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Full List Of Key Policies Taken By CBN To Stabilise The Naira

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Full List Of Key Policies Taken By CBN To Stabilise The Naira....KINDLY READ THE FULL STORY HERE▶

The Central Bank of Nigeria (CBN), under the leadership of its Governor, Yemi Cardoso, has enacted several policies and reforms with the goal of stabilising the naira and restoring the local currency to its fair value. These measures have been implemented to address the challenges facing the foreign exchange market and have resulted in significant improvements in the value of the naira…….READ ALSO

  1. Unification of Exchange Rate Windows: The CBN unified exchange rate windows to streamline the foreign exchange market and reduce distortions.
  2. Liberalisation of the FX Market: Policies were introduced to liberalise the foreign exchange market, allowing for greater flexibility and efficiency in currency trading.
  3. Clearance of FX Backlog Obligations: The CBN cleared backlog obligations for banks and airlines, facilitating smoother operations and reducing financial burdens.
  4. Implementation of Price Verification System: A Price Verification System was implemented to monitor and regulate foreign exchange transactions, ensuring transparency and fairness.
  5. Imposition of Limits on Banks’ Net Open Positions: Limits were imposed on banks’ Net Open Positions to mitigate risks and enhance stability in the foreign exchange market.
  6. Removal of Daily Cap on Remunerable Standing Deposit Facility: The CBN removed the daily cap on the remunerable Standing Deposit Facility, providing banks with greater flexibility in managing their liquidity.
  7. Overhaul of Bureau De Change Segment: The Bureau De Change segment underwent an overhaul to improve efficiency and compliance with regulatory requirements.
  8. Sale of FX to BDC Operators at Lower Rates: The CBN commenced the sale of FX to Bureau De Change (BDC) operators at lower rates, aimed at reducing exchange rate differentials and promoting market stability.
  9. Investigation of Entities Undermining Economic Reform Efforts: The CBN initiated investigations into entities suspected of undermining economic reform efforts, including questionable foreign exchange allocations and forward contracts.
  10. Collaboration with Security Agencies: The CBN collaborated with security agencies, such as the Economic and Financial Crimes Commission (EFCC), to investigate financial irregularities and ensure compliance with regulatory standards.
  11. Audit of Debts and FX Allocations: A global audit firm was engaged to audit debts and foreign exchange allocations, identifying discrepancies and invalid transactions.
  12. Directive on Foreign Currency Collateral for Naira Loans: The CBN directed banks to cease using foreign currencies as collateral for naira loans within a specified timeframe, aiming to reduce currency-related risks in the banking sector.

These measures represent the CBN’s proactive approach to stabilising the naira and promoting a conducive environment for economic growth and development in Nigeria.

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Business

Nigerian Government and Dangote Refinery Continue Talks on Naira-for-Crude Policy Renewal

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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.

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Cement Prices Surge: Dangote, BUA, and Lafarge Rates This Week

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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▶

  1. 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.

  2. 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.

  3. 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.

  4. 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.

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Cooking Gas Prices Drop Significantly Across Nigeria: Relief for Households and Businesses

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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:

  • 1 kg of Cooking Gas: ₦1,020

  • 3 kg of Cooking Gas: ₦3,060

  • 5 kg of Cooking Gas: ₦5,100

  • 10 kg of Cooking Gas: ₦10,200

  • 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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