Demand pressures: Official exchange rate settles at N1571.31/$1 as intra-day hits N1851/$1  – Newstrends
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Demand pressures: Official exchange rate settles at N1571.31/$1 as intra-day hits N1851/$1 

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Demand pressures: Official exchange rate settles at N1571.31/$1 as intra-day hits N1851/$1 

The official exchange rate experienced a notable decline of 2.97%, settling at N1571.31 per US dollar, while intraday trading reached a peak of N1851 against the dollar on Thursday, February 22nd, 2024.  

This surge coincided with increased demand pressure, further exacerbating the depreciation trend of Nigeria’s currency, evident in the negative trajectory observed in the activities of the black market. 

Despite the Central Bank of Nigeria (CBN) implementing various policies aimed at bolstering the supply of foreign exchange, challenges persist in this regard.  

Data from the Nigeria Autonomous Foreign Exchange Market (NAFEM), where forex is officially traded, reveals a depreciation of the domestic currency by 2.97%, concluding the business day at N1,571.31 to a dollar. 

  • This represents an N46.73 gain or a 2.97% increase in the local currency compared to the N1,571.31 closed on Wednesday.   
  • The intraday high recorded a N1851/$1, while the intraday low was N1300/$1, representing a wide spread of N551/$1.   
  • According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $192.25 million, representing a 11.68% increase compared to the previous day.   

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  • However, the Naira depreciated against dollar in the parallel forex market, where forex is unofficially traded, with the exchange rate quoted at N1,880/$1, reflecting a 2.66% decrease from the N1,830 rate it closed at the previous day.    
  • Additionally, the Naira weakened against the Euro by 5.36%, closing at N1960/EUR1 compared to N1720/EUR1 reported the previous day.   
  • The Great British Pound (GBP) closed at £1/N2260, a decline from £1/N2,210 recorded the previous day, this marks a notable decrease of 2.21% compared to the rate recorded the previous day.   

Financial analysts are advocating for a re-evaluation of policies to safeguard the Nigerian Naira amid escalating forex rates, despite efforts by the Central Bank of Nigeria (CBN) to stabilize its value. 

The recent decline in the Naira’s value across official and parallel markets has prompted suggestions from financial experts to mitigate currency volatility and prevent further depreciation. 

The CBN had announced a series of measures aimed at enhancing transparency and stability in the foreign exchange market while addressing malpractices. 

However, while the analysts acknowledge the positive aspects of the CBN’s recent policies aimed at managing pressures in the foreign exchange market, they highlight that these measures fail to directly address the fundamental issue of limited supply. 

Analysts interviewed by Nairametrics in response to the Naira’s sharp decline following exchange rate harmonization propose reassessing the government’s foreign exchange management strategy. 

They advocate for shifting towards a managed float system to allow flexibility in implementing initiatives to bolster foreign exchange reserves, such as boosting oil production, enhancing agricultural exports, and incentivizing foreign remittances. 

Demand pressures: Official exchange rate settles at N1571.31/$1 as intra-day hits N1851/$1

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Breaking: Nigeria’s inflation rises to 33.2%, says NBS

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Breaking: Nigeria’s inflation rises to 33.2%, says NBS

The National Bureau of Statistics (NBS) says the nation’s inflation rate rose to 33.2 per cent for the month of March 2024.

This represents a 1.5 per cent increase over 32.7 per cent recorded in February 2024.

The NBS disclosed this in a new report released on Monday.

It explained that the rise was primarily due to higher costs of food, beverages, energy, and housing. Compared to February 2024, the inflation rate in March increased at a slower pace, with food inflation reaching 40.01% year-on-year.

NBS attributed the spike in food prices to the rising costs of items like garri, millet, yam tubers, and others. On a month-on-month basis, food inflation slightly decreased to 3.62% in March 2024.

Urban inflation also increased to 35.18% year-on-year in March 2024, while rural inflation stood at 31.45%.

Core inflation, which excludes volatile agricultural products and energy, was 25.90% year-on-year in March 2024.

Overall, the rising cost of living in Nigeria is evident in the significant increase in inflation rates across different categories.

It is crucial for policymakers to address these challenges to alleviate the financial burden on the population.

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Nigeria’s oil production drops by 2.8 million barrels in one month 

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Nigeria’s oil production drops by 2.8 million barrels in one month 

The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has confirmed the data released by the Organisation of Petroleum Exporting Countries (OPEC), indicating a consecutive decline in Nigeria’s oil production for the second month in a row.

According to NUPRC reports, crude drilling operations in March saw a notable decrease, with production dropping from 1.42 million barrels per day (bpd) in January to 1.23 million bpd in March, marking a significant loss of approximately 2.8 million barrels over the month.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, acknowledged the declining trend, attributing it to issues on the Trans Niger Pipeline (TNP) and maintenance activities by oil companies in Nigeria during the period.

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However, beyond crude oil, condensate production, which typically falls outside OPEC’s quota calculation, also experienced a decline in March, further exacerbating Nigeria’s overall production slump.

Despite efforts to address the situation and restore production levels, challenges such as oil theft and dwindling investments continue to hinder Nigeria’s ability to meet its OPEC quota consistently.

The repercussions of Nigeria’s reduced production are compounded by surging global oil prices, fueled by escalating geopolitical tensions, notably the looming threat of conflict between Israel and Iran.

Nigeria’s oil production drops by 2.8 million barrels in one month

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Ore extols ex-NURTW President Yasin’s virtues at 68

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Ore extols ex-NURTW President Yasin’s virtues at 68

Acting President of the National Union of Road Transport Workers (NURTW), Alhaji Aliyu Issa Ore, has described the former president of the union, Alhaji Najeem Usman Yasin, as a trade unionist per excellence with worthy administrative experience.
He stated this in his goodwill message on the 68th birthday of Alhaji Yasin
Ore, a former chairman of the Kwara State council of the union, said the achievements he recorded while in Kwara were as a result of quality advice and guidance from Yasin.
Ore explained that Yasin’s tenure as president of the union witnessed tremendous development and growth of the NURTW.
“His tenure as president of the union recorded first-class growth.
“He took the union to the global stage. For the first time, our union became a strong member of International Transport Federation (ITF).
“Apart from getting international recognition, he also built zonal council offices for all the zones. Before he came in, our zonal councils usually operated from rented apartment but his administration acquired land and built befitting zonal offices for all our zonal councils.
“Again, Alhaji Yasin ensured that the national headquarters of the union assisted many state councils to build their own councils secretariat. Through his guidance, most state councils now operate from their own state councils.”
He recalled the peace enjoyed by members of the union under Yasin, saying this ensured that the body had perfect transition arrangements devoid of thuggery and shedding of blood.
“Before he came into office, our election or change of leadership was usually bloody. But he put a system in place that put an end to thuggery and other violence in the union,” he said.
Ore also said Yasin’s tenure boosted the education of members and workers by ensuring that the union secured partnership with National Open University of Nigeria (NOUN) which enabled members to acquire university education.
“Members of staff also enjoyed opportunities to go for training and workshops to boost their knowledge,” Ore stated.
He prayed that Almighty Allah would continue to preserve him to witness more years in good health.

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