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Naira defies CBN’s forex reforms, tumbled 41% in 2024

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Tinubu Endorses Retirement Age Increase, Payment of Outstanding Arrears for Healthcare Workers

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By Kayode Sanni-Arewa

President Bola Tinubu has approved an increase in the retirement age for medical doctors and other healthcare professionals in Nigeria, extending it from 60 to 65 years.

The announcement was made by the National Publicity Secretary of the Nigerian Medical Association (NMA), Dr. Mannir Bature, in a statement released on Wednesday. He also confirmed that the president has sanctioned the allocation of funds to clear outstanding arrears owed to healthcare workers.

Policy Implementation and Final Approval
Dr. Bature revealed that the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, has been directed to formally present the approval to the Council on Establishment through the Office of the Head of Service for final ratification.

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According to him, the policy shift was conveyed by Prof. Pate during a key meeting with NMA President, Prof. Bala Audu, alongside major stakeholders in the health sector.

Payment of Outstanding Salary Adjustments
In addition to the retirement age extension, the minister confirmed that payments related to adjustments in the Consolidated Medical Salary Structure (CONMESS) would soon be disbursed.

Dr. Bature noted that President Tinubu has authorized updates to both the Consolidated Medical Salary Structure (CONMESS) and the Consolidated Health Salary Structure (CONHESS) to reflect the new minimum wage implementation.

“The necessary funds have been secured, and disbursement to beneficiaries will commence soon,” Bature stated.

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He emphasized that the corrections are in the final stages, ensuring long-awaited financial relief for doctors and healthcare professionals. This policy update is expected to positively impact members of the Association of Nigerian Private Medical Practitioners and Nurses (ANPMPN), leading to better remuneration and improved healthcare service delivery across the country.

Implications for the Healthcare Sector
This development is seen as a strategic move to address brain drain in the healthcare sector by improving working conditions and financial incentives for medical professionals. With the new retirement age and salary adjustments, the government aims to retain experienced personnel, enhance healthcare services, and ensure a more sustainable workforce in the medical field.

The implementation of these reforms is expected to strengthen Nigeria’s healthcare system, fostering better motivation and productivity among healthcare workers nationwide.

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Trailer crushes LASTMA officer leg in acc!dent, driver nabbed

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By Kayode Sanni-Arewa

A Lagos State Traffic Management Authority officer has sustained severe injuries after being hit by a fully loaded trailer due to reckless driving

This was made known in a statement by the Director, Public Affairs and Enlightenment Department, LASTMA, Adebayo Taofiq, on Wednesday.

The officer was said to be on his way to official duty when the trailer, registered in Bauchi State, lost control while speeding along the Ogba corridor, resulting in a collision.

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The impact was said to have caused a serious fracture to the officer’s right leg and hand, ultimately leading to an emergency amputation at the Lagos State University Teaching Hospital.

The statement disclosed that the trailer driver fled the scene but was swiftly apprehended by security operatives from Ojodu Police Station, working in coordination with LASTMA officials.

The statement read, “The Lagos State Traffic Management Authority (LASTMA) has unequivocally condemned the egregious recklessness of a fully loaded trailer driver, whose imprudent speeding and subsequent loss of vehicular control culminated in a devastating accident at the Ojodu Berger axis of Lagos.

“The tragic incident transpired while the LASTMA officer was en route to commence his afternoon duty, underscoring the perilous consequences of careless driving on public roads.

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“Preliminary investigations reveal that the ill-fated trailer, bearing Bauchi State registration number KTG 33 ZZ, originated from Agidingbi by Oba Ogunji Road en route to Omole Junction in the Ogba corridor when the driver, operating at an alarmingly high velocity, lost control of the vehicle, resulting in a catastrophic collision.

“The sheer impact of the crash inflicted severe trauma on the LASTMA officer, leading to a grievous fracture of his right leg and hand. Upon emergency medical assessment at the Surgical Emergency Centre of the Lagos State University Teaching Hospital (LASUTH), attending specialists determined that the extent of the injuries necessitated an immediate amputation of his right leg.

“In a brazen attempt to evade justice, the culpable trailer driver absconded from the scene. However, through the concerted efforts of security operatives from Ojodu Police Station, in collaboration with vigilant LASTMA officials, he was swiftly apprehended.”

The General Manager of LASTMA, Mr. Olalekan Bakare-Oki, has visited the hospitalised officer at LASUTH, and condemed the incident.

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He emphasised that such a calamity could have been averted had the driver exercised due diligence and adhered to fundamental road safety protocols.

“He admonished trailer and truck operators, alongside all motorists, to uphold a heightened sense of safety consciousness, stressing the inestimable value of human life,” the statement added.

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Naira maintains gains, appreciates in Parallel Market

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By Kayode Sanni-Arewa

The Naira yesterday appreciated to N1,595 per dollar in the parallel market from N1,610 per dollar on Monday.

Thus the Naira has recorded N45 week-on-week, WoW appreciation from N1,640 per dollar Tuesday last week.

Though the Naira was stable at N1,499 per dollar in the official Nigerian Foreign Exchange Market (NFEM), yesterday, it however recorded N27.3 WoW appreciation from N1,526.3 per dollar last Tuesday.

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Consequently, the margin between the parallel market and NFEM rate narrowed to N96 per dollar from N113.7 per dollar Tuesday last week.

The Naira has been on the upward trend since Thursday January 23rd, when it appreciated to N1,665 per dollar in the parallel market from N1,670 per dollar on Wednesday January 22nd.

Similarly, the Naira in the official market appreciated on Thursday January 23rd, to N1,548 per dollar from N1,553 per dollar on Wednesday January 22nd.

Since then, the Naira had gained N75 and N54 in the parallel and official market respectively.

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Currency traders attributed the upward trend of the Naira to weak dollar demand occasioned by the Chinese New Year holiday.

It was also gathered that banks are now honouring customer requests for Personal Travel Allowance, PTA, and Business Travel Allowance, BTA. Previously, most banks seldom honour customers’ forex requests for PTA and

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