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Tag: Naira

  • Dangote Refineries still embittered over Naira – Crude oil initiative

    Dangote Refineries still embittered over Naira – Crude oil initiative

    The Federal Government’s initiative to sell crude priced in naira is losing steam, the vice-president of Dangote Industries Limited, Edwin Devakumar, said in an interview with Reuters on Friday.

    Recall early last month, Nigeria officially commenced the sales of crude oil and refined petroleum products in naira, with Dangote refinery focusing on local supply.

    The refinery received four cargoes of crude oil from the NNPC under the naira-for-crude sale agreement a few weeks later.

    However, according to Devakumar, the plant is still unable to secure adequate supplies despite the scheme.

    “We need 650,000 barrels per day, (state oil firm NNPC Ltd) agreed to give a minimum of 385,000 bpd but they are not even delivering that,” he said.

    He described the deliveries from Nigerian National Petroleum Company (NNPC) Limited under the scheme as “peanuts”.

    Also commenting, an Acting Executive Director of the Crude Oil Refinery-owners Association of Nigeria (CORAN), Mathins Obaze, said Dangote is the only one of 8 operational refineries in Nigeria to have benefited from the naira-denominated crude sale arrangement.

    “Members are still unable to access crude in naira and are currently engaging the government for a resolution,” Obaze said.

    The 650,000 barrels per day capacity refinery was greeted by crude challenges when it began operations some months ago.

    President of the Dangote Group, Alhaji Aliko Dangote, had cried out, saying some international oil companies were planning to sabotage the investment by refusing to supply crude.

    The Dangote Group had alleged that the International Oil Companies (IOCs) insisted on selling crude oil to its refinery through their foreign agents.

    According to the company, the local price of crude would continue to increase because the trading arms offered cargoes at $2 to $4 per barrel, above the official price.

    The group also alleged that the foreign oil producers seem to be prioritising Asian countries in selling the crude they produce in Nigeria.

    Despite the intervention of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in July, the group insisted that the IOCs were still frustrating the refinery. (Daily Trust)

  • 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.

  • CBN sends strong warning to commercial banks over Naira hawking

    CBN sends strong warning to commercial banks over Naira hawking

    The Central Bank of Nigeria (CBN) says it will heavily penalise Deposit Money Banks (DMBs) found  supporting the hawking of Naira notes.

    Mr Solaja Olayemi, Acting Director, Currency Operations Department, CBN, said this in a memo to DMBs on Friday in Abuja.

    Olayemi said that the CBN would engage in “mystery shopping” exercise and periodic “spot checks” on cash distribution and disbursement activities of DMBs to ascertain the source of such Naira notes.

    He said that the initiatives were introduced to monitor and prevent practices that facilitate the flow of mint banknotes to hawkers of Naira cash, thereby discouraging abuse of the Naira.

    He said that the initiatives would also ensure that DMBs support efficient and responsible cash disbursement to the public.

    “For the avoidance of doubt, it should be noted that DMBs, to whom cash seized from hawkers of cash is traced, will be penalised 10 per cent of the total value of cash withdrawn on the day the seized cash was withdrawn from the CBN.

    “Every subsequent offence will be charged an incremental penalty of five per cent. DMBs found engaging in cash hoarding, diversion, or any actions that hinder efficient cash distribution, including violations of the Clean Note Policy, will incur appropriate sanctions,” he said.

    He urged DMBs to implement internal controls for responsible disbursement and accountability in respect of mint banknotes payouts at their outlets, as the yuletide season approached, with an anticipated increase in cash demand,

    “To enhance public access to cash, we encourage banks to prioritise cash distribution through Automated Teller Machines (ATMs).

    “During this season, the CBN, in collaboration with relevant law enforcement agencies, will intensify spot checks and mystery shopping activities to monitor and enforce responsible cash distribution and prevent Naira abuse,” he said.

  • Emefiele’s trial: Witness reveals CBN board did not recommend Naira redesign

    Emefiele’s trial: Witness reveals CBN board did not recommend Naira redesign

    A former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Obiorah, on Thursday said the board of the apex bank never recommended the 2022 Naira redesign to former President Muhammadu Buhari.

    Obiorah said this while testifying virtually before the FCT High Court at the resumed hearing  in the ongoing trial of the suspended governor of the CBN, Godwin Emefiele.

    Emefiele is standing trial before Justice Maryanne Anenih, on  four-count charge bordering on disobedience to the direction of law and illegal act causing injury to the public.

    Emefiele is being prosecuted by the Economic and Financial Crimes Commission (EFCC), on behalf of the Federal Government, in the charge, marked FCT/HC/CR/264/2024.

    He however pleaded not guilty to the charge .

    Led in evidence-in-chief by the prosecution counsel, Mr Rotimi Oyedepo SAN, Obiorah, said that he ounce served as Special Adviser to Emefiele on Economic Matters.

    Obiorah, who later became deputy governor, said the CBN board first heard of the Naira redesign policy on Dec. 15, 2022.

    “To the best of my recollection, the first day this policy (Naira redesign) was discussed at the board meeting was mid December, 2022. I think it was around Dec. 15, 2022.

    “The governor (Emefiele) invited the deputy governor, Operations and Director, Currency Operations to present that same memo that the Committee of Governors (COG) saw in October. He also informed the board of the President’s approval.

    “I do not recollect any instance where the board made recommendation for Nairan redesign to the President. The board did not recommend the  Naira redesign.”

    Obiorah, testified as the fifth prosecution witness (PW5). He earlier told the court that Emefiele informed the four CBN deputy governors of the Naira redesign policy at an event in Lagos on Oct. 25, 2022, adding that they advised him against announcing the policy at the event.

    “On that day, we were in Lagos to commemorate the first year anniversary of the digital currency, E-Naira. During the break between the first two sessions of the event, the governor (Emefiele) called the four deputy governors and informed us of plans to redesign the currency.

    “He was contemplating to announce it that day at the event. My personal reaction was that the event may not be the appropriate place. That was the first time I became aware of the plan.

    “Secondly, my comment was that we would need time to study the policy and make inputs,” the witness told the court.

    According to Obiorah, Emefiele told the four deputy governors tha the reason behind the secrecy of the redesign policy was to ensure its effective implementation.

    He said that on Oct. 26, 2022, the defendant the deputy governor in charge of operations, Mr Ade Shonubi, circulated and presented a memo for Naira redesign,.

    “The deputy governor, Operations, presented the memo to the COG and it was deliberated on. During the discussion, the governor mentioned that he got the approval of the President for the policy.

    “After the COG meeting, the governor and two deputy governors joined a news conference to announce the policy to the public. All this happened on Oct. 26, 2022,” he told the court.

    Under cross examination by counsel for Emefiele, Olalekan Ojo SAN, the witness confirmed that he had previously worked as technical adviser to former President Good luck Jonathan.

    He said at its Dec. 15, 2022 meeting, the CBN board ratified the decision of the COG on Naira redesign policy, saying , “this ratification is in respect of the redesigned Naira already in circulation.”

    The PW5 also said he was aware of instances of presidential approval for disbursement of funds to Chad, Niger Republic and the military, which the CBN complied with.

    “Such (presidential) request would come to the governor. He would usually let the committee (COG) know and it would be implemented before the board get to know.”

    He added that when he was invited by the EFCC, he was never shown and documents from former President Buhari or any officials from the presidency complaining about the redesigned Naira notes already in circulation.

    He confirmed that one of the reasons for currency redesign was to combat currency trafficking and hoarding. After his evidence, Justice Anenih adjourned further hearing until Dec. 4.

  • Naira slightly depreciates in parallel market

    Naira slightly depreciates in parallel market

    The Naira experienced a slight depreciation Wednesday, slipping to N1,740 per dollar in the parallel market compared to its previous rate of N1,735 per dollar on Tuesday.

    According to data from FMDQ, the indicative exchange rate for the Nigerian Autonomous Foreign Exchange Market (NAFEM) strengthened, rising to N1,645.4 per dollar from Tuesday’s rate of N1,689.88 per dollar. This marks an appreciation of N44.48 for the Naira.

    The market also saw a significant increase in dollar trading activity, with turnover climbing by 122.5 percent to reach $236.84 million, up from $106.44 million the previous day.

    As a result, the gap between the parallel market and the NAFEM exchange rate widened, now standing at N94.6 per dollar, up from N45.12 per dollar recorded on Tuesday.

  • Naira appreciates against Dollar at official market

    The Naira on Thursday appreciated at the official market, trading at N1,639.50 to the Dollar. Data from the official trading platform of the FMDQ Exchange, revealed that Naira gained N42.15.

    This represents a 2.5 per cent gain when compared to the previous trading date on Wednesday when it exchanged at N1,681.65 to a Dollar.

    Also, the total daily turnover increased to 244.96 million dollars on Thursday up from 196.78  million Dollars recorded on Wednesday.

    At the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,700.00 and N1,635.00 against the Dollar.

  • Official Market: Naira depreciates against Dollar

    Official Market: Naira depreciates against Dollar

    The Naira depreciated at the official market on Monday, trading at N1,676.90 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that Naira lost N10.18.

    This represents a 0.61 per cent loss when compared to the previous trading on Friday, Nov. 1, when it exchanged at N1,666.72 to a Dollar.

    Also, the total daily turnover reduced to 79.47 million dollars on Monday, down from 94.20 million Dollars recorded on Friday.

    At the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,690.00 and N1,591.60 against the Dollar.

  • Naira appreciates against Dollar at official market

    Naira appreciates against Dollar at official market

    The Naira on Friday appreciated at the official market, trading at N1,666.72 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that Naira gained N8.77.

    This represents a 0.52 per cent gain when compared to the previous trading  on Thursday, when it exchanged at N1,675.49 to a Dollar.

    The total daily turnover, however, reduced to 94.20 million dollars, down from 166.61 million Dollars recorded on Thursday.

    At the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,685.00 and N1,600.00 against the Dollar.

  • Naira further depreciates by 2.7% against dollar

    Naira further depreciates by 2.7% against dollar

    The Naira on Thursday further slumped at the official market, trading at N1,675.49 to the dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the local currency lost N44.32.

    This represents a 2.71 per cent loss when compared to the previous trading date on Wednesday, when it exchanged at N1,631.17 to a dollar.

    However, the total daily turnover increased to 166.61 million dollars on Thursday up from 128.98 million dollars recorded on Wednesday.

    At the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,677 and N1,610 against the dollar.

  • Naira depreciates against dollar at N1,631

    Naira depreciates against dollar at N1,631

    The Naira on Wednesday slightly depreciated at the official market, trading at N1,631.17 to the dollar.

    Data from the official trading platform of the FMDQ Exchange, revealed that the Naira declined against the dollar by 72 kobo.

    This represents 0.04 per cent loss when compared to the previous trading date on Tuesday, when it was exchanged at N1,630.45 to a dollar.

    Also, the total daily turnover reduced to 128.98 million dollars on Wednesday down from 242.59 recorded on Tuesday.

    At the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,684 and N1,575 against the dollar.