Foreign airlines lose N67bn to new forex policy –

The over 25 foreign airlines flying into Nigeria have lost a combined sum of $240m (N67.2bn) following the adoption of a new foreign exchange policy by the Central Bank of Nigeria, investigations have revealed.

The International Air Transport Association, the global trade body for about 260 airlines, had in May put the unremitted ticket sales proceeds in Nigeria by international airlines at $600m.

However, the movement of the CBN’s interbank exchange rate from N197 per dollar to over N280 per dollar, following the adoption of the new forex policy, has made the foreign airlines to lose at least 40 per cent of the $600m.

What this means is that the foreign airlines will lose about 40 per cent of the amount, which has been held in naira in Nigerian banks for several months due to dollar shortage. This translates to about $240m (N67.2bn).

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NSDC: Militants blow up Eni oil pipeline in Nigeria – Reuters

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By Tife Owolabi

YENAGOA, Nigeria, July 8 (Reuters) – Attackers blew up an oil pipeline in Nigeria’s southern Bayelsa state operated by a subsidiary of Italy’s Eni on Friday, the Nigeria Security and Civil Defence Corps (NSDC) said.

Nobody has claimed responsibility for the blast, the latest in a spate of attacks on oil and gas facilities in the OPEC member’s Niger Delta region over the last few months which have pushed oil production to 30-year lows.

The attack took place at Lasukugbene, said spokesman Desmond Agwu. “There was a blast (on the) pipeline and my men were exchanging fire with some of the hoodlums,” he said.

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Naira rises to 364/£1 but Nigerians can barely buy or sell – The Cable

The naira is currently trading at 364 to the British pound but Nigerians can barely buy or sell.

The local currency, which traded at 376 to the pound on Monday, became stronger on Wednesday, following Brexit pains in one of the world’s largest economies, UK.

The British currency fell as low as £1/$1.28 on Wednesday following uncertainties in the overall economy of the UK, after its decision to leave the European Union.

According to Bloomberg data, the naira traded as low as 363/£1 over the holiday, as the UK legal  primary legal tender plummeted to a new 30-year low.

The dollar went for 282, while the European currency, Euro, traded for 312, appreciating from its position at 314  two days earlier.

However, as the naira grew appreciably stronger to the pound on Wednesday and Thursday on the international market, Nigerians could not trade as much as they would have wanted.

Prolonged public holiday – three days eid-al-fitri break – in Africa’s (arguable) largest economy led to the inability to trade via banks, bonds and other monetary instruments.

By Friday, analysts expect that the British pound would have found some strength and recovered slightly to a position above $1.30.

Nigerian black market has been trading arbitrarily with no uniform quote through the last 48 hours of the prolonged holiday.

Source: The Cable