Business

Dollar Selloff Temporary, Be Wary In Coming Weeks — Analysts

Published

3 years ago

November 14, 2022

The appreciation of the naira witnessed in the black market segment of the foreign exchange market towards the end of last week has been described as a temporary reprieve by analysts, who warned that it may depreciate in the coming weeks.

The naira, since Wednesday, last week, gained between N200 and N240 against a dollar. The dollar was exchanged for N900, N920 and N940, depending on the location or volume until the evening of Wednesday, last week, when it began to drop.

As at the time of filing in this report, a dollar was exchanged for between N640 and N660.

While a cross section of analysts, who spoke to Daily Independent, believe that the appreciation was as a result of the backlash of the panic buying witnessed in the last two weeks due to the reaction to the plan of the CBN to redesign three naira denominations, others said it may be the handiwork of the CBN to calm the situation.

Just as the theory of supply and demand helps in determining prices in a free market, rising demand and improved supply have contributed to moderating rate.

There have been questions about what triggered the improved supply of FX in the black market last week. However, there were reports that the U.S. will restrict the acceptance of dollars printed below 2021, to checkmate the dollar stockpile in Africa.

This speculation put some FX hoarders on their feet, who do not want to be caught unawares, incentivising them to convert their FX for naira.

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There have been concerns in the past week by analysts that the fall of the local currency in the past weeks was rather speculative than intrinsic.

They claimed that the move by the anti-graft agency to arrest traders selling the U.S. dollar at a higher rate was aimed at serving as a deterrent to others, whilst discouraging currency speculation.

According to black market operators, the exchange rate between the naira and the dollar appreciated by 8.72 percent on Friday, November 11, 2022, to close at N660/$1 from N700/$1 recorded on Thursday.

In the last four days, the local currency recorded significant gains against the dollar from a record low of N920/$1 recorded in the previous week. The exchange rate has now touched its highest level since August 19, 2022. It is worth noting that the rate varies across various locations and depend on the transaction volume.

However, the naira closed against the dollar at N446.1/$1 at the I&E window on Friday. This represents a slight depreciation of 0.1 percent in contrast to N445.67/$1 that was recorded in the previous trading session.

FX turnover at the official market fell slightly by 3.29 percent to $89.95 million on Thursday, compared to $93.01 million that was traded on Wednesday.

Nigeria’s external reserve declined by 0.07 percent to stand at $37.247 billion as of November 9, 2022, in contrast to $37.272 billion recorded as of the previous day.

Furthermore, an exchange rate of N447/$1 was the highest rate recorded during intra-day trading before it settled at N446.1/$1, while it traded as low as N415/$1 during intra-day trading.

A total of $89.95 million in FX value was traded at the Investors and Exporters window on Thursday, which is 3.29 percent lower than the $93.01 million traded on Wednesday.

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In conversations with several blackmarkettradersattheweekend, Daily Independent gathered that the dollar was selling within N700/$ and N650/$ for cash transactions, representing about a 30 percent gain from N900/$1 recorded the previous weekend.

These traders attributed the sudden improvement in the local currency to eased demand and increased inflows of FX in the market.

Mr. Sanni Mohammad, a forex trader in Lagos, said, “The changes in the rate are really very sudden, but it is as a result of increased dollars in the market compared to the high demand in the previous week.”

Another trader, Mohammed Mandara, opined they have seen increased supply and very few people are buying due to fear that the exchange rate could appreciate further.

Sources also indicate there was the injection of forex in the market by the central bank even though there is no official record backing this claim.

FX traders attributed the changes in the exchange rate to the decline in the demand for dollars in the market.

Malam Ilyasu Gindi at the Murtala Muhammed International Airport said that the demand for FX has decreased significantly compared to what it was in the last two weeks.

“On Friday morning, I bought dollars at the rate of N720/$1, and by evening, I bought at the rate of N670/$1 because a lot of people are now bringing dollars into the market to sell,” he said.

Oladejo Emmanuel, an economist, is of the opinion that there must be a behind the scene intervention by the apex bank to tame the trend that had characterised the black market segment and bring a sudden calm into the economy.

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He said, “If you noticed, you will see that the drop of about N200 on Thursday was so sudden and must have been influenced by higher intervention and I suspect the CBN or its agents”.

Matthew Ogagavworia, a financial analyst, told Daily Independent that the sudden appreciation might have been as a result of several factors.

He said, “One factor is that of Nigerians who speculated that the dollar will continue to rise because most illicit funds will find their way to BDCs. Some of them went on their own and brought in their genuine money in anticipation that the dollar will soon rise beyond N1000.

“The sudden drop we are seeing could be as a result of the slowdown in commercial activities due to the approach of year end. Most traders do cool their demand for forex for the purpose of import as the year runs to an end.

“There is also the expectation that once a new government comes in after the election, the atmosphere may change and the naira may gain confidence and you will not be able to sell the dollar even at the price you bought it.

“We are also faced with the possibility that the CBN’s spotlight on the activities of BDC operators to prevent them becoming a dumping ground for illicit money stashed in drums and water tankers could be responsible.

“I suspect these BDC operators have been sluggish in accepting big sums of naira. They are in fact rejecting large cash.

“Though, as good as it may look, I think this is a temporary calmness except if the regulatory authority did not go back to sleep as they used to do in cases similar to this.”

This time, last year, the exchange rate appreciated from about N577/$ in early October to about N535/$ by mid-November.

The exchange rate at the black market will eventually close the year at about N575/$ by late December before closing the year at N560/$.

Predicting the exchange rate is an incredibly difficult undertaking as a dynamic interplay between demand and supply is the official determinant.

We also anticipate an influx of forexfromdiasporaNigerians during the Christmas holiday in December as is usually the case every year. This will positively impact FX rates.

Related Topics:Analysts Dollar Featured Naira

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NCC Orders MTN, Other Telcos to Compensate Subscribers for Poor Network Service

Published

11 hours ago

March 30, 2026

Trends Admin

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NCC Orders MTN, Other Telcos to Compensate Subscribers for Poor Network Service

The Nigerian Communications Commission (NCC) has directed major mobile network operators (MNOs), including MTN, Airtel, Glo, and 9mobile, to compensate subscribers affected by poor network quality in areas where performance falls below regulatory standards. The move is part of a broader shift toward a consumer-focused approach aimed at protecting users and strengthening accountability in Nigeria’s telecommunications sector.

In a statement on Sunday, Nnenna Ukoha, Head of Public Affairs at the NCC, emphasized that subscribers should not bear the full burden of service disruptions caused by operators’ failure to meet prescribed benchmarks. She explained that compensation will be provided in the form of airtime credits, calculated based on subscribers’ average spending patterns and the duration of service outages in affected areas.

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“Erring operators will compensate affected users directly for breaches of quality of service key performance indicators within specified time frames,” Ukoha said. She added that while regulatory fines have traditionally served as a deterrent against poor service delivery, the commission is now adopting a more consumer-centric approach that ensures users directly benefit from enforcement actions.

Under the directive, tower companies and network providers are also required to reinvest fines and penalties into infrastructure upgrades, aimed at addressing coverage gaps and improving overall network quality. Subscribers are encouraged to report service interruptions to their operators and the NCC to ensure timely compensation.

Industry observers have welcomed the move, describing it as a significant step toward empowering telecom users, improving quality of service (QoS), and holding operators accountable for network performance failures. The NCC will monitor compliance closely and take further action against any operators that fail to meet the compensation and service standards.

NCC Orders MTN, Other Telcos to Compensate Subscribers for Poor Network Service

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Motoring World marks 30 years, set to rally industry leaders in Lagos

Published

12 hours ago

March 30, 2026

Trends Admin

Motoring World marks 30 years, set to rally industry leaders in Lagos

Motoring World, one of Nigeria’s foremost automotive publications, will celebrate its 30th anniversary on June 4, 2026, with a high-profile event at the MUSON Centre.

The milestone gathering is expected to draw policymakers, industry leaders, diplomats and innovators to commemorate three decades of impactful journalism, advocacy and contribution to the growth of Nigeria’s automotive sector.

Founded on June 12, 1996, as a syndicated radio magazine programme, Motoring World pioneered automotive broadcasting in Nigeria before expanding into print in 1998. It has since evolved into a multi-platform brand at the forefront of promoting industry development, modernization and policy reform.

Over the years, the publication has gone beyond news reporting to play an active role in shaping regulatory frameworks, encouraging local content development and promoting industry standards.

Publisher and Chief Executive Officer, Femi Owoeye, said the organisation was driven by a clear vision from inception.

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“Motoring World started with a simple vision: to give voice and structure to Nigeria’s automotive industry. Over the years, we have gone beyond reporting to actively advocate policies that support industry growth, local production and a more structured ecosystem,” he said.

Activities lined up for the anniversary include the unveiling of a special 30th anniversary edition of Motoring World magazine, chronicling the evolution, milestones and future of the industry. Distinguished stakeholders with three decades of contributions to the sector will also be honoured.

A keynote lecture titled, “Reporting the Road Ahead: Automotive Journalism as a Catalyst for Nigeria’s Auto Industry Development,” will underscore the critical role of the media in shaping the nation’s automotive landscape.

Dignitaries expected at the event include the Minister of Industry, Trade and Investment, Jumoke Oduwole; the Director-General of the National Automotive Design and Development Council, Oluwemimo Joseph Osanipin; state governors, transport commissioners and members of the diplomatic corps.

Owoeye noted that the anniversary represents more than a celebration.

“This is a tribute to resilience, strong partnerships and the collective drive that has sustained the industry. As we honour key players and reflect on our journey, we are also setting the tone for the next phase of mobility in Nigeria,” he added.

The event promises a blend of reflection, recognition and renewed commitment to advancing Nigeria’s automotive industry.

Motoring World marks 30 years, set to rally industry leaders in Lagos

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Hyundai unveils flagship SUV Palisade, rolls out strong line-up in Lagos showcase

Published

1 day ago

March 29, 2026

Trends Admin

Hyundai unveils flagship SUV Palisade, rolls out strong line-up in Lagos showcase

Hyundai Nigeria has unveiled the all-new Hyundai Palisade in Lagos, headlining a media showcase that also featured the Hyundai Accent, Hyundai Creta, Hyundai Tucson and Hyundai Santa Fe, as the automaker intensifies its push across key segments of the Nigerian market.

The event, held at the company’s Victoria Island showroom, offered journalists a first-hand view of Hyundai’s expanding portfolio, ranging from entry-level sedans to premium three-row SUVs.

Taking centre stage was the debut of the Palisade, Hyundai’s flagship SUV, positioned to strengthen the brand’s foothold in the premium segment.

With its bold exterior styling, spacious three-row layout, upscale interior and advanced safety and convenience features, the model is targeted at families and executive buyers seeking comfort, space and strong road presence.

Across the line-up, Hyundai showcased a broad spectrum of offerings. The Santa Fe reinforces its appeal as a refined, family-oriented SUV with generous cabin space and premium detailing, while the Tucson stands out for its blend of modern design, practicality and everyday versatility.

In the compact SUV category, the Creta was highlighted for its mix of style, efficiency and urban functionality, while the Accent sedan retains its positioning as a practical and cost-effective option for young professionals, fleet operators and first-time buyers.

Speaking at the event, Brand Head, Hyundai Nigeria, Gaurav Vashisht, said the launch underscores the company’s commitment to deepening its footprint in Nigeria with globally competitive products adapted to local needs.

“This introduction of the all-new Palisade strengthens our premium SUV offering while complementing a well-rounded line-up that delivers on design, safety, innovation and everyday usability,” he said.

The showcase also provided an avenue for media interaction with Hyundai executives and product specialists, alongside detailed vehicle walkarounds covering design, technology and safety features.

Hyundai Nigeria reaffirmed its focus on delivering globally benchmarked vehicles with strong local relevance, even as competition intensifies in Nigeria’s evolving passenger vehicle market.

The event also marked the launch of Hyundai’s Easter campaign, offering customers value-added benefits such as complimentary delivery, accessories, registration and service packages.