Business
Rejection Of Naira: Trans-Border Traders Turn To CFA Amid Currency Depreciation
Rejection Of Naira: Trans-Border Traders Turn To CFA Amid Currency Depreciation....KINDLY READ THE FULL STORY HERE▶
The depreciation of the Naira in recent months has prompted trans-border traders to shun the Nigerian currency in favor of the CFA and other local currencies of non-francophone countries. Vanguard’s investigations at the Seme border reveal a notable shift in currency preference among traders, signaling a departure from the Naira’s erstwhile dominance in the sub-regional economy……..READ ALSO
Historically, the Naira enjoyed prominence as the preferred medium of exchange due to Nigeria’s substantial trade volume with neighboring countries. However, its status has been on a downward trajectory since February, leading to its outright rejection by March 2024.
Traders, including Nigerians, voice concerns over the Naira’s diminishing value, exacerbated by steep depreciation rates recorded in recent months. Official figures depict a stark decline in the Naira’s value against the CFA, plunging from N1/1.5CFA in early 2023 to N1/0.37595CFA recently. Despite marginal improvements, the Naira remains significantly weakened, impacting the cost of imported goods and dampening business activities in border towns between Nigeria and the Benin Republic.
Reports from markets along the Benin-Nigeria border highlight a dwindling acceptance of the Naira, with money changers and transport operators opting for the CFA to mitigate losses arising from the Naira’s volatility. Ibrahim Yakubu, a bike rider, and Taiye Ekiti, a money changer, cite the influence of the dollar on the Naira’s depreciation as a reason for their preference for the CFA.
Traders like Mr. Achi Collins, dealing in second-hand clothing, note the reluctance of counterparts to accept the Naira, compelling customers to convert their money to CFA. While a few traders in Seme may still entertain Naira transactions, the adverse effects of the exchange rate are reflected in higher prices for goods.
The rejection of the Naira in major cities of the Benin Republic underscores its diminished value, with traders insisting on CFA for transactions. Gone are the days when the Naira held sway along the west coast, as it is now spurned even in countries like Ivory Coast and Senegal, where it was once freely spent by Nigerian sports journalists covering events.
The future of Nigeria’s Naira-for-Crude policy remains in limbo as negotiations continue between the Nigerian government and Dangote Refinery. The six-month agreement between the Nigerian National Petroleum Corporation (NNPCL) and Dangote Refinery expired on March 31, 2025, without a renewal, leading to the suspension of the refinery’s sale of refined petroleum products in Naira. However, the refinery has continued processing approximately 400,000 barrels of crude oil daily, with 35% of the crude sourced from international markets, particularly Brazil and Equatorial Guinea.....KINDLY READ THE FULL STORY HERE▶
Although the policy’s future is still under review, sources suggest that its economic implications, especially concerning fuel prices and foreign exchange rates, make it crucial to the national economy. Despite challenges in crude supply from NNPC, Dangote Refinery has expanded its global sourcing and is currently sourcing crude from Brazil’s Petrobras and Equatorial Guinea.
No official agreement has been reached yet to extend the Naira-for-Crude deal. The Nigerian government’s committee in charge of the policy is waiting for recommendations from the Nigeria Upstream Petroleum Regulatory Commission before proceeding. Meanwhile, the refinery’s management has expressed uncertainty regarding the renewal of the deal, citing concerns over the financial strain and volatility of exchange rates. The future of the policy remains unclear, with NNPC expected to supply crude oil to Dangote Refinery in April, but payment terms are yet to be finalized.
The price of cement, a vital resource for Nigeria’s construction industry, has witnessed significant changes recently, with rates fluctuating depending on brand, location, and market factors. Here is an overview of the current prices for some leading cement brands:....KINDLY READ THE FULL STORY HERE▶
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Dangote Cement: The cost of a 50kg bag of Dangote Cement ranges between ₦8,000 and ₦10,300. Known for its high quality, Dangote Cement remains a preferred choice in various construction projects. Prices are generally lower in areas near production plants but tend to rise in regions requiring extensive distribution.
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BUA Cement: Priced between ₦8,000 and ₦8,500 per 50kg bag, BUA Cement is popular among builders due to its competitive pricing and stability. Prices may vary slightly depending on proximity to manufacturing sites.
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Lafarge Water Shield Cement: Priced at ₦20,000 per 50kg bag, this cement variant is specifically formulated for durability and resistance to moisture, making it ideal for projects in damp environments.
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Waterproof Cement JK: Available at ₦15,000 per 50kg bag, Waterproof Cement JK is engineered to offer exceptional protection against water ingress, particularly useful for wet construction sites.
Over the past year, cement prices in Nigeria have surged significantly. At the start of 2024, a 50kg bag cost around ₦4,500. By November 2024, the price rose to about ₦8,500, reflecting an increase of approximately 89%. This upward trend is attributed to factors such as rising production costs, increased demand, and logistical challenges.
Marketers predict a potential further increase in cement prices, emphasizing the need for stakeholders in the construction sector to stay informed and plan accordingly.
A recent survey conducted by Naija News has revealed a notable decrease in the price of cooking gas in Nigeria, offering much-needed relief to households and small businesses. According to the survey, the cost of refilling cooking gas per kilogram has reduced significantly from ₦1,350 to ₦1,020.....KINDLY READ THE FULL STORY HERE▶
This positive development is expected to ease the financial burden on Nigerian families and small enterprises, especially those that heavily depend on cooking gas as a primary energy source. The survey, encompassing gas stations and vendors from various parts of the country, shows that the reduced price may help lower the overall cost of living.
The revised price breakdown is as follows:
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1 kg of Cooking Gas: ₦1,020
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3 kg of Cooking Gas: ₦3,060
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5 kg of Cooking Gas: ₦5,100
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10 kg of Cooking Gas: ₦10,200
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12.5 kg of Cooking Gas: ₦12,750
This decline marks a significant shift from the previous upward trend in gas prices and is likely to positively impact the economy, particularly the food and hospitality sectors. Businesses that rely on cooking gas will experience reduced operational costs, ultimately boosting their profit margins.
Experts attribute the drop in cooking gas prices to several factors, including fluctuations in global energy costs and adjustments within local supply chains. Despite recent variations in crude oil and natural gas prices, the reduction is perceived as a welcome development for Nigerian consumers.
By spending less on cooking gas, households and small businesses will now see some financial relief in their monthly budgets, especially during these economically challenging times.
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