The Nigerian naira appreciated further against the U.S. dollar in both the official and black markets, closing the week with significant gains.

Data from FMDQ shows the naira strengthened to N1631.21 per dollar on Friday, improving from Thursday’s exchange rate of N1659.26, marking a gain of N28.05.

In the parallel market, the naira also performed well, rising by N10 to N1670 per dollar on Friday from N1680 exchanged the previous day.

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Despite a drop in foreign exchange transaction turnover, which fell from $450.39 million on Thursday to $238.36 million on Friday, the local currency’s appreciation underscores positive market sentiment.

These gains follow recent policy measures introduced by the Central Bank of Nigeria (CBN) aimed at stabilizing the naira.

Recall that on Thursday, the CBN introduced new FX code guidelines and electronic FX matching to reduce speculation and enhance market transparency.

As the week closes, traders and investors are hopeful that these interventions will continue to stabilize the naira amid persistent currency fluctuations in the forex market.

The Federal Government of Nigeria has announced that 63 items have been exempted from Value-Added Tax (VAT) as part of ongoing efforts to stimulate economic growth and support key industries.

This was disclosed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, in a post on X on Friday.

The exempted items are outlined in the “Value Added Tax (Modification) Order, 2024,” which was officially gazetted on September 3, 2024.

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The exemptions primarily target goods and equipment related to clean energy and the oil and gas sectors, signaling the government’s commitment to transitioning to more sustainable energy sources and revitalizing the oil and gas industry.

This announcement came just two days after Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, revealed the introduction of key fiscal incentives aimed at boosting Nigeria’s oil and gas sectors, both upstream and downstream.

The incentives include the VAT modification order and a notice of tax incentives for deep offshore oil and gas production, under the Oil and Gas Companies (tax incentives, exemption, remission, etc.) Order, 2024.

Here are all 63 items exempted from Value-Added Tax (VAT)

1. CNG/LPG Dual Fuel Vehicles

2. Dedicated LPG Vehicles

3. CNG/LPG Dual Fuel Vehicles Parts

4. Semi-knocked down units (for assembly) of CNG and LPG Buses

5. Parts and semi-knocked down units (for assembly) of Electric Vehicles

6. Electric Vehicles

7. Electric Vehicle Batteries

8. Electric Vehicle Charging Systems

9. Electric Vehicle Solar Charging Systems

10. LPG/CNG Conversion Kits

11. CNG Cylinders

12. CNG Cascades

13. CNG Dispensers

14. Gas Generators

15. CNG Trucks (Bobtails and Bridgers; fixed axle and semi-trailers)

16. Steel Pipes

17. Steel Valves & Fittings

18. SS Tubes & Fittings

19. Storage Tanks (all sizes)

20. Regulators

21. CNG Pumps and Compressors (all types)

22. Steel

23. Pressure Relief Valves

24. Hydraulic Press/Rolling Machines

25. Heat Treatment Equipment

26. Liquid Level Gauges

27. Pumping Housing and Motors

28. Regulator Bodies

29. Pressure Gauges

30. Truck Chassis

31. Metering and Measuring Equipment (including weighbridges, filling scales)

32. Dispensing Equipment (dispensing scales, nozzles, gas filling systems)

33. Safety Features (emergency shutoff valves, pressure relief valves, excess flow valves, breakaway couplings, quick release couplings)

34. Gas Water Heaters

35. Gas Burners for Industry

36. Gas Boilers

37. Gas Washing Machines and Dryers (launderettes)

38. Household or Laundry-type Washing Machines, including machines that both wash and dry

39. CNG, LPG, and Cryogenic Hoses

40. Tubes, Pipes, and Hoses, and Fittings (e.g., joints, elbows, flanges) of Plastics

41. CNG Truck Heads

42. Gas Leak Detectors

43. Gas Air Conditioners

44. Cylinder Refurbishment Equipment

45. Blending Skid/Unit

46. Odourizing Units

47. Chromatography Unit (GC)

48. LNG Liquefying Equipment

49. Heat Exchangers

50. LNG Vaporizers

51. Regassification Plant

52. Liquefied CNG Compression Terminals

53. LNG Plant, Machinery, Pumps, Compressors, Filters (including Gas Filters), Weighing Machines, Valves Equipment

54. Cryogenic Storage Tanks

55. Liquefied CNG Conversion Tanks

56. Pipes, Piping Fittings, and Flanges for LNG Processing

57. Electrical Equipment, including Cables for LNG Processing

58. Steel Plates, Angles, and Bars for LNG Processing

59. LNG-Related Chemicals

60. Biogas Digesters

61. Biogas Compressors

62. De-sulphurization Units

63. Distillation Columns for Processing Biofuels

The Central Bank of Nigeria (CBN) has unveiled a new Electronic Foreign Exchange Matching System (EFEMS) to streamline foreign exchange transactions within the Nigerian Foreign Exchange Market (NFEM).

The system, set to be implemented by December 1, aims to promote transparency, market-driven exchange rates, and curb speculative practices in the foreign exchange market.

In an official statement by Omolara Duke, Director of the Financial Markets Department at the CBN, the EFEMS will be a major tool for improving market governance and allowing the CBN to maintain greater oversight of foreign exchange activities.

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“This development is expected to reduce speculative activities, eliminate market distortions, and give the CBN improved oversight capabilities to effectively regulate the market,” Duke said.

EFEMS will require all authorized dealers to conduct foreign exchange transactions through a centralized platform approved by the CBN.

These transactions will be reflected immediately, providing real-time transparency to market participants.

A two-week trial period is scheduled for November before the full implementation in December.

Real-time prices will be published during the live phase of the system, allowing the public to access up-to-date market information.

Additionally, the CBN will collaborate with the Financial Markets Dealers Association (FMDA) to provide detailed rules and guidelines for EFEMS.

The Nigerian FX Code and revised Market Operating Guidelines will offer guidance to participants, and authorized dealers will be expected to meet compliance standards before the system goes live.

Market participants have been urged to ensure that all necessary documentation, training, and system integrations are completed prior to the launch.