Naira Remains Stable in Official Market Amid Rising Black Market Dollar Demand

The Nigerian Naira opened trading on Tuesday, April 28, 2026, with cautious stability against the US Dollar, as the official exchange rate and parallel market rate continued to reflect a wide gap amid persistent foreign exchange pressure.

In the Nigerian Foreign Exchange Market (NFEM), the naira traded around ₦1,360 per $1, showing slight intraday movement between ₦1,359 and ₦1,360 during early trading hours. The relatively stable opening suggests controlled liquidity conditions in the official market.

Transactions tracked on the FMDQ Securities Exchange indicated that trading remained within a narrow range as banks and institutional investors adjusted positions based on demand and supply. The market continues to operate under the “willing buyer, willing seller” framework, which guides price discovery in the official FX window.

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The Central Bank of Nigeria (CBN) is maintaining oversight of the foreign exchange market, with ongoing efforts aimed at improving dollar liquidity and reducing pressure from unmet demand. Analysts note that recent interventions targeting FX backlog clearance and supply support to key sectors have helped limit extreme volatility.

However, the black market (parallel market) continues to show significantly higher rates due to strong retail demand for dollars. In major cities including Lagos, Kano, and Port Harcourt, the dollar is trading between ₦1,480 and ₦1,495 per $1, depending on transaction size and location.

The widening gap between the official exchange rate and the parallel market rate remains a major concern for economic analysts, as it reflects ongoing shortages of foreign exchange in formal channels.

Market observers say several factors are influencing today’s exchange rate movement, including Nigeria’s oil revenue inflows, which remain the country’s primary source of foreign exchange earnings. Additional pressure is coming from demand for imports, manufacturing inputs, foreign education payments, and medical travel abroad.

The clearance of outstanding FX obligations to airlines and multinational companies is also shaping liquidity conditions in the market. Meanwhile, global market sentiment and investor appetite for emerging market currencies continue to play a role in short-term naira movements.

Despite continued pressure, analysts say the naira has shown relative stability in the official window, suggesting that current policy measures are helping to prevent sharper depreciation.

Market expectations for the rest of the trading week indicate that the naira may remain within a similar range unless there is a major shift in FX inflows or new intervention from the Central Bank of Nigeria. Attention remains on closing rates later in the day to determine the overall direction of the currency.

Naira Remains Stable in Official Market Amid Rising Black Market Dollar Demand

NNPC Refineries Will Never Work – Obasanjo Reignites Oil Sector Debate

Former President Olusegun Obasanjo has restated his long-standing criticism of Nigeria’s state-owned refineries, insisting that the facilities under the Nigerian National Petroleum Company Limited (NNPC Ltd) will “never work,” despite ongoing rehabilitation efforts and billions of dollars reportedly spent over the years.

Obasanjo made the remarks during a televised interview on Sony Irabor Live, where he reviewed past attempts to revive Nigeria’s refining sector and argued that government-managed refineries have consistently failed due to inefficiency, corruption, and poor maintenance culture.

He maintained that only a strong public-private partnership (PPP) model can deliver sustainable results in the oil and gas downstream sector, pointing to the success of Nigeria LNG (NLNG) as proof that private sector participation improves performance and accountability.

Obasanjo said Nigeria’s refineries remain structurally weak and mismanaged, stressing that repeated government interventions have failed to yield results. According to him, “NNPC refineries will never work,” adding that the system has been weighed down by decades of poor maintenance practices and institutional inefficiencies.

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The former president recalled efforts during his administration to bring in international oil companies, including Shell, to manage Nigeria’s refineries either through equity participation or operational control. He said Shell declined the offers, explaining that their downstream operations were not major profit drivers and that refinery management presented significant operational and structural risks. Obasanjo also said Shell raised concerns about Nigeria’s refinery capacities, which he described as relatively small compared to global standards, as well as issues of poor maintenance, corruption, and reliance on unqualified personnel.

Obasanjo further disclosed that business mogul Aliko Dangote once offered about $750 million to acquire a controlling stake in two of the refineries and manage them under a private sector arrangement. He said the proposal was initially accepted during his tenure but was later reversed after he left office, following pressure on the succeeding administration from NNPC leadership. According to him, the reversal contributed significantly to the continued decline of the refineries, which he believes have lost much of their value over time.

He also claimed that Nigeria may have spent as much as $16 billion on refinery rehabilitation efforts over the years, yet the facilities remain largely inefficient and commercially uncompetitive. He compared this figure with the cost of building modern private refineries, arguing that the country has spent enough to construct world-class facilities but has failed to achieve functional output.

Despite the criticism, the NNPC continues efforts to revive the Port Harcourt, Warri, and Kaduna refineries through the engagement of new technical partners. Officials have acknowledged that although some of the refineries briefly resumed operations in 2024 after rehabilitation, they are still operating below international standards and remain economically uncompetitive compared to private refineries. The NNPC has set a target of June 2026 to conclude the selection of technical partners to manage the facilities and improve operational efficiency.

The debate over Nigeria’s refining future has intensified following the emergence of the privately owned Dangote Refinery, widely regarded as Africa’s largest single-train refinery. Industry observers say the contrast between private and state-owned refinery performance continues to fuel arguments in favour of private sector-led management of critical energy infrastructure.

The NNPC has not issued an official response to Obasanjo’s latest comments at the time of filing this report.

NNPC Refineries Will Never Work – Obasanjo Reignites Oil Sector Debate

Airlines Threaten Nationwide Shutdown Over Jet A1 Fuel Price Surge

Domestic airlines in Nigeria have warned of a possible nationwide shutdown from Thursday, April 30, 2026, over a deepening aviation fuel crisis, as operators struggle with sharply rising Jet A1 fuel prices and unsustainable operating costs.

The Airline Operators of Nigeria (AON) say the planned action may ground all domestic flights if urgent intervention is not provided by the Federal Government, raising fears of widespread disruption to air travel across the country.

Airline operators say the continuous increase in aviation fuel prices in Nigeria has pushed the industry to breaking point. According to them, Jet A1 prices have surged by more than 300% since February, rising from about ₦900 per litre to between ₦2,700 and ₦3,500 in some locations. They explained that fuel now accounts for the largest share of operating expenses, leaving airlines struggling to sustain flight schedules while maintaining safety standards.

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Multiple rounds of negotiations have reportedly been held between airline operators, fuel marketers, and government officials, but no concrete solution has been reached. The Minister of Aviation and Aerospace Development, Festus Keyamo, convened a two-day emergency meeting in Abuja aimed at resolving the crisis. Although the government announced a 30% reduction in aviation-related taxes and charges, operators say the measure does not address the core issue of fuel pricing.

The Airline Operators of Nigeria warned that if no urgent action is taken, carriers may be forced to suspend domestic operations nationwide. Industry leaders say airlines are now operating at a loss, with some flights barely covering fuel costs. They also warned that continued operations under current conditions could compromise long-term sustainability in the aviation sector.

The looming shutdown has sparked concerns among passengers who rely heavily on domestic air travel for business, medical emergencies, and intercity movement. Many travellers have already begun exploring alternative transport options as uncertainty grows over possible flight cancellations in Nigeria.

In a formal submission to the Federal Government, the Airline Operators of Nigeria outlined several emergency measures, including the suspension of aviation taxes, fees, and charges for at least six months, the introduction of a non-taxable fuel surcharge system, the establishment of a pricing review committee for aviation fuel, and credit support arrangements between fuel marketers and airlines. Operators argue that these measures are necessary to stabilise the sector and prevent a total shutdown of domestic aviation.

As the Thursday deadline approaches, uncertainty continues to grow within Nigeria’s aviation industry. Airline officials say the situation remains critical, warning that without immediate intervention, domestic air operations could be grounded nationwide.

Airlines Threaten Nationwide Shutdown Over Jet A1 Fuel Price Surge