Economy

Despite Claims Of No New Debt, Federal Government’s Borrowing Surges To N8.2 Trillion

Published

11 months ago

April 27, 2024

The Federal Government of Nigeria has incurred an additional N3.8 trillion in Ways and Means borrowing from the Central Bank of Nigeria (CBN) in the last six months of 2023, according to provisional data from the CBN’s latest statistics bulletin for Q4 2023.

This increase raises the total balance to N8.2 trillion as of December 2023, contrasting with earlier statements from government officials indicating no new borrowing under President Bola Tinubu’s administration.

The Ways and Means mechanism allows the government to secure short-term or emergency financing from the CBN to manage cash flow shortages. Data shows a significant escalation in balances from N4.36 trillion at the end of June 2023, climbing steadily each month to reach N8.21 trillion by year-end—an 88% rise in just six months.

This development comes despite assurances from Wale Edun, Minister of Finance and Coordinating Minister of the Economy, asserting that the new administration had not engaged in new borrowing from the CBN. The discrepancy highlights ongoing challenges in managing the nation’s fiscal stability amid pressing economic needs.

Historically, the total Ways and Means balances stood at N26.95 trillion when the Tinubu administration took office in May 2023. These were later securitized and included in the federal government’s domestic debt profile.

The National Assembly had previously approved the securitization of N22.7 trillion out of N23.3 trillion advanced by the CBN through Ways and Means, transferring this debt to the Debt Management Office (DMO) with a 40-year tenor and a 9% interest rate.

Further complicating the fiscal landscape, amendments to the CBN Act have raised the ceiling for Ways and Means Advances from 5% to 15% of the Federal Government’s previous year’s revenue. This adjustment paves the way for increased government borrowing, which could heighten the country’s debt service obligations.

Economy

SEE Black Market Dollar (USD) To Naira (NGN) Exchange Rate

Published

1 hour ago

March 12, 2025

Naijablitznews

Dollar to naira exchange rate today black market (Aboki dollar rate):

The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for ₦1575 and sell at ₦1580 on Tuesday 11th March, 2025, according to sources at Bureau De Change (BDC).

Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.

Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate ₦1575
Selling Rate ₦1580
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN) CBN Rate Today
Highest Rate ₦1540
Lowest Rate ₦1512
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.

Economy

Overview of Dollar to Naira Exchange Rate: Key Insights, Trends as of March 11, 2025

Published

9 hours ago

March 12, 2025

Admin

Understanding the dynamics of the foreign exchange market is crucial for individuals and businesses engaged in international transactions. The exchange rate between the U.S. Dollar (USD) and the Nigerian Naira (NGN) has experienced notable fluctuations in recent times. This article provides an overview of the current exchange rates, historical trends, and factors influencing these changes as of Tuesday, March 11, 2025.

Current Exchange Rates

As of March 11, 2025, the exchange rates are as follows:

Date Official Exchange Rate (USD to NGN): 1 USD = 1,559.65 NGN

Black Market Rate (USD to NGN): 1 USD = 1,561.00 NGN11-03-2025

Note: The official exchange rate is sourced from historical data, while the black market rate is based on user-reported information.

Recent Trends and Fluctuations

Over the past week, the USD/NGN exchange rate has exhibited the following movements:

High: 1 USD = 1,559.65 NGN on 11-03-2025
Low: 1 USD = 1,493.99 NGN on 04-03-2025

The most significant 24-hour change occurred on 11-03-2025, with a 2.118% increase in value. 

Factors Influencing the Exchange Rate

Several factors have contributed to the recent fluctuations in the USD/NGN exchange rate:

Oil Prices: Nigeria’s economy is heavily reliant on oil exports. Variations in global oil prices directly impact foreign exchange earnings, influencing the Naira’s value.

Inflation Rates: Higher domestic inflation can erode the Naira’s purchasing power, leading to depreciation against the USD.

Monetary Policy: Decisions by the Central Bank of Nigeria regarding interest rates and foreign exchange interventions play a pivotal role in stabilizing the Naira.

Political Stability: Political events and policy decisions can affect investor confidence, thereby impacting currency value.

Implications for Stakeholders
Importers and Exporters: Fluctuating exchange rates can affect the cost of goods and services, influencing profit margins.

Investors: Currency volatility may impact returns on investments denominated in foreign currencies.

General Public: Exchange rate movements can affect the prices of imported goods, thereby influencing the cost of living.

Conclusion

Staying informed about exchange rate trends is essential for effective financial planning and decision-making. As of March 11, 2025, the USD to NGN exchange rate reflects both global economic conditions and domestic factors. Individuals and businesses are advised to monitor these trends closely and consult financial experts when making currency-related decisions.

Disclaimer: Exchange rates are subject to continuous change.

Economy

See list: China, India lead as Nigeria’s major trading partners Q4, 2024

Published

9 hours ago

March 12, 2025

Admin

China and India have emerged as Nigeria’s largest sources of imports in 2024.

According to the latest trade report from the National Bureau of Statistics (NBS), China remains Nigeria’s top import partner, while India follows.

The bulk of these imports include electronics, machinery, textiles, and industrial equipment, which are crucial to Nigeria’s manufacturing and technology sectors.

India’s contributions are particularly significant in pharmaceuticals, industrial raw materials, and processed food products.

A breakdown of Q4 2024 trade data highlights China’s continued dominance in Nigeria’s import market.

The top five sources of imports for the fourth quarter were:

China – N4.61 trillion (27.80% of total imports)
India – N1.90 trillion (11.43%)
Belgium – N1.39 trillion (8.35%)
United States – N1.06 trillion (6.36%)
France – N601.28 billion (3.62%)