From oil import permits to exchange rate systems – THE WEEKLY NEWS QUIZ

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#1. What was one of the suggestions made by the National Labor Congress (NLC) to address the current price of petrol in Nigeria?

The NLC proposed an increment of the minimum wage to  N200,000 as one of the strategies to manage the impact of Nigeria’s petrol subsidy removal. As a result of the subsidy removal, petrol prices went from N185 per litre to N500 overnight.

#2. Who formed a committee to consider the NLC's compensation schemes?

The Federal Government and the National Economic Council formed a committee consisting of governors from different regions, representatives from government agencies, and labour union members to consider the NLC’s compensation schemes and propose ways to help Nigerians manage the new petrol prices.

#3. Which of these agencies dispelled the rumours about Dangote Refinery being granted sole importation rights for petrol?

The NNPCL claims that they could not have given such a licence because they do not have the power to do so. As per the Petroleum Industry Act, the Nigerian Midstream and Downstream Petroleum Regulatory are in charge.

#4. Which two companies were identified as having import permits among the six companies mentioned in the article?

Although the six companies granted import permits were not specifically identified, various news outlets identified NNPCL Exploration and Production Ltd and Belema Sweet Export Terminal as two of the six companies. 

#5. Who has been elected as the Speaker of the House of Representatives for the 10th session?

Hon Tajudeen Abbas. And Godswill Akpabio is President of the 15th Senate

#6. What did Dele Alake, special adviser for communication, say about the claim regarding a salary increase for political and judicial office holders by 114%?

Dele Alake did not deny the recommendation made by the RMAFC regarding the salary increase for political and judicial office holders. However, he clarified that the claim of President Tinubu approving a 114% salary increase was untrue. He noted that for the RMAFC’s recommendation to reach the President’s table, it would need to go through the House of Reps and Senate, and that hasn’t happened yet.

#7. What is the process that the proposed salary increase for political and judicial office holders needs to go through to become law?

The proposal for the salary increase is still in the proposal phase. To become law, the proposal needs to be approved by 2/3 of state assemblies. Once this approval is obtained, the proposal can be presented to the President for their final approval before it becomes law. 

#8. What exchange rate system has been adopted by the CBN following a directive from the FG?

This means that instead of having multiple exchange rate windows with significant differences, all segments have been collapsed into a single exchange rate window known as the Investors and Exporters (I&E) window. This window represents the free float market exchange rate, where eligible transactions can access foreign exchange. This decision eliminates the previous multiple exchange rate system and establishes a unified exchange rate framework.

#9. How will the value of the Naira be determined under the new exchange rate system?

Under the free float market exchange rate system, the value of the Naira will be determined by market forces of supply and demand. This means that the exchange rate will fluctuate based on the dynamics of the foreign exchange market. When there is high demand for foreign currency and limited supply, the value of the Naira may decrease, resulting in a higher exchange rate. Conversely, if there is a higher supply and lower demand for foreign currency, the value of the Naira may increase, leading to a lower exchange rate. This shift to a market-determined exchange rate allows the currency’s value to reflect the economic conditions and encourages a more efficient allocation of resources.

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