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CBN Commands Banks To Sell Excess Dollars Within 24 Hours

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CBN Commands Banks To Sell Excess Dollars Within 24 Hours

This move, disclosed in a circular released on Wednesday, is part of the CBN’s broader strategy to address the volatility in the foreign exchange market……CONTINUE READING....KINDLY READ THE FULL STORY HERE▶

 

 

 

 

The central bank has raised concerns that some commercial banks have been maintaining long-term foreign exchange positions to profit from the fluctuations in exchange rates.

The new guidelines, as outlined in the circular titled “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks,” aim to mitigate the risks associated with these practices.

This directive follows closely on the heels of another circular that cautioned banks and FX dealers against reporting inaccurate exchange rates.

Furthermore, the recent adjustment in the methodology for calculating the nation’s official exchange rate by the FMDQ Exchange has seen the Nigerian Autonomous Foreign Exchange Market rate surge from approximately N900/dollar to N1,480/dollar, a move applauded by economists for its potential to unify the official and parallel market rates.

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However, economists have also urged the CBN to address the over $5bn FX backlog and ensure sufficient funding for FX demands at the official market to prevent divergence between the official and parallel market rates.

In the latest circular signed by Dr. Hassan Mahmud, Director of Trade and Exchange, CBN, and Mrs. Rita Sike, representative of the Director of Banking Supervision, CBN, banks are accused of holding excess foreign exchange positions.

Banks are now required to align their Net Open Position (NOP) with the new regulations, which stipulate that the NOP must not exceed 20 per cent short or 0 per cent long of the bank’s shareholders’ funds, calculated using the Gross Aggregate Method.

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Banks currently exceeding these limits are instructed to adjust their positions accordingly by the set deadline.

Additionally, the CBN mandates banks to maintain sufficient stocks of high-quality liquid foreign assets and adopt robust treasury and risk management systems to oversee all foreign exchange exposures.

Non-compliance with these directives will result in sanctions and possible suspension from the foreign exchange market, the CBN warned.

This initiative is part of the central bank’s ongoing efforts to ensure stability in the foreign exchange market and promote economic stability.

A top bank executive, who spoke on condition of anonymity with Punch, said the new circular would force banks to sell off excess dollar liquidity exceeding $5bn.

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Nigeria Cleric Egbaji Regains Freedom After Two Years in Detention, FG Commended.

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Bamidele Kehinde, Director of Dynamic Ambassadors for Social Orientation Initiatives and the City Transformation Project, has expressed appreciation to the Federal Government of Nigeria for its efforts in securing the release of Pastor Benjamin Egbaji, who was reportedly held in detention in the Republic of Benin for over two years under difficult conditions.....KINDLY READ THE FULL STORY HERE▶

Pastor Egbaji, a Nigerian cleric, was said to have endured harsh treatment during his detention, including prolonged confinement. His release followed a presidential pardon granted by the authorities in Benin Republic under President Patrice Talon.

Speaking on News Central TV, Dr. Kehinde praised the diplomatic efforts that led to the cleric’s freedom, describing the process as lengthy and challenging. He noted that significant progress was achieved after Bianca Odumegwu-Ojukwu was appointed Minister of State for Foreign Affairs.

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He stated that although there was no personal connection or financial influence involved, the minister actively engaged Benin Republic authorities through diplomatic channels. According to him, her visit and negotiations played a key role in securing Pastor Egbaji’s release.

Dr. Kehinde also commended all individuals and institutions that contributed to the advocacy efforts, including Moses Eyo, Dickson Umu Unung, the Cross River State Government, CP Alobi Lawrence (rtd), Joseph Bisong Ayi, Blessing Harrison, Eze Sampson, and Rt. Hon. Legor Idagbo.

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He said their combined efforts were instrumental in achieving the cleric’s freedom.

He added that while Egbaji’s release is a major relief, the cleric now faces the task of recovering and rebuilding his life after years of hardship. He called for continued support to help him reintegrate into society.

Dr. Kehinde also urged stronger government commitment to protecting Nigerian citizens abroad and enhancing diplomatic engagement across West Africa to prevent similar cases in the future.

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Recruitment Drama: 360,923 Candidates Fail Paramilitary Selection Process.

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The Civil Defence, Correctional, Fire, and Immigration Services Board (CDCFIB) has provided an update on its ongoing nationwide recruitment exercise.....KINDLY READ THE FULL STORY HERE▶

The board stated that 1,120,491 applications were successfully completed and processed, allowing candidates to proceed to the computer-based test (CBT) stage.

It also disclosed that 432,935 applications were left incomplete, while 360,923 applicants were disqualified during screening and shortlisting for failing to meet the required criteria.

In total, the recruitment exercise recorded over 1.8 million applications across the country.

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The exercise covers agencies under the board, including the Nigeria Immigration Service, Nigeria Security and Civil Defence Corps, Federal Fire Service, and the Nigeria Correctional Service.

CDCFIB also released a breakdown of CBT performance, showing that 221,996 candidates scored between 0–40, 229,155 scored between 41–60, 278,543 scored between 61–80, while 142,697 scored between 81–100.

The recruitment process is now expected to move to the next stage, which includes physical screening and document verification. Shortlisted candidates will be contacted with details of their screening venues, dates, and required documents.

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The board reiterated that the entire process is free of charge and advised applicants to rely only on official communication channels for updates, warning against misinformation and unauthorized messages circulating online.

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NAF Addresses Sambisa Strike, Insists Mission Was Carefully Targeted.

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The Nigerian Air Force (NAF) has confirmed that its Air Component of Operation HADIN KAI conducted precise airstrikes in the Yuwe axis of the Sambisa Forest, resulting in the elimination of several terrorist elements on Monday.....KINDLY READ THE FULL STORY HERE▶

This was contained in a statement issued on Tuesday in Abuja by the Director of Public Relations and Information, Air Commodore Ehimen Ejodame, who noted that military operations in the North-East continue to maintain strong pressure on insurgent groups.

He explained that the operation was based on credible intelligence, supported by Intelligence, Surveillance, and Reconnaissance (ISR) activities, which identified active terrorist presence within fortified positions and underground hideouts.

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According to him, NAF air platforms successfully engaged the targets using precision-guided munitions, destroying the structures, neutralising multiple terrorists, and dismantling key logistics facilities. This was later confirmed through battle damage assessments.

The statement added that sustained air operations have continued to weaken terrorist networks, disrupting their activities and forcing them into more defensive and unstable responses.

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The Chief of the Air Staff, Air Marshal Sunday Aneke, also reiterated the Air Force’s commitment to maintaining continuous, intelligence-driven operations aimed at completely neutralising terrorist threats.

He further assured that the NAF remains focused on protecting its personnel, safeguarding national security, and ensuring the safety of citizens, while continuing precision operations in line with strict rules of engagement to minimise civilian impact.

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