Business

Naira stages a comeback as dollar crashes at parallel market to N730

Published

2 years ago

November 11, 2022

The naira, which has been falling against major currencies in the past two weeks, has staged a comeback, recording gains on the parallel market as it exchanged for about N730 to a dollar on Thursday.

Recall that the Nigerian currency hit an all-time low of about N850 to the US dollar on the black market shortly after the Central Bank of Nigeria (CBN) announced plans to redesign high-value currency notes of N200, N500 and N1,000 and reissued from December 15.

CBN said the affected currency notes will cease to be accepted after January 31, 2023, and asked currency holders to pay their currency notes to the banks before then.

While some have begun paying their hordes of naira notes into banks, many have sought refuge in the dollar, mopping up the dollar bills from Bureaus de Change, to preserve value.

In Lagos, black-market traders attributed the recovery of the naira to its scarcity, saying this was responsible for the inability of speculators buying dollars to offer higher rates for the green back.

“There is no naira in the system,” one currency dealer told Daily Trust in Central Lagos District, the heart of the financial market.

He said the dollar had risen to N730, but said if a seller wants naira to be paid into his bank account, it would be done at a lower rate of N700. In Port Harcourt, a dealer priced the dollar at N700 but demanded N720 to sell dollars to buyers.

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In Abuja around the Zone 4 area, some BDCs recalled the drop in patronage of the dollar over varying accounts of information.

According to Umaru Abu, “People are scared that with recent information that the US is rejecting the $100 bill, buying the dollar could be a risk, but we have now heard from CBN officials that it is not true.

“Some of my colleagues said maybe people are buying more assets due to the CBN naira redesign policy and are cutting down spending in dollars. But we have observed some drop in patronage since Tuesday evening,” he noted.

In the meantime, the Institute of Chartered Accountants of Nigeria (ICAN) is worried about the pressure the naira is facing from the US dollar.

A dollar exchanged for about N780 to N820 in the parallel market earlier, far above the around N450/$ official rate, due to insufficient supply, which has implications on inflation and the sourcing of raw materials and services.

ICAN president, Mallam Tijjani Isa, stated this on Thursday in Lagos during a briefing to commemorate the International Accounting Day 2022.

“As a nation, we must find a permanent solution to the forex crisis if we are to develop at the desired pace,” he said.

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The president in the company of the Chairman, Body of Past Presidents of the Institute, Dr Sir Ike Nwokolo, led other members to embark on a health walk among other activities to commemorate the International Accounting Day 2022.

Naira gain may be short-lived – AZA

While the latest firming of the naira against the dollar could be good to tame the rising inflation, analysts say the recovery by the local currency is unlikely to be sustainable, noting the flight into the dollar will resume.

“While Nigerian bureau de change operators have confirmed reduced demand at current parallel market levels, we expect dollar appetite to pick up again in the coming days and the naira to resume its recent slide,” AZA Finance wrote in a note to clients on Thursday.

The CBN has set limits to acceptable amounts of cash deposits into accounts, warning that it would monitor such transactions in conjunction with the Economic and Financial Crimes Commission.

Since then, the EFCC has raided the offices of bureau de change operators and black-market currency traders in Abuja, Lagos, and other towns.

Related Topics:Dollar Featured Naira parallel market

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Naira records major gain against dollar, sells for N680/$

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Aviation

Aviation workers threaten nationwide airports shutdown over Customs officer assault

Published

2 days ago

March 25, 2025

Trends Admin

Aviation workers threaten nationwide airports shutdown over Customs officer assault

Aviation unions have announced plans to shut down airports across Nigeria starting March 31 in protest against the failure to remove a customs officer who allegedly assaulted the Director of Aviation Security at the Federal Airports Authority of Nigeria (FAAN).

In a joint statement signed by Ocheme Aba (NUATE), Frances Akinjole (ATSSSAN), and Abdul Rasaq Saidu (ANAP), the unions condemned the repeated physical assaults on FAAN staff, vowing not to tolerate such incidents any longer.

The unions also called on the government to urgently reduce the number of customs officers operating within the aviation sector, aligning with global best practices. They warned that if their demands are not met, they will proceed with the nationwide shutdown, potentially disrupting air travel and operations.

The statement reads: “Considering the enormity and frequency of physical and psychological assault on the staff and management personnel of FAAN, of which there is no end in sight, we are compelled to inform the management of the unwavering determination of our unions to cause the establishment of a clear framework of mutual respect among FAAN staff and the security agencies operating at the airports.

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“Consequential sanctions are in place which guarantee the safety and human rights of FAAN staff. We shall direct all the workers to withdraw from the airports with effect from March 31, 2025, pending when such protocols are established.

“The recent assault on no less a personality than the Director of Aviation Security of FAAN is one too many, which leaves a taste too bitter to swallow. It is our sincere hope that our demand in the above respect is well met to avoid the industrial conflagration that will ensue in the absence of acceptable remedial actions.”

In response, Abdullahi Maiwada, the spokesperson for Customs, stated in a recent release that the disagreement between FAAN officials and officers of the Nigeria Customs Service (NCS) stemmed from a miscommunication over equipment movement and seating arrangements.

Aviation workers threaten nationwide airports shutdown over Customs officer assault

Business

SEC announces stricter measures to protect investors

Published

3 days ago

March 24, 2025

Trends Admin

Director-General of SEC, Dr. Emomotimi Agama

SEC announces stricter measures to protect investors

The Securities and Exchange Commission (SEC) has reaffirmed its commitment to protecting investors in Nigeria’s capital market by cracking down on fraudulent activities.

According to the Director-General of SEC, Dr. Emomotimi Agama, operators engaging in unscrupulous practices will face strict penalties as the Commission prioritizes safeguarding investor interests.

“So, clearly for us, it is getting people to understand that there is no hiding place anymore for anybody that has the intention to defraud Nigerians and to defraud anybody that is investing in this market,” Dr. Agama stated, emphasizing the Commission’s zero-tolerance policy.

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Dr. Agama highlighted that the Investments and Securities Act (ISA) 2007 serves as the framework for securities regulation in Nigeria, ensuring that market operators adhere to high ethical standards.

He emphasized the importance of the “fit and proper person’s test,” which requires operators to meet specific regulatory criteria to maintain their licenses.

“This is because the very ethics of regulating or registering a securities market operator is in the principle of the fit and proper person’s test,” he explained.

“What you have been seeing most recently by the revocation of licenses, the suspension of operators and our follow-up to operators that are not registered with the SEC is only a tip of the iceberg as to what we intend to do this year.”

Dr. Agama assured stakeholders that the SEC will leverage its regulatory powers under Nigerian law to deter fraudulent activities, noting, “We believe strongly that a protected investor is a powerful investor.”

SEC announces stricter measures to protect investors

Business

Bitcoin rises above $86,000 as crypto market gains momentum

Published

3 days ago

March 24, 2025

Trends Admin

Bitcoin rises above $86,000 as crypto market gains momentum

Bitcoin and other leading cryptocurrencies extended their gains on Monday, buoyed by positive investor sentiment despite concerns over upcoming U.S. tariffs and key economic data releases later this week.

As of 7am WAT, Bitcoin rose 3.2% to $86,590, while Ethereum gained 2.3%, trading at $2,047.

The global cryptocurrency market capitalization increased by 2.94% in the past 24 hours, reaching $2.84 trillion.

Other notable performers included XRP, Cardano, and Dogecoin, which posted gains of 3%, 2%, and 3.8%, respectively. Chainlink, Avalanche, Hedera, and Stellar recorded growth ranging from 3% to 10%.

“Bitcoin is holding above $86,000, registering a 3% gain today. The key resistance level to watch is $86,700; a breakout could pave the way for $90,000,” said Vikram Subburaj, CEO of Giottus.

Bitcoin’s market capitalization surged to $1.727 trillion, with dominance rising to 60.73%. Its 24-hour trading volume soared by 93% to $18.2 billion, while stablecoin transactions accounted for 94.74% of total crypto trading, reaching $57.58 billion, according to CoinMarketCap.

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Solana Outperforms Peers Amid Positive Market Sentiment

Solana (SOL) emerged as a standout performer, surging over 7% in the past 24 hours to trade above $139.

The rally was fueled by reports suggesting that President Trump’s April 2 tariffs may be more targeted than initially feared, easing market concerns.

Weekend rumors indicated that the tariffs might include country exemptions and non-cumulative charges on metals, contributing to improved sentiment across global markets.

The Federal Reserve’s projections for two rate cuts this year further supported risk assets, with the central bank describing potential tariff-induced inflation as “transitory.”

BitMEX co-founder Arthur Hayes expressed optimism about Bitcoin’s trajectory, stating, “The Fed’s policy orientation could help Bitcoin achieve $110k before it retests $76.5k.”

Solana’s momentum aligns with unprecedented acceptance rates. DeFiLlama reported that Solana’s total value locked (TVL) reached 54.87 million SOL, its highest level since June 2022. Ali Charts revealed that a record 11.09 million addresses now hold SOL, underscoring growing adoption.