The Nigerian naira fell against the US dollar to ₦500 on the black market as the country’s dollar scarcity worsens, according to abokiFX.com, which collates prices from traders in Lagos each day. The currency’s unofficial rate is now 38 percent weaker than the CBN’s level of ₦309 per dollar. Th is is despite several attempts by CBN governor, Godwin Emefiele, and the government to stem the rout after a devaluation in June. This comes as Nigeria’s external
CBN Governor, Godwin Emefiele has insisted on regulated foreign exchange regime to ensure that the naira does not go beyond a certain band in the exchange market. Also, the regulator said it has no intention of becoming reckless with the country’s foreign reserves, which have increased from $24 billion to $29.8 billion in three months. The CBN boss who spoke last week at the Monetary Policy Committee meeting, said the bank would tighten the forex management
Nigeria has endured a week of rumours surrounding the health of President Muhammadu Buhari. “News” of his purported death in London had gone viral on social media on January 20, forcing the President’s media aide, Garba Shehu, to deny the speculation on his Twitter handle. Transport minister, Rotimi Amaechi, told Arise TV on January 23 that “the president stood for one hour and if he is not fit he would have collapsed. I do not think we should discuss president’s
Economic setbacks among Nigeria’s states as a result of dwindling revenue may be far from over, as federal allocations remain low, while businesses face the challenge of recession, leading to failing tax earnings for government. A Partner, Tax and Regulatory Services at Deloitte Nigeria, Lagos, Abayomi Olugbenro, warned that the troubling operating environment would reflect in the revenue of state governments and VAT. Speaking on recessionary impact on states’
Fitch Ratings revised the outlook on Nigeria to negative from stable over concerns that a lack of foreign exchange will hamper the economy and affirmed the west African nation’s rating at B+, four steps below investment grade. While Nigeria’s economy will probably grow at 1.5 percent this year, after contracting by an estimated 1.5 percent in 2016, the non-oil sector will continue to be constrained by foreign currency shortages, the ratings agency said in
The CBN has retained the MPR at 14 percent. According to the regulator, the need to watch and re-assess the challenges that confronted the economy in 2016 and the opportunities for recovery in 2017 informed its decision against calls by some stakeholders for a cut in the rates to engender credit as a means of spurring national growth. Accordingly, it maintained all the policy rates at their subsisting levels: MPR at 14 percent; CRR at 22.5 percent; and Liquidity
In December 2016, SBM Intelligence was commissioned to do a study on the FX market. The report was delivered, and the client granted permission for an updated and redacted version to be released to the public six weeks after the presentation of the original report.
Being a largely import dependent consuming economy, Nigeria needs foreign exchange in order to function. This has been the story for half a century at least.
The Nigerian FX market has evolved over the years
Transportation minister, Rotimi Amaechi, says that the FG has released ₦72 billion as counterpart funding for the construction of the Lagos-Ibadan standard gauge railway line. Amaechi said the money was released in full so that there will be no delay in the project’s implementation. Amaechi also appealed to the National Assembly to approve a US$29.9 billion foreign loan request made by President Muhammadu Buhari. In his words, “On the construction
Electricity supply in Nigeria dropped from the 4.883.9mw to 2,200MW at the end of last week. Over 450MW of electricity has been trapped at the Afam V Power Station in Rivers State following a fire incident, in which TCN protection and control equipment were destroyed last week. Nerus Ekezie, the Head, Programmes and Membership, Institute of Directors’ Centre for Corporate Governance, said that inadequate electricity would lead to high cost of production, increase
Another petrol scarcity may be looming as marketers have stopped the importation of petrol. According to the Depot and Petroleum Products Marketers Association, a ₦660 billion FG debt for already imported products, coupled with interests on bank loans have been major stumbling blocks to continued importation. The group’s Executive Secretary, Olufemi Adewole said most marketers now depend on the Nigerian National Petroleum Corporation for imported petrol. The