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Naira Weakens By 16% Amid Soaring Demand In I&E Market

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Yesterday, there was a significant decline in the value of the Naira, as it depreciated by 16 percent to reach N770.38 per US dollar in the Investors and Exporters (I&E) window.

 

This depreciation was primarily driven by an increased demand for dollars, which was exacerbated by a severe shortage in supply.

 

According to data from the FMDQ, the indicative exchange rate in the Investors and Exporters (I&E) window surged to N770.38 per dollar, compared to N663.04 per dollar on the previous Friday.

 

This signifies a depreciation of N107.34 for the Naira. However, in the parallel market, the Naira experienced a slight appreciation, strengthening from N759 per dollar to N755 per dollar yesterday.

 

Consequently, the exchange rate in the Investors and Exporters (I&E) window exceeded the parallel market exchange rate for the first time since 2019.

 

Sources in the forex market have informed Vanguard that the depreciation of the Naira is primarily attributed to a surge in demand, driven by the maturity of over $3.7 billion worth of Letters of Credit (LCs).

 

This situation is further exacerbated by a shortage in the supply of foreign exchange, as the Investors and Exporters (I&E) window has yet to witness substantial inflows since the reintroduction of the willing seller, willing buyer model by the Central Bank of Nigeria (CBN).

 

According to one source, the volume of transactions in the market remains quite limited, involving individuals with urgent forex requirements who are willing to purchase at any exchange rate.

 

Some of these buyers were already accustomed to acquiring dollars at parallel market rates, and therefore, they are accustomed to paying above N700 per dollar for their purchases.

 

The development in the I&E window follows the new forex measures announced by the CBN on Wednesday.

 

Announcing the   new measures in a statement titled, “Operational Changes to the Foreign Exchange Market”, Director, Financial Markets, Dr. Angela Sere-Ejembi, said, “The Central Bank of Nigeria (CBN) wishes to inform all authorized dealers and the general public of the following immediate changes to operations in the Nigerian Foreign Exchange (FX) Market.

 

“Abolishment of segmentation. All segments are now collapsed into the Investors and Exporters (I&E) window. Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.

 

“Re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window. Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017 and referenced FMD/DIR/CIR/GEN/08/007. All eligible transactions are permitted to access foreign exchange at this window.

 

“The operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two (2) decimal places.

 

“Proscription of trading limits on oversold FX positions with permission to hedge short positions with Over-The Counter-futures. Limits on overbought positions shall be zero.

 

“Re-introduction of order-based two-way quotes, with bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).

 

“Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades. The operational hours of trades shall be from 9am to 4pm, Nigeria time.

 

“Cessation of RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30 June 2023. Further guidance on these matters shall be communicated in due course. All market participants and the general public are kindly enjoined to abide by these rules.”

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Showunmi Urges South-East to Judge Tinubu by Projects, Not Propaganda

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Otunba Segun Showunmi, a member of the Tinubu/Shettima Presidential Campaign Council (PCC) for 2027, has urged the South-East to assess President Bola Tinubu’s administration based on verifiable projects and measurable results rather than political propaganda.

Showunmi made the call in a statement posted on X on Saturday, urging Nigerians to evaluate the government’s performance based on infrastructure delivery, funds committed to projects and their impact on communities.

He said federal infrastructure initiatives targeting the South-East under Tinubu’s administration deserved serious scrutiny and factual assessment, adding that unfulfilled promises should continue to be pursued until the expected results were delivered.

SEE ALSO: 2027 Election: ‘Look Beyond the Noise’ – Showunmi Urges Nigerians to Give Tinubu More Time

“Our message is clear: We will not trade facts for propaganda, nor accountability for political loyalty!” he said.

The political figure challenged critics of the administration to provide evidence to support their claims, while urging those defending the government to present the projects and demonstrate their impact.

He also called on government officials to publish relevant figures, disclose project timelines and provide measurable results, insisting that no public official should be exempt from scrutiny.

According to Showunmi, the South-East deserves infrastructure that supports economic growth, including roads that connect markets, investments that create jobs and policies that expand economic opportunities.

He maintained that political representation must translate into tangible benefits for citizens, stressing that public office should deliver value to the people.

As part of his call to action, Showunmi urged Nigerians to scrutinise government records, challenge misinformation with evidence and demand the completion of outstanding projects.

He further called for public commitments to be matched by measurable delivery, arguing that leadership should be assessed by facts and results rather than political rhetoric.

Ending his statement with the slogan, “Asiwaju is a goal,” Showunmi called for accountability and greater inclusion of the South-East in Nigeria’s development.

Showunmi is associated with The Alternative and is a member of the Tinubu/Shettima Presidential Campaign Council for the 2027 elections.

 

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Lagos: LASTMA Announces Traffic Restrictions Along Route to Toll Gate

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The Lagos State Traffic Management Authority (LASTMA) on Saturday announced a temporary road closure near Apostolic Church, inward Toll Gate, to allow engineers to install a beam on a height-restriction structure.

The agency said the installation was aimed at preventing high-rise trailers from accessing the newly constructed pedestrian bridge.

ALSO READ: LASTMA Alerts Motorists to Traffic Delays on Ogunnusi Road

“Currently, one lane has been occupied to facilitate the ongoing construction work, while the remaining two lanes are available to motorists,” LASTMA stated.

The agency advised road users to approach the affected corridor with caution and follow the directions of its personnel deployed to the area.

“Road users are advised to approach the affected corridor with caution and follow the directions of our personnel who are on ground to ensure the smooth flow of vehicular movement,” the statement added.

LASTMA also urged motorists to remain patient while the installation work continued.

“Motorists are encouraged to exercise patience while the installation work is in progress,” the agency stated.

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‘Oseni Rufai Helped Me, Not NiDCOM’ — Ekene Chukwuma on Return to Nigeria

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Nigerian national Ekene Chukwuma has said he returned to Nigeria with assistance linked to Oseni Rufai rather than the Nigerians in Diaspora Commission (NiDCOM), while renewing allegations against the commission’s chairperson, Abike Dabiri-Erewa, over his travel documents.

Chukwuma made the remarks in an interview in which he explained how he returned to Nigeria after spending months at a deportation camp in India.

RELATED NEWS: Rufai Oseni Row: NiDCOM Breaks Silence on Nigerians Detained in India, Addresses Ekene’s Case

“My name is Kenneth Chukwu, from Enugu State,” he said, introducing himself before explaining how he returned to the country.

“I came back here with the assist of Osini Roufai, a good friend of him,” he said.

Chukwuma denied that NiDCOM facilitated his return, alleging that the commission had published false information about his case.

“NiDCOM made a lots of false, uh, news acquisition against me, which is still in Abike Dabiri handle in Twitter,” he said.

He also accused Dabiri-Erewa of sharing his expired international passport and a travel certificate he claimed was issued six months after he entered the detention camp.

“He also, she also posted my international passport that expired. He also, she also posted my TC that issued after 6 months,” he said.

His comments renew questions surrounding the handling of his case and the circumstances under which he obtained the documents needed to return to Nigeria.

Chukwuma’s detention in India previously sparked a public disagreement between ARISE News presenter Oseni Rufai and Dabiri-Erewa over NiDCOM’s response to reports of his situation.

Oseni raised concerns about Chukwuma’s detention and the commission’s handling of the case, while Dabiri-Erewa defended NiDCOM’s position and explained the process for submitting information to the commission.

NiDCOM subsequently issued its account of Chukwuma’s detention, stating that he had been arrested in India over a visa overstay and addressing the circumstances surrounding his travel documents.

The differing accounts prompted public debate about the commission’s response to Nigerians facing immigration difficulties abroad.

 

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