take two weeks.

Giwa said starting from November 20, the second phase of the mending would commence and span for another three weeks.

CBN WARNS AGAINST PANIC WITHDRAWALS OF CASH 

Last week, the Central Bank of Nigeria (CBN) assured Nigerians that there is sufficient cash for economic activities after reports of scarcity in some locations.

In a statement by Isa AbdulMumin, CBN director of corporate communications, on Thursday, the apex bank said the scarcity experienced in some locations was due to high volume withdrawals from its branches by banks and panic withdrawals by customers from automated teller machines (ATMs).

The CBN said it received reports of “alleged scarcity of cash” at banks, ATMs, points of sale, and among Bureau De Change (BDC) operators.

The apex bank also urged citizens to guard against panic withdrawals as there is sufficient stock of currency notes for transactions in the country.

The regulator also urged Nigerians to embrace alternative modes of payment that would reduce pressure on using physical cash.

CBN CLEARS BANKS’ FX FORWARDS BACKLOG

The Central Bank of Nigeria (CBN) has started clearing the foreign exchange (FX) forwards backlog in banks.

Payment commenced on Wednesday, a source in the apex bank told TheCable while confirming the development.

More than 10 banks were said to have received the payment, according to sources in the know of things.

Meanwhile, following the announcement, the naira continued its appreciation streak against the dollar, strengthening to N980/$ in the parallel market as at Friday last week.

NO PLANS TO REDENOMINATE THE NAIRA

The CBN also said there are no plans to redenominate the country’s legal tender, the naira.

The bank’s statement came amid speculations that it plans to change the naira notes to support the local currency against international currencies in the FX market.

In a statement on Tuesday, the apex bank reiterated that the financial regulator does not intend to redenominate the naira.

FG TO CANCEL LICENCES OF MODULES NOT IN USE

Heineken Lokpobiri, minister of state for petroleum resources (oil), says the Nigerian National Petroleum Company (NNPC) Limited will be held accountable for the rehabilitation of Nigeria’s refineries.

The NNPCL is tasked with rehabilitating three refineries in the country to reduce fuel scarcity and increase natural gas use.

In May, the house of representatives ad hoc committee disclosed that the federal government has spent a total of N11.34 trillion on the rehabilitation of the country’s refineries from 2010 to 2020.

The minister said the oil cartel must ensure that it rehabilitates the three major refineries in Port Harcourt,  Kaduna, and Warri as it has assured.

Lokpobiri also said licences of refineries not in use will be cancelled.

MULTICHOICE REVIEWS PRICES — AMID HIGH PRICES

Multichoice Nigeria has announced an increase in the cost of its DStv and GOtv packages.

In an email to customers, the firm said the new rates would take effect from November 6, 2023.

The latest development represents the second price hike from the pay-tv firm in the year.

The new rates show an upward review of about 15 percent to 20 percent depending on the package.

OVER 26M NIGERIANS MAY FACE FOOD CRISIS

The Food and Agriculture Organisation (FAO) says no fewer than 26.5 million Nigerians may face a food crisis between June and August 2024.

The international body said states such as Borno, Sokoto, and Zamfara including the federal capital territory (FCT) are of bigger risk.

Dominique Kouacou, FAO country representative, disclosed this at the presentation of the October to November round of the Cadre Harmonise (CH) food security and early warning analysis in Abuja last Friday.

The Cadre Harmonise analysis was conducted in 26 states and the FCT to ascertain the food security situation and make projections for the future.

This, Kouacou said, is due to an unusual lean season that witnessed several shocks, ranging from persistent insecurity situations like insurgency, and banditry.