Business
Investors Fault CBN’s Policy On Naira
Analysts are placing bullish and bearish bets on Naira (NGN) trend as the Central Bank of Nigeria (CBN), continues in its determination to maintain price stability and defend the local currency within its set price band in the medium term.
Naira optimists, say the CBN under governor Sanusi has enough ammunition and will power to keep the naira within the range of N155 plus or minus 3 percent versus the dollar, which is further supported by the tight monetary policy stance of the apex bank, as currency becomes the defacto monetary policy anchor.
Pessimists, however, say the naira may come under increasing pressure, following a handful of developments in the nation’s economy, particularly trends in the oil sector which have seen imports of refined crude oil pick up at a time when autonomous inflow of dollars from Foreign Portfolio Investments (FPIs) have slowed down.
This trend has seen the CBN increase its average supply of dollar to banks at its bi-weekly auction, from its usual range of $150 million – $ 180 million to $200 million to $300 million and currently $585 million.
“I would think this is a situation of temporary volatility in the FX rate, which the CBN has calmed through its intervention,” Razia Khan, regional Head of Research, Africa at Standard Chartered Bank, said in a reply to questions.
“For as long as monetary policy is sufficiently tight, a stable NGN can be achieved and there is no need to entertain devaluation.”
The currency gained for a third day yesterday to N158.15 per dollar and headed for its strongest close since March 8, according to data compiled by Bloomberg, on speculation that Nigerian oil producers would sell dollars to meet month-end expenses.
Jimi Ogbobine, analyst at Consolidated Discount Limited, in a chat with newsmen, said there were genuine worries on the Naira’s outlook, while the March 18th auction alone saw the CBN selling $300m.
The Naira has weakened 1.7 percent against the dollar, year to date, although it is still within the CBN band, while dollar reserves have increased 39 percent to $48.4 billion in the past year.
“Once again, we reiterate our call that there are chances that the CBN could seek to synchronise the midpoint of the official exchange rate to N160/dollar in line with Budget 2013 estimates which could technically imply devaluation albeit mild,” said Ogbobine.
“If the Naira continues to experience consistent pressure, the short term policy measures open to the CBN include a mild devaluation of the local currency,” he said.
Ogbobine added that a look at the fixed income market shows that yields across board (bonds and treasury bills) are now trading in positive real terms, up from the lows of December and January. However, yields still remain below 12 percent, partly due to the benign inflationary outlook.
The rebound in secondary market rates at the long end probably mirrors the less supportive risk momentum that may have pushed some offshore investors to lighten up duration and/or reallocate funds to the short end, Samir Gadio an emerging markets strategist at Standard Bank London said.
Nigeria’s year on year inflation rate rose to 9.5 percent in February, up from 9 percent a month earlier ,according to data from the National Bureau of Statistics (NBS).
In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.
Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.
The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.
Nkpemenyie Mcdominic, Lagos