Business
Why Naira Is On A Free Fall Against US$
The local currency, the Naira fell to 1005/$ over the weekend in the black market, across major cities in Nigeria, including Lagos, Calabar, Port Harcourt, Kaduna, Kano and Abuja.
And this is in spite of several efforts by the Nigerian Government to control the Foreign Exchange (Forex) Market.
Recall the that Central Bank of Nigeria (CBN), not long ago moved through a memorandum to control the forex market by directing Bureau De Change (BDC) to align rates with what obtained in the Investor & Exporter forex window.
According to the circular number TED/FEM/PUB/FBC/001/007 dated August 17, 2023, titled, ‘Operational mechanism for Bureau De Change operations in Nigeria’, all BDCs and the general public should align buying and selling to the I&E Window.
It read, “The spread on buying and selling by BDC operators shall be within an allowable limit of -2.5 per cent to +2.5 per cent of the Nigerian exchange market window weighted average rate of the previous day.
“Mandatory rendition by BDC operators of the statutory periodic reports (daily, weekly, monthly, quarterly and yearly), on the financial institution forex rendition system which has been upgraded to meet operators’ requirements.”
Biztellers gathered that the CBN has not made good its promise to settle the huge debts to Deposit Money Banks (DMB), which has contributed in putting pressure on demand, by increasing scarcity of forex.
Probably the current leadership changes at the apex bank might have been impacting the situation, as the former acting Governor, Folashodun Shonubi, had on September 6, 2023, assured that the apex bank had concluded negotiation on dollar debts with commercial banks, which offered hopes that all forex backlogs would be cleared “within one to two weeks”.
Despite Shonubi’s position that DMBs had been of much assistance to the apex bank in clearing the major part of its overdue forex forward contracts at maturity, the promise of redemption has not been made good.
This is despite public knowledge that that both parties (regulator and operators) had reached an agreement for reimburse to the DMBs.
Shonubi had volunteered thus, at a public gathering in Lagos, “In response to questions about the backlogs, the banks have been working with the CBN on various structures to clear them. So, what happens is that at maturity, they make the foreign exchange available to those that need it.
“We are discussing with them so we can structure their own. So, we are working towards clearing them in the next one or two weeks. It is something we have been discussing for a while.”
This has continued to mount pressure on the forex situation across the country with DMBs and BDCs yielding to the forces of demand and supply.
The DMBs it was gathered are responding by ‘ducking’ forex demands or at best laying them in abeyance, but the BDCs are focused on buying and selling, which has seen the exchange rates skyrocket.
Feelers from the Abuja based BDC operators, indicate that during the weekend, high demand pushed the Naira to 1,000/$.
A BDD Operator who spoke to Biztellers from Abuja, Izama Otedo, blamed it on scarcity of the US$.
He said, “We are only selling as we buy. We always put little gain. And no one can sell what he doesn’t have.”
He revealed that over the weekend the rate of exchange oscillated between 980/$ to 1005/$ in the Abuja metropolis.
In the same vein, a BDC Operator at the Ikeja Airport, Lagos, Kazeem Oredugba, pointed out that it had become more difficult for forex dealers to source ‘the commodity’, which is affecting the sell-on price.
He told Biztellers, “We are finding it difficult to source the US$ and other foreign currencies. If we don’t see it to buy, we cannot sell. And if you see it we can only buy at any rate knowing what we are going to sell-on at a mark-up.”
Reminded about the directive from the CBN, Oredugba quipped, “If the CBN is issuing a directive, let them back it up with supply of the forex. Nigerians are looking for ways to keep lives and businesses going, and we are meeting their needs by serving as the link between those buying and those selling. No authority can decree that,” he pointed out.
What this portends is that the forex market remains volatile and inflation would likely continue unabated while government struggles to come up with solutions.
Business
Marketers Eye Portion of FG’s Petrol Discount
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to add its member-stations to the petrol discount programme.
It cautioned that the current arrangement could limit the reach and deny vast consumers in underserved communities the benefits of the 30-day discount window.
The PETROAN also urged the FG to allocate at least 30 percent of the discounted petrol volume to outlets operated by its members.
READ ALSO: Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project
The calls followed last week’s announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, of a petrol discount at Nigerian National Petroleum Company Limited (NNPC Ltd) retail outlets, with priority given to public transport operators nationwide.
According to the National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, the exclusion of independent marketers could undermine the programme’s effectiveness, particularly in communities where NNPC retail outlets have limited presence.
He argued that independent marketers, with their extensive nationwide distribution networks, were better positioned to extend the benefits of the intervention to consumers in remote and underserved areas.
“Independent oil marketers have over 90 percent coverage and presence in the nooks and crannies of this country. You are giving NNPC that is situated only in the town. So how do the poor masses, whom you intend to ensure that this petroleum product will alleviate their sufferings, how would they now get it?” Ukadike asked.
He said the association was not opposed to the government’s policy but insisted that independent marketers should be included to ensure wider access to the discounted product.
“But it’s government policies; we are not against government policies, but let it be all-inclusive; let independent marketers be part of it,” he said.
Ukadike also urged the government to extend the discount period to 60 days, citing logistical challenges that could delay the movement of petrol from coastal depots to other parts of the country.
“And the 30 days should be extended to 60 days. Because of the circulation of petroleum products, most times it takes two weeks for a truck to leave Apapa and get to Gombe, Maiduguri, because of the bad road and all the rest of them and loading process,” he added.
Similarly, PETROAN National President, Billy Gillis-Harry, urged the Federal Government to allocate 30 per cent of the discounted petrol volume to the association’s retail outlets to facilitate broader national distribution.
Business
Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project
In the bid to transform Tanzania into the East African regional energy hub, the country is on the verge of concluding an agreement with a consortium of energy companies, including a $42 billion LNG project.
It was gathered that the project is designed to tap the 47.13 tcf of gas discovered in Tanzania’s deep offshore fields, part of the country’s estimated 57.54 tcf in total discovered reserves, the sixth-largest in Africa, behind Nigeria, Algeria, Senegal, Mozambique and Egypt.
READ ALSO: Shell Identifies Keys to Nigeria’s Energy Future
Equinor and Shell would be the lead operators, alongside involvement from ExxonMobil Pavilion Energy and Medco Energi, while state oil major, the Tanzania Petroleum Development Corporation (TPDC), would also hold an equity stake in the project.
“It’s almost there,” Khamis Mussa Omar, Tanzania’s finance minister, told Reuters.
Business
Small Investors Take Centre Stage as Dangote IPO Nears Close
President of Dangote Group, Aliko Dangote, has reaffirmed his commitment to ensuring broad-based participation in the Dangote Refinery’s Initial Public Offering (IPO).
In a statement, the industrialist announced that investors applying with ₦50,000 and below will receive priority consideration as the company seeks to democratize ownership of one of Africa’s most significant industrial assets.
Dangote made the declaration during the final leg of the nationwide IPO roadshow held in Port Harcourt, Rivers State, where investors, financial market experts, business leaders and other stakeholders gathered to discuss the investment opportunity and its implications for Nigeria’s economic transformation.
READ ALSO: Sahara Champions Global Shipping Collaboration for $20m Mercy Ships Healthcare Impact
Speaking at the event, Dangote emphasised that the IPO should be viewed not merely as an investment opportunity, but as a chance for Nigerians to become shareholders in a landmark enterprise that is reshaping the country’s industrial landscape.
“We will prioritise people with ₦50,000 and below,” Dangote stated, underscoring the Group’s determination to make the offering accessible to small and medium-scale investors across the country.
He noted that while international and African investors had already committed substantial capital to the refinery, the IPO now offers Nigerians a rare opportunity to participate directly in the ownership of a world-class industrial project built on Nigerian soil.
According to him, investing in the refinery goes beyond financial returns, representing a vote of confidence in Nigeria’s future, institutional development, corporate governance standards and industrial capacity.
“African investors have invested in this refinery. Now it is time for Nigerians to invest in themselves and participate in a project that is creating value, jobs and opportunities for generations to come,” he said.
Dangote also encouraged prospective shareholders to adopt a long-term investment perspective, noting that participation in the IPO presents a pathway to wealth creation, portfolio diversification and increased public engagement with the capital market.
He added that wider participation in the stock market would deepen financial literacy, promote a savings and investment culture, and enable more Nigerians to better understand how businesses create value and contribute to economic growth.
The roadshow also featured insightful presentations from leading economists and market analysts on the refinery’s economic significance and the broader opportunities associated with the public offering.
Renowned economist Bismarck Rewane highlighted the enormous economic potential of the South-South region and stressed the need to convert the area’s resource endowment into sustainable prosperity, infrastructure development and improved living standards. He also noted that the IPO presents an opportunity to deepen Nigeria’s capital market by encouraging citizens to participate actively in wealth creation.
Similarly, economist Dr. Muda Yusuf outlined the refinery’s far-reaching impact on economic diversification, domestic value addition, energy security, capital formation and employment generation.
According to Yusuf, the refinery represents far more than a petroleum-processing facility, serving as a catalyst for growth across multiple sectors including petrochemicals, packaging, manufacturing, logistics and other downstream industries.
He further emphasized that policy consistency, regulatory stability and sustained stakeholder engagement remain critical to maintaining investor confidence and attracting long-term capital into Nigeria’s industrial sector.
Speaking on the investment outlook, stakeholders urged prospective investors to consider the company’s operational performance, valuation metrics and long-term fundamentals when evaluating the offer.
Yusuf also described the refinery as a major example of domestic value addition, noting that its extensive local content and industrial linkages would significantly amplify its contribution to the Nigerian economy.
Discussions at the event further highlighted the importance of sound monetary policy, affordable financing and a predictable business environment in supporting investment-led growth and industrial expansion.
The Port Harcourt engagement was particularly significant for the South-South region, with legal luminary and business leader Paul Usoro expressing satisfaction at the level of participation from investors across the region.
“My joy is to see the South-South well represented,” Usoro said, stressing the importance of ensuring that investors from the region take advantage of the opportunity presented by the IPO.
The Port Harcourt event marked the final stop of the nationwide IPO roadshow, concluding a series of engagements designed to deepen public awareness and expand participation in what is widely regarded as one of the most significant capital market offerings in Nigeria’s history.
For Dangote Group, the objective remains clear: to provide Nigerians from all backgrounds with an opportunity to participate in the ownership of a transformative industrial enterprise while contributing to economic growth, employment generation and national development.





