By Kayode Sanni-Arewa

The official exchange rate between the naira and the United States dollar ended in 2024 at N1,535/$, an analysis of data from the Central Bank of Nigeria has shown.

This was a 40.9 per cent depreciation over the year when compared to the official rate at the close of 2023, which stood at N907.11/$.

The significant depreciation comes amid the CBN’s introduction of several foreign exchange policies aimed at enhancing market transparency and attracting foreign investors.

These measures included reforms such as the unification of FX windows under the Nigeria Foreign Exchange Market and the introduction of the Nigerian FX Code, which mandated ethical conduct and governance among market participants.

On the parallel market, where the naira trades unofficially, the currency exchanged at N1,660/$ at the end of 2024.

This represents a 26.8 per cent depreciation from N1,215/$ recorded at the close of 2023.

The year saw the CBN aggressively expand market-friendly policies to stabilise the FX market and attract foreign investment.

This year, the CBN announced that it had successfully cleared all valid FX backlogs, fulfilling a key commitment by Governor Olayemi Cardoso to address the inherited $7bn in outstanding claims.

In May 2024, the CBN issued revised guidelines to strengthen the operations of Bureaux de Change operators in Nigeria.

The guidelines define permissible activities for BDCs, such as sourcing foreign currency from specified entities and selling foreign exchange for purposes like Personal Travel Allowance and Business Travel Allowance.

The CBN automated foreign currency trading to replace the over-the-counter system, improving market efficiency and oversight.

Another key intervention was the direct selling of FX to BDCs at different times this year.

The apex bank also sold FX on the official market but at a minimal level.

Also, the Nigerian FX Code, introduced in October, set ethical and operational standards for market participants, with mandatory compliance deadlines by the end of 2024.

To bolster foreign reserves and reduce pressure on the naira, the apex bank initiated the Voluntary Disclosure and Repatriation Scheme, allowing individuals and businesses to deposit and invest internationally tradable foreign currencies in designated domiciliary accounts.

There was also the Nigeria Foreign Exchange Market framework, which consolidated all FX trading windows into a unified market to improve transparency and liquidity.

BDC operators were temporarily allowed direct access to buy FX from authorized dealers with a weekly cap of $25,000, a measure implemented during the festive season to meet heightened demand

Despite these interventions, the naira faced immense pressure from limited foreign exchange inflows, the widening gap between official and parallel market rates, and lingering effects of capital flight by foreign investors.

The World Bank listed the naira among the worst-performing currencies in Sub-Saharan Africa in 2024.

The depreciation of the naira is attributed to several factors, including surging demand for United States dollars in the parallel market, limited dollar inflows, and delays in foreign exchange disbursements by Nigeria’s central bank.

The World Bank’s report further highlights that demand for dollars, driven by financial institutions, non-financial end-users, and money managers, has exacerbated the pressure on the naira.

However, the International Monetary Fund has reported that the naira is showing signs of stabilisation, attributing this to recent interest rate hikes and efforts by the Central Bank of Nigeria to address foreign exchange backlogs.

President Bola Tinubu, during his budget presentation speech, said the proposed budget was based on the projections that inflation will decline from the current rate of 34.6 per cent to 15 per cent next year.

He projected that the exchange rate will improve from approximately N1,700 per US dollar to N1,500 and a base crude oil production assumption of 2.06 million barrels per day.

The President of the Association of Bureau De Change of Nigeria, Aminu Gwadebe, earlier said the N1,500/$ peg in the 2025 Appropriation Bill was within reach on the back of recent foreign exchange reforms being pushed by the CBN.

However, Fitch Ratings, a global credit rating agency, noted that a larger-than-expected budget deficit in 2025 could lead to further naira depreciation, higher inflation, and increased borrowing costs, ultimately threatening the government’s reform agenda.

A Catholic priest, Rev. Father Joseph Enyinaya, has been nabbed for allegedly shooting a young boy dead.

The young boy reportedly threw a banger in St. Columbus Catholic Church, Amaimo Ikeduru Local Government Area of Imo State.

Residents claimed the Catholic Priest brought out his revolver and shot the young boy who allegedly threw the banger inside the church.

The incident occurred on December 31, 2024, with the police confirming the arrest of the priest.

Imo police spokesperson, Henry Okoye, said on Thursday in a chat with THE NATION that: “The priest has been arrested, and the body of the boy has been recovered and deposited at Atta Ikeduru Mortuary.”

Okoye added that a detailed investigation had been initiated to ascertain the remote facts surrounding the incident.

“The police investigation is expected to shed more light on the events leading up to the incident,” he said.

The Director-General of the National Boundary Commission (NBC), Surv. Adamu Adaji, has reaffirmed the Commission’s steadfast dedication to its mandate of fostering peaceful coexistence and promotion of trans-border cooperation across Nigeria’s internal and international borders.

This was conveyed in his New Year message to staff members, Border Communities and Nigerians at large.

The Director-General reflected on the progress made in the year 2024 and outlined a vision for 2025 rooted in enhanced collaboration, innovation, and service delivery.

“The National Boundary Commission’s core mandate is the definition and demarcation of Nigeria’s international and internal boundaries and the amicable resolution of disputes where they exist,” Adaji stated.

“This vital role underpins our collective efforts to safeguard national unity, strengthen intergovernmental relations, and promote socio-economic development.”

The year 2024 witnessed remarkable strides towards the achievement of these objectives, thanks to the support of the Federal Government and dedication of staff of the Commission as well as the cooperation of other stakeholders.

Adaji specifically urged the Commission’s workforce to redouble efforts in the new year, emphasizing that professionalism and commitment are key and the foundation of the envisaged successes.

“As we face new challenges and opportunities in 2025, I urge you to approach your duties with renewed determination and a steadfast belief in our shared vision,” he said.

Addressing the general public, Adaji gave the Commission’s assurance of continued partnership. “He stressed that the Commission understands the complexities of boundary management and will remain committed to fostering dialogue, mitigating conflicts, and ensuring transparency in all its processes”. He emphasized that “together, we will continue to work towards peaceful borders and enhanced security for all Nigerians”

“It is in this regard that the Commission will collaborate with the States to conduct induction trainings for key member of States and Local Government Boundary Committees early in the year”.

The Director-General highlighted ongoing projects, including efforts to resolve lingering boundary disputes, strengthen cross-border cooperation, and enhance public awareness of the Commission’s work. These initiatives, he noted, align with the NBC’s vision to build trust, deepen collaboration, and fulfill its promises to the Nigerian people.

He expressed gratitude to stakeholders and other partner agencies for the cooperation and contributions to the Commission’s mandate and reaffirmed the NBC’s resolve to deliver results while upholding the principles of fairness, equity, and accountability.

“As we step into 2025, we remain poised to deliver on our promises. Our commitment to fostering peace, unity, and sustainable development is stronger than ever. Together, we will build a legacy of progress and cooperation that future generations can be proud of,” Adaji concluded.

The New Year message ended with heartfelt wishes for peace, prosperity, and progress for all Nigerians in 2025. The renewed assurances, Adaji noted, underscore the Commission’s pivotal role in shaping a harmonious and unified future for the nation.