Economy
Fuel price hike: OPEC blames tax imposition for increase
The Secretary General of the Organisation of Petroleum Exporting Countries, Haitham Al Ghais, has blamed tax imposition by major oil-consuming countries, not oil prices as the primary driver of fuel costs.
He disclosed this in a recent statement.
His comments come as Nigeria experienced several petrol pump price hikes in the last one year.
The latest was on Monday when the Nigerian National Petroleum Company Limited announced an additional pump price hike in its retail outlets between N950 per liter and N1,019.22.
Speaking on the factors responsible for fuel price hikes, Al Ghais explained that the prices paid by consumers at the pump were determined by various factors, including the price of crude oil, refining, transportation, marketing costs, oil company margins, and taxes.
According to Al Ghais, revenues generated from oil sales are often reinvested by oil-producing countries into the oil sector.
He stated that OPEC member countries reinvested a substantial portion of their revenue into exploration, production, and transportation projects.
On the other hand, the OPEC boss noted that consuming countries’ governments received significant revenue from taxes imposed on petroleum products.
In 2023, the Organisation of Economic Co-operation and Development’s average share of total tax on the final retail price increased year-on-year and amounted to approximately 44 percent.
“Therefore, for many consumers, taxation can be a more significant factor than the original price for crude, in feeling any pinch in their pocket at the pump,” he stated
“It is a sovereign right for countries and governments to develop their taxation systems, but when there is talk of concerns about the effect of high pump prices on the disposable income of populations, it is important to remember how much of this is from taxes flowing to finance ministries around the world”, he said.
The exchange rate for the US dollar to the Nigerian naira in the black market, also known as the parallel market (Aboki FX), has been released.
As of Wednesday, 19th March 2025, traders at the Lagos Parallel Market (Black Market) were buying dollars at ₦1575 and selling at ₦1585, according to sources from the Bureau De Change (BDC).
Official CBN Exchange Rate
The Central Bank of Nigeria (CBN) does not recognize the black market and advises individuals to conduct foreign exchange transactions through official banking channels. The official exchange rates recorded by the CBN are as follows:
Highest Rate: ₦1545
Lowest Rate: ₦1500
It is important to note that foreign exchange rates may vary depending on the location and financial institution handling the transaction.
Black Market Dollar to Naira Exchange Rate for March 17, 2025
Are you looking for the latest Dollar to Naira exchange rate in the parallel market (Aboki FX)? Here’s what you need to know.
Current Black Market Exchange Rate (March 17, 2025)
The exchange rate at the Lagos Parallel Market (Black Market) sees players buying a dollar at ₦1575 and selling at ₦1585, according to sources within the Bureau De Change (BDC).
Note: The Central Bank of Nigeria (CBN) does not officially recognize the black market. Individuals seeking foreign exchange are advised to approach their respective banks for transactions.
Black Market Exchange Rate Today
Dollar to Naira (USD to NGN) Black Market Rate
Buying Rate ₦1575
Selling Rate ₦1585
CBN Official Dollar to Naira Rate
Dollar to Naira (USD to NGN) CBN Rate Today
Highest Rate ₦1552
Lowest Rate ₦1512
Disclaimer: Forex rates fluctuate, and the price you buy or sell at may vary from what is captured in this report.
SEC Suspends Centurion Registrars from Capital Market
In a related development, the Securities and Exchange Commission (SEC) has announced the suspension of Centurion Registrars Limited, including its directors and affiliates, from participating in the capital market.
According to a statement titled “Additional Enforcement Measures on Erring Capital Market Operators”, the SEC emphasized that this action is part of a broader initiative in 2025 aimed at eliminating illegal capital market operations.
Affected clients of Centurion Registrars have been advised to contact Africa Prudential Plc for further assistance.
The SEC also revealed plans to publish a “Name and Shame” journal, listing capital market operators who violate market regulations. This move underscores the commission’s firm stance against non-compliance and aligns with its updated enforcement strategies.
The exchange rate between the US Dollar (USD) and Nigerian Naira (NGN) continues to fluctuate, with notable differences between the official market rate set by the Central Bank of Nigeria (CBN) and the parallel (black) market rates.
Black Market (Parallel Market) Exchange Rate
At the Lagos Parallel Market, also known as the black market, foreign exchange traders are currently buying one US dollar at ₦1,575 and selling it at ₦1,585. These rates are sourced from Bureau De Change (BDC) operators who engage in unofficial currency transactions outside the banking system.
The Central Bank of Nigeria (CBN) maintains a regulated exchange rate for financial institutions and official transactions. Based on recent data:
The highest recorded exchange rate for the dollar stands at ₦1,552 per USD
The lowest rate observed is ₦1,512 per USD
The CBN does not recognize or support the black market, advising individuals and businesses seeking foreign exchange (forex) to obtain their funds through licensed financial institutions such as banks.
Factors Influencing the Exchange Rate
Several economic and market conditions contribute to the fluctuations in Nigeria’s forex market, including:
Dollar Supply and Demand: A shortage of forex liquidity can push black market rates higher, while an increased supply from CBN interventions or foreign inflows can stabilize the naira.
Inflation and Economic Policies: High inflation rates and policy decisions from monetary authorities significantly impact the value of the naira.
Global Economic Trends: The strength of the US dollar in international markets, crude oil prices, and foreign direct investment flows all play a role in determining the naira’s performance.
CBN Regulations and Policies: Restrictions on forex transactions, such as bans on certain imports or tighter controls on foreign remittances, can create fluctuations in the black market rates.
Exchange rates are subject to constant fluctuations, and the rates at which individuals or businesses buy and sell forex may differ from those listed above. It is advisable to consult multiple sources or directly contact banks and financial institutions for the most accurate and up-to-date exchange rates.
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