Echotitbits – Nigeria News

Tag: CBN

  • High Interest Rates Stifle Private Sector Lending to Five-Year Low

    High Interest Rates Stifle Private Sector Lending to Five-Year Low

    Figures cited by The Guardian show that the Central Bank of Nigeria’s aggressive monetary tightening has successfully reined in inflation but at a heavy cost to business expansion. Lending growth to the private sector has plummeted to its lowest level since 2020, as deposit money banks become increasingly wary of high-risk loans in a high-interest-rate environment. Small and medium-sized enterprises (SMEs) are bearing the brunt of the credit crunch.

    Data from the apex bank indicates that credit growth fell sharply to under 1% in the last quarter, a stark contrast to the double-digit growth seen in previous years. While the CBN maintains that high rates are necessary to stabilize the Naira, business groups warn that the lack of affordable credit is forcing many local manufacturers to scale down operations or halt expansion plans entirely.

    Vanguard and The Nation also reported on the credit slowdown. Vanguard highlighted that “banks are prioritizing government securities over private loans,” while The Nation quoted a Lagos Chamber of Commerce official who said, “At 30% plus interest, no legitimate business can survive a bank loan in this climate.”

    Echotitbits take: The CBN is in a “catch-22” situation—keep rates high to fight inflation and protect the Naira, or lower them to save the real sector. Expect the pressure on the Monetary Policy Committee (MPC) to mount as manufacturers begin to report shrinking margins in their Q1 results.

    Source: BusinessDay – https://businessday.ng/business-economy/article/high-interest-rates-push-lending-growth-to-five-year-low/, February 3, 2026

    Photo credit: BusinessDay

  • Nigerian Banks to Enforce Mandatory Tax ID for All Account Operations

    Nigerian Banks to Enforce Mandatory Tax ID for All Account Operations

    In an update published by Channels TV, Nigerian commercial banks have begun the full enforcement of mandatory Tax Identification Numbers (TIN) for both new and existing account holders. This policy, which stems from the new tax reforms, requires every individual and business to link their bank accounts with their tax records. Failure to comply will result in restricted access to banking services, including transfers and withdrawals, as the government seeks to widen the tax net and track illicit financial flows.

    The Central Bank of Nigeria (CBN) and the FIRS have collaborated on a unified platform that allows for real-time verification of tax IDs. Bank officials have urged customers to update their records immediately to avoid being locked out of the financial system. The policy is also aimed at identifying high-net-worth individuals who have previously evaded taxes while moving large sums of money through the banking sector.

    The enforcement was also documented by The Nation and Vanguard. The Nation reported that “banks have seen a surge in customers visiting branches to link their TINs,” while Vanguard noted that “the move is expected to significantly boost the government’s non-oil revenue.”

    Echotitbits take:

    This is the “no-escape” phase of Nigeria’s tax reform. By linking TIN to bank accounts, the government can now monitor income versus lifestyle in real-time. Watch for a rise in fintech usage and “under-the-mattress” cash holdings as some small businesses try to avoid the digital tax footprint.

    Source: Facebook – https://web.facebook.com/ReportYourself/posts/nigerian-govt-set-make-tax-identification-number-mandatory-for-bank-accounts-fro/1421006479380864/?_rdc=1&_rdr#, January 31, 2026

    Photo credit: Facebook

  • Nigerian Naira Maintains Resilience as Official Exchange Rate Dips Below 1,400

    Nigerian Naira Maintains Resilience as Official Exchange Rate Dips Below 1,400

    Figures cited by Vanguard show the Naira holding below the 1,400-per-dollar threshold in the official market. On Thursday morning, the currency opened around 1,395.09/$ in the Nigerian Foreign Exchange Market (NFEM), supported by liquidity improvements and the Central Bank’s Electronic Foreign Exchange Matching System (EFEMS).

    While the parallel market remained higher, the narrowing premium suggests speculative pressure may be easing. Analysts attribute the resilience to efforts to clear FX backlogs and to a rise in external reserves, giving the central bank more room to intervene and smooth volatility.

    The Punch noted the currency’s benefit from improved price discovery, while ThisDay quoted market analysts pointing to reduced panic buying and improving investor confidence.

    Echotitbits take: Staying below the 1,400 psychological level is a notable win for the CBN narrative on stability. The next key signal is the MPC decision: holding rates could protect the FX gains, while easing could support growth but risk renewed pressure if liquidity tightens.

    Source: Facebook/TheCable – https://web.facebook.com/thecableng/posts/naira-appreciates-to-n1400-at-official-market-strongest-performance-since-may-20/1213502280966076/?_rdc=1&_rdr# 2026-01-29

    Photo Credit: Facebook/TheCable

  • Nigerian Naira Gains Ground in Official Market as Reserves Hit $46 Billion

    Nigerian Naira Gains Ground in Official Market as Reserves Hit $46 Billion

    Reporting by Vanguard indicates that the Nigerian Naira has maintained a strong positive trajectory against the United States Dollar during the mid-week trading session. In the Nigerian Foreign Exchange Market (NFEM), the local currency strengthened significantly, settling at approximately 1,400.66 per dollar. This appreciation is being fueled by increased liquidity and a surge in the country’s external reserves, which have now surpassed the $46 billion mark, providing a substantial buffer for the Central Bank of Nigeria (CBN).

    The stability in the official window is starting to reflect in the parallel market, where panic buying has largely subsided. While the “black market” rate remains slightly higher, trading between 1,480 and 1,485, the narrowing gap between the two rates suggests that the CBN’s recent monetary policy adjustments are beginning to take hold. Financial experts predict that if the current liquidity levels are sustained, the Naira could settle into a predictable range of 1,400 to 1,500 for the remainder of the fiscal year.

    Market data from MarketForces Africa corroborated the gains, noting that the “Naira touched N1,400 per Dollar in the Nigerian currency market” following a series of aggressive interventions. The Nation also reported on the currency’s resilience, with a financial analyst quoted as saying, “The absence of speculative pressure is a clear signal that the market is beginning to trust the current FX management framework.”

    Echotitbits take: The growth in external reserves is a vital sign of economic recovery, likely driven by improved crude oil production and foreign portfolio inflows. Watch for whether this stability translates into a reduction in the prices of imported consumer goods over the next quarter.

    Source: BusinessDay – https://businessday.ng/business-economy/article/naira-gains-as-reserves-reach-eight-year-high-of-46bn/ January 28, 2026

    Photo Credit: BusinessDay

  • Diaspora Remittances Hit Record High as Nigeria Simplifies FX Inflows

    Diaspora Remittances Hit Record High as Nigeria Simplifies FX Inflows

    Diaspora remittances into Nigeria reportedly hit a record monthly high in January 2026, driven by FX market reforms that narrowed the gap between official and parallel market rates and encouraged formal channels.

    The CBN’s incentive approach and the licensing of new International Money Transfer Operators (IMTOs) have helped reduce transfer costs, with analysts describing remittances as a key pillar for reserves stability.

    Policy discussions are also shifting toward remittance-backed bonds that would allow diaspora funds to support infrastructure projects, converting consumption inflows into long-term development capital.

    Echotitbits take: For years, billions bypassed the official system. Better FX transparency is restoring diaspora confidence in formal channels. The next step—Diaspora Bonds—could help close Nigeria’s infrastructure funding gap, but only if managed transparently and credibly.
    Source: This Day – https://www.thisdaylive.com/2026/01/17/how-cbn-reforms-are-boosting-nigerias-fx-inflows-balance-of-payments/ 2026-01-27

    Photo Credit: This Day

  • Central Bank Tightens Capital Requirements for Nigerian Merchant Banks

    Central Bank Tightens Capital Requirements for Nigerian Merchant Banks

    The Central Bank of Nigeria (CBN) has issued a new circular raising the minimum capital base for merchant banks, a move aimed at strengthening resilience in a volatile global environment and ensuring specialized banks can back large-scale projects.

    Affected institutions have a 12-month window to meet the revised thresholds, with the CBN framing the directive as part of positioning Nigerian banks for cross-border competitiveness under the AfCFTA framework.

    Analysts expect the policy to trigger consolidation through mergers and acquisitions among smaller merchant banks, as the regulator insists the transition will be managed to avoid service disruptions.

    Echotitbits take: This looks like phase two of the recapitalization agenda that began in 2024. By forcing merchant banks to scale, the CBN is signaling it wants fewer but stronger institutions capable of financing industrial projects rather than just trading. Watch for fresh capital-raise announcements on the NGX.
    Source: The Punch – https://punchng.com/banks-strengthen-capital-base-as-cbn-tightens-controls-2/ 2026-01-27

    Photo Credit: The Punch

  • Naira Gains in Official Market as CBN Interventions Boost Liquidity

    Naira Gains in Official Market as CBN Interventions Boost Liquidity

    The Nigerian naira opened the final week of January 2026 with modest gains against the US dollar in the official market, following reported Central Bank of Nigeria (CBN) interventions and improved foreign exchange liquidity.

    Market watchers say the spread between official and parallel market rates continues to narrow, a trend linked to recent efforts to attract foreign portfolio inflows and stabilize the currency. For import-reliant businesses, even incremental stability can ease cost planning and reduce pass-through inflation on raw materials.

    The CBN is expected to remain cautious, maintaining a tight monetary stance as inflation risks persist. Separate market reporting also characterized the gains as liquidity-driven, reinforcing the view that policy signaling and FX supply conditions will be decisive through Q1.

    Echotitbits take: Currency stability is the Holy Grail for the current economic team. If the Naira stays within this range, we might see a more significant drop in the cost of imported raw materials by the second quarter.
    Source: BusinessDay – https://businessday.ng/business-economy/article/naira-records-0-8-year-to-date-gain-as-reserves-grow-further/ 2026-01-26

    Photo Credit: BusinessDay

  • NICA Demands Shift to Credit-Based Economy to Spur Growth

    NICA Demands Shift to Credit-Based Economy to Spur Growth

    The National Institute of Credit Administration (NICA) has renewed calls for the Federal Government to institutionalize a credit-driven economic model, arguing that a transition from predominantly cash-based transactions can deepen financial inclusion and improve long-term economic resilience.

    Key argument: NICA says a functional credit economy depends on strong legal frameworks for default management and a culture of transparency, alongside closer collaboration between government reforms and professional credit institutions.

    Context: Analysts cited in related coverage suggest a properly implemented credit-led recovery could boost growth, but implementation risks remain—especially amid inflation and policy uncertainty.

    Echotitbits take: A stronger credit system could expand SME capacity and middle-class purchasing power. The real test is whether monetary policy and inflation dynamics can support affordable lending without increasing systemic risk.

    Source: The Guardian – https://guardian.ng/business-services/nica-seeks-migration-to-credit-based-economic-growth/ (January 25, 2026)

    The Guardian 2026-01-25

    Photo Credit: The Guardian

  • Local Currency Firms Up Against Dollar in Early 2026 Trading

    Local Currency Firms Up Against Dollar in Early 2026 Trading

    Local Currency Firms Up Against Dollar in Early 2026 Trading

    Figures cited by Vanguard show that the Nigerian Naira began the third week of January on a strong note, appreciating to approximately 1,418 per dollar in the official market. The move has been attributed to increased liquidity in the Nigerian Foreign Exchange Market (NFEM) and a drop in speculative demand. Analysts say the Central Bank’s efforts to clear outstanding obligations have restored some confidence among corporate buyers.

    In the parallel market, the currency also showed resilience, trading between 1,470 and 1,485 per dollar. Market watchers point out that the gap between official and street rates is narrowing—an objective of current monetary policy. Bureau De Change operators say typical New Year volatility has been tempered by a steady flow of diaspora remittances and improved oversight.

    The Guardian also reported that rate convergence is a positive signal for international investors. ThisDay quoted a financial analyst saying that improved transparency is contributing to market stability. The market remains optimistic that the Naira can hold its trajectory through the first quarter.

    Echotitbits take: Stability is the keyword. While 1,400+ remains a high level, reduced daily swings help businesses plan. The true stress-test will be sustaining liquidity without undue pressure on external reserves.

    Source: Reuters — https://www.reuters.com/world/africa/south-african-rand-firmer-ahead-local-inflation-data-2026-01-21/ (2026-01-23)

    Photo Credit: Reuters 2026-01-23

  • Diaspora Affairs: Nigeria Moves to Formalize Remittance Channels

    Diaspora Affairs: Nigeria Moves to Formalize Remittance Channels

    Diaspora Affairs: Nigeria Moves to Formalize Remittance Channels

    The Federal Government has introduced a policy package to streamline remittances by lowering fees and proposing ‘Remittance Bonds,’ aiming to route more FX inflows through official channels and support reserves and liquidity.

    Additional coverage across Nigerian media and stakeholder reactions indicate that the implications of the development will be closely watched in the coming days as policy, security, and market signals evolve.

    Echotitbits take: Remittances are a major FX pillar after oil. Success depends on trust: diaspora senders will follow official channels if pricing is competitive and the exchange-rate gap remains tight.

    Source: The Punch – https://punchng.com/diaspora-remittances-hit-600m-monthly-dabiri-erewa-cbn/ (2026-01-22)

    Photo credit: The Punch

    2026-01-22 17:00:00