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Naira depreciation: Analysts offer strategies for volatility mitigation

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

Naira depreciation: Analysts offer strategies for volatility mitigation

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.

Recent Performance of Naira 

Nairametrics reported that the foreign exchange turnover saw a significant rise of 76.61% to $117.32 million, coinciding with the Nigerian naira’s strengthening against the dollar in the official market on Tuesday, February 20th, 2024.    

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However, despite this improvement, the intra-day high remained elevated, reaching N1,701 against the dollar by the close of trading.  

  • The exchange rate settled at N1,551.24 to a dollar at the end of the business day. 
  • In contrast, the exchange rate experienced a decline in the black market, slipping to N1,700/$1, representing a 2.65% decrease compared to the previous day’s rate.   
  • The Great British Pound (GBP) closed at £1/N2120, a decline from £1/N2,040 recorded the previous day, this marks a notable decrease of 3.77% compared to the N2,040 rate recorded the previous day.  
  • In the cryptocurrency market where forex is sold using stablecoins, the Naira also settled at N1,802.44/$1.   

What market experts are saying: 

Financial analyst at FSL Securities Limited in an exclusive interview with Nairametrics, expressed concerns regarding the recent liberalization of the foreign exchange market by the Central Bank of Nigeria (CBN). 

Mr. Victor Chiazor, Head of Research and Investment, FSL Securities Limited he believe that the CBN were hasty in their decision to liberalise the foreign exchange market. 

Chiazor noted that the CBN’s approach lacked comprehensive consideration of the market’s dynamics, particularly in light of the persistent low supply.  

He highlighted that while recent policies implemented by the CBN aimed to alleviate pressures in the FX market, they failed to effectively address underlying supply constraints. 

Chiazor suggested that authorities might need to reassess their stance on foreign exchange management, potentially reverting to a more tightly managed floating exchange rate system.  

This approach, he explained, would afford policymakers the opportunity to concentrate on enhancing supply-side factors affecting FX, including increasing oil production, bolstering agricultural export revenues, and fostering foreign remittances.  

He emphasized the necessity for substantial and consistent inflows of FX, along with continuous augmentation of foreign reserves, for the sustainability of a free-floating Naira exchange rate. 

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Professor Uche Uwaleke, Nigerian First Professor of Capital Market and the Director of the Institute of Capital Market Studies at the Nasarawa State University Keffi who voiced concerns regarding the current state of the exchange rate, in an exclusive chat with Nairametrics suggested that presidential intervention is necessary. 

He highlighted that the increasing FAAC (Federal Account Allocation Committee) receipts are partially accountable for this situation. 

To address this issue, he recommends that the President convene an emergency meeting of the Council of States to collaborate with governors on strategizing how to manage excess FAAC receipts resulting from the devaluation of the naira. 

Uwaleke emphasized the importance of legislative action in this regard, advocating for the Executive to propose a Bill for a “By-Nigerian Law” and commit to enforcing its provisions. 

He highlighted a potential solution to mitigate the distortionary effects of FAAC receipts on the economy, suggesting the adoption of a separate fixed exchange rate, perhaps at N800/dollar as proposed in the 2024 budget, specifically for the monetization of crude oil sales. 

  • “This approach would essentially establish a dual exchange rate system, with the designated rate also applicable to external debt service.  
  • Meanwhile, all other transactions would continue to utilize the NAFEM rates,” he said. 

Uwaleke noted that he has consistently opposed the idea of floating the naira due to the fundamental weaknesses within the economy that cannot adequately support such a move. 

He pointed out that crude oil sales continue to play a significant role in generating foreign exchange receipts. 

Regarding the current situation, he acknowledged that the sudden unification of exchange rates, along with the subsequent devaluation of the naira and rising inflation, has made an increase in the Monetary Policy Rate (MPR) unavoidable. 

However, he suggested that the Monetary Policy Committee (MPC) should opt for an incremental approach rather than implementing drastic measures. 

Also, in an interview with Nairametrics, Mr. David Adonri, Executive Vice Chairman of Hicap Securities Limited, attributed the current volatility and depreciation of the currency to a significant supply-demand imbalance. 

 Adonri emphasized that bridging the supply gap hinges on increasing crude oil exports to meet OPEC quotas and cater to domestic refinery demands. 

 Additionally, he underscored the importance of diversifying activities that contribute to foreign currency supply and boosting domestic production to reduce reliance on imports. 

Adonri cautioned against the overuse of monetary policy tools, noting their diminishing effectiveness in curbing demand pressures for foreign currency. 

Instead, he advocated for the establishment of a transparent, credible, and market-driven foreign exchange market by the monetary authority. 

 Adonri criticized the current forex market for its inability to achieve exchange rate convergence or eliminate illicit transactions. 

The Chief Executive Officer, of Wyoming Capital and Partners, Mr. Tajudeen Olayinka said that the CBN should understand that the black market they are chasing is a different market for different customers. 

Olayinka noted that it would be difficult to unify the two different markets without eliminating the differences in the two markets. 

  • “Black market is a free fund market or market that is free from documentation. Unless you can create a convergence from those differences, you cannot truly unify the exchange rate in the real sense of it,” he said. 

Naira depreciation: Analysts offer strategies for volatility mitigation

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Fuel subsidy is a scam, petrol can sell for N200/litre – Donald Duke

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Fuel subsidy is a scam, petrol can sell for N200/litre – Donald Duke

Fuel subsidy is a scam, petrol can sell for N200/litre – Donald Duke

The presidential candidate of the Peoples Redemption Party (PRP), Donald Duke, has described Nigeria’s fuel subsidy policy as a “scam”, arguing that petrol could sell for about N200 per litre if the country properly harnesses its crude oil, natural gas and other energy resources.

Duke made the statement amid renewed political debate over the future of petrol subsidy in Nigeria, following comments by the presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, who said he would introduce targeted subsidies to cushion Nigerians from the impact of high fuel and transportation costs if elected president in 2027.

Atiku’s position has reignited arguments over the decision by President Bola Tinubu to remove petrol subsidy shortly after assuming office in May 2023. The Tinubu administration has consistently defended the policy, arguing that the former subsidy regime was financially unsustainable and consumed resources that could be channelled into infrastructure, social programmes and other development priorities.

The Federal Government has also rejected calls for a return to the old subsidy arrangement, maintaining that subsidy removal has strengthened public finances and increased the resources available to the three tiers of government.

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, recently said the removal of petrol subsidy generated N15.8 trillion in resources for the Federation between June 2023 and December 2025. He said the amount included N5.4 trillion received by the Federal Government and N10.4 trillion shared among state and local governments through the Federation Account.

The government has presented the figures as evidence that subsidy removal has created fiscal space, although critics argue that the policy has also contributed to higher transportation, food and household costs.

Duke, however, questioned the basis of the subsidy argument, saying Nigeria’s natural resource wealth should make it possible to provide affordable petroleum products without relying on an expensive government subsidy system.

“Look, I don’t believe there’s any subsidy in fuel,” Duke said.

“For a barrel of crude oil, there are about seven by-products. The two consequential ones are diesel and petrol – PMS and AGO – and kerosene, aviation fuel and all those things.

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“You sell them at commercial rates, okay? Work it out. You can almost sell petrol today at N200 a litre, not the N1,000-plus.

“So that thing about subsidy, I think, is the biggest scam that has been perpetrated, maybe globally.”

Duke’s N200 per litre petrol projection is his own assessment of what he believes could be achieved through better management of Nigeria’s energy resources. It does not represent the current pump price or an official pricing projection by the Federal Government or the Nigerian National Petroleum Company Limited (NNPCL).

Petrol prices remain substantially above that level in most parts of the country, although prices vary between locations and marketers.

The former Cross River State governor argued that Nigeria’s problem was not a lack of natural resources but the failure to convert those resources into affordable and reliable energy for citizens and businesses.

“You’re an energy-blessed country,” Duke said. “You have all known forms of energy existing in Nigeria – from the crudest, which is human labour, to hydrocarbons, solar, hydro, uranium and now lithium.

“You have all those things. Why are we still energy-poor? Because the political will is not there. But even beyond the political will, we’re not thinking through this.”

Duke also criticised the continued flaring of natural gas in Nigeria, arguing that a country struggling with electricity shortages should not be wasting a valuable energy resource.

“We easily flare two billion cubic feet of gas a day,” he said. “That is equivalent to 20 million litres of diesel.

“If you had a turbine to power all of Africa, it would not consume 20 million litres of diesel daily.

“So, it’s akin to the abundance of water while the fish is thirsty.”

The argument comes at a time when Nigeria is attempting to increase domestic oil refining and reduce its dependence on imported petroleum products.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that domestic refineries supplied billions of litres of petrol during the first seven months of 2026, with the Dangote Petroleum Refinery accounting for a significant share of domestic production.

The increased refining capacity has altered Nigeria’s downstream petroleum market, but domestic production has not completely eliminated the need for imports. Supply levels and petrol prices continue to fluctuate depending on refinery output, crude availability, logistics, international oil prices and other market conditions.

Duke maintained that Nigeria should focus on using its natural endowments to lower production costs rather than relying primarily on international price comparisons.

“When I hear excuses like, ‘Oh, it’s cheaper in America,’ or, ‘We’re cheaper than it is in America,’ every country has its own endowments,” he said.

“You’ve got to use what you’ve got to get what you want. We are an energy-blessed country. The people should feel their blessings.”

He further questioned Nigeria’s energy strategy, pointing to the country’s participation in the West African Gas Pipeline while domestic industries and households continue to experience inadequate gas and electricity supplies.

“You have a West African Gas Pipeline, but you don’t have any self-sufficiency in gas in your country,” Duke said. “There’s something wrong somewhere. We’re not thinking.”

The PRP candidate argued that Nigeria’s energy crisis could be addressed through stronger political commitment, better infrastructure, increased domestic refining and more effective utilisation of the country’s oil and gas resources.

His position differs from both the Tinubu administration and Atiku’s proposed approach. While the Federal Government maintains that subsidy removal was necessary to protect public finances, Atiku is advocating targeted government intervention to reduce the burden of high energy costs, while Duke argues that Nigeria should use its resource advantage to make energy cheaper without depending on a conventional subsidy regime.

The renewed fuel subsidy debate is expected to remain a major issue ahead of the 2027 presidential election, particularly as political parties and candidates seek to address the effects of high petrol prices on transportation, food prices, businesses and household incomes.

For Duke, the central question is not simply whether Nigeria should restore or retain petrol subsidy, but why a country with vast oil, gas and other energy resources continues to struggle with high energy costs.

“Why are we still energy-poor?” Duke asked. “The political will is not there. We’re not thinking through our problems.”

Fuel subsidy is a scam, petrol can sell for N200/litre – Donald Duke

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Nine Oxygen Cylinders Recovered as NRC, NSCDC Thwart Rail Vandalism in Osogbo

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Nine Oxygen Cylinders Recovered as NRC, NSCDC Thwart Rail Vandalism in Osogbo

Suspected railway vandals fled for their lives after security operatives swooped on a railway siding serving the Dangote Steel Rolling Mills in Osogbo, Osun State, recovering nine oxygen gas cylinders allegedly deployed for the illegal operation.

The recovery operation, carried out by the Nigerian Railway Corporation (NRC) in collaboration with the Nigeria Security and Civil Defence Corps (NSCDC), followed a report of vandalisation of railway track materials at the siding, currently not in operation.

According to a statement issued by the NRC Chief Public Relations Officer, Callistus Unyimadu, and signed for the management, the Principal Track Officer (PTO), Osogbo, received a report on Friday, August 28, 2026, concerning the ongoing vandalisation of railway track materials at the location.

Following the report, the PTO proceeded to the site with security personnel, including officers of the NSCDC Railway Command. On sighting the operatives, the suspected vandals reportedly fled the scene.

A subsequent search of the area led to the recovery of nine oxygen gas cylinders, which were allegedly being used in the illegal operation.

The recovered railway materials and the surrounding area have since been secured by security personnel, the NRC said.

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Reacting to the development, NRC Managing Director and Chief Executive Officer, Dr Kayode Opeifa, commended the security personnel for their vigilance and timely intervention, describing the operation as another significant success in the sustained efforts to protect railway infrastructure from vandals and economic saboteurs.

Opeifa directed security operatives to intensify surveillance and enforcement at the Dangote Steel Rolling Mills siding and other railway corridors nationwide.

He also urged security formations across the railway network to strengthen collaboration with relevant agencies to prevent the vandalisation and theft of railway assets.

The NRC boss appealed to members of the public, particularly communities located along railway corridors, to promptly report suspicious activities around railway tracks, stations and other railway facilities.

He stressed that railway infrastructure constitutes critical national assets whose protection is essential to the safety of rail operations, sustainability of services and the economic development of the country.

Opeifa further assured that the NRC would continue to provide necessary support to security agencies in the collective effort to stamp out vandalism and other acts capable of undermining railway operations across the country.

The statement said the NRC remains committed to strengthening collaboration with security agencies to safeguard railway infrastructure nationwide.

 

Nine Oxygen Cylinders Recovered as NRC, NSCDC Thwart Rail Vandalism in Osogbo

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Who Drives Best? Naija Driver 2026 Opens Free National Search for Driving Champion

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Who Drives Best? Naija Driver 2026 Opens Free National Search for Driving Champion

A new nationwide driving competition designed to combine driver education with practical skills testing is set to begin in September, with organisers targeting safer roads and a reduction in crashes linked to human error.

‘Dubbed Naija Driver 2026’, the inaugural Nigerian Drivers Challenge is being organised by Notch Captains Limited under the Approval in Principle and Safety Frameworks of the Automobile & Touring Club of Nigeria (ATCN), the country’s sole representative of the Fédération Internationale de l’Automobile (FIA), in collaboration with the Lagos State Drivers Institute (LASDRI).

The organisers said the initiative, which will be conducted free of charge, is aimed at creating a new culture of responsible motoring by giving licensed Nigerian drivers access to structured road-safety education, testing and practical driving assessment.

Registration and safety screening for the competition will open on September 1, 2026, through its digital learning portal. The programme is open to licensed Nigerian residents aged between 18 and 65.

According to a statement signed by Ingram Osigwe, Director of Media, Communications, Marketing and Public Relations of the organising committee, participants will undergo online training covering defensive driving, road-use regulations, crash-scene management, emergency victim stabilisation during the critical “Golden Seconds” and preventive vehicle maintenance.

The training will lead to a Unified National Computer-Based Test in October, with candidates expected to sit for the examination simultaneously across the 36 states and the Federal Capital Territory.

Project Director and Managing Director of Notch Captains Limited, Adrian Egonu, said the competition would use a decentralised verification system to ensure credible identity checks while eliminating the logistical difficulties associated with moving large numbers of candidates across the country.

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Under the arrangement, the three highest-scoring candidates from each state and the FCT will undergo document verification and practical screening in their respective locations in October.

The successful state and FCT champions will then converge on Lagos for the final live-action driving competition scheduled for November 7 to 10.

The final stage will test the contestants’ vehicle-handling agility, chassis control and emergency-braking precision, with the driving trials conducted before a live and televised audience.

Beyond the competition, the organisers plan to use the platform to promote emergency response awareness among motorists, particularly on what ordinary road users can safely do during the crucial first moments after a crash before professional responders arrive.

An Executive Road Safety Advocacy Gala Night will also be held ahead of the final driving trials, bringing together government representatives and senior executives of major Nigerian conglomerates to endorse a national highway safety advocacy pledge.

The initiative is also expected to deepen motorists’ understanding of vehicle insurance and risk protection through presentations by leading motor insurance institutions.

As part of its social-impact component, the organisers said official charity visits would be made to hospitals where road-crash victims are undergoing rehabilitation.

Gender inclusion is another major component of the competition, with organisers encouraging more women to enter and compete alongside their male counterparts.

The organisers have also partnered with Skinetics Med Spa on a “Glam n Drive” package, which will feature gifts and vouchers for participants throughout the tournament, subject to applicable terms and conditions.

Osigwe urged individual motorists, corporate fleet managers, transport unions and e-hailing operators to take advantage of the free training and testing opportunities when the official portal becomes operational.

He said the ultimate objective was to ensure that Naija Driver 2026 goes beyond crowning a champion to create a nationwide pool of better-trained, safety-conscious and responsible motorists.

With the competition slogan, “Drive. Compete. Lead,” the organisers said Naija Driver 2026 would seek to demonstrate that driving excellence is not merely about speed or vehicle control, but also about knowledge, discipline, emergency preparedness and respect for other road users.

 

Who Drives Best? Naija Driver 2026 Opens Free National Search for Driving Champion

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