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

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.
News
Tomato Ebola Causes Loss of N1.3 Billion, Contributing to Rising Food Prices

Tomato Ebola is dealing a painful blow to Nigeria’s food supply, causing over N1.3 billion in crop losses across Kano, Katsina, and Kaduna states. The pest, officially called Tuta absoluta, has earned its deadly nickname from farmers because of how quickly it destroys tomato crops—within just 48 hours.
Minister of Agriculture and Food Security, Senator Abubakar Kyari, raised the alarm during a training workshop for banks and lenders in Abuja. The workshop was organised by HortiNigeria in partnership with NIRSAL Plc, the government’s agriculture-focused lending system.
Due to the outbreak, the price of a 50kg basket of tomatoes has tripled. What sold for N5,000 now costs N15,000 to N30,000, putting enormous strain on family budgets and pushing food inflation higher. The rising prices are already being felt at homes, restaurants, and roadside food stalls.
“Tomatoes and peppers are in nearly every Nigerian meal,” Kyari explained. “When their prices spike, it affects every part of the food chain.”
According to the minister, the 2024 data from the National Bureau of Statistics showed that tomatoes led the food price index with a shocking 320% year-on-year increase. Peppers followed close behind.
Kyari said the outbreak shows how weak the country’s horticulture system still is. “This crisis reminds us that we must act fast. We need better pest control, stronger tomato varieties, and direct support for our farmers,” he warned.
He called for more investment in integrated pest management, improved seeds, and resilient farming techniques. Without these, Nigeria risks facing even deeper food shortages.
Horticulture, the growing of vegetables, fruits, herbs, and flowers, may be one of the country’s most underrated solutions to its food crisis. Kyari described it as a “sleeping giant” in Nigerian agriculture.
With proper support, he said horticulture could bring more jobs, improved nutrition, and higher income for farmers. Unlike staple crops like rice or maize, vegetables like tomatoes grow faster and bring more money per hectare. This makes them perfect for small farmers trying to earn more in shorter periods.
Kyari stressed that horticulture has huge potential for job creation, especially for women and young people. It also connects well to other industries—like food packaging, retail sales, and exports.
“In urban areas, horticulture brings fresh food closer to the people,” he said. “With irrigation and greenhouse systems, it also offers a way to farm smartly in a changing climate.”
He noted that tomatoes, cucumbers, citrus, pineapples, and plantains have massive demand in Nigerian markets. These crops, he said, are no longer just household items but are quickly becoming important commercial products.
Fruits and vegetables are not just food. They are packed with vitamins A and C, iron, zinc, and folate—all vital for keeping children healthy, helping pregnant women, and preventing diseases. Kyari said that growing more of these crops at affordable prices could help Nigeria fight malnutrition.
He also urged banks to take a closer look at the horticulture value chain. From seed planting to the final sale, each stage needs a different type of funding. But too often, lenders offer one-size-fits-all loans that don’t fit real farming needs.
“We need banks to offer loans that match the growing cycles,” Kyari said. He suggested seasonal loans, equipment leasing, invoice financing, and trade credits as some examples.
He said horticulture isn’t just a farming activity—it’s a full business ecosystem. It offers high returns and can lift entire communities out of poverty if managed well.
“By funding horticulture, you’re not just financing crops,” Kyari told the banks. “You are financing jobs, health, and Nigeria’s future.”
To fix the system, Kyari believes that government, financial institutions, private investors, and farmers must work together. Without teamwork, Nigeria’s food challenges will only get worse.
He urged banks to look beyond just giving out money and instead build smart lending systems that truly support farmers. “Understand the crops, understand the seasons, and build financial tools that help, not hurt,” he said.
For Nigeria, Tomato Ebola is not just a pest problem. It’s a wake-up call. The country needs urgent reforms in the way it grows, protects, and funds food production—especially in vegetables.
Horticulture may not get the spotlight like rice or wheat, but it is one of Nigeria’s best chances to reduce hunger, lower food prices, and boost jobs. With the right policies and investments, this quiet sector could transform Nigeria’s entire food system.
Kyari ended his speech with a hopeful message: “Together, we can unlock the power of horticulture to nourish our people, build wealth and drive sustainable growth. If we invest right, we’re not just planting crops—we’re planting a stronger Nigeria.”
News
Sad! Five members of one family die of food poisonous

Tragedy struck in Ogidi, Idemili North Local Government Area of Anambra State, as five siblings died from suspected food poisoning, leaving their mother hospitalised in critical condition.
The incident, which occurred on Saturday, May 3, threw the family and the entire community into mourning, with relatives and neighbours seen consoling the bereaved during a visit by our correspondent on Wednesday.
Pa Robinson Aghalu, a 79-year-old retired soldier and father of the deceased children, said the tragedy began shortly after the children ate a meal prepared by their mother.
Aghalu said the children started experiencing stomach aches, vomiting, and other symptoms, which worsened over time and were rushed to the hospital.
He said, “Despite efforts to save them, five of the six children died at various hospitals in the area, including a nearby maternity clinic, Iyienu Mission Hospital, and Crown Hospital.
“The mother, who also fell ill with similar symptoms, is currently hospitalised. A doctor, who managed the mother’s case, confirmed that the likely cause of the illness was food poisoning.”
The couple’s only surviving child was away at the time of the incident, studying with a relative.
The bereaved family is said to be in urgent need of support to cover medical and related expenses.
Confirming the incident, the Anambra State Police Public Relations Officer, Tochukwu Ikenga, said food samples have been collected for forensic analysis.
Ikenga said, “The command is aware of this development and has taken over the crime scene. The samples of food have been taken for a forensic assessment, and operatives are also engaging the neighbourhood for necessary information that will aid the investigations.
“Meanwhile, the bodies of the children have been recovered and deposited in a morgue.
“Further development shall be communicated, please.”
News
After invasions: Adeboye visits Plateau, makes prophetic declaration

The General Overseer of the Redeemed Christian Church of God, Pastor Enoch Adeboye, on Wednesday visited Plateau State and led an intercessory prayer session against the persistent killings and violence plaguing the region.
Adeboye, who was received by Governor Caleb Mutfwang in Jos, assured the people of Plateau that they were not alone in their pain, stressing that the Church and the larger body of Christ were united in prayer for peace in the state.
“We are here to let you know that you are not alone, and God will give us total victory over this recurrent situation,” Adeboye said during a courtesy visit to the Government House.
He announced that he would be leading a one-hour prayer session later in the evening, urging all residents to join in crying out to God for divine intervention.
“The arm of flesh sure fails, and when nobody else can help, God is there to help us. We are going to be having a meeting where we are going to cry to God for at least one solid hour. I am confident that after that session, the news will change for the state,” he said.
Adeboye emphasised that only divine intervention could resolve the deep-rooted insecurity on the Plateau.
Governor Mutfwang, in his response, expressed gratitude for the visit, saying Adeboye’s presence brought hope and reassurance to the people.
“We will continue to look up to God, who is our strength and our refuge. When we cry to Him, He will give us wisdom on what to do concerning the state,” Mutfwang said.
He thanked Adeboye for his continued support and dedication to the peace and spiritual revival of Plateau State.
The visit and prayer session come amid renewed concerns over violent attacks in rural communities, which have claimed dozens of lives in recent months.
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