Echotitbits – Nigeria News

Tag: Inflation

  • Central Bank Targets Exchange Rate Stability With New BDC Dollar Supply

    Central Bank Targets Exchange Rate Stability With New BDC Dollar Supply

    Reporting by BusinessDay indicates that the Central Bank of Nigeria (CBN) has reopened its foreign exchange window for Bureau De Change (BDC) operators. This strategic move is designed to narrow the widening gap between the official and parallel market rates, providing much-needed liquidity to the retail segment of the currency market.

    In an update published by the same outlet, the apex bank’s decision follows a period of heightened volatility that saw the Naira under significant pressure. By channeling funds directly through licensed BDCs, the CBN aims to decentralize access to foreign currency for small-scale users and travelers, thereby curbing speculative activities that have historically fueled inflation.

    Market analysts suggest that this intervention, coupled with the ongoing “clean-up” of the BDC sector, reflects a more aggressive stance by the regulator to maintain macroeconomic stability. The reopening of the “dollar tap” is expected to provide immediate relief to businesses that rely on the informal market for their foreign exchange needs.

    The Punch and The Nation have confirmed this development, noting the positive reception from financial stakeholders. The Punch reported that “operators expect the move to significantly reduce the premium between markets,” while The Nation quoted a source stating, “this is a vital step toward achieving a realistic exchange rate for the 2026 fiscal year.”

    Echotitbits take: This intervention is a reactive measure to the recent currency slide. While it offers short-term liquidity, the long-term stability of the Naira depends on Nigeria’s ability to boost non-oil exports and attract foreign direct investment. Watch for the CBN’s next Monetary Policy Committee (MPC) meeting to see if interest rates will be adjusted to complement this liquidity injection.

    Source: BusinessDay – https://businessday.ng/news/article/cbn-approves-150000-weekly-fx-sales-to-bdcs/, February 13, 2026

    Photo credit: BusinessDay

  • 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

  • NESG Report Links Slow Business Growth to High Taxes and Fuel Costs

    NESG Report Links Slow Business Growth to High Taxes and Fuel Costs

    Reporting by Vanguard indicates that the Nigerian Economic Summit Group (NESG) has identified rising tax burdens and fuel price adjustments as the primary drivers behind a slowdown in business growth during January 2026. According to the latest Business Confidence Monitor (BCM) report, business optimism has hit a six-month low as enterprises struggle with the rising cost of operations.

    The report emphasizes that while the government’s reform agenda is necessary for long-term stability, the immediate impact on small and medium enterprises (SMEs) has been severe. The NESG warns that without targeted interventions to cushion the effects of these fiscal policies, the pace of industrial productivity may continue to decline in the first quarter of the year.

    Validation from Channels TV and The Nation underscores these concerns. Channels TV reports that “the manufacturing sector is feeling the pinch of energy costs,” with a spokesperson for the Manufacturers Association of Nigeria (MAN) stating, “We are operating at the edge of viability due to the triple threat of fuel, power, and taxes.” The Nation also cites the report, quoting an economist who notes, “The government must balance its revenue drive with the survival of the private sector to avoid a stagflation scenario.”

    Echotitbits take: The NESG report is a wake-up call for the fiscal authorities. While tax reforms are essential for reducing the budget deficit, the timing and execution are hitting the productive sector hard. Watch for a potential review of tax incentives or a push for more “pro-growth” adjustments in the coming mid-year budget review.

    Source: BusinessDay – https://businessday.ng/business-economy/article/cost-of-doing-business-rises-to-90-5-in-january-on-tax-reforms-fuel-price-adjustments/?utm_source=auto-read-also&utm_medium=web&amp, February 4, 2026

    Photo credit: BusinessDay

  • Fuel Prices Surge Toward N1,000 Milestone as Global Crude Rises

    Fuel Prices Surge Toward N1,000 Milestone as Global Crude Rises

    Figures cited by The Punch show that Nigerian fuel marketers are warning of a potential petrol price hike to ₦1,000 per litre as global crude oil prices cross the $70 per barrel mark. Marketers indicated that the current landing cost of Premium Motor Spirit (PMS) has been significantly impacted by the rising international oil prices and the continued volatility of the Naira. This development threatens to further strain the disposable income of citizens who are already grappling with high transport costs.

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is currently under pressure to review the pricing template to reflect these market realities. Industry experts suggest that without a significant appreciation of the Naira or a subsidy-like intervention, the ₦1,000 mark is nearly inevitable. This comes at a time when the federal government is shifting focus from economic stabilization to expansionary growth.

    This news was also covered by Leadership and ThisDay. Leadership reported that “marketers are calling for a transparent pricing mechanism to avoid supply disruptions,” while ThisDay noted that “the $70 crude price is a double-edged sword for Nigeria’s oil-dependent budget.”

    Echotitbits take:

    Rising fuel prices are the most potent trigger for inflation in Nigeria. If the price hits ₦1,000, we expect another wave of transport fare hikes and a possible spike in food prices. Watch for the government’s “Renewed Hope” ward development programs to be fast-tracked as a palliative measure to douse public tension.

    Source: The Punch – https://punchng.com/petrol-to-hit-n1000-litre-as-crude-crosses-70-marketers/, January 31, 2026

    Photo credit: The Punch

  • Massive Shift in Regional Markets: ECOWAS Projects 5% Growth for 2026

    Massive Shift in Regional Markets: ECOWAS Projects 5% Growth for 2026

    According to reporting from The Guardian, the President of the ECOWAS Commission, Dr. Omar Alieu Touray, has officially projected a regional economic growth rate of 5.0% for the current 2026 fiscal year. This optimistic forecast follows a resilient 4.6% growth recorded in the previous year, despite global economic headwinds and high inflation. Speaking at a news conference in Abuja regarding the exit of Mali, Burkina Faso, and Niger, the commission emphasized that the West African bloc continues to outperform other regions on the African continent.

    The projections are built on the back of recovering industrial output and a steady decline in inflation across member states. Officials noted that while the global economy has slowed down, Africa’s resilience remains a key driver for the regional uptick. The commission is now focusing on harmonizing trade policies to ensure this 5% target is met through increased intra-regional commerce and infrastructure stability.

    This development has been corroborated by Vanguard and The Nation. Vanguard noted that the “resilience of the West African economy is a testament to recent fiscal reforms,” while The Nation reported that “member states are being urged to maintain fiscal discipline to meet the 5% growth threshold.”

    Echotitbits take:

    This 5% growth projection is a bold signal of stability for a region recently rocked by the exit of three key members. Investors should watch for new trade treaties within ECOWAS to compensate for the “exit shock,” as the commission seeks to prove that the bloc remains economically viable without the Sahelian trio.

    Source: Daily Trust – https://dailytrust.com/ecowas-targets-5-growth-for-west-african-countries-in-2026/ , January 31, 2026

    Photo credit: Daily Trust

  • Nigeria Moves to Terminate Rice Importation Windows to Protect Local Farmers

    Nigeria Moves to Terminate Rice Importation Windows to Protect Local Farmers

    Nigeria is moving to shut down rice import windows following a national policy review that reportedly found imports have created surplus supply, depressing prices and worsening losses for domestic farmers.

    Officials linked to the Presidential Food Systems Coordinating Unit reportedly stated that maize and rice farmers recorded negative margins during the 2025 wet season, driven by high production costs and weak sale prices. The government’s new direction is expected to prioritize local production while introducing price protection mechanisms to safeguard farmer livelihoods and preserve national food security.

    Supporters argue the policy reset will stabilize rural incomes and reduce exposure to import shocks. Critics caution that if local output cannot meet demand, consumers—particularly in urban centers—could face renewed price pressures. Separate reporting has also referenced national food balance figures indicating a notable surplus in late 2025.

    Echotitbits take: This is a return to protectionist policies. While it helps farmers, the government must ensure that local supply is actually sufficient to prevent a price spike for consumers in urban areas.
    Source: BusinessDay – https://businessday.ng/news/article/nigeria-to-shut-rice-import-windows-as-data-exposes-farmers-losses/ 2026-01-26

    Photo Credit: BusinessDay

  • Dramatic Drop in Nigeria Food Prices Sparks Mixed Reactions Among Stakeholders

    Dramatic Drop in Nigeria Food Prices Sparks Mixed Reactions Among Stakeholders

    The Nation reports a notable decline in the prices of staple foods across parts of Nigeria, delivering relief to consumers while triggering concern among agricultural producers and intermediaries. In states including Ogun, Oyo, and Kwara, the price of a 50kg bag of rice was reported to have dropped substantially from previous peaks above N100,000.

    The report linked the shift to a combination of improved yields and policy interventions, while noting that stakeholders differ on what is driving the price movement and whether the trend is sustainable. Some farmers and market middlemen argue they are being squeezed by sudden changes in market conditions.

    The Punch and Tribune Online also reported on the changing dynamics, with The Punch highlighting easing inflation pressures, while Tribune Online emphasized producers’ complaints that selling prices may now be below cost.

    Echotitbits take: Lower food prices are politically valuable for the federal government, but a producer-side backlash can translate into reduced planting next season. Watch for targeted support measures—credit, guaranteed offtake, input subsidies, or a “farmer support” package—to prevent a supply shock later in the year.
    Source : Daily Post — https://dailypost.ng/2025/10/28/economists-explain-why-rice-price-drop-sparks-mixed-reactions-among-nigerians-traders/ 2026-01-24

    Photo Credit: Daily Post

  • Macro-Strategy: VP Shettima Reclassifies Food Security as National Security

    Macro-Strategy: VP Shettima Reclassifies Food Security as National Security

    Macro-Strategy: VP Shettima Reclassifies Food Security as National Security

    Vice President Kashim Shettima says Nigeria is now treating food security as a core national security and macroeconomic priority, unveiling a ‘Back to the Farm’ push aimed at reducing inflation and food-import FX pressure.

    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: Framing food as a security issue allows the government to deploy more resources and potentially protect farming clusters more aggressively. Success depends on whether food-basket regions are actually made safe from banditry.

    Source: Channel TV – https://www.channelstv.com/2025/07/30/nigerias-target-is-to-attain-food-sovereignty-shettima/ (2026-01-22)

    Photo credit: Channel TV

    2026-01-22 13:00:00

     

  • CBN Projection Puts Petrol Around N950/Litre, Raising Fresh Inflation Concerns

    CBN Projection Puts Petrol Around N950/Litre, Raising Fresh Inflation Concerns

    According to Vanguard, a CBN-linked macro projection suggests petrol could average around N950 per litre, reflecting a model-driven outlook shaped by exchange rates and supply costs. (more…)

  • NACCIMA Raises Alarm Over 139 Million Nigerians in Poverty

    NACCIMA Raises Alarm Over 139 Million Nigerians in Poverty

    In an update published by ThisDay, the President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Kelvin Oye, said about 139 million Nigerians are living below the poverty line, citing updated World Bank data for 2025/2026. He argued that GDP growth is being undermined by the scale of economic hardship.

    Oye said Nigeria is facing a “dual-inflation” challenge: demand-pull inflation linked to deficit spending, and cost-push inflation tied to high energy and transport costs. He added that higher interest rates may curb liquidity but also squeeze private-sector investment.

    He called for a shift in fiscal policy, urging the government to prioritize manufacturing and agricultural productivity over heavy borrowing, and warned that weak purchasing power will keep pressure on prices and the naira.

    The Guardian and Vanguard also reported related concerns from analysts about the widening gap between market indicators and household conditions.

    Echotitbits take: The 139 million estimate highlights how macro gains can miss the street-level reality. The tension between tighter monetary policy and private-sector calls for cheaper credit could intensify into a major policy debate in 2026.

    Source: BusinessDay – https://businessday.ng/news/article/2026-budget-could-trap-nigeria-in-fiscal-time-loop-despite-gains-from-reforms/ 2026-01-09

    Photo Credit: BusinessDay