Echotitbits – Nigeria News

Tag: Central Bank of Nigeria

  • Nigeria Faces Deepening Economic Crisis as Currency Gap Widens

    Nigeria Faces Deepening Economic Crisis as Currency Gap Widens

    Figures cited by BusinessDay show that the Nigerian economy is facing renewed pressure as the gap between the official and parallel market exchange rates has widened to over N90. This development marks the most significant divergence in three years, threatening the government’s efforts to achieve exchange rate convergence and stabilize the local currency.

    The widening gap is attributed to a “scramble for FX” by importers and a slowdown in foreign capital inflows. Despite the Central Bank’s recent policy adjustments, liquidity remains tight, forcing many businesses to source dollars at exorbitant rates from the black market. This has directly contributed to the rising cost of imported raw materials and finished goods, further fueling headline inflation.

    Economic experts warn that if the divergence continues, it could lead to another round of official devaluation. The manufacturing sector is particularly hit, with many firms reporting narrowed profit margins and reduced production capacity. The government’s 2026 budget projections, which rely on a stable exchange rate, are now under threat of significant revision.

    Validating data from ThisDay and The Sun confirm the market volatility. ThisDay reported that “the FX scarcity is stalling major infrastructure projects,” while The Sun quoted a financial analyst stating, “the market is reacting to the delay in the anticipated $3 billion emergency loan from international lenders.”

    Echotitbits take: The “Naira-mismatch” is back, and it’s a nightmare for the Central Bank. Watch for a potential hike in interest rates (MPR) in the next MPC meeting as the CBN tries to mop up excess liquidity and attract investors to the fixed-income market.

    Source: Legit.ng – https://www.legit.ng/business-economy/economy/1695884-naira-suffers-decline-forex-market-exchange-gap-widens/, February 10, 2026

    Photo credit: Legit.ng

  • Parallel Market Pressure Deepens as Naira Slides to ₦1,490 per Dollar

    Parallel Market Pressure Deepens as Naira Slides to ₦1,490 per Dollar

    According to Vanguard, the naira came under fresh pressure in the parallel market on Thursday, weakening to about ₦1,490/$—down from roughly ₦1,470/$ earlier in the week.

    Figures from the Nigerian Foreign Exchange Market (NFEM) also showed a mild softening in the official close, moving from about ₦1,416/$ to ₦1,421/$, widening the spread between official and street rates.

    Market watchers linked the renewed volatility to seasonal FX demand and speculative positioning, even as the central bank has continued to signal optimism around reserve buildup and longer-term convergence.

    **Echotitbits take:** The persistent gap between official and parallel rates remains a key credibility test for FX reforms. If liquidity at the retail end stays tight, expect more pressure on prices and confidence—watch closely for the CBN’s next market-facing intervention.
    Source: Guardian — https://guardian.ng/business-services/naira-eyes-n1300-at-parallel-market-as-speculators-offload-fx/ 2026-01-08

    Photo Credit: Guardian

  • FX reserves climb by $4.39bn in 12 months, CBN data shows

    FX reserves climb by $4.39bn in 12 months, CBN data shows

    2025-12-29 09:00:00
    Figures published by Punch indicate Nigeria’s external reserves rose by $4.39bn between December 23, 2024 and December 23, 2025, reaching about $45.24bn over the period, based on data sourced from the Central Bank of Nigeria.

    The rise adds to a late-2025 picture of stronger buffers, with other market trackers also placing Nigeria’s gross reserves above $45bn in December and describing it as a multi-year high.

    Beyond the headline number, the key question for businesses and households is whether the reserve build-up translates to steadier FX supply and narrower spreads across official and parallel channels.

    MoneyCentral reports that “Gross dollar reserves stood at $45.04 billion as at December 4, 2025,” citing CBN data, while TELL notes reserves “hit $45bn” in early December 2025.

    Echotitbits take: Reserves are a confidence barometer—but they can rise and still feel “tight” if FX demand stays hot. Watch whether the trend holds into Q1 2026 and whether gaps between rates meaningfully narrow.

    Source: The Punch — December 29, 2025 (https://punchng.com/fx-reserves-add-4-39bn-in-one-year/)
    The Punch 2025-12-29

    Photo Credit: The Punch

  • Lawmakers Move to Place CBN Operations Under Tighter Oversight

    Lawmakers Move to Place CBN Operations Under Tighter Oversight

    Photo Credit:Punch Newspapers

    The House of Representatives is considering a bill that would subject key operations of the Central Bank of Nigeria to stronger legislative oversight and transparency requirements. Sponsors of the proposal say recent controversies over foreign‑exchange management, Ways and Means financing and intervention funds justify clearer rules and reporting obligations.

    While acknowledging the need for central‑bank independence, proponents argue that accountability to the Nigerian people through parliament cannot be compromised. The bill could reshape the balance between monetary authorities and elected officials, with implications for banking regulation, inflation management and investor confidence.

    Source: Punch Newspapers – 12 Dec 2025

    2025-12-12 10:00:00 Punch Newspapers – 12 Dec 2025 2025-12-12

  • CBN to Sanction Banks Over Fund Disbursement Delay to Farmers

    CBN to Sanction Banks Over Fund Disbursement Delay to Farmers

    The Central Bank of Nigeria says it will now sanction banks involved in delaying disbursement of Anchor Borrower’s Program funds to farmers.

    The apex bank gave the threat when the Director of Development Finance, Mr. Yusuf Yila spoke at a stakeholders’ meeting involving Anchor, Processors, Commodity Associations and Banks.

    Yila disclosed that the CBN has been receiving complaints on late disbursement despite having released the funds to the participating banks, thereby threatening the success of the Federal Government’s Anchor Borrower’s Programme.

    He noted that the CBN will be more involved in the selection of input suppliers, to ensure that only reliable ones are engaged.

    He added that suppliers will be put on stand-by to replace those that were found wanting.

    Mr. Yila described the 2020 dry season as the biggest yet since the commencement of the Anchor Borrowers’ Program in 2015 and sought the co-operation of all stakeholders to make it a success, to save the country from a food crisis.

    Radio Nigeria

  • PSN to CBN: Give Us Special and Dedicated Foreign Exchange Allocation to Promptly Procure Equipment & Raw Materials

    PSN to CBN: Give Us Special and Dedicated Foreign Exchange Allocation to Promptly Procure Equipment & Raw Materials

    Pharmaceutical Society of Nigeria (PSN) has made a passionate appeal to the Central Bank of Nigeria (CBN) to consider making a special and dedicated allocation of foreign exchange to the healthcare/pharmaceutical companies so that they could procure their machinery/equipment and raw materials in a timely manner.

    PSN, in a statement by its President, Sam Ohuabunwa, noted with pleasure that some healthcare/pharmaceutical companies that applied for the special N100 billion CBN facility have been granted.

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    While pointing out that the majority of the applicants had not yet successful, PSN tasked CBN on the need to expedite the review and approval of many of the outstanding applications, so that the overall impact on industrial capacity, capability and output would be significantly enhanced in line with the noble objectives of the facility, especially as the novel Coronavirus (COVID-19) pandemic subsists and the need for self-sufficiency in local drug production persists.

    Ohuabunwa added that some successful applicants have been experiencing difficulties in accessing foreign exchange in order to carry out their transactions.

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    According to him, “The feedback we receive is that many of the beneficiary companies are experiencing tremendous difficulties in accessing foreign exchange to pay for the machinery and equipment in order. Many are compelled to source forex from sundry sources at much higher rates than the official CBN rate. The impact of this portends grave danger and may undermine the noble objectives.

    “First, the longer it takes to get the machines and equipment in, the longer it will be for Nigeria to begin to see an enhanced local production.

    “Second, the longer it takes, the more difficult it will be for the benefitting companies to begin production and generate cash flow to meet the interest and repayment obligation, as the moratorium is fast depleting.

    “Third is that with forex at rates higher than the planned or forecasted rates in the business plan, the money received in Naira may no longer be sufficient to meet the stated needs.

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    “And fourth is that the longer the Naira is left in the banks awaiting piecemeal allocation of Forex, the faster the value depreciates by growing inflation and the fewer the number of machinery and equipment or even raw materials that can be bought.

    “All these will put an additional burden on the beneficiary companies when it comes to servicing the loans in a timeous manner.

    “It is because of the foregoing and to preempt any future problems with prompt servicing of the loans that we make this special appeal to the CBN to consider making the special and dedicated allocation of foreign exchange to the beneficiary companies so that they can procure their machinery/equipment and raw materials in a timely manner, in order, that the beneficial effect of this noble program can be quickly realised and repayment made as and at when due so that the CBN will be encouraged to do more for the Pharma Industry and also to other sectors of the economy.

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    “Ideally one would have wished that the loans were granted in two currencies: Foreign currency for equipment purchase and local currency for local purchase (information available in the applications and business plans of beneficiaries). This would have obviated the current challenges being faced by the beneficiary companies.

    “Given the current and well-acclaimed responsiveness of our CBN leadership, it’s our hope that the CBN will accede to our request and help the industry to quickly optimise this earnestly prayed- for and long-awaited lifeline.”

    Idowu Sowunmi

  • For the first time, CBN sells pound above N500

    For the first time, CBN sells pound above N500

    The Central Bank of Nigeria (CBN) for the first time last week sold the pound above N500, as naira continues to battle major headwinds.

    On Wednesday, the nation’s apex bank sold a pound for N501.98 and quoted N500.659 as its buying rate.

    At the parallel market, the currency is going for as much as N600. With the official rate hitting and surpassing N500 before the naira gained a momentary respite on Thursday, a new yardstick may have been set at the foreign exchange market.

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    Since the beginning of the year, the naira has faced daunting challenges. The apex bank’s plan to converge the rates has faced serious scrutiny.

    While speaking during a talk show on Nigeria Info radio in Lagos, The Managing Director of Financial Derivatives Company and a member of President Muhammadu Buhari’s Economic Advisory Council, Bismarck Rewane, said unification is a tough policy option the Central Bank would need to make, Echotitbits gathered.