Naira redesign: Dollar scarcity hits BDCs, sells at N818/$ - Newstrends
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Naira redesign: Dollar scarcity hits BDCs, sells at N818/$

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Dollar to Naira Exchange Rate Today: Naira Holds Steady as Fuel Importer Demand Mounts

The naira has dropped to N818/$1 at the parallel market in Abuja and N815 in Lagos after the Central Bank of Nigeria announced plans to redesign some banknotes.

Daily Trust reports that the naira is currently under high selling pressure in the black market following the CBN’s announcement that the newly redesigned naira notes would start circulating in the economy from December 15, 2022.

Since the apex bank made this announcement last week, the naira has fallen from its initial record low of N765/$1, losing over N53 in five days, further piling pressure on the local currency.

 One of our correspondents who visited the popular Bureau De Change hub at Wuse Zone 4, Abuja reports that several customers came looking for dollars but had difficulty accessing it.

Some of the offices visited included AA Funtua BDC, Mourison BDC, Wireless Resources BDC, Bani Mbaka BDC, Amfani Girma BDC and others.

Our correspondent who also posed as a customer to purchase $10,000 couldn’t get any BDC who had up to that amount of dollars to sell. Some of the BDCs said they didn’t even have $5,000 to sell.

Some of the operators confirmed there was a spike in demand following the CBN’s announcement that it will introduce new currencies.

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 Operators who spoke to Daily Trust said they’ve seen an unusual demand and mop-up in the past few days.

 One of the operators who identified himself as Ismailia Yusuf said the US dollar was very scarce. He also said the EFCC had visited the BDCs to scavenge for those offloading naira for dollars.

He couldn’t confirm if arrests were made but he did say operators were careful of exchanging huge amounts of naira for dollars.

It was not immediately clear if the scarcity is also a result of operators hoarding the dollars to create more scarcity and make more profit.

Another operator, Nura, said before the announcement by the CBN, they could do an exchange for up to $500,000 and sometimes $1m exchange but it’s no longer possible.

‘Customers rarely take dollars for sale’

Nura said even the walk-in customers rarely take dollars for sale and that might have impacted the scarcity as well.

He also hinted that some BDCs were being invited to the houses of politically exposed persons to plan how to secure forex to avoid the eagle eye of the EFCC.

“Some people with huge cash can invite BDCs operators to their homes to buy dollars and that might already be happening,” he said.

A survey at some of the black markets in Lagos revealed that bureau de change operators bought dollars for between N790 and N800 while they sold for between N795 and N805.

An operator at Allen Roundabout in Lagos, Ismail Muhammed said dollars were still selling for less than N800/$1 as against the speculated N815.

“I buy for between N780 and N785 while I sell for between N785 and N790. The dollar has not reached N800. It is all speculation,” he said.

Another operator, Alhaji Nafiu Isah, said that the dollar was on the rise and might reach N820 before the end of the week.

“I buy for N800 and sell for N805 for now but it is on the rise and might get to N820 or N830 very soon,” he said.

 Alhaji Abdullahi Olugbede said he was willing to buy for as high as N807 if the volume was higher than $4,000.

Efforts to speak to the leadership of the Association of Bureaux De Change of Nigeria (ABCON) on the depreciation of the naira proved abortive as they declined to comment.

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It would be recalled that the CBN barred the sale of Forex to BDCs operators across the country in July 2021. The CBN said the parallel market had become a conduit for illicit forex flows and graft.

There was no comment from the CBN on the recent development.

How naira lost 28% since January 

According to Nairametrics’ FX tracker, the naira has lost over 28% of its value between January and October 2022 due to increased demand for the dollar amidst sustained dollar scarcity. The naira started the year at N565 to a dollar.

The exchange rate at the Investors and Exporters window, where FX is traded officially, has also seen some systematic devaluation so far this year, moving from an average of N416/$1 last year to as high as N444/$1 as FX supply continues to dwindle in recent times. Data tracked by Nairalytics showed that the sum of $362.7 million was traded at the official FX market last week, marking a decline from $425.3 million recorded in the previous week. This was even significantly lower than the average of $500 and $1 billion weekly trades recorded sometime earlier in the year.

Naira failing as a store of value – Experts 

An economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said the recent depreciation of the naira was fuelled by those who had huge cash in local currency that they wanted to hide away as a result of the redesign of currency notes by CBN and those who wanted to move their wealth away from naira to a more stable currency.

“The rise is a result of the announcement by the CBN to redesign currency notes and the fact that we have people who have huge cash who might not be comfortable taking them to the bank because EFCC will be watching out. However, all the current policies of the government, especially by the CBN have been affecting confidence in the naira.

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“Naira has been failing in one of its major functions as money, which is serving as a store of value because when a currency continues to depreciate in value as a result of inflation, the tendency is that people will move to a more stable currency,” he said.

The former Director General of the Lagos Chamber of Commerce and Industry (LCCI) urged the CBN to leverage intelligence gathering in the fight against corruption.

Paul Alage, a Senior Economist with System Performance Management (SPM) said the timing of the naira redesign is wrong because, “Around November/December, you have a sporadic exchange of money, which we economist call the velocity of money because people want to travel and most transactions are done via cash.

“In several countries of the world, the time they do currency redesign is not close to the end of the year or close to an election because that could cause chaos.”

He further argued that 50 per cent of inflation today was caused by insecurity and food crises. “The NBS said food inflation remains the driver of inflation in Nigeria. Another 30 per cent is caused by the exchange rate because a significant proportion of what we consume is imported. So when your exchange rate is weaker, your prices will be higher.”

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Aviation

Fani-Kayode Counters Keyamo, Defends Atiku Over Nigeria Airways Collapse

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Fani-Kayode Condemns Fresh Killing of Two Nigerians in South Africa

Fani-Kayode Counters Keyamo, Defends Atiku Over Nigeria Airways Collapse

 

Former Minister of Aviation, Femi Fani-Kayode, has challenged the criticism of former Vice-President Atiku Abubakar by the Minister of Aviation and Aerospace Development, Festus Keyamo, over the liquidation of Nigeria Airways and the non-payment of pension arrears owed to its former workers.

Fani-Kayode, who served as Minister of Aviation in 2006, argued that the defunct national carrier’s collapse resulted from years of mismanagement, corruption, mounting debts and operational failures that predated the return of former President Olusegun Obasanjo to democratic rule in 1999.

He made the remarks in a response to Keyamo’s statement on October 14, 2026, in which the aviation minister accused Atiku of hypocrisy over the airline’s liquidation in 2004 and the subsequent failure to pay its former employees their pensions and gratuities.

Keyamo had said President Bola Tinubu approved and released ₦36 billion to settle outstanding pension liabilities owed to former Nigeria Airways workers, adding that beneficiaries had begun receiving payment alerts.

In his response, Fani-Kayode acknowledged the Tinubu administration’s efforts to settle the outstanding liabilities but maintained that the history of the airline’s collapse required a broader examination of events preceding its liquidation.

According to him, Nigeria Airways was already in a critical state before Obasanjo returned to office in 1999.

Fani-Kayode recalled that when Obasanjo left office as military head of state in 1979, Nigeria Airways had 32 functional aircraft, experienced pilots and crew members, a competent management team and an accountable board of directors.

He said the airline was then regarded as a source of national pride but had deteriorated considerably over the following two decades.

By the time Obasanjo returned as elected president in 1999, Fani-Kayode claimed, only one aircraft remained, and it was not operational. He attributed the airline’s deterioration to years of alleged corruption, poor management and the disappearance of company assets.

He maintained that the liquidation process, which was completed in 2004, followed years of financial insolvency, operational collapse and unsuccessful attempts to rescue the airline.

Fani-Kayode also cited the withdrawal of the International Finance Corporation from privatisation-related efforts as part of the difficulties encountered in attempts to revive the company.

He said Obasanjo’s administration had little choice but to liquidate the airline rather than continue committing public funds to an organisation he described as having become practically irredeemable.

The former minister, however, acknowledged that the liquidation left thousands of former employees and their families facing prolonged financial hardship because their pension entitlements remained unpaid.

Recounting his own involvement in the matter, Fani-Kayode said a committee chaired by the then Head of the Civil Service of the Federation, Yayale Ahmed, recommended the release of funds to pay the pensioners.

He said that, as aviation minister in 2006, he presented a memorandum to the Federal Executive Council seeking approval for the payment of the outstanding entitlements and argued that settling the liabilities was the right thing to do.

However, according to him, the proposal was rejected after some members of the cabinet opposed it on the grounds that former management teams and boards of Nigeria Airways had contributed to the airline’s destruction.

Fani-Kayode said he disagreed with that position but acknowledged that those who supported payment were outnumbered during the deliberations.

He added that the issue was revisited under the late President Umaru Musa Yar’Adua, whose administration paid a substantial number of the pensioners. The administration of former President Muhammadu Buhari also made further payments, he said.

Commending Keyamo for the latest intervention, Fani-Kayode said he was pleased that the remaining pension liabilities had finally been addressed, while expressing regret that the payments had taken so many years.

He described the suffering endured by the former workers as immense and reiterated that paying their entitlements had always been the appropriate course of action.

On Atiku’s role in the Federal Executive Council deliberations, Fani-Kayode said he knew the position the former vice-president had taken during the debate but declined to disclose it publicly.

He argued that the eventual decision was a collective responsibility of the administration, adding that members of the government had to share the consequences of the outcome.

Fani-Kayode’s intervention has added another dimension to the political disagreement surrounding Nigeria Airways’ collapse, the handling of its former workers’ pension entitlements and the responsibilities of successive administrations.

While Keyamo credited the Tinubu administration with clearing the outstanding pension arrears, Fani-Kayode’s account focused on the airline’s long decline, the difficulties surrounding earlier efforts to pay its former employees and the involvement of successive governments in addressing the liabilities.

 

The dispute has also renewed attention on the fate of former Nigeria Airways workers, many of whom endured years of uncertainty while awaiting their retirement benefits.

 

Fani-Kayode Counters Keyamo, Defends Atiku Over Nigeria Airways Collapse

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OMAA Unveils Three CNG, Electric Buses, Offers 48-Month Vehicle Finance

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OMAA Unveils Three CNG, Electric Buses, Offers 48-Month Vehicle Finance

 

…Introduces ₦890,000 monthly payment plan as Nigerian mobility firm marks sixth anniversary

Nigerian vehicle and energy company, OMAA, has unveiled three passenger vehicle models in compressed natural gas (CNG) and battery-electric variants, alongside a financing scheme offering repayment periods of up to 48 months to help transport operators and corporate organisations expand their fleets.

The new models — OMAA U3 minibus, K7 bus and V12 high-capacity city bus — are designed to serve different segments of the passenger transport market, from urban shuttles and institutional transport to large-scale mass transit operations.

The announcement, which coincides with the company’s sixth anniversary, also marks the introduction of OMAA Finance, a programme developed in partnership with Nigerian financial institutions to ease the burden of upfront vehicle acquisition costs.

Under the scheme, advertised monthly payments start from ₦890,000 for the OMAA U3 minibus, with an initial deposit of 10%. Financing terms, however, will depend on eligibility requirements, repayment tenure and the customer’s equity contribution.

The company has also opened pre-orders for the three models, giving prospective buyers the option of choosing between CNG and battery-electric powertrains according to their routes, operating costs and access to the necessary energy infrastructure.

Speaking on the development, OMAA’s Managing Director, Chinedu Oguegbu, said the launch reflected the company’s commitment to local automotive manufacturing and the expansion of cleaner, more affordable transport solutions.

“Six years ago, we set out to demonstrate that commercial vehicles could be assembled in Nigeria and powered by cleaner, more affordable energy. Today, the introduction of the OMAA U3, K7 and V12 in both CNG and electric variants, alongside our vehicle financing programme, represents another significant step towards that vision,” Oguegbu said.

He explained that the company’s objective extended beyond supplying vehicles to helping operators manage running costs, access after-sales support and build sustainable transport businesses.

“By combining locally supported servicing, parts availability and structured financing, we are creating opportunities for schools, hospitals, corporate organisations and mass transit operators to expand their fleets with greater confidence,” he added.

Three models target different market segments

The new lineup covers a broad range of passenger transportation needs.

The OMAA U3 is a 12-to-15-seater minibus designed for urban and intercity transport operators, institutional shuttle services and businesses requiring compact passenger vehicles.

The K7, with a capacity of 23 to 30 passengers, targets staff transportation, school bus services, corporate fleets and medium-capacity passenger routes.

The V12, the largest of the three models, is configured to accommodate between 43 and 70 passengers. It is designed for mass transit operators and businesses serving routes with high passenger demand.

All three models are offered in CNG and battery-electric configurations, allowing fleet owners to evaluate alternative powertrains based on fuel or electricity costs, vehicle utilisation, maintenance requirements and access to refuelling or charging facilities.

The dual-powertrain strategy comes as transport operators increasingly explore ways to manage energy expenses and improve the economics of commercial vehicle operations.

 

Special-purpose vehicles broaden applications

Beyond passenger buses, OMAA is offering special-purpose vehicle configurations based on the same platforms.

The options include cargo vans, ambulances, VIP transport vehicles and airport shuttles, extending the potential applications of the company’s vehicle range to logistics, healthcare, corporate mobility and airport transportation.

The use of common vehicle platforms could also help fleet owners streamline maintenance, spare-parts management and technical training, particularly where organisations operate different vehicle configurations.

 

Finance scheme targets high acquisition costs

OMAA Finance is a central component of the company’s strategy to lower the barriers to commercial vehicle ownership.

By spreading acquisition costs over repayment periods of up to four years, the programme is intended to help operators preserve working capital while expanding or renewing their fleets.

The advertised starting monthly payment of ₦890,000 for the U3, subject to a 10% initial deposit, provides an entry point for prospective buyers. The actual cost of financing will depend on the applicable terms, including the vehicle price, deposit, interest and other charges, where applicable.

The company is also promoting a total cost of ownership (TCO) approach, which considers not only the purchase price but also energy consumption, servicing, spare parts and other expenses incurred throughout a vehicle’s operating life.

According to OMAA, the combination of structured financing, local servicing support and spare-parts availability is intended to help customers plan operating expenses and make more informed fleet investment decisions.

However, the potential savings will vary according to the vehicle selected, financing conditions, energy prices, mileage, maintenance costs and the availability of suitable CNG refuelling or electric charging infrastructure.

 

Six years of operations

Headquartered in Umunya, Anambra State, with offices in Lagos, Abuja and Accra, OMAA operates in Nigeria and Ghana, serving fleet operators, institutions and businesses.

The latest launch builds on the company’s six-year operating history and its efforts to combine local vehicle assembly, alternative energy solutions and financing options in the commercial mobility market.

For transport operators contending with rising operating expenses and the high cost of fleet expansion, the new models and financing arrangements offer additional options for acquiring passenger vehicles.

The initiative’s long-term impact, however, will depend on the vehicles’ performance under local operating conditions, the accessibility and affordability of financing, reliable after-sales support and the availability of the infrastructure required to sustain CNG and electric mobility.

With the latest unveiling, OMAA is seeking to position itself beyond vehicle supply, offering an integrated commercial mobility proposition that combines vehicle acquisition, alternative energy choices, maintenance support and financing.

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FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

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FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

The Federal Government has stepped up efforts to strengthen Nigeria’s automotive industry and promote more affordable transportation through collaboration with local vehicle manufacturers, following visits to two manufacturing facilities in Anambra State.

Board members of the National Automotive Design and Development Council (NADDC) inspected the facilities of Innoson Vehicle Manufacturing (IVM) in Nnewi and Kojo Motors Auto Assembly in Umunya to assess their production capacity, identify operational challenges and explore ways to support indigenous manufacturers.

The visit comes amid the Federal Government’s drive to expand the use of compressed natural gas (CNG) and electric vehicles as alternatives to petrol-powered transportation, with the aim of reducing operating costs and making public transport more affordable.

The manufacturers welcomed the government’s new policy directing ministries, departments and agencies (MDAs) to patronise locally manufactured vehicles, saying it could increase demand for their products and strengthen domestic production.

Secretary to the Government of the Federation, George Akume, had issued a circular directing government establishments to purchase vehicles from local manufacturers.

Managing Director of Innoson Vehicle Manufacturing, Chief Innocent Chukwuma, said he was encouraged by the government’s emphasis on CNG, describing the fuel as an important option for sustaining Nigeria’s automotive industry amid rising petrol and diesel costs.

Chukwuma disclosed that the company had dedicated its newest large-scale facility to producing CNG-powered trucks and electric vehicles.

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He said wider adoption of CNG could help lower transportation and operating costs while supporting local industrial growth and creating employment opportunities.

The industrialist also called for stronger backward integration in the automotive sector, arguing that manufacturers should focus on producing components that Nigeria has the capacity to manufacture competitively.

At the Umunya facility, the executive director of Kojo Motors, Chinedu Oguegbo, said the company was concentrating on commercial vehicles designed for Nigeria’s transport needs.

He said the company had begun benefiting from the government’s local vehicle procurement policy but had faced challenges arising from the sharp depreciation of the naira and exchange-rate fluctuations.

Oguegbo added that the company was developing its natural gas facility, which he expected to become operational in the future. He also expressed optimism that the company’s Omma Bus brand could eventually be exported to international markets.

NADDC Director-General Oluwemimo Joseph said the inspection was intended to give the council first-hand knowledge of the challenges confronting local vehicle manufacturers.

He explained that the council was reviewing existing policies and working on proposed legislation to improve the operating environment for the industry.

According to him, information gathered during the visits would help the council develop measures to address manufacturers’ concerns and identify vehicle components that could be produced locally.

Joseph said Nigeria had numerous small and medium-sized enterprises capable of supplying components to the automotive industry, adding that stronger partnerships could create new business opportunities and reduce dependence on imported parts.

He also acknowledged concerns about the effect of imported used vehicles on local manufacturers, noting that the council was considering measures to address the competitive disadvantages faced by domestic producers.

NADDC Chairman, Chief Emma Eneukwu, said the council was advocating legislation to protect local vehicle manufacturers from the influx of imported used cars.

He argued that local producers needed a more supportive policy environment to compete effectively and expand production.

The Federal Government’s broader CNG and electric mobility programme is designed to reduce transport costs by encouraging the deployment of vehicles powered by alternative energy sources. However, the impact on passenger fares will depend on the availability of vehicles, refuelling infrastructure, operating costs and the extent to which transport operators pass savings on to commuters.

The Anambra visits form part of efforts to strengthen local manufacturing, encourage investment and improve the availability of vehicles for Nigeria’s public transportation system. While the collaboration could support cheaper transport over time, the visits did not announce a specific new fare reduction or implementation timetable.

 

FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

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