Business
Trans-Border Traders Reject Naira Over Depreciation
Following the depreciation of the Nigerian currency (Naira) in the past few months, trans-border traders have started rejecting the currency, thereby constituting further trade setbacks.
The Tide’s source’s findings across the Seme border revealed that the traders on both sides now prefer either the CFA or the domestic currency of the non-francophone countries.
Until now, Naira ruled the sub-region as the dominant currency accepted as a medium of exchange by traders across the borders due to the high volume of trade between those countries and Nigeria.
The Nigerian currency traded in the status of convertibility in the unofficial payment systems of the countries.
However, the source’s findings indicated that the Naira began sliding from that status in February, hitting the point of outright rejection in March 2024.
Some of the traders interviewed included Nigerians, who lamented that holding Naira has become a huge risk as the value keeps depreciating since last year with the worst rate of depreciation recorded last month.
Official reports indicate that Naira, which traded above N1/1.5CFA in the first quarter of 2023 dropped sharply to N1/0.9CFA in the second quarter and N1/0.8CFA in the third quarter of 2023.
After a moderate stability through the fourth quarter of 2023, it opened 2024 at N1/ 0.66067CFA in January 2024.
However, following a second wave of depreciation in February, the sub-regional fortune went down drastically to N1/0.38308CFA before hitting a new low of N1/0.37595CFA last week.
The traders are already hedging against further depreciation although there’s a slight improvement in the last few days.
However, the Naira is still not close to what it used to be in the subregion some years ago.
The development is adversely affecting the cost of goods imported into Nigeria through the West African economies.
Consequently, the traders are recording a lull in business activities on both sides of the border towns in Nigeria and the Benin Republic.
Some border markets in Benin-Nigeria visited showed that most of the money changers or Bureau De Change, do not display the Nigerian currency like they did last year.
Even transporters and bike riders otherwise known as Okada in Nigeria, across the borders declined payment in Naira, saying that by the time they return to convert Naira to CFA, they would have lost some fraction of their earnings. Consequently, they said CFA was safer to hold.
A bike rider, Ibrahim Yakubu, who took the source from the Seme border into the ‘Misebo’ market (about 45 kilometres from the border) refused to accept Naira and insisted on collecting his payment in CFA.
Yakubu also said before now, the Naira was strong, adding that it was easily accepted as a means of payment for goods and services.
A money changer, Taiye Ekiti, blamed the development on the United States Dollar, adding that the cost of Dollar was the reason for the depreciation of the Naira in Benin Republic and other countries including Togo and Ghana.
He added that they as Bureau De Change are equally as helpless as other business people.
A Nigerian trader who deals in fairly used clothing, Mr. Achi Collins, said most traders do not accept Naira anymore, adding “that is how much the Naira has lost value over time”.
Collins also said most traders would tell their customers to change their money to CFA before they can accept it as payment for goods.
He, however, added that around the border town of Seme, there could be few traders that still accept Naira for payment but their goods cost more.
He also noted that inside the cities of Benin Republic, Naira is not acceptable because of the value when compared to the strengthening of the CFA.
He further stated: “If you want to buy something here you will go and change your Naira to CFA before you buy whatever you want”.
Before now, Naira was accepted on the west coast, up to Ivory Coast and Senegal. Traders freely spent Naira in many countries of West Africa.
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Business
FG Targets Reduction In External Borrowing
The Federal Government has said it is committed to reducing reliance on external debt financing and promoting private sector-driven economic growth as part of its strategy for long-term fiscal stability.
The Minister of Finance and Coordinating Minister of the economy, Wale Edun, who made this known during a meeting with World Bank executive director, Dr. Zainab Shamsuna Ahmed, emphasised Nigeria’s shift towards alternative financing sources and investment-friendly policies.
He acknowledged the World Bank’s role in Nigeria’s development but stressed that the government is prioritizing a business-friendly environment to encourage private-sector investments.
“Our focus is on reducing dependency on external borrowing while ensuring that Nigeria’s economic policies foster long-term, private-sector-led growth”, he stated.
In his response, Dr. Ahmed, who previously served as Nigeria’s Minister of Finance, commended the country’s ongoing macroeconomic reforms, which she said have boosted fiscal stability and investor confidence.
Ahmed also noted the World Bank’s recent financial reforms, which have increased its lending capacity, making an additional $150 billion available over the next decade.
A key highlight of the meeting was Nigeria’s role in “Mission 300”, the World Bank’s initiative to provide electricity access to 300 million Africans.
Edun reaffirmed that power infrastructure remains a top priority for the government, as it is critical to economic growth, industrial expansion, and private-sector competitiveness.
“Electricity access is a game-changer for Nigeria’s economy, and we are committed to playing a leading role in Mission 300 to ensure sustainable development”, he said.
He further emphasised that President Bola Tinubu remains dedicated to strengthening Nigeria’s economic foundation, shifting away from external borrowing, and fostering a resilient, investment-driven economy.
Business
Dangote Refinery Exports Jet Fuel To Saudi Aramco
Dangote Petroleum Refinery had exported two jet fuel cargoes to Saudi Aramco, the world’s largest oil producer and a leading integrated oil and gas company globally.
Saudi Aramco is a majorly state-owned petroleum and is the national oil company of Saudi Arabia.
President of Dangote Group, Aliko Dangote, disclosed this during a visit by a team of the Nigerian Economic Summit Group (NESG) to both Dangote Fertiliser Limited and the Dangote Petroleum Refinery & Petrochemicals in Ibeju Lekki, Lagos.
He said exporting products to the global markets, especially Saudi Aramco, was because of his refinery’s world-class standards and advanced technology.
“We are reaching the ambitious goals we set for ourselves, and I’m pleased to announce that we’ve just sold two cargoes of jet fuel to Saudi Aramco”, he said.
According to him, since it began in 2024, the refinery has steadily increased its output, reaching 550,000 barrels per day.
While commending Aliko Dangote for establishing the $20 billion refinery – the largest single-train refinery in the world – NESG Chairman, Mr. Niyi Yusuf, stated that Nigeria needs more investments of this calibre to reach its $1 trillion economic goal.
“To achieve a $1 trillion economy, much of that must come from domestic investments. I joked during the bus ride that while others are dredging to create islands for leisure, you’ve dredged 65 million cubic tonnes of sand to create a future for the country.
“This refinery, fertiliser plant, petrochemical complex, and supporting infrastructure are monumental.
“My hope is that God will grant you the strength, courage, and health to realise your ambitions and that in your lifetime, a new Nigeria will emerge”.
Yusuf emphasised that such local industries are essential to Nigeria’s industrialisation and will help foster the growth of Small and Medium Enterprises (SMEs).
He said NESG would continue to advocate for improved investment climate to attract entrepreneurs, boost development, ensure food security, and address insecurity.
He lamented that Nigeria has become a dumping ground for foreign products, stressing that the country must support its entrepreneurs to become a global player.
“It’s inconceivable that a nation of over 230 million people, with an annual birth rate higher than the total population of some countries, is still dependent on imports to feed its citizens”, he stated.
Yusuf also praised Dangote’s bold vision for making Nigeria self-sufficient in several key sectors.
“The NESG is grateful, and I believe the nation is as well. This refinery represents the audacity of courage. It takes immense effort to do what you’ve done and still be standing and smiling.
Business
NDDC Trains 364 Young Farmers In Agribusiness
The Niger Delta Development Commission (NDDC) has commenced the training of 364 young farmers for the Livelihood Improvement Family Enterprise Niger Delta project in Rivers State.
Speaking during the orientation training for 350 trainees and 14 incubators in Port Harcourt, the NDDC Director of Agriculture and Fisheries, Dr. Winifred Madume, charged the beneficiaries to take up the challenge as future agribusiness entrepreneurs.
She disclosed that the Federal Government jointly funded the LIFE-ND project through a loan from the International Fund for Agricultural Development, with additional support from NDDC and counterpart funds from the participating state governments.
“The nine participating states are Abia, Bayelsa, Cross River, Edo, Delta, Ondo (funded with IFAD), and Akwa-Ibom, Imo, and Rivers states (funded by NDDC)”.
She continued that “The main objective of LIFE-ND is to foster income generation, food security, and job creation for rural youth and women through sustainable agribusiness development across the Niger Delta.
“This project aims to create 38,250 Agripreneurs using an incubation model. This model pairs you with experienced agribusiness entrepreneurs who will mentor you until you have the knowledge and skills to establish and run your successful enterprises”.
On his part, the National Project Coordinator, Life-ND, Abiodun Sanni, said the Orientation Training supported by the IFAD, the NDDC, and the respective state governments underscored the collective commitment to transforming the agricultural sector.
Sanni stated that the training was crucial to equipping the youth, women-headed households, and persons with disabilities with the necessary skills, knowledge, and resources to thrive in the agricultural sector.
He noted that fostering youth inclusion in agriculture is vital for ensuring sustainable development, job creation, and food security in Nigeria.
Sanni added, “Through this training, we aim to build the capacity of young agripreneurs, enabling them to actively participate in the agricultural value chain, drive innovation, and contribute to the economic growth of rural communities.
“The LIFE-ND project is more than just providing resources; it is about empowering our youth to take ownership of their future, foster community development, and create lasting impact in their respective regions”.
The Rivers State Project Coordinator, Mr Loveday Itatat, congratulated the 364 successful beneficiaries selected from a competitive pool of 30 incubators and 1,568 incubator applicants.
Itatat said, “Before this orientation training, a comprehensive sensitization exercise on the LIFE-ND project was conducted late last year in 20 communities across five Local Government Areas in Rivers State”.
He noted that the project aims to transform the rural economy, ensuring prosperity and equitable benefits for the local population.
“It seeks to enhance income, food security, and job creation for over 38,250 poor rural youth and women in the Niger Delta region through a sustainable agricultural incubation model”, he added.
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