Economy
CBN introduces electronic FX matching system for transactions
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In a major shift aimed at reforming the Nigerian Foreign Exchange Market (NFEM), the Central Bank of Nigeria (CBN) has announced the introduction of the Electronic Foreign Exchange Matching System (EFEMS) for foreign exchange (FX) transactions.
This digital platform is expected to improve the governance and transparency of the interbank FX market with full implementation set for December 1, 2024.
In a circular addressed to Authorised Dealers on Thursday, Dr. Omolara O. Duke, the Director of the CBN’s Financial Markets Department, outlined the details of the system.
According to the circular, a two-week test run of the EFEMS will be conducted in November 2024 before the official launch in December.
The test run aims to ensure that Authorised Dealers and relevant market participants are familiar with the system and that all technical aspects are fully integrated before going live.
Once operational, all FX transactions in the interbank market will be conducted on this electronic system, which has been approved by the CBN.
Transactions will be reflected immediately in real time, providing better transparency to market participants.
The system is also expected to reduce speculative activities that often distort the market and give the CBN improved oversight to regulate the market effectively.
The new EFEMS is poised to enhance the governance of the Nigerian FX market as the CBN has framed EFEMS as a tool that will improve transparency, thereby fostering a market-driven exchange rate.
In her statement, Dr. Duke emphasised the system would “facilitate a market-driven exchange rate that will be accessible to the public.”
By publishing real-time prices and buy/sell orders data, EFEMS will make it easier for market participants, including businesses and individuals, to access reliable information on FX rates. This development is expected to address the lack of transparency that has plagued the FX market, leading to more informed decision-making by market players. In addition, it will allow the CBN to have an enhanced supervisory role, as the system will provide improved monitoring capabilities.
The introduction of EFEMS comes as part of the CBN’s broader effort to curb speculative activities that often distort the true value of the Nigerian naira. Speculation in the FX market has led to significant volatility, contributing to a widening gap between the official and parallel market rates. By introducing a system that ensures real-time transparency, the CBN hopes to limit the ability of speculators to manipulate market prices for personal gain.
The EFEMS will also work toward eliminating market distortions by streamlining the FX transaction process. As all transactions will be conducted electronically, the risk of delays or discrepancies between quoted rates and actual transaction prices will be significantly reduced.
In order to ensure a smooth rollout of the EFEMS, the CBN has partnered with the Financial Markets Dealers Association (FMDA).
Together, they will publish the operating rules for the EFEMS, which will guide the market participants in conducting FX transactions. In addition, the Nigerian FX Code and revised Market Operating Guidelines for the NFEM will provide further guidance to market participants, ensuring adherence to the highest standards of practice.
The FMDA will also play a key role in ensuring that Authorised Dealers comply with the operational requirements of the new system. This includes ensuring that the necessary documentation, training, and system integrations are completed ahead of the December 1st go-live date.
The CBN’s directive places significant responsibility on Authorised Dealers, who are required to comply with all existing guidelines and regulations governing the NFEM. As part of their obligations, they must ensure that their systems are fully integrated with the EFEMS platform before the implementation date.
Dealers are also mandated to complete training on the use of the EFEMS to ensure that all market participants are well-prepared for the transition. This move is critical in preventing any operational disruptions during the switchover to the new system.
The introduction of EFEMS comes at a time when the Nigerian economy is facing significant currency pressures due to external and internal factors. The CBN’s initiative is expected to provide stability to the Nigerian naira by curbing market speculation, which has contributed to exchange rate volatility.
With enhanced transparency and real-time access to FX market data, businesses will be better equipped to plan and manage their foreign exchange needs, reducing the uncertainty that has been a hallmark of the Nigerian FX market in recent years. Furthermore, the public will have greater access to FX market information, enabling individuals and businesses to make more informed decisions.
By implementing EFEMS, the CBN aims to create a more efficient and transparent market that aligns with global best practices. If successful, the system could serve as a model for other emerging markets grappling with similar challenges in their FX markets.
Economy
How to apply: FG opens access to 250,000 free business name registrations
The Federal Government has opened access to 250,000 free business name registrations for eligible entrepreneurs across Nigeria as part of efforts to support the growth and development of Micro, Small and Medium Enterprises (MSMEs).
The initiative, approved under the administration of President Bola Ahmed Tinubu, is designed to ease the cost of formalising small businesses and encourage more entrepreneurs to register their businesses.
Interested and eligible entrepreneurs have been advised to apply through the official SMEDAN portal at portal.smedan.gov.ng to become beneficiaries of the programme.
The registration is completely free, with the Corporate Affairs Commission (CAC) expected to process the business name registration without charging applicants.
The government also warned entrepreneurs to be wary of fraudsters who may attempt to exploit the programme.
Applicants have been advised not to pay anyone claiming to have the ability to fast-track or secure their registration, as no payment is required for the approved free registration.
Entrepreneurs seeking to benefit from the initiative are therefore encouraged to use only the official SMEDAN portal and avoid sharing payments or personal information with unauthorised agents.
Economy
Over 5,000 fibre cuts recorded in six months – NCC
The Nigerian Communications Commission (NCC) has disclosed that more than 5,000 fibre-optic cable cut incidents were recorded across the country in the first six months of 2026, with road construction, excavation and related civil works identified among the major causes.
The Executive Vice-Chairman of the NCC, Dr Aminu Maida, disclosed this on Tuesday at a stakeholders’ workshop on the protection of fibre-optic cables during road construction, excavation and other activities in Nigeria.
Maida said the high number of incidents required stronger collaboration between telecommunications operators, road contractors, government agencies, regulators and security institutions to prevent further damage to critical telecommunications infrastructure.
According to him, many of the incidents occurred because of inadequate coordination among stakeholders involved in road and other construction activities. He said the consequences of fibre cuts extended beyond the immediate physical damage to cables, stressing that they could disrupt essential services and affect millions of Nigerians.
The NCC boss recalled the nationwide telecommunications disruption in February 2024, when fibre cuts, including those caused by road construction, affected one of the major telecommunications operators. He said millions of subscribers were unable to make calls, send messages or access the internet for several hours, while subscribers who moved to alternative networks caused congestion on those networks.
According to him, the incident demonstrated how damage to one network could quickly have wider national consequences.
“In the first six months of this year alone, more than 5,000 fibre cut incidents were reported from road excavation, construction, and related civil work. A damaged fibre cable is therefore not simply a cost to an operator, it is a cost to Nigerians and to the wider economy.
“Those affected were not numbers in an incident report. They were parents, businesses, workers, and citizens cut off from people and services on which they depended on,” Maida said.
He stressed that preventing fibre cuts should be prioritised rather than waiting to repair damaged infrastructure after incidents had occurred.
Maida said telecommunications operators must provide accurate information on the location of their infrastructure and respond promptly when contacted before construction begins. He added that contractors must check for underground infrastructure before excavation and make adequate plans for its protection.
The NCC chief also urged regulators and security agencies to provide guidance and ensure accountability, stressing that coordination should form part of the design and execution of every relevant infrastructure project.
He said the commission remained committed to working with public and private stakeholders to make coordination a standard practice in road construction and other civil works.
Earlier, the Director of Critical National Assets and Infrastructure Protection in the Office of the National Security Adviser, AVM Effiong Ewa, said the protection of fibre-optic infrastructure was a shared national responsibility.
Ewa noted that telecommunications infrastructure had been designated as Critical National Information Infrastructure, warning that negligence or interference that exposed the assets to damage could constitute an offence under Nigeria’s legal framework.
He called for strict adherence to established protocols, guidelines and procedures during construction and maintenance activities.
Also speaking, the Permanent Secretary, Federal Ministry of Works, Mr Rafiu Adeladan, said the ministry recognised that road and telecommunications infrastructure often operated within the same physical space.
He said excavation, grading, reconstruction, utility relocation and other road activities could inadvertently damage vital fibre-optic infrastructure where adequate coordination and precautions were not in place.
Adeladan called for stronger mechanisms for coordination and information sharing before and during road construction activities. He said road contractors, consultants and relevant agencies should have access to accurate information on the location of telecommunications infrastructure before excavation begins.
On his part, the Permanent Secretary, Federal Ministry of Communications, Innovation and Digital Economy, Engr Nadungu Gagare, said protecting telecommunications infrastructure was not the responsibility of one institution, but required collaboration among government ministries, regulators, security agencies, construction companies, utility providers and other stakeholders.
Gagare said the Federal Government had established a tripartite standing committee on the protection of fibre-optic infrastructure to strengthen collaboration and promote a coordinated approach to infrastructure protection.
He said the committee would also promote compliance with established standards and right-of-way regulations, improve information sharing and support measures to prevent avoidable damage.
The workshop, organised by the Federal Ministry of Communications, Innovation and Digital Economy in collaboration with the Federal Ministry of Works, NCC, Office of the National Security Adviser and Nigeria Security and Civil Defence Corps, is aimed at developing practical measures to protect fibre-optic cables during road construction and other civil works.
Economy
NRS boss, Adedeji under fire over Nigerian economy comment
Nigerians have tackled the Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, over his recent comment about critics of economic reforms under President Bola Ahmed Tinubu.
DAILY POST reports that in a viral video, Adedeji questioned critics of Tinubu’s economic reforms about what they would have done differently.
“That is what I get worried about when I listen to some people about the economy and everything.
“Just ask them, what would they do differently? Mr President, I don’t want you to wonder. You have elevated the system from what they know and wonder,” Adedeji told President Tinubu.
Adedeji’s comment triggered reactions from Nigerians on X.
Reacting, a development professional and former Director-General of the Bureau of Public Service Reforms, Joe Abah, described Adedeji’s comment as insensitive.
“If true, this is a deeply insensitive statement.
“But to answer the question of what I would have done differently, I can just look at the UK’s Andy Burnham, who is trying to tackle the cost of living.
“In just 19 days, he has removed the 5 percent VAT on domestic electricity (it is 7.5 percent in Nigeria); capped bus fares at £2 per ride by reimbursing private sector operators for the difference in real costs; pledged a 20 percent cut in business rates for pubs and clubs (an important part of British social life); maintained and adjusted Universal Credit to favour the poorest and most vulnerable.
“So, I would have used the increasing tax revenue to tackle the cost of living. That is what I would have done differently at my own level. Hope that helps,” he said on X on Saturday.
Similarly, a lawyer known, Vena Ikem wrote on X: “He should ask himself what all the millions of dollars he is spending mean to the tax he is collecting even from poor people. If karma truly fulfils, this man will get his just deserts in the land of the living. This arrogance is from getting away with stealing tax money.”
Also, Adekunle Oderinde wrote on X: “The entire convoy of Zacch Adedeji is more expensive and longer than the convoy of UK Prime Minister, yet he is talking about suffering Nigerians complaining about the effects of the policies of his principal, President Tinubu, who drives an expensive and long convoy on scarce resources.”
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