Business
Sell excess dollars in 24 hours, CBN orders banks
Sell excess dollars in 24 hours, CBN orders banks
The Central Bank of Nigeria, CBN, has ordered Deposit Money Banks to sell their surplus dollar stock by February 1, 2024, as part of new measures to stabilize the country’s fluctuating currency rate.
The CBN, which made the announcement in a fresh circular issued on Wednesday, also urged lenders not to hold extra foreign currency for profit.
According to officials, the central bank believes that some commercial banks have long-term foreign exchange positions to profit from the erratic swings of exchange prices.
The new circular introduces a set of guidelines aimed at reducing the risks associated with these practices.
In the circular titled, “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks”, the CBN raised concerns over the growing trend of banks holding large foreign currency positions.
The latest circular came barely 48 hours after the CBN released a circular, warning banks and FX dealers against reporting false exchange rates, among others.
The new development also came on the heels of the adjustment of the methodology used for the calculation of the nation’s official exchange rate by the FMDQ Exchange.
The review has pushed the Nigerian Autonomous Foreign Exchange Market rate (official exchange rate) from approximately N900/dollar to N1,480/dollar. The naira closed at 1,450/dollar at the parallel market on Tuesday.
The move which is aimed at unifying the official and parallel market exchange rates has been hailed by economists and other stakeholders.
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They however challenged the CBN to clear FX backlogs estimated at over $5bn and also fund FX demands at the official market. This, they said, would forestall a situation whereby the parallel market rate would move away from the official rate again.
Apparently as part of the moves to fund FX request at the official window, the CBN in its latest circular released on Wednesday accused banks of holding excess foreign exchange positions.
As a result, the central bank gave lenders until February 1, 2024 (today) to sell off excess dollar positions.
The circulated, dated January 31, 2024, was signed by the Director, Trade and Exchange, CBN, Dr. Hassan Mahmud, and representative of the Director, Banking Supervision, CBN, Mrs. Rita Sike.
The circular read in part, “The Central Bank of Nigeria has noted with concern the growth in foreign currency exposures of banks through their Net Open Position (NOP). This has created an incentive for banks to hold excess long foreign currency positions, which exposes banks to foreign exchange and other risks.”
To address these issues, the CBN in the circular issued prudential requirements that banks must follow. A key focus of these requirements is the management of the Net Open Position (NOP).
The NOP measures the difference between a bank’s foreign currency assets (what it owns in foreign currencies) and its foreign currency liabilities (what it owes in foreign currencies).
The circular mandates that the NOP must not exceed 20 per cent short or 0 per cent long of the bank’s shareholders’ funds.
This calculation, the apex bank said, must be done using the Gross Aggregate Method, which provides a comprehensive view of the bank’s foreign currency exposure.
Furthermore, banks with current NOPs exceeding these limits are required to adjust their positions to comply with the new regulations latest by February 1, 2024.
Additionally, banks must calculate their daily and monthly NOP and Foreign Currency Trading Position (FCT) using specific templates provided by the CBN.
The CBN also directed banks to maintain adequate stocks of high-quality liquid foreign assets, such as cash and government securities, in each significant currency.
According to the circular, all banks are required to adopt adequate treasury and risk management systems to provide oversight of all foreign exchange exposures and ensure accurate reporting on a timely basis.
Banks are expected to bring all their exposures within the set limits immediately and ensure that all returns submitted to the CBN to provide an accurate reflection of their balance sheets.”
Finally, the CBN warned banks that non-compliance with the NOP limit would result in immediate sanction and suspension from the foreign exchange market.
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In the half of 2023, First Bank, UBA, Zenith, Access, and GTB reported a combined N1.38tn in forex revaluation gains.
The apex bank at the time issued a directive instructing commercial banks to resist using their foreign exchange revaluation gains for dividends and operational expenditures. It noted that “Banks that exceed the NOP prudential limits due to the FX revaluation shall be granted forbearance for the breach upon application.’’
A top bank executive, who spoke on condition of anonymity, said the new circular would force banks to sell off excess dollar liquidity exceeding $5bn.
The top banker said, “Just as some Nigerians prefer to keep their money in dollars because naira is not a good store of value, banks also hold excess dollar liquidity to make gains. They do their own at institutional level. What the CBN is saying with this new circular is that, you cannot hold excess dollar liquidity again. Any foreign exchange you are holding must be committed to something, a transaction or obligation you can proof. Banks have made a lot of revaluation gains. Some banks, I believe, got approval under the last administration to hold more dollar than the requirement. The idea is that if banks sell all these excess dollars, there will liquidity and the exchange rate will stabilise. Foreign investors will come in.”
Naira trades
Meanwhile, the naira closed at N1,455.59/$ at the official window on Wednesday, according to the FMDQ Securities Exchange. This is a 1.82 per cent appreciation from the N1482.57/$ it closed trading on Tuesday.
At the parallel market, it lost N61 to trade at N1,511/$. A Bureau De Change operator, Malam Ibrahim, told The PUNCH, “For now, we are selling between N1,511/$ and N1,512/$. Earlier today, the dollar was sold between N1,535/$ and N1,540/$.”
Another operator said he could only sell at N1,510/dollar. However, a source at the market informed our correspondent of a ‘no sales policy’ to be implemented by the BDC union tomorrow.
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The source said the decision was taken today after serious deliberations on how to reduce the fall of the naira.
“Nobody is coming to market tomorrow. We want to close the market because honestly, the naira is just crashing anyhow. This was caused by some media reports this week that the dollar was now selling for N1,500 even though we were still selling at N1,400. Now everybody is blaming black market operators and that’s why we decided that the market will remain closed tomorrow,” the source said.
“We will resume next tomorrow, and the rate should be less than N1,400/$,” the source added.
On the cryptocurrency peer-to-peer market, the naira was trading for N1,495.1/$ on Binance’s P2P platform as of the time of filing this report.
The naira is recording its worst week on the official market following the move by FMDQ Securities Exchange to revise the methodology used to set the exchange rate. According to a market notice, this new calculation will attempt to narrow the gap between the official and parallel rates of the naira.
It said, “This revision aims to address recent fluctuations and challenges encountered in the Nigerian Foreign Exchange (‘FX’) Market.”
It added, “These revisions are focused on enhancing the accuracy and reliability of the NAFEX and NAFEM rates determination process, with a focus on data availability and integrity involving a rigorous data validation process, including tolerance checks which shall be applied by FMDQ Exchange, subject to internal policies and procedures.”
Sell excess dollars in 24 hours, CBN orders banks
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Court Strips FRSC of Powers to Operate on State, Local Government Roads
Court Strips FRSC of Powers to Operate on State, Local Government Roads
In a landmark judgment that could redefine the operational scope of the Federal Road Safety Corps (FRSC) across Nigeria, a Federal High Court in Kano has ruled that the agency has no legal authority to enforce traffic regulations on roads under the control of state and local governments. The ruling, delivered on Thursday, July 16, 2026, by Justice M. S. Shuaibu, declared that FRSC personnel acted unlawfully when they stopped, questioned, and delayed motorists on township roads within the Kano metropolis in July 2025. The court held that such actions constituted a violation of citizens’ fundamental rights to personal liberty and freedom of movement.
Delivering the judgment, Justice Shuaibu ruled that the FRSC’s enabling law restricts the corps’ operations to federal highways only, and does not extend its jurisdiction to roads owned and managed by state governments or local government councils. The judgment came in response to a fundamental rights enforcement suit filed by Abba Hikima, a Kano-based lawyer who was stopped by FRSC operatives at a checkpoint on a township road in July 2025. According to court documents, the operatives demanded to see his driver’s licence and questioned him despite the fact that he had committed no traffic offence. Dissatisfied with what he described as harassment and an abuse of power, Hikima approached the Federal High Court, arguing that the FRSC had overstepped its statutory mandate.
In his ruling, Justice Shuaibu held that the FRSC’s actions breached Section 35 (Right to Personal Liberty) and Section 41 (Right to Freedom of Movement) of the 1999 Constitution of the Federal Republic of Nigeria. The judge noted that stopping motorists without reasonable cause, detaining them for questioning, and demanding documents without lawful authority amounted to an infringement on the constitutional guarantees enjoyed by every Nigerian citizen.
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Consequently, Justice Shuaibu granted all the key reliefs sought by the applicant, including a perpetual injunction restraining FRSC officials and their agents from stopping, harassing, detaining, or interfering with motorists on Kano State roads without lawful authority. The court also directed the FRSC to publish a public apology to Mr. Abba Hikima in a national newspaper within a specified timeframe, and awarded ₦800,000 in damages and litigation costs in favour of the applicant, payable by the FRSC.
This Kano ruling is not the first judicial decision to limit the FRSC’s operational territory. In 2019, a Federal High Court in Warri delivered a similar judgment, restraining the corps from operating on state and local government roads and imposing a ₦10 million fine on the agency. That earlier ruling, delivered by Justice E. Nwite in Suit No. CA/AS/276/2019, has since become a legal precedent frequently cited by lawmakers and legal practitioners challenging the FRSC’s continued presence on non-federal roads. Most recently, in November 2024, a lawmaker in the Enugu State House of Assembly moved a motion to stop FRSC operations on state and local roads, explicitly referencing the 2019 Warri judgment as the legal basis for arguing that the corps’ actions were unauthorized and undermined state sovereignty.
The Kano judgment effectively reaffirms that the FRSC’s statutory powers, as derived from its enabling Act, are confined to federal trunk roads. For motorists on state and local government roads, this means they cannot be lawfully stopped or fined by FRSC officers. For state governments, the ruling provides a legal foundation to restrict or prohibit FRSC operations within their territories. For the FRSC itself, the judgment may compel a re-evaluation of its enforcement strategies, requiring the corps to focus its resources strictly on federal highways. However, legal experts have noted that the FRSC has previously appealed similar rulings, and it remains to be seen whether the corps will challenge this latest judgment at the Court of Appeal.
According to the court records, the legal battle began in July 2025 when FRSC operatives mounted checkpoints on several township roads across Kano State, stopping motorists indiscriminately and demanding driver’s licences and vehicle documents. Mr. Hikima, who was among those stopped, maintained that he had not committed any traffic violation. He argued that the FRSC officers had no legal basis to detain him or demand his documents, as the road in question was not a federal highway. The court agreed with his submissions, noting that the FRSC’s enabling law does not grant the corps jurisdiction over roads under the control of state or local governments.
Legal analysts have described the judgment as a victory for constitutionalism and rule of law, while also raising concerns about the potential for jurisdictional confusion on Nigerian roads. One Lagos-based constitutional lawyer, who spoke on condition of anonymity, said that the judgment reinforces the principle that statutory agencies must operate strictly within the bounds of their enabling laws, and that the FRSC cannot arrogate to itself powers that the law does not expressly grant. He however noted that this also creates a regulatory vacuum on state roads, which state governments must now fill with their own traffic management agencies.
While the judgment is binding, its practical implementation will depend on whether the FRSC decides to appeal. If the corps accepts the ruling, it will be required to cease all enforcement activities on non-federal roads in Kano State, publish the court-ordered apology, and pay the ₦800,000 damages awarded to Mr. Hikima. Should the FRSC appeal, the matter will proceed to the Court of Appeal, where a higher court will have the final say on the jurisdictional limits of the corps.
This ruling is expected to reignite a national conversation about the division of powers between the federal government and the state governments in regulating road traffic. With 36 states and the Federal Capital Territory (FCT) managing thousands of kilometres of roads, questions are emerging about who is responsible for traffic enforcement on these routes and whether state governments should establish or strengthen their own traffic agencies. Some states, including Lagos, already operate their own traffic management authorities, such as the Lagos State Traffic Management Authority (LASTMA) , while others rely heavily on the FRSC even on state-owned roads.
Court Strips FRSC of Powers to Operate on State, Local Government Roads
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Business
Petrol importers set to raise depot price to N1,350 per litre as fresh fuel price hike looms
Petrol importers set to raise depot price to N1,350 per litre as fresh fuel price hike looms
Nigerians may soon pay more for Premium Motor Spirit (PMS) as petrol importers have concluded plans to increase the depot price of petrol from N1,230 per litre to N1,350 per litre, signalling another likely rise in pump prices across the country.
Industry sources said importers have already notified petroleum marketers of the new ex-depot price, which is expected to take effect from July 17, 2026. The increase is expected to affect independent marketers that depend on imported fuel, with many likely to adjust their retail prices to reflect the higher cost of procurement.
The planned increase comes amid mounting pressure on the global oil market following renewed tensions between the United States and Iran, which have disrupted shipping activities around the Strait of Hormuz—one of the world’s most strategic oil transit routes. The disruption has pushed up freight charges, marine insurance premiums and the landing cost of imported petroleum products, resulting in higher depot prices for importers.
Industry analysts said the latest adjustment reflects the rising cost of imported fuel cargoes rather than changes in local distribution costs. They warned that unless international crude oil prices stabilise, Nigerians could face additional increases in the price of petrol in the coming weeks.
The development also follows the issuance of fresh fuel import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for the third quarter of 2026.
Under the latest approvals, selected oil marketers have been authorised to import petrol and diesel between July and September to boost fuel availability nationwide.
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According to industry reports, AA Rano, AYM Shafa, Bono, NIPCO and Pinnacle received approvals to import petrol, while AA Rano, AYM Shafa, Bono, Matrix and Pinnacle were licensed to import diesel during the quarter.
Ironically, the latest depot price increase has sparked concerns among stakeholders, as the expanded import licences were expected to deepen competition and help moderate domestic fuel prices after the deregulation of the downstream petroleum sector.
A senior industry source noted that the objective of approving more importers was to create a more competitive market that would offer consumers better pricing options.
Instead, marketers say rising international procurement costs have forced importers to review their prices upward, leaving retailers with little choice but to pass the additional cost on to consumers.
According to a petroleum products marketer, filling stations sourcing products from importers cannot absorb the higher landing costs without adjusting their pump prices.
He explained that under Nigeria’s deregulated fuel market, retail prices are largely determined by acquisition costs, exchange rates, logistics expenses and prevailing international market conditions.
Despite the latest increase in imported fuel prices, marketers noted that products supplied by the Dangote Petroleum Refinery remain relatively cheaper than imported cargoes in many locations.
However, the refinery has also been affected by developments in the international oil market. Industry reports indicate that Dangote Refinery recently began pricing some petroleum products in US dollars, citing crude oil supply challenges and higher international crude prices following the suspension of the Federal Government’s naira-for-crude arrangement.
Data from the NMDPRA shows that the Dangote Refinery currently supplies the vast majority of Nigeria’s domestic petrol demand, significantly reducing the country’s dependence on imported PMS compared to previous years. Nevertheless, imported fuel remains an important source of supply, particularly for independent marketers.
Energy experts warn that continued geopolitical tensions in the Middle East and sustained increases in crude oil prices could further impact petrol prices in Nigeria, with ripple effects on transportation costs, food prices, inflation and the overall cost of living.
For millions of Nigerians already grappling with rising living expenses, the planned increase in the depot price of petrol could translate into higher transport fares, increased business operating costs and additional pressure on household budgets unless global oil market conditions improve.
Petrol importers set to raise depot price to N1,350 per litre as fresh fuel price hike looms
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Auto
Auto Industry Heavyweights, Top Regulators Converge for Nigeria Summit on EV, CNG Future
Auto Industry Heavyweights, Top Regulators Converge for Nigeria Summit on EV, CNG Future
Leading automobile manufacturers, transport regulators and key government agencies have confirmed participation in the 2026 Nigeria Auto Industry Summit(NAISU), underscoring growing industry support for Nigeria’s transition to electric vehicles (EVs) and Compressed Natural Gas (CNG)-powered transportation.
Among the major industry players backing this year’s summit are Weststar Associates Limited, Toyota (Nigeria) Limited, Jetour Nigeria, Carloha Nigeria, Simba Group, Cedric Masters Group, Coscharis Motors, Lanre Shittu Motors etc.
Policymakers, investors, financial institutions, fleet operators and technology providers are also expected at the event being organised by Nigeria Auto Journalists Association (NAJA) in collaboration with the National Automotive Design and Development Council (NADDC).
The Corps Marshal of the Federal Road Safety Corps (FRSC), Shehu Mohammed, has confirmed his participation as a keynote speaker and is expected to address issues bordering on road safety, regulation and the deployment of EVs and CNG-powered vehicles in Nigeria.
Also confirmed as guest speakers are the Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, and the Chairman/Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG and EV), Ismaeel Ahmed.
They are expected to provide insights into the Federal Government’s automotive industrialisation agenda, clean mobility policies and ongoing efforts to accelerate the adoption of EVs and CNG-powered vehicles across Nigeria.
The third edition of the summit will hold on Thursday, July 30, 2026, at the Radisson Hotel, Ikeja, Lagos.
The theme of this year’s event is: “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration.”
Chairman of the 2026 Auto Summit Planning Committee, Rasheed Bisiriyu, said the event comes at a critical period as Nigeria intensifies efforts to drive cleaner transportation through the adoption of electric vehicles and compressed natural gas.
According to him, the summit will bring together government officials, automotive manufacturers, regulators, energy experts and transport stakeholders to assess ongoing reforms and develop practical strategies for advancing the country’s clean mobility agenda.
“The summit comes at a critical period when Nigeria is implementing policies aimed at reducing transportation costs, lowering carbon emissions and encouraging greater investment in alternative energy mobility solutions,” Bisiriyu said.
He added that discussions would review the progress made under the Bola Tinubu administration in promoting EV and CNG adoption while identifying policy, infrastructure and financing gaps requiring urgent attention.
According to him, participants will also examine strategies for expanding EV charging infrastructure and CNG refuelling stations, promoting local vehicle assembly, improving consumer awareness, attracting private sector investment and strengthening the regulatory framework needed to support sustainable transportation.
Bisiriyu noted that the summit is designed to move beyond policy conversations by generating practical recommendations capable of accelerating Nigeria’s transition to cleaner mobility.
Also speaking, NAJA Chairman, Theodore Opara, said the annual Auto Summit has evolved into one of Nigeria’s foremost automotive policy dialogue platforms, bringing together government institutions and private sector operators to address critical issues affecting the industry’s growth.
According to Opara, achieving Nigeria’s clean mobility objectives requires broad collaboration among regulators, manufacturers, energy providers, transport operators, safety agencies and consumers.
He said, “We are bringing together regulators, manufacturers, energy providers, transport operators, safety agencies and consumers because the transition to clean mobility requires collective action.
“The objective is not only to discuss policy but also to identify practical solutions that will accelerate Nigeria’s journey towards affordable, cleaner and more sustainable transportation.”
Organisers said the summit is expected to generate actionable recommendations to support the Federal Government’s drive to deepen investment in alternative fuel technologies, strengthen local automotive manufacturing, improve transport sustainability and position Nigeria as a leading player in Africa’s emerging clean mobility ecosystem.
With participation already confirmed by leading automotive brands, regulators and other key stakeholders, the 2026 NAISU is shaping up to be one of Nigeria’s most influential gatherings on the future of the automotive industry and the country’s transition to cleaner, more sustainable mobility.
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