Economy

CBN allocates $197.71m into FX market to support naira

Published

8 months ago

April 6, 2025

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The Central Bank of Nigeria has injected $197.71m into the foreign exchange market on Friday, April 4, 2025, as part of its commitment to ensuring adequate liquidity and maintaining orderly market functioning.

This was disclosed in a statement on Saturday by the Director of the Financial Markets Department, Dr Omolara Omotunde-Duke, reiterating the bank’s stance on maintaining market integrity and operational transparency.

The statement read, “In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of $197.71m through sales to authorised dealers. This measured step aligns with the bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.”

The CBN said the intervention was in line with its broader objective of fostering a stable, transparent, and efficient foreign exchange market.

It added that it remained focused on sustaining liquidity levels to support smooth market operations amid ongoing global economic adjustments.

The apex bank said the decision to boost liquidity in the FX market came against the backdrop of significant shifts in the global macroeconomic landscape, which had affected many emerging markets and developing economies, including Nigeria.

It noted that the recent introduction of new import tariffs by the United States on goods from several economies had triggered adjustments across global markets.

It added that crude oil prices—a major revenue source for Nigeria—had dropped by over 12 per cent, settling at approximately $65.50 per barrel.

The CBN said the downturn posed challenges for oil-exporting countries, influencing exchange rate dynamics and market sentiment.

The CBN stressed that it would continue to monitor both global and domestic market conditions. It expressed confidence in the resilience of Nigeria’s foreign exchange framework, which it said was designed to adjust appropriately to changing economic fundamentals.

The bank also urged all authorised dealers to strictly adhere to the principles outlined in the Nigerian FX Market Code, promoting transparency and upholding the highest standards in their transactions with clients and market counterparties.

Meanwhile, Nigeria’s official exchange rate fell to N1,600/$1 at the end of trading on April 4, 2025, as the tariffs imposed during the Trump era continued to impact global markets.

Data from the CBN showed that the naira closed at N1,600/$1, marking a 1.9 per cent depreciation compared to the N1,569/$1 recorded the previous day.

The figure also marked the weakest level the naira had reached since December 4, 2024, when it closed at N1,608/$1. The exchange rate has now weakened by 3.9 per cent in the first four days of April, after closing March at N1,537/$1.

According to the CBN, the exchange rate closed at N1,600/$1 on Friday, marking a 1.9 per cent drop from the previous day.

The intra-day highs and lows were reported as N1,625 and N1,519 to the dollar, respectively. The intra-day high of N1,625 is also one of the highest levels recorded this year, indicating that traders priced the naira at significantly weaker levels.

Conversely, the intra-day low of N1,519/$1 suggests that some traders still priced the naira stronger, possibly betting on short-term interventions.

The NFEM rate, which represents the average exchange rate, closed at N1,567, the weakest the naira has traded this year and since December 4, 2024.

Economy

CBN Revokes Licences of Aso Savings And Union Homes

Published

45 minutes ago

December 17, 2025

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Central Bank of Nigeria (CBN), has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.

In a statement, the CBN said the action is part of efforts to reposition the mortgage sub-sector and promote compliance with relevant laws and regulations.

“The Central Bank of Nigeria, in exercise of the powers conferred on it under Section 12 of BOFIA 2020, and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria, has revoked the licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc,” the apex bank said.

“The affected institutions had violated various Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria, including failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to them by the CBN, having insufficient assets to meet their liabilities.”

The regulator said the financial institutions are critically undercapitalised with a capital adequacy ratio below the prudential minimum prescribed.

The statement said another reason for the revocation was the failure to comply with several directives and obligations imposed upon them by the apex bank.

The CBN reaffirmed its commitment to its core mandate of ensuring financial system stability.

Mortgage banks are financial institutions that provide home loans and other housing finance products, and they are strictly regulated by the CBN to protect customers and ensure the stability of Nigeria’s financial system.

Economy

UK plans to regulate Cryptocurrency in 2027

Published

23 hours ago

December 16, 2025

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Britain has announced that it will formally bring cryptocurrency companies under the purview of its financial regulations by 2027, in a sweeping move aimed at safeguarding investors and boosting the country’s status as a global digital finance hub.

The United Kingdom (UK) government, in a statement released on Monday, December 15, said the new framework will be firm and proportionate, ensuring crypto firms play by the same rules as traditional financial services.

Under the new legislation, crypto firms will be regulated by the Financial Conduct Authority (FCA), the body that already oversees banks, insurers, and other financial institutions in the UK.

This will subject crypto companies to well-established transparency and reporting standards. The FCA is expected to publish its specific regulatory framework for the sector in 2026, ahead of full enforcement the following year.

UK Chancellor of the Exchequer, Rachel Reeves, described the move as “a crucial step in securing the UK’s position as a world-leading financial centre in the digital age.”

“By giving firms clear rules of the road, we are providing the certainty they need to invest, innovate and create high-skilled jobs here in the UK,” Reeves stated.

She added that the legislation will equip millions of Britons with “strong consumer protections” while “locking dodgy actors out of the UK market.”

Britain joins a growing list of jurisdictions stepping up oversight of the volatile crypto industry. The European Union rolled out similar legislation in 2023, and the United States is gradually establishing its own rules in response to mounting scrutiny.

The regulatory tightening comes in the wake of several scandals that have rocked the industry, including the collapse of major exchanges and investment platforms.

Just last week, a US court sentenced crypto mogul Do Kwon to 15 years in prison for fraud related to the downfall of his company, which wiped out an estimated $40 billion in investor funds and sent shockwaves across global markets.

With the UK’s new regulatory framework now on the horizon, industry players have roughly two years to adapt.

Economy

FG, States, LGs Share ₦1.928trn November 2025 Revenue

Published

23 hours ago

December 16, 2025

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A total sum of ₦1.928 trillion, being November 2025 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.

According to a statement by the Federation Account Allocation Committee (FAAC), the revenue was shared at the December 2025 Federation Account Allocation Committee (FAAC) meeting held in Abuja.

The ₦1.928 trillion total distributable revenue comprised distributable statutory revenue of ₦1.403 trillion, distributable Value Added Tax (VAT) revenue of ₦485.838 billion, Electronic Money Transfer Levy (EMTL) revenue of ₦39.646 billion.

A communiqué issued by the Federation Account Allocation Committee (FAAC) indicated that total gross revenue of ₦2.343 trillion was available in the month of November 2025. Total deduction for cost of collection was ₦84.251 billion while total transfers, interventions, refunds and savings was ₦330.625 billion.

According to the communiqué, gross statutory revenue of ₦1.736 trillion was received for the month of November 2025. This was lower than the sum of ₦2.164 trillion received in the month of October 2025 by ₦427.969 billion.

Gross revenue of N563. 042 billion was available from the Value Added Tax (VAT) in November 2025. This was lower than the N719.827 billion available in the month of October 2025 by N156.785 billion.

The communiqué stated that from the N1.928 trillion total distributable revenue, the Federal Government received a total sum of N747.159 billion and the State Governments received a total sum of N601.731 billion.

The Local government Council received N445.266 billion, while the sum of N134.355 billion (13% of mineral revenue) was shared to the benefiting State as derivation revenue.

On the N1.403 trillion distributable statutory revenue, the communiqué stated that the Federal Government received N668.336 billion and the State Governments received N338.989 billion.

The Local Government Councils received N261.346 billion and the sum of N134.355 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.

From the N485.838 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N72.876 billion, the State Governments received N242.919 billion and the Local Government Councils received N170.043 billion.

A total sum of N5.947 billion was received by the Federal Government from the N39.646 billion Electronic Money Transfer Levy (EMTL), the State Governments received N19.823 billion and the Local Government Councils received N13.876 billion.

In November 2025, Excise Duty increased moderately while Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), CIT on Upstream Activities, Companies Income Tax (CIT), CGT and SDT, Oil & Gas Royalties, Import Duty, CET Levies, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Fees recorded substantial decreases.