The Central Bank of Nigeria (CBN) has mandated that all existing Bureau De Change (BDC) operators re-apply for licenses. This directive was issued in a circular by Haruna Mustafa, Director of the Financial Policy and Regulation Department, on Wednesday. BDCs must meet the capital requirements for their license category within six months.

The CBN outlined that all existing BDCs and promoters of new BDCs must re-apply for a new license according to their chosen tier or license category as specified in the updated guidelines. Significant changes to these guidelines include:

- Removal of Mandatory Caution Deposits: The mandatory caution deposit of N200 million for tier-1 license holders and N50 million for tier-2 license holders has been removed.

- Elimination of Annual License Renewal Fees: The non-refundable annual license renewal fee of N5 million for tier-1 BDCs and N1 million for tier-2 BDCs has been withdrawn.

These changes are part of broader reforms aimed at repositioning the BDCs to fulfill their intended role in Nigeria's foreign exchange market.

The CBN had issued Draft Operational Guidelines for BDC Operations in Nigeria in February 2024, inviting stakeholder comments and inputs.

Israeli forces move deeper into Rafah in night of heavy battle

Israeli tanks advanced to the edge of a crowded district in the heart of Rafah on Wednesday during one of the most intense nights of bombardment of the southern Gaza city since Israel launched its offensive there this month.

Israel's assault on Rafah on Gaza's southern edge has set hundreds of thousands of people fleeing in what had been a refuge for half of the enclave's 2.3 million people. It has also cut off the main access routes for aid into Gaza, drawing international fears of mass casualties and famine.

Israel says it has no choice but to attack the city to root out the last battalions of Hamas fighters it believes are sheltering there. Its troops have been slowly moving into the eastern outskirts of Rafah since the start of the month.

Residents and militants said tanks had taken up new positions on Wednesday further west than before along the southern border fence with Egypt, and were now stationed on the edge of the Yibna neighbourhood at the centre of Rafah. They had not yet entered the district as fighting had been intense.

Hamas's armed wing said it had struck two armoured troop carriers at a gate along the border fence with anti-tank rockets.

Palestinian residents said Israeli drones were firing into the Yibna suburb and had opened fire overnight on fishing boats on the beach of Rafah causing some to catch fire.

"There has been no stopping of Israeli fire all night, from drones, helicopters, warplanes, and tanks," said one resident of Rafah, asking for his name to be withheld to protect his security.

"Tanks made a limited push southeast, still limited but they have advanced under heavy fire all night," he told Reuters via a chat app.

There was no immediate word from the Israeli military on Rafah. It said it had killed a number of fighters in targeted operations in Khan Younis just north of Rafah, and in the northern Gaza Strip where its troops have returned in a major operation in an area where they said they had dismantled Hamas months ago.

UNRWA, the main United Nations agency in Gaza, estimated as of Monday that more than 800,000 people had fled Rafah since Israel began targeting the city in early May, despite international pleas for restraint.

Israel launched its assault on Gaza following a Hamas-led attack on southern Israeli communities on Oct. 7 in which fighters killed 1,200 people and captured more than 250 hostages. Since then, Israel's assault has killed more than 35,000 people, with thousands more feared buried under the rubble, according to Gaza health authorities.

The Israeli military said it had killed a person it identified as Ahmed Yasser Alkara and described as a key Hamas operative, along with two other militants, in a strike in Khan Younis.

"Alkara took part in the Oct. 7 massacre in communities in southern Israel and was a significant anti-tank missile operative who carried out attacks on IDF troops during the war," said the military statement.

The statement also said five other militants were killed and had been operating from inside a school.

In the central Gaza Strip town of Zawayda, an Israeli air strike killed seven people in one house, medics said.

Just after midnight, an Israeli air strike on a house in Al-Nuseirat camp in central Gaza Strip killed eight Palestinians including children, medics said, while another air strike on a mosque, housing displaced families, in Gaza City, killed and wounded several people, they added.

On Gaza's northern edge in Jabalia, the largest of Gaza's eight historical refugee camps, Israeli forces pressed on with a ground offensive that has carried on in parallel with the Rafah assault for two weeks.

Health officials and residents say entire residential districts have been destroyed and dozens of people killed in the operation, in an area where Israel withdrew its forces after claiming to have "dismantled" Hamas in January. Israel says it has had to return to prevent Hamas from re-establishing there.

Reuters

RUSSIAN PERSPECTIVE

Ukraine launches drone attack near Europe’s largest nuclear power plant

Kiev’s forces have once again attacked the grounds of the Zaporozhye Nuclear Power Plant (ZNPP) using a kamikaze drone, the facility’s press service reported on Wednesday. The facility is the largest of its type in Europe.

According to a message issued by the service on Telegram, the drone reportedly hit a transport workshop of the ZNPP but did not cause any casualties or critical damage to the facility.

The strike comes amid a series of UAV attacks on the city of Energodar, located next to the facility, over the past two days, the press service said. It stressed that the shelling of civilians and attacks on the nuclear plant and its infrastructure are “unacceptable and clearly constitute terrorist acts.”

Throughout the Ukraine conflict, the ZNPP has repeatedly been targeted with drones and artillery since the Russian military captured the facility in the early months of its campaign.

The co-chairman of the council on integrating Russia’s new territories, Vladimir Rogov, also claimed in an interview last month that Ukraine’s special forces were in the midst of conducting exercises that focused on crossing the Dnieper river and capturing a “large man-made object.”According to Rogov, this “object” appears to be the ZNPP.

Moscow and Kiev have blamed each other for the shelling of the plant while Ukraine and its Western backers have accused Russia of using the facility as cover for its troops.

However, International Atomic Energy Agency (IAEA) Director General Rafael Grossi was unable to confirm the accusations after personally visiting the facility on several occasions. Following his latest visit in April, he admitted seeing armored vehicles and some security presence at the station, but said that there was “no heavy weaponry” or prohibited arms such as tanks, artillery or rocket launchers.

Nevertheless, Grossi was unable to determine which side had been attacking the facility, stating that the IAEA does not have a mandate to make such determinations and that “indisputable evidence” was needed to establish the culprits.

Meanwhile, Russia’s permanent representative to the UN, Vasily Nebenzya, stated last month following a UN Security Council meeting that the West, after accusing Russia of being responsible for the dangerous situation at the ZNPP, has effectively issued Moscow an ultimatum: “hand over control of the ZNPP to Kiev and then the attacks will stop.”

Nebenzya stated that the West had thereby “not only betrayed the Zelensky Regime completely, but also actually admitted to complicity in these irresponsible attacks.”

WESTERN PERSPECTIVE

Zelenskiy says Ukraine needs system to defend against Russia's guided bombs

President Volodymyr Zelenskiy issued a fresh plea on Wednesday for upgraded defence systems to protect Ukraine's cities against guided bombs, which he described as the "the main instrument" now used by Moscow in its attacks.

Zelenskiy has long called for improved air defences as Russia intensifies its assaults on energy and other infrastructure. Russia says it does not deliberately target civilian sites, but thousands have been killed and injured since its February 2022 invasion of Ukraine.

Speaking in his nightly video address, Zelenskiy said Ukraine had made progress in developing electronic weaponry, "but in countering Russian bombs much remains to be done."

"There can be no alternative. Ukraine needs systems and tactics that will allow us to protect our positions, our cities and our communities from these bombs," he said.

"This is now practically the main instrument of Russian terror and in the occupiers tactics.

Earlier this month, Zelenskiy said Russia had used more than 3,200 guided bombs against Ukrainian targets throughout April, along with more than 300 missiles and about 300 Shahed-type drones.

Russia has increasingly resorted to these bombs, which are directed to a target by a guidance system, have great destructive potential and pose fewer risks to air crews delivering them.

In his comments, Zelenskiy said four more countries -- Albania, Austria, Chile and Mozambique -- had agreed to attend a "peace summit" in Switzerland in June with the aim of creating a broad front to oblige Russia to agree to a peace settlement under the terms of the U.N. Charter and acceptable to Kyiv.

"Russian aggression has tried to turn the U.N. Charter into a museum exhibit," he said. "Our peace summit, the participation of global leaders, can restore the full effectiveness and full protection of the U.N. Charter to every nation."

Zelenskiy's peace plan calls for the withdrawal of all Russian forces and the restoration of Ukraine's 1991 borders.

Russia, which rejects the plan, is not invited to the June meeting and dismisses as pointless any discussion of the conflict without its participation.

RT/Reuters

Allegations about China’s manufacturing overcapacity have sparked heated discussions among policymakers. During her visit to China in April, US Treasury Secretary Janet L. Yellen argued that “when the global market is flooded by artificially cheap Chinese products, the viability of American and other foreign firms is put into question,” adding that it was the same story a decade ago.

Yellen is partly correct: the Sino-American trade war has strengthened, not weakened, China’s export competitiveness. In 2023, China accounted for about 14% of total global exports, up 1.3 percentage points from 2017 (before the conflict began). More striking still, China’s trade surplus was around $823 billion in 2023, nearly double what it was in 2017.

Over a decade ago, China’s trade surplus was largely the result of an undervalued renminbi (RMB). Today’s circumstances are somewhat similar. My research shows that in 2023, the RMB was 16% undervalued against the dollar, contributing to China’s high exports and trade surplus.

I reached this conclusion because the inflation rate in the United States over the past two years has been ten percentage points higher than in China. According to purchasing-power-parity calculations, the RMB should have appreciated by 10% against the dollar; instead, it depreciated by 11%. From this perspective, the RMB was 21% undervalued against the dollar.

Of course, short-term exchange rates are influenced more by the interest-rate differential than by the inflation rate. I therefore used econometric methods, incorporating factors such as the interest-rate spread and economic growth, to estimate what the RMB exchange rate should be.

My comparative studies found that the extent of RMB undervaluation has been much greater than that of major ASEAN currencies over the past two years. Compared to the last round of US Federal Reserve rate hikes during 2015 to 2018, the extent of the RMB’s undervaluation in recent years has also significantly increased.

Strangely, there is no evidence that the Chinese government is targeting the exchange rate. Even the US agrees that China has not acted as a currency manipulator in recent years. In this respect, the situation today is very different from a decade ago, as China has made significant progress in reforming its exchange-rate system in the intervening period. As a result, the volatility of the RMB exchange rate has become more pronounced.

This raises the question of why the RMB is still undervalued. Looking at the balance of payments in 2020 and 2021, the cumulative net inflow of capital from direct and securities investments exceeded $400 billion, whereas in 2022 and 2023, the cumulative net outflow from the capital and financial account exceeded $500 billion. China’s enormous current-account surplus has not led to RMB appreciation – as one might expect – because of these high capital outflows. This makes exchange-rate changes ineffective in adjusting the trade balance.

Such capital outflows cannot be attributed solely to the changes in the interest-rate spread between China and the US. In fact, the capital outflow is mainly a result of non-economic factors, including some of China’s own policies such as its clampdown on certain industries. Recognizing this, the Chinese government began to incorporate non-economic policies into its self-assessment framework late last year.

More importantly, the recent escalation of Sino-American tensions has led the US to adopt a series of policies that discourage investment in China. This includes limitingventure-capital flows into China and exaggerating the risks of traveling there. The US Congress is also considering legislationthat would further restrict American investment in China. Together, these factors have exacerbated capital outflows, thereby amplifying the degree of RMB undervaluation and further undermining the effect that exchange-rate adjustments would typically have on the trade balance.

As long as Sino-American relations continue to be rocky, the RMB exchange rate will most likely remain significantly undervalued, and Yellen’s complaints will become ever more difficult to resolve. Of course, the political factors distorting the exchange rate will also slow the development of China’s services sector, and thus hinder its structural-adjustment efforts.

Given all this, the solution seems clear. In the interest of both sides, China must develop a consistent mechanism for assessing the impact of its non-economic measures, and the US must ease its restrictive policies.

Project Syndicate

In marketing and PR, competition is fierce, and leaders are always looking for a strategic edge. As a CEO, I've seen firsthand how the right practices result in massive ROI, and I wanted to explore the elements that have helped me and my agency stay ahead.

That's why I met with Jake Thompson, top-ranking podcast host and founder of Compete Every Day, an organization that helps leaders maximize performance. He shared several essential principles that are applicable not only to my industry but to any competitive business environment.

Combining his insights with my industry experience, here are five best practices for honing your competitive edge until it's razor-sharp.

1. Embrace Continuous Improvement

This isn't just about embracing a mindset of relentless growth or consistently refining your company's offerings. While those are important, your business and employees must be agile enough to adapt.

For example, a worldwide survey revealed that 74 percent of marketers are using AI to improve their search engine results page ranking and 80 percent are using it to improve user experience. That means companies that aren't integrating AI risk falling behind. 

What's more, if you want a competitive company, you need to retain motivated, engaged talent. In a world where 90 percent of organizations are concerned about employee retention, providing employees with learning opportunities is a crucial component that encourages them to stay. 

(By the way, if you're wondering where to start, four of every five people want to learn more about using AI in their profession.)

2. Cultivate Leadership at Every Level

Jake explained that 63 percent of Millennials – the generation that makes up most of the workforce--feel their leadership skills aren't being developed. As he put it, "Doughnut days or ice cooler giveaways don't move the needle for most people."

Developing a culture that allows everyone to feel engaged, empowered, and valued is essential. Have weekly one-on-ones, make time for upskilling, and provide access to free and paid development resources. 

By cultivating top talent, you'll see a ripple effect extending throughout your organization and into the quality of your offerings. 

3. Establish Clear, Reasonable Goals

Have you heard about the Harvard goal-setting study? It claimed just 3 percent of its graduating class had recorded specific goals for their futures, and 20 years later, those 3 percent were earning 10 times more than their peers.

It's a popular urban legend. That study doesn't exist. 

However, one of the researchers who debunked it, Gail Matthews of Dominican University, did produce a goal-setting study. It revealed that people are 42 percent more likely to achieve goals when they're clearly defined, written down, and specific.

So, don't just invent goals that sound good --establish clear, realistic objectives. To do this, consider incorporating a goal-setting framework like SMARRT (specific, measurable, achievable, relevant, realistic, and timely).

4. Promote Resilience and Wellness

Last year, 72 percent of leaders reported feeling burned out by the end of the day. Burnout at the top has a permeating, negative impact, influencing productivity, turnover rate, and more. And nearly half of employees who experience burnout start looking for a new job.

So, leaders need to develop resilience and carve out time for self-care (employees, too). Equally important, with only a quarter of US workers operating under the belief that their organization cares about their well-being, it's crucial to demonstrate your commitment to helping employees thrive.

For example, people are 30 percent less likely to feel burned out when leadership helps them manage their workload. This means it's essential to have involved, knowledgeable managers who understand workflows and deliverables. And avoid isolating people into silos--people are less likely to experience burnout if they have a sense of camaraderie at work. 

Build a supportive work environment that offers competitive salaries and wellness packages, like mental health resources, flexible working hours, and robust PTO (at my company, it's unlimited).

5. Champion Constructive Feedback

Customer and employee feedback is crucial. For example, 32 percent of U.S. consumers switched brands last year specifically because of sustainability practices. Do your customers care about green initiatives? You won't know unless you ask (and listen).

Internally, implement a feedback system that encourages employees to feel safe to share, such as anonymous forms. And personally model how to accept constructive criticism by accepting feedback with grace and positivity. 

Final Thoughts

How people feel about their jobs is deeply tied to the investments companies make in them. Let employees know they're an integral part of collective success by committing to their growth, an effort that can increase productivity by 18 percent and profitability by 23 percent. And while these insights are among the best ways to optimize performance, it's not just about the numbers – it's about doing right by the people who make your company strong.

Inc

The Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR) by 150 basis points, bringing it to 26.25% from the previous 24.75%.

During a press briefing on the outcome of the 295th Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Olayemi Cardoso announced that the committee also retained the asymmetric corridor of +100/-300 basis points. Additionally, the MPC maintained the Cash Reserve Ratio (CRR) for Deposit Money Banks at 45% and the Liquidity Ratio at 30%.

Implications of the New Rate Hike on the Nigerian Economy:

1. Inflation Control: The primary objective of increasing the interest rate is to curb inflation. By raising the MPR, the CBN aims to reduce the money supply in the economy, thereby decreasing consumer spending and slowing down inflation. However, this could take time to materialize and may not immediately ease the current high inflation rates.

2. Cost of Borrowing: Higher interest rates will increase the cost of borrowing for businesses and consumers. This could lead to reduced investment and consumer spending, potentially slowing down economic growth. Small and medium-sized enterprises (SMEs), which rely heavily on loans, may face financial strain, impacting their operations and expansion plans.

3. Banking Sector Impact: The retention of the CRR at 45% means that banks will continue to hold a significant portion of their deposits with the CBN, limiting the funds available for lending. This, combined with the higher MPR, could lead to tighter liquidity conditions in the banking sector, making credit more expensive and less accessible.

4. Exchange Rate Stability: A higher interest rate can attract foreign investment in Nigerian bonds and other financial instruments, potentially strengthening the naira. Increased foreign capital inflows can help stabilize the exchange rate, reducing the cost of imports and easing pressure on inflation.

5. Consumer Impact: For consumers, the rate hike could mean higher interest rates on loans and mortgages, increasing monthly repayments and reducing disposable income. This could lead to lower consumer spending, affecting demand for goods and services, and potentially leading to slower economic activity.

6. Government Debt: The increase in the MPR will raise the cost of servicing government debt, as new borrowings will attract higher interest rates. This could strain government finances, especially if revenue collection does not improve correspondingly.

7. Investment Climate: The rate hike might have mixed effects on the investment climate. While higher interest rates can attract foreign investment due to better returns, the increased cost of borrowing and potential economic slowdown could deter domestic investment in productive sectors.

In summary, while the CBN's decision to raise the interest rate aims to tackle inflation and stabilize the economy, it also presents challenges such as increased borrowing costs, potential economic slowdown, and financial strain on consumers and businesses. Balancing these outcomes will be crucial for sustaining economic growth and stability in Nigeria.

The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have expressed opposition to the federal government's proposal to set the minimum wage at N54,000 for workers.

On Tuesday, reports emerged that the federal government had raised its proposed minimum wage to N54,000, following the rejection of an initial offer of N48,000 by organized labour during a negotiation meeting.

Joe Ajaero, the president of the NLC, walked out of the negotiation meeting, stating that the government was not genuinely engaging with the labour representatives. “The government’s proposal of a paltry N48,000 as the minimum wage not only insults the sensibilities of Nigerian workers but also falls significantly short of meeting our needs and aspirations,” Ajaero said.

Reacting to the revised proposal of N54,000, NLC spokesperson Ben Ukpa declared it "unacceptable." He added, "The unions, including the NLC and TUC, reject the proposed N54,000. We will continue discussions."

The NLC and TUC had initially proposed a minimum wage of N615,500, citing the high cost of living as justification.

On Monday, following a joint national executive council (NEC) meeting, the labour unions set a deadline of May 31 for the federal government to finalize the new national minimum wage.

"We need an agreement that genuinely reflects the true value of Nigerian workers’ contributions to the nation’s development and addresses the current survival crisis caused by government policies," the labour movement stated.

"The NEC affirms its commitment to ensuring that the interests and welfare of workers are adequately protected in the negotiation process."

The Arewa Consultative Forum (ACF) has criticized policies implemented by President Bola Tinubu's administration, attributing them to the worsening living standards, inflation, and unemployment in Nigeria.

Following its National Executive Council (NEC) meeting in Kaduna on Tuesday, the ACF issued a statement expressing concern over the deteriorating economic conditions, which it warned could lead to social chaos, especially in northern Nigeria.

The forum highlighted that average citizens are increasingly facing inflation, unemployment, and declining living standards, compounded by ongoing insurgency, terrorism, and banditry. The ACF particularly pointed to the northern region where these issues are most severe.

In a communiqué signed by its National Spokesman, Tukur Muhammad-Baba, the ACF noted that government policies, such as the removal of fuel subsidies and the introduction of new taxes and levies, are significantly contributing to the economic hardship experienced by citizens.

"NEC decries with grave concern the continuing deterioration and escalation in insecurity-related incidents across all three geopolitical zones in the north," the communiqué read. "These issues reflect the region's cascading political, social, and economic challenges. The protracted nature of these problems, if left unaddressed, could lead to widespread social unrest."

The ACF also highlighted growing regional disparities in access to education, healthcare, infrastructure, economic opportunities, and political participation, warning that these disparities could further divide the country.

The forum called for urgent government action to address the declining living conditions and alleviate the burden of new taxes and levies on ordinary Nigerians. It stressed the need for public policy programs aimed at increasing purchasing power and improving economic conditions.

The communiqué emphasized that policies enacted over the past months, such as subsidy removal, the floating of the Naira, and rising electricity tariffs, have exacerbated economic difficulties. It also criticized government spending practices, urging public officials to exercise fiscal responsibility.

The ACF expressed support for Nigeria's security forces in their efforts to combat criminality and maintain stability, hoping for their success in overcoming insurgents, terrorists, and bandits. "God bless the Federal Republic of Nigeria," the communiqué concluded.

Former Bauchi State Governor Isa Yuguda asserted on Tuesday that President Bola Tinubu should not be held accountable for the current economic hardship and high inflation in Nigeria.

Speaking at the inaugural Asiwaju Scorecard Series organized by the All Progressives Congress Professionals Forum in Abuja, Yuguda emphasized that the economy was already in serious trouble before Tinubu took office.

In recent months, Nigerians have faced rising costs of food and inflation despite improvements in the exchange rate of the naira against the dollar. However, Yuguda argued that the Tinubu administration is not solely responsible for these economic challenges.

Yuguda highlighted that Tinubu inherited significant burdens, including a subsidy scam, widespread corruption in the civil service, and the economic impact of the Covid-19 lockdown, which saw billions of naira paid to subsidize domestic fuel consumption at historically low levels.

"The President did not create any of the problems people are talking about, whether in the economy or other sectors," Yuguda said. "What he met on the ground would have created a worse situation if not properly handled, but he is championing necessary reforms for a better society."

Yuguda pointed out that upon taking office, Tinubu announced the removal of the fuel subsidy, clarifying that it was not included in the latter part of the 2023 budget. Despite this, the administration has faced criticism over the subsidy removal.

Yuguda also reiterated his longstanding opposition to the fuel subsidy, which he documented during the Goodluck Jonathan administration when he chaired a subcommittee on the economic meltdown and recommended its removal due to widespread fraud.

He noted that a recent study showed Nigeria paid billions for fuel subsidies during the 2020 Covid-19 lockdown despite low domestic consumption.

"The President has been proved right with petrol importation dropping by 50 percent since June 2023," Yuguda added, highlighting the anticipated local production from the Dangote refinery and the upcoming resumption of production at the Port Harcourt and Warri refineries.

At least 40 people were killed and many others wounded in an attack by gunmen on Zurak village in Nigeria's north-central Plateau state, where clashes between herders and farmers are rife, the police and residents said on Tuesday.

Plateau police spokesperson Alfred Alabo said armed men, often referred to locally as bandits, fleeing an "aggressive onslaught" by security agents in Bangalala forest of Wase local government area of the state attacked Zurak and Dakai villages late on Monday.

While seven of the assailants were neutralised by security agents, fleeing gang members killed nine people and burnt down six houses, Alabo said in a statement.

Residents say the death toll is much higher. They told Reuters that dozens of gunmen had stormed the village on motorcycles, shooting indiscriminately, abducting an unspecified number of people, and setting houses ablaze.

"As they entered our village, they began shooting sporadically at anyone they saw. They killed more than 40 people without any mercy. I managed to escape to a nearby village. Until now, I haven't seen many of my family members," said Babangida Aliyu, a resident of Zurak who fled.

Another resident, Timothy Haruna, told Reuters: "They killed many people and abducted a lot. Many others sustained gunshot injuries. They also set our houses ablaze."

Attacks in rural areas and kidnapping for ransom have become commonplace in northern Nigeria in recent years where armed gangs have targeted villages, schools and travellers, demanding millions of naira in ransom.

Nigeria is plagued with security challenges, including a 14-year-long Islamist insurgency in its northeast, separatist violence in the southeast, and frequent deadly clashes between farmers and herders in the central region.

Alabo said the Plateau police command has deployed more officers to the area to secure the villages.

Reuters