Naira falls across markets •Forex reserves drop to $38.59 billion - Newstrends
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Naira falls across markets •Forex reserves drop to $38.59 billion

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Nigeria’S foreign reserves have dropped to $38.59 billion as the Central Bank of Nigeria (CBN) continued its currency float management that had seen the apex bank pumping $3.36 billion into the foreign exchange (forex) market over a two-month period.

Latest figures from the apex bank indicated that the forex reserves depreciated $125.53 million to close weekend at $38.63 billion.

The decline in the foreign reserves can be attributed to the continuous intervention by the Central Bank in the forex market in order to ensure the stability of the local currency.

Despite the interventions, the naira has continued to depreciate closing last week at N610 per dollar at the parallel market, a decline of 0.7 per cent. At the official Investors and Exporters (I & E) Window, the naira fell by 0.1 per cent to N419.50 per dollar.

The CBN had committed  $3.36 billion into the foreign exchange market in two months in line with its determination to keep the naira stable.

The apex bank’s January monthly report on ‘Foreign Exchange Market Developments’ showed that $1.71 billion and $1.65 billion were injected in December 2021 and January 2022.

The naira had made marginal gain after the Monetary Policy Committee (MPC) raised interest rate by 150 basis points.

The local currency appreciated by from N610/$ to N605/$, representing N5 gain after the MPC hiked Monetary Policy Rate (MPR) from 11.5 per cent to 13 per cent per annum.

The naira is, however, still trading weaker than pre MPC  close of N600/$ at the parallel market but remains stable at N415.72/$ at the official market.

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Forex Trader, AZA Finance, Ikenga Kalu said: “We expect the naira to appreciate further in the coming days back to the N600/$. However, strains are likely to persist over the medium term given ongoing dollar supply constraints.”

The CBN said its policies – naira-for-dollar – incentives, stoppage of dollar sales to bureaux de change and restriction of forex sales to 43 items that can be produced locally are meant to boost dollar liquidity and create currency convergence.

The CBN Governor, Godwin Emefiele explained that Nigeria, like other emerging market countries reliant on oil exports, the retreat by foreign portfolio investors significantly affected the supply of foreign exchange.

“With the decline in our foreign exchange earnings and successive exchange rate adjustments, the CBN has continued to implement a demand management framework, which is designed to bolster the production of items that can be produced in Nigeria, and aid conservation of our external reserves,” he said.

Emefiele said the the apex bank has continued to favour a gradual liberalisation of the foreign exchange market in order to smoothen exchange rate volatility and mitigate the impact which, rapid changes in the exchange rate could have on key macro-economic variables.

An economist and Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, explained that CBN’s efforts at naira convergence will help reduce the official-parallel market spread which will in turn decrease the incidence of speculative trading at the parallel market.

“A reduced spread will decrease the incentive (arbitrage) for speculators to obtain forex at the official market and resell at the parallel market.This may result in panic dumping of dollars at the parallel market due to the concern of lower demand for forex and appreciation of the dollar at the parallel market,” he said.

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Rewane advised that closing the gap between the official and parallel market rates is likely to reduce the demand for forex at the parallel market, pushing investors and traders to the official market.This will lead to increased forex transactions at the official market.

He explained that the wide official-parallel market spread and the low forex supply at the official market have been the main factors driving investors and traders to source forex at an expensive rate from the parallel market.

For him, reducing this spread, coupled with an improved forex supply at the official market, will decrease uncertainty (volatility) at the forex market and bolster the ability of the official window to meet a higher demand for dollars.

The resulting impact of this is that a reduced exchange rate volatility and improved forex supply will make it easier for foreign investors to repatriate their funds.

It will also ensure that traders and manufacturers can access forex at a uniform rate from both the official and parallel markets.

“Reduced naira volatility and improved forex supply are positive for foreign direct investments and foreign portfolio investments as well as the country’s external trade. This is because of the increase in the volume of dollar available for foreign trade and investment,” he said.

Railway

Railway track vandalism: Urgent need for laws prohibiting scrap/metal picking to protect critical assets 

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Railway track vandalism: Urgent need for laws prohibiting scrap/metal picking to protect critical assets 

By Onyedikachi Stanley Onovo

The wanton destruction and theft of Nigeria’s railway infrastructure and other critical public assets represent one of the gravest threats to national development and security.

Across the nation—from the Warri-Itakpe line to Abuja-Kaduna, the Eastern and Western Districts, Lagos-Ibadan, and throughout the Northern network—vandals systematically dismantle tracks, steal armoured cables, and pillage essential equipment. This crisis demands an immediate and robust legislative response.

The unending menace

The vandalism is perpetrated by a network of individuals, from local miscreants (“iron condemn”) to organised merchants who purchase and export stolen materials. Security reports and countless arrests underscore the scale of the problem:

In December 2023, a private security firm arrested 13 suspects for vandalising Abuja Mass Transit Rail assets. The suspects were said to be casual workers engaged by a Chinese company working on the railways, but said to have used the opportunity to steal the materials.

On June 2024, The Cable reported that the Nigerian Army arrested 47 suspected rail track vandals in Kaduna State.

In October 2025, police arrested a suspect vandalising railway electrical installations also in Kaduna State.

Radio Nigeria in December 2025 announced the arrest of three persons in Kwara State for vandalizing and stealing Railway clips and nuts in Offa.

In May 2021, TVC reported some individuals, including one Ejike Okeke were apprehended in Enugu with stolen sleepers and tracks.

On the 30th of January 2026 the Nigerian Television Authority reported that the NSCDC, Bauchi State Command arrested five suspects and intercepted a truck carrying vandalized railway tracks.

This relentless assault has plagued successive management of the Nigerian Railway Corporation (NRC), defying conventional counter-strategies.

A transformative leadership initiative

A pivotal shift began under the administration of President Bola Ahmed Tinubu with the appointment of Dr. Kayode Opeifa as Managing Director/CEO of the NRC.

Dr. Opeifa introduced a fundamental paradigm shift by redesignating what was carelessly termed “scrap” as “unserviceable critical national assets.”

This reframing has driven a transformative partnership with experts to manage these assets responsibly. The era of controversial public auctions—which often saw valuable national iron assets disappear, depriving Nigeria of materials for repurposing and industrialisation—is now over.

Today, a systematic process ensures these materials are reused or responsibly processed, with revenue reinvested into the Corporation. This home-grown solution is a commendable breakthrough that proves Nigerians can effectively solve national challenges.

The critical legislative gap: Targeting the market

While the NRC’s internal reforms are laudable, they alone cannot stem the tide. The root enabler of this vandalism is the thriving, unregulated market for stolen metal. To kill the vandal’s incentive, we must eradicate the demand.

Therefore, there is an urgent need for the National Assembly to enact legislation that:

1. Prohibits the buying and selling of any railway materials (serviceable or unserviceable) on the open market.

2. Imposes severe penalties on buyers and merchants of vandalised public assets, effectively targeting the economic drivers of this crime.

3. Mandates stringent federal regulation of all scrap metal dealers nationwide.

THE SCRAP DEALER NEXUS

The opaque operations of scrap dealers are a major concern. Their compounds are often shrouded, hiding the provenance of their materials. This unregulated space fuels not only railway vandalism but also community theft—from iron crossing bars in homes to street lamp holders.

Trailers loaded with questionable materials move freely from cities and expressways to unknown destinations. Without regulating this sector, our fight against vandalism remains superficial.

CONCLUSION

The partnership and innovation under Dr. Opeifa’s leadership at the NRC demonstrate what is possible with commitment and vision.

However, to secure our railways, power installations, and other critical assets, we must complement this institutional resolve with strong, deterrence-based law. Legislation that dismantles the market for stolen public property is not an option; it is a national imperative for Nigeria’s security and industrial future.

*Onyedikachi Stanley Onovo, Ph.D

FCAI, ANIPR

onyedikachionovo1@gmail.com excellentdikachi@yahoo.com

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MOMAN, ALCMAN Partner BKG to Drive Nigeria’s Shift from Auto Imports to Industrial Production

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MOMAN, ALCMAN Partner BKG to Drive Nigeria’s Shift from Auto Imports to Industrial Production

 

In what industry stakeholders view as a decisive move toward industrial rebirth, BKG Exhibitions Limited has entered into a strategic partnership with the Motorcycle Manufacturers Association of Nigeria (MOMAN) and the Automotive Local Content Manufacturers Association of Nigeria (ALCMAN) to accelerate local automotive manufacturing and reduce the country’s heavy reliance on imports.

The alliance, formalised in Lagos, signals a coordinated private-sector effort to reposition Nigeria’s automotive ecosystem from an import-dependent market to a production-driven industrial base capable of delivering value addition, technology transfer, and large-scale employment.

For decades, Nigeria’s automotive sector has been dominated by the importation of fully built vehicles and, more recently, the assembly of semi-knocked-down (SKD) and completely knocked-down (CKD) kits.

While these models generated commercial activity, stakeholders argue they failed to build deep industrial capacity or strengthen indigenous engineering expertise.

The new partnership seeks to change that narrative by transforming trade exhibitions into structured industrial platforms that connect manufacturers with policymakers, institutional buyers, investors, and international technical partners.

A senior executive at BKG Exhibitions said the collaboration represents a deliberate shift in strategy.

“Exhibitions must go beyond passive marketplaces. They must become engines of economic transformation where Nigerian manufacturers secure contracts, attract capital, and demonstrate production competence,” he said, noting that Nigeria already possesses strong demand but lacks a coordinated ecosystem to convert that demand into domestic output.

“Nigeria remains one of Africa’s largest mobility markets, driven by rapid urbanisation, a growing youth population, and expanding last-mile logistics services.

“Motorcycles and tricycles play a critical role in urban transport, agriculture distribution, and the fast-growing delivery economy.

“However, a substantial portion of these vehicles and their components are imported, placing pressure on foreign exchange and limiting domestic industrial growth.”

MOMAN President Rev. Lambert Ekewuba emphasized that strengthening local production would go beyond import substitution.

“When we manufacture locally, we create jobs, retain capital, and build the technical foundation for advanced automotive engineering,” he said.

ALCMAN Chairman, Chief Anselm Ilekuba, stressed the importance of developing a resilient components ecosystem, describing it as the backbone of any successful automotive industry.

“No country becomes an automotive powerhouse without first nurturing strong supplier networks. Nigeria must empower small and medium-scale enterprises producing metal parts, plastics, electrical systems, and other inputs,” he said.

Under the alliance, future exhibitions will feature dedicated pavilions showcasing Nigerian-made components and vehicles, offering manufacturers direct access to government agencies, transport operators, and regional distributors.

Analysts believe such curated exposure could gradually shift procurement patterns toward locally produced alternatives.

Beyond the domestic market, the partnership aims to position Nigeria as a manufacturing hub serving West and Central Africa, leveraging opportunities under the African Continental Free Trade Area (AfCFTA).

Industry leaders say expanding export capacity will depend on strengthening standards, financing mechanisms, and technical capability.

The alliance also plans coordinated advocacy for policies that support localisation, including improved access to financing, reduced duties on industrial machinery, technical training aligned with modern production systems, and procurement frameworks favouring locally manufactured goods.

Economists argue that a revitalised automotive manufacturing base could stimulate growth across steel, petrochemicals, logistics, warehousing, and tooling industries, reinforcing the sector’s role as a catalyst for broader industrialisation.

Coming at a time when Nigeria is intensifying efforts to diversify its economy away from oil dependence, stakeholders say the success of this alliance could mark a turning point — shifting the country from being one of Africa’s largest automotive consumption markets to an emerging centre of production, innovation, and regional trade.

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Nigerian Equities Post World’s Second-Best Dollar Returns in 2026, Recover $21bn

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Nigerian stock market

Nigerian Equities Post World’s Second-Best Dollar Returns in 2026, Recover $21bn

Nigerian equities have emerged as one of the best-performing stock markets globally in 2026, delivering the world’s second-best dollar returns after years of currency-driven losses and weak investor sentiment. The local market has risen 31 percent in dollar terms this year, helping investors recoup about $21 billion in market value lost following the sharp naira devaluation in 2024.

Market capitalisation on the Nigerian Exchange Group has climbed to approximately $84 billion, representing a 58 percent increase from levels recorded before the currency collapse. According to Bloomberg, Nigeria’s benchmark equity index has surged 31 percent year-to-date, significantly outperforming global peers. The rally far outpaces the 11 percent gain in the broader emerging-market index and the 6.4 percent advance recorded by frontier-market stocks.

Analysts attribute the sharp rebound to a combination of stronger corporate earnings, exchange-rate stability, and renewed investor confidence following wide-ranging economic reforms. Olabode Williams, an analyst at SBG Securities Ltd, said companies hardest hit by the naira’s earlier collapse have now stabilised their balance sheets and returned to profitability. He noted that investors are increasingly pricing in growth as corporate fundamentals improve, adding that Nigerian equities are becoming more attractive to both local and foreign investors after years of underperformance.

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The rally has also been supported by a firmer naira, which has appreciated by more than seven percent against the dollar in 2026, ranking as the world’s second-best performing currency among those tracked by Bloomberg. The currency rebound has strengthened dollar-based equity returns and helped reverse losses triggered by earlier exchange-rate volatility.

Foreign participation has increased sharply alongside the rally. Data from the Nigerian Exchange Group shows that non-Nigerian trading in local equities reached a 19-year high in 2025. Transactions by foreign investors tripled to ₦2.65 trillion ($1.97 billion) from ₦852 billion in the previous year, reflecting renewed global appetite for Nigerian risk assets.

Market analysts believe the rally could extend further if major listings materialise. Gloria Fadipe, an analyst at CSL Stockbrokers Ltd, a unit of FCMB Group Plc, said the market could exceed $100 billion in valuation this year if large-scale listings proceed. She noted that potential listings of Dangote Refinery and Dangote Fertiliser could deliver capital gains of up to 34 percent while deepening market liquidity.

The rebound comes amid broader macroeconomic reforms introduced by Bola Tinubu, including the unification and liberalisation of the foreign-exchange market. While the reforms initially triggered volatility and inflationary pressure, economists say they are restoring policy credibility, improving capital inflows, and repositioning Nigerian assets for sustained long-term growth.

Nigerian Equities Post World’s Second-Best Dollar Returns in 2026, Recover $21bn

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