TheNewsGuru

Tag: exchange rate

  • Customs faces exchange rate volatility challenges

    Customs faces exchange rate volatility challenges

    The Nigeria Customs Service recorded 62 exchange rate changes during the first quarter of 2025, highlighting ongoing currency instability within the trade and importation ecosystem.

    The Comptroller-General, Adewale Adeniyi, disclosed this at a Tuesday press briefing in Abuja, where he reviewed the service’s operations for the first quarter of 2025.

    Adeniyi called the volatile exchange rate one of the service’s key challenges, as it disrupted trade patterns, valuation systems, and sowed uncertainty among Nigerian importers and exporters.

    “Within the quarter, we saw 62 exchange rate changes. Rates ranged from ₦1,477.72 to ₦1,569.53 per dollar, averaging ₦1,521.59,” he explained.

    Although this marked a slight improvement from Q4 2024, which peaked at ₦1,688.28, volatility remains high and import cost predictability remains fragile.

    Adeniyi said the service continues working with the Central Bank and Ministry of Finance to introduce stabilisation measures targeting import exchange rates.

    Another hurdle, he noted, was the stop-start implementation of the Financial Customs Service Operation, known as the four per cent Free On Board charge.

    The policy’s sudden suspension triggered disruptions, forcing both Customs and stakeholders into temporary operational recalibrations.

    In March, the service also contended with a 14 per cent reciprocal tariff slapped on Nigerian exports by the United States.

    “This tariff could significantly affect our export trade and demands calculated diplomatic and policy manoeuvres,” Adeniyi said.

    On a brighter note, he highlighted exemptions on essential food imports as a major step in combatting Nigeria’s food insecurity crisis.

    The NCS waived duties on maize, rice, and sorghum, which helped curb rising food costs and improved local availability of staples.

    In Q1 2025, waivers covered maize worth ₦45.3 billion, rice at ₦751.6 million, and sorghum at ₦2.3 billion in Free On Board value.

    Combined with earlier exemptions — ₦45.9 billion in rice and ₦2.8 billion in wheat from 2024 — these measures helped reduce prices by 12–18 per cent.

    While 2024 waivers had delayed effects due to supply chain lags, the 2025 reliefs added fresh momentum to food cost stability.

    These combined customs measures show how targeted fiscal policy can meaningfully influence both short- and long-term food affordability.

    Adeniyi also emphasised that trade facilitation remains central to the NCS mandate, with Q1 trade value reaching an impressive ₦36.32 trillion.

    This figure, he added, reflects Nigeria’s sustained global trade presence, despite facing multiple headwinds in the international economic environment.

    In export activity, the service processed 8,153 shipments weighing a total of 5.03 billion kilogrammes, in spite of a reduced number of transactions.

    “These figures illustrate changing trade patterns and improved efficiency within Nigeria’s export processing architecture,” the Comptroller-General observed.

    The NCS also seized undeclared foreign currency: $193,000 at Abuja airport, $1.1 million and 135,900 Riyals in Kano, securing two convictions.

    Looking ahead, the service aims to expand its B’Odogwu platform, implement smart risk systems, and infuse emerging technologies to enhance customs operations.

  • Naira depreciates to N1,539.39 per Dollar at official market

    Naira depreciates to N1,539.39 per Dollar at official market

    The Naira recorded a slight loss at the official market on Wednesday, trading at N1,539.39 per dollar.

    Data from the Central Bank of Nigeria (CBN) showed that the Naira closed the trading session at N1,539.39 to the dollar.

    This represents a slight loss as the local currency traded on Tuesday at N1,534.16 per dollar.

    The data from the apex bank’s forex exchange platform revealed that the Naira lost N5.23, representing a 0.34 per cent loss.

    Also, data from the FMDQ Security Exchange official forex trading platform revealed that the Naira opened trading on Tuesday at N1,535.50 to a dollar, but closed at N1,541.70 on Wednesday.

    However, trading on the Investors and Exporters (I&E) Forex window on Wednesday recorded a high of N1,544.00 and a low of N1,535.50.

    Meanwhile, experts have acknowledge that recent stability of the Naira is due to CBN’s implementation of the Electronic Foreign Exchange Matching System (EFEMS), which has improved transparency and efficiency in FX trading.

    Dr Muda Yusuf, Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), during a recent review of 2024 and projection for 2025, confirmed moderation in exchange rate volatility.

    He said the Naira stability was due to a series of regulatory reforms and the periodic intervention by the CBN in the forex market.

  • Naira gains N28.85 against dollar at official market

    Naira gains N28.85 against dollar at official market

    The Naira on Thursday appreciated at the official market trading at N1,658.67 against the dollar.

    Data from the official trading platform of the FMDQ Exchange, revealed that the Naira gained N28.85.

    This represents a 1.7 per cent gain, compared to the previous trading date on Wednesday when it exchanged at N1,687.52 to a dollar.

    However, the total daily turnover reduced to 163.66 million dollars on Thursday, down from to 173.29 million dollars recorded on Wednesday.

    At the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,707.50 and N1,631.00 against the dollar.

  • BREAKING: Despite hardship, CBN raises Nigeria Customs Duty Exchange Rate to N1658.87/$

    BREAKING: Despite hardship, CBN raises Nigeria Customs Duty Exchange Rate to N1658.87/$

    Despite the hardship ravaging Nigeria , the Central Bank of Nigeria (CBN) has adjusted the Customs duty exchange rate for clearing goods at the nation’s ports to N1,658.87 per dollar.

     

    This change, effective Monday, November 18, reflects a 0.37% increase from the previous week’s rate of N1,652.63 per dollar, impacting importers filing Form M applications.

    Customs duty, which is the tax levied on imported goods, is paid through commercial banks to the Nigeria Customs Service on behalf of the federal government.

    Form M, a mandatory document for importers, is required for all goods entering Nigeria.

     

    The increasing Customs exchange rate poses significant challenges for Nigeria’s import-dependent economy.

    According to the Nigerian Port Consultative Council (NPCC), the first half of 2024 witnessed a 4.3% decline in the number of ships arriving at the country’s seaports.

    The Centre for the Promotion of Private Enterprise (CPPE) has called on the Central Bank of Nigeria (CBN) to reduce the Customs duty exchange rate to N1,000 per dollar to alleviate economic hardships in the country.

    The Chief Executive Officer of CPPE, Dr. Muda Yusuf, emphasized the need for a major policy adjustment to complement existing measures aimed at addressing Nigeria’s ongoing cost-of-living crisis.

    According to the economist, pegging the rate at N1,000 per dollar would help stabilize market prices and provide relief to businesses and consumers.

  • Naira Nosedives to N1,700/$ at parallel market, lowest level in 7 months

    Naira Nosedives to N1,700/$ at parallel market, lowest level in 7 months

    The naira nosedived to N1,700 per dollar at the parallel section of the foreign exchange (FX) market on Friday.

    At the end of trading hours, the naira depreciated by 1.49 percent compared to the N1,675/$ traded on Thursday.

    The N1,700 per dollar is the lowest the naira has depreciated since February 19, when the naira recorded a low of N1,730/$.

    Currency traders, also known as street traders, in Lagos, quoted the buying rate of the local currency at N1,680/$ and the selling rate at N1,700/$ — leaving a profit margin of N20.

    At the official window, the local currency appreciated by 2.24 percent from N1,576.1/$ on Thursday to trade at N1,540.78 on Friday.

    According to FMDQ Exchange, a platform that oversees the official window, a dollar was sold as high as N1,691 and at a low rate of N1,530. during trading hours.

    WEEK-LONG FLUCTUATIONS

    At the parallel market on Monday, the naira depreciated to N1,665/$ from N1,663 on September 20.

    Maintaining the depreciation streak, the local currency fell further to N1,670 and N1,680 on Tuesday and Wednesday, respectively.

    However, the naira rebounded to N1,675 on Thursday.

    At the official FX market, the local currency depreciated to N1,562.66 on Monday — from N1,541.52 on September 20.

    Subsequently, the naira further depreciated to N1,658.48 on Tuesday and N1,667.72 on Wednesday, before appreciating to N1,576.1 on Thursday.

    On January 29, the Central Bank of Nigeria (CBN) said it had begun implementing a comprehensive plan to improve liquidity in the Nigerian FX markets in the short, medium, and long term.

    The apex bank said the FX reforms were designed to streamline and harmonise multiple exchange rates, promote transparency, and lessen the likelihood of arbitrage opportunities.

    On September 25, Olayemi Cardoso, governor of CBN, said the multiple interest rate hikes have restored confidence in the naira.

  • CBN approves $20,000 for eligible BDCs at N1,580 exchange rate

    CBN approves $20,000 for eligible BDCs at N1,580 exchange rate

    The Central Bank of Nigeria (CBN), says it has approved 20,000 dollars each for eligible Bureaux De Change (BDCs) at the rate of N1,580 to a dollar.

    This is according to a statement issued by Dr Williams kanaya, the Acting Director, Trade and Exchange Department of the apex bank.

    “This is to inform the BDC operators and the general public that we are providing more liquidity into the market.

    “To this end, the CBN has approved the sale of 20,000 dollars to each eligible BDCs operator at the rate of N1, 580/dollar. This is to meet the demand for invisible transactions.

    “All BDCs are allowed to sell to eligible end-users at a margin not more than one per cent above the purchase rate from CBN.

    “Eligible BDCs interested in this transaction are directed to make the Naira payment to the CBN deposit account numbers with them,” he said.

    He said that payment confirmation and all necessary documentation for disbursement are to be submitted at the appropriate CBN branches in Abuja, Awka, Kano and Lagos for collection of the 20,000.00 dollars.

  • Naira depreciates against Dollar as CBN begins regular FX sales

    Naira depreciates against Dollar as CBN begins regular FX sales

    The Naira on Friday depreciated at the official market, trading at N1,596.92 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the Naira lost N30.10.

    This represents a 1.92 per cent loss when compared to the previous trading date on Thursday when it exchanged at N1,566.82 to a Dollar.

    Also, the total daily turnover reduced to 250.67 million dollars on Friday, down from 273.14 million dollars recorded on Thursday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,619 and N1,495 against the dollar.

    CBN commences regular foreign exchange sales to bridge demand gap

    Meanwhile, the Central Bank of Nigeria (CBN) says it has commenced regular sale of foreign exchange (FX) through authorised dealer banks and licensed Bureaux De Change (BDCs) to bridge gap.

    The Director, Financial Markets Department, CBN, Ms Omolara Duke, said this in a statement on Friday in Abuja.

    Duke said that recent movements in FX market were largely driven by demand pressure from corporate entities and summer season uptick.

    She said that such fx supply was in line with the price stability mandate of the CBN, as well as its commitment to ensure a well functioning and liquid market.

    She said that the apex bank would continue to support various segments of the official markets with liquidity over the next few weeks.

    “In line with the above, the CBN, on Thursday and Friday, sold a total sum of 106.5 million dollars to 29 authorised dealer banks between an exchange rate range of N1, 498 to one dollar.

    “In addition, it bought 9.5 million dollars from four authorised dealer banks at rates between N1,510 to one dollar and N1,550 to one dollar,” she said.

    She said that CBN would continue to closely monitor compliance with existing trading rules and regulations by authorised dealer banks to promote ethical conduct and support the drive to achieve fx market stability.

    She urged the general public to direct their fx demand to their banks and BDC operators in accordance with prevailing market regulations.

  • Naira appreciates against Dollar after CBN’s directive

    Naira appreciates against Dollar after CBN’s directive

    The Naira on Thursday appreciated at the official market, trading at N1,566.82 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the Naira gained N14.83.

    This represents a 0.937 per cent gain when compared to the previous trading date on Wednesday when it exchanged at N1,581.65 to a Dollar.

    However, the total daily turnover increased to 273.14 million dollars on Thursday, up from 108.16 million Dollars recorded on Wednesday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,650.00 and N1,500.00 against the dollar.

    The Central Bank of Nigeria (CBN) had directed Bureau De Change (BDCs) operators to sell forex at a maximum profit margin of 1.5 per cent, aiming to correct market distortions.

    The apex bank directive was to normalise the foreign exchange market through ongoing reforms.

    The bank said that persistent distortions in the retail market were contributing to disparities in exchange rates, particularly in the parallel market.

    Under the directive, each BDC is authorised to purchase 20,000 Dollars at a rate of N1,450 per dollar reflecting the lower band of the trading rate observed in the previous session at Nigeria Autonomous Foreign Exchange Market (NAFEM).

    All BDCs are permitted to sell to eligible end-users at a profit margin not exceeding 1.5 per cent above the CBN rate.

  • BREAKING: CBN injects more USD into FX market

    BREAKING: CBN injects more USD into FX market

    The Central Bank of Nigeria (CBN) on Thursday approved the sales of $20,000 each to Bureau de Change (BDC) operators in the country.

    TheNewsGuru.com (TNG) reports CBN announced this in a statement signed by A. A. Mahdi on behalf of the Acting Director in charge of Trade and Exchange Department.

    According to the apex bank, the move is to meet retail market demand for eligible invisible transactions.

    “Following the on-going reforms in the foreign exchange market, with the objective of achieving an appropriate market determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has observed the continued distortions in the retail end of the market, which is feeding into the parallel market and further widen the exchange rate premium.

    “To this end, the CBN has approved the sales of FX to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1,450/S (representing the lower band of the trading rate at NAFEM in the previous trading day).

    “All BDCs are allowed to sell to eligible end-users at a margin NOT MORE THAN one point five percent (1.5 %) above the purchase rate from CBN.

    “All eligible BDCs are directed to make the Naira payment to the listed CB Naira Deposit Account Numbers and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN Branches – (ABUJA, AWKA, KANO and LAGOS),” the statement reads.

    Recall that the CBN had only on July 12th sold the sum of 122,671 million dollars to 46 authorised BDC operators.

    According to a statement issued by the apex bank’s Director in charge of Financial Markets, Dr Omolara Duke, that move was aimed at promoting stability as well as to reduce market volatility in the foreign exchange market.

    Duke said that 67.5 million dollars of the total sale was sold to 27 authorised dealers, while the sum of 2.5 million was bought from one authorised dealer on July 10.

    She said that the range of the bid for the July 10 sales was between N1,480 and N1,500 to the dollar, while the value date for the payments, going by the settlement cycle of two days was July 12.

    “Similarly, on July 11, the sum of 55.171 million dollars was sold to 19 authorised dealers at N1,540 to the dollar. The value date for the payments of the spot sale is July 15,” she said.

    She urged all authorised dealers to ensure that foreign exchange purchases from the CBN were used exclusively for trade-backed transactions, which should be reported within 72 hours.

    Duke said that the CBN supplied FX to the market to improve liquidity through spot sales to authorised dealers using two-way quotes.

    She assured that the CBN would continue to ensure stability in the FX market.

  • Naira loses N13.49 against Dollar at official market

    Naira loses N13.49 against Dollar at official market

    The Naira on Monday depreciated at the official market, trading at N1,577.29 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the Naira lost N13.49.

    This represents 0.86 per cent loss when compared to the previous trading date on Friday, July 12 when it exchanged at N1,563.80 to a Dollar.

    However, the total daily turnover increased to 153.53 million dollars on Monday, up from 126.50 million Dollars recorded on Friday.

    Meanwhile, at the Investor’s and Exporter’s (I&;E) window, the Naira traded between N1,590 and N1,470 against the Dollar.