Business

Naira records marginal gain at N1,450 to dollar

Published

2 years ago

February 2, 2024

Trends Admin

Naira records marginal gain at N1,450 to dollar

The naira on Thursday made a marginal gain against the dollar, closing at N1,450 at the parallel market.

The rate represents N70 gain from N1,520 to dollar it closed on Wednesday.

Although the local currency was trading at N1,400 to dollar in the morning hours, it went back to N1,450 at the close of business.

A BDC trader in Central Lagos said the naira was trading at N1,400 to dollar around 12 noon, but was surprised as buying rates later surged, as many dealers moved to cut losses.

The Aboki Forex website kept the dollar buying rate at N1,450 to dollar and N1,500 to dollar for selling rate.

Meanwhile, bank customers resident in the Federal Capital Territory (FCT) have decried the continuous fall of the naira to the dollar.

According to them, their purchasing power has reduced drastically.

The News Agency of Nigeria (NAN) reports that one dollar to Naira exchange rate at the parallel market is between N1,440 and N1,500 while the official rate is N1,356.

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Some of the customers who spoke in Abuja yesterday, appealed to the Federal Government and the Central Bank of Nigeria (CBN) to urgently evolve measures to address the situation.

They also lamented that the situation had inflicted untold hardship and had reduced their standard of living, saying the development had also negatively affected all sectors of the economy.

A bank customer with Access Bank, Mrs Irene Igunmado, said the fall of the naira had reduced the purchasing power as the prices of goods and services had skyrocketed.

Igunmado also said the increase in the prices of food items had made her family to reduce their standard of living.

”Nobody tells anyone in Nigeria about the situation now. Even my little children understand that times are hard.

”This naira fall is worsening the situation because when you go to the market and ask traders why the prices of everything have increased, they will tell you it’s because of the dollar.

”Companies are closing down, relocating to other places. This is not the ‘renewed hope’ that the present government promised us,” she said.

Mrs Victoria Emeka, a bank customer with Guaranty Trust Bank, said although the food monthly allowances for her family had increased, it could not cater for their needs.

”Every month, my husband usually give me N30,000 to buy food items that will last us for the month because I have a permanent list that I use.

”Now, although he has increased the amount to N60k but the money will still not buy half of the things in the list which was usually purchased entirely with N30k. The government needs to do something urgently,” she said.

Mr Franklin Ogunleye, a bank customer with First Bank Plc, said the naira fall was the reason for the relocation of many Nigerians to other countries.

Ogunleye said he was feeling the heat of the naira fall as he was sending money to his family abroad, who just relocated recently and were yet to fully stabilise and get a job.

”This Naira fall is biting me so hard because my business is about to collapse.

”I relocated my family to the United Kingdom (UK) in 2023 and every month, I change money and send to them.

”Sometimes, I change as much as two million naira but it will still not be enough for them because of the exchange rate.

”I am thinking seriously of leaving this country to join them so that I can reduce this untold hardship,” he said.

A banker who preferred anonymity told NAN that banks would always strive to reduce the hardship faced by customers due to the scarcity and fall of the Naira.

The CBN on Jan. 31, ordered Deposit Money Banks to sell their excess dollar stock latest February 1.

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The CBN also warned lenders against hoarding excess foreign currencies for profit.

It would be recalled that Bureau De Change (BDC) operators in Abuja had shut down operations due to scarcity of the dollar.

The CBN removed the cap on the allowable limit of -2.5 percent to +2.5 percent around the previous day’s closing rate for the International Money Transfer Operators (IMTOs). This adjustment signifies a shift in the regulatory framework, providing IMTOs with more flexibility in determining exchange rates.

This comes after the banking and financial institutions regulator on Wednesday announced limits on how much banks can hold in foreign currencies and expressed concern about the growth of forex exposures on their balance sheets after the local currency tumbled against the U.S. dollar.

Naira is the cheapest and best value of any in Africa, or any of the emerging or frontier markets – according to FIM Partners currency model.

In a new circular (TED/FEM/FPC/GEN/001/003) dated January 31, 2024, the CBN announced a significant change in the regulations governing exchange rate quotes by International Money Transfer Operators.

Previously, IMTOs were required to quote rates within an allowable limit of -2.5 percent to +2.5 percent around the previous day’s closing rate of the Nigerian foreign exchange market, according to the circular TED/FEM/PUB/FPC/001/009 dated September 13, last year.

All Authorized dealers, International Money Transfer Operators, and the general public are advised to take note of this development and ensure compliance with the revised regulations. The CBN’s decision reflects ongoing efforts to adapt and enhance the dynamics of the Nigerian foreign exchange market, the circular stated.

“The reason for the removal of the cap is to incentivize the IMTOs to transparently transfer their receipt into the country,” Aminu Gwadabe, president of Association of Bureau De Change Operators of Nigeria (ABCON), said.

Naira records marginal gain at N1,450 to dollar

Business

Fuel Costs Remain Elevated at ₦1,300 per Litre Despite Dangote Price Adjustment

Published

31 minutes ago

March 12, 2026

Trends Admin

Fuel Costs Remain Elevated at ₦1,300 per Litre Despite Dangote Price Adjustment

Despite a recent price reduction by Dangote Petroleum Refinery, petrol prices in Nigeria remain high at around ₦1,300 per litre, as global oil market volatility fueled by the Middle East conflict continues to impact local fuel costs.

Dangote Petroleum Refinery, responsible for a significant portion of Nigeria’s domestic petrol supply, recently cut its ex‑depot price to ₦1,075 per litre, reflecting a slight easing of global crude oil prices, which dropped to approximately $88 per barrel. However, marketers have not fully passed on the reduction at retail pumps, leaving consumers paying roughly ₦1,300 per litre in major cities including Lagos, Port Harcourt, and Calabar.

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Analysts note that the persistent high petrol prices are largely due to ongoing tensions in the Middle East, which have disrupted crude supply routes and caused market uncertainty. Transport operators and commuters have expressed frustration, citing higher operating costs and increased fares as a result of elevated fuel prices.

The African Democratic Congress (ADC) and other socio-economic advocates have called on the Federal Government to intervene, urging measures such as increasing crude supply to local refineries or considering targeted price caps or subsidies to cushion the impact on Nigerians.

Economists warn that sustained high petrol prices could drive inflation higher, further straining the cost of living and affecting businesses that rely heavily on transportation and logistics. While the Dangote refinery’s price cut is a positive step, market analysts say that global instability and oil supply disruptions mean pump prices are likely to remain elevated in the near term.

Fuel Costs Remain Elevated at ₦1,300 per Litre Despite Dangote Price Adjustment

Auto

French automakers return to Nigeria, team up with Dangote, Coscharis for 44,000-vehicle production

Published

2 hours ago

March 12, 2026

Trends Admin

French automakers return to Nigeria, team up with Dangote, Coscharis for 44,000-vehicle production

French automobile manufacturers are mounting a fresh comeback in Nigeria’s automotive sector through strategic alliances with major local players, targeting the production and sale of about 44,000 vehicles annually as part of efforts to revive local assembly.

The renewed push involves two major partnerships: Peugeot’s collaboration with Dangote Peugeot Automobiles Nigeria (DPAN) and Renault’s alliance with Coscharis Group to produce vehicles for the Nigerian market.

The development was disclosed by Marc Fonbaustier, the French Ambassador to Nigeria, who said French carmakers are gradually rebuilding their presence in one of Africa’s largest automobile markets.

According to him, the partnership between Peugeot and Dangote Peugeot Automobiles Nigeria has already restarted operations with the Peugeot 301, while plans are underway to assemble additional models including the 308, 3008, 5008 and 508.

The ambassador noted that the relaunch is part of a broader strategy to scale up production capacity and increase local vehicle supply.

“The target of 44,000 vehicles annually is ambitious but achievable,” he said.

In a parallel move, Renault is partnering Coscharis Group to co-produce vehicles under the Logan brand for the Nigerian market.

French carmakers were once dominant in Nigeria’s automobile industry, largely through the activities of Peugeot Automobile Nigeria, which operated a major assembly plant in Kaduna.

Established in the 1970s, the plant assembled several Peugeot models locally and became a cornerstone of Nigeria’s auto industry. Vehicles such as the Peugeot 504 were widely used by government institutions, businesses and private motorists for decades.

However, economic downturns, policy changes and a surge in cheaper imported vehicles gradually weakened local assembly operations, causing production levels and market share for French brands to decline sharply.

The situation later prompted the Dangote Group to acquire a controlling stake in the company, leading to the creation of Dangote Peugeot Automobiles Nigeria, which has since modernised its assembly facilities and expanded production capacity.

Despite the revival efforts, the competitive landscape has changed significantly. Automakers from China and India have strengthened their foothold in Nigeria with more affordable models and growing local assembly operations.

Still, French investors remain optimistic about Nigeria’s long-term market potential. Fonbaustier said about 100 French companies currently operate in Nigeria, employing roughly 16,000 Nigerians.

He added that although rebuilding France’s automotive presence in Nigeria will take time, the new partnerships with Dangote and Coscharis mark an important step toward restoring local vehicle manufacturing in the country.

Business

JUST IN: Dangote Refinery Cuts Petrol, Diesel Ex-Depot Prices Amid Market Relief

Published

2 days ago

March 10, 2026

Trends Admin

JUST IN: Dangote Refinery Cuts Petrol, Diesel Ex-Depot Prices Amid Market Relief

Dangote Petroleum Refinery has announced a reduction in its ex-depot prices for Premium Motor Spirit (PMS), popularly known as petrol, and Automotive Gas Oil (AGO), or diesel, marking the first downward adjustment after several sharp increases in recent days. The new pricing, released on March 10, 2026, reflects easing global crude oil prices and provides potential relief for fuel marketers, bulk buyers, and consumers nationwide.

Under the updated pricing template, the gantry price of petrol has been cut by ₦100, from ₦1,175 per litre to ₦1,075 per litre. For PMS supplied through coastal distribution, the refinery set a slightly lower price of ₦1,050 per litre, accounting for marginal cost differences in maritime delivery.

The gantry price of diesel has also been significantly reduced by ₦190, bringing it down to ₦1,430 per litre from the previous ₦1,620 per litre. The refinery clarified that these ex-depot prices exclude statutory charges imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), meaning retail pump prices may still vary depending on additional levies and distribution costs.

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Context and Market Impact

The price adjustment follows a period of rapid increases in fuel prices, which had raised petrol to ₦1,175 per litre and diesel to ₦1,620 per litre in early March. Analysts say the reduction is a response to declining international crude oil prices and signals potential easing of fuel costs across the downstream sector.

Industry experts note that while the ex-depot price cuts offer short-term relief for marketers and bulk buyers, the extent to which they will translate to lower retail pump prices remains to be seen. Retail fuel pricing also depends on transportation costs, depot margins, and regulatory fees, which can differ across regions.

For Nigerian consumers, even modest reductions in ex-depot prices could help alleviate transport and logistics costs, easing broader inflationary pressures in the economy. Motorists and businesses are now closely monitoring fuel stations to see how quickly the reductions are reflected at the pumps.

The move underscores Dangote Refinery’s continued influence as Africa’s largest petroleum refinery, shaping pricing trends and impacting Nigeria’s energy sector amid volatile global oil markets.