The Nigerian foreign exchange (FX) shortage, is sucking Africa’s largest economy dry, even as production retreats towards a second contraction in four years.
GT Bank, yesterday, revealed that payment of dividends to its holders of global depository (GDRs), has been delayed, due to difficulties getting dollars.
In a statement to GDR holders, the bank revealed that its registrar, was in queue with the Central Bank of Nigeria (CBN) for dollars, in order to fund the payout, following a recent surge in dollar demand.
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When questioned on the size of the dividend to be paid, the bank did not comment.
The Nigerian government has solely relied on oil exports for over 50 per cent of its revenue, and its treasury has been emptied after the tap of oil money ran dry. This was due to the recent oil crash, caused by the COVID-19 pandemic and global outbreak.
In the forwards market, the Naira depreciated against the US dollar in the 1-month (-0.03 per cent to N387.51/$), and 1-year (-0.3 per cent to N409.32/$) contracts but appreciated against the dollar in the 3-month (+0.05 per cent to N389.81/$), and 6-month (+0.1 per ce to N393.79/$) contracts.
