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Naira Emerges As Best Performing Currency Globally Amid FX Reforms – Cardoso
Naira Emerges As Best Performing Currency Globally Amid FX Reforms – Cardoso....KINDLY READ THE FULL STORY HERE▶
The Central Bank Governor, Yemi Cardoso, proudly announced that the Naira has achieved the prestigious status of being the best performing currency worldwide as of April 2024. This significant milestone follows comprehensive foreign exchange market reforms, buoyed by optimistic sentiments from major international investment entities.
Speaking during a press briefing at the World Bank/IMF conference in Washington DC, Cardoso highlighted the remarkable turnaround in the Naira’s fortunes. Just a month prior, in March, the Naira had plummeted to its lowest levels, exchanging at N1,600/$1 on the official market and N1800/$1 on the parallel market, marking a period of uncertainty and economic strain.
However, April brought a meteoric rise for the Naira, witnessing an astonishing 45% gain fueled by a series of strategic forex and monetary policies. Governor Cardoso emphasized that this surge in value has been accompanied by a resurgence in the FX market’s activities, with turnover levels soaring to heights unseen in over seven years. This liquidity infusion has instilled confidence among investors, businesses, and partners, fostering smoother transactions within Nigeria’s FX markets.
Despite this resounding success, Cardoso tempered the enthusiasm with a note of caution, acknowledging the persistent challenges that the economy faces. Elevated inflation, propelled by surging food prices, transportation costs, and energy expenses, remains a pressing concern. However, he expressed confidence in the deceleration of inflation rates and anticipated a subsequent decline.
“Security concerns in food-producing regions and infrastructure challenges also demand attention,” remarked Cardoso, underscoring the multifaceted nature of the obstacles that must be addressed. To counter these challenges, the Central Bank has implemented a suite of policy reforms aimed at stabilizing the economy and alleviating various pressures. While celebrating the early successes, Cardoso stressed the importance of remaining vigilant and proactive in tackling the myriad challenges ahead.
The strategic focus on policy reforms is expected to continue bolstering the Naira’s robust performance on the global stage. “We still have work to do in solving all our problems,” Cardoso acknowledged, “however, we do have a determined pathway and a sequenced approach to tackling all challenges ahead, working hand in hand with our key stakeholders including investors, banks, businesses, and notably, our counterparts on the fiscal side.”
Cardoso also commended the efforts towards orthodox monetary policy, noting the positive impact on rebuilding trust and confidence in Nigeria’s economy and leadership. This concerted effort and collaborative approach are pivotal in navigating the complexities of the economic landscape, ensuring sustained growth and stability.
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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