The exchange rate between the Naira and the US dollar, according to the data released on the FMDQ Security Exchange, the official forex trading portal, showed that the Naira closed at 1725.00 per $1 on Tuesday, October 22, 2024. Naira traded as high as 1652.00 to the dollar at the investors and exporters (I&E) window on Monday.
How much is a dollar to naira today in the black market?
Dollar to naira exchange rate today black market (Aboki dollar rate):
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N1715 and sell at N1725 on Monday 21st October 2024, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN)
Black Market Exchange Rate Today
Buying Rate
N1715
Selling Rate
N1725
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN)
CBN Rate Today
Buying Rate
N1651
Selling Rate
N1652
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.
Nigeria’s daily petrol consumption has dropped by a staggering 92% following the removal of fuel subsidies, according to findings from BusinessDay.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that as of August 20, 2024, the country consumed only 4.5 million litres of petrol per day, a sharp decline from the 60 million litres recorded in May 2023.
This significant reduction comes in the wake of President Bola Tinubu’s decision to end the petrol subsidy on May 29, 2023. Tinubu argued that the subsidy system, which had cost the government approximately N12 trillion over the past decade, was unsustainable and had driven the country into severe debt.
The NMDPRA’s Daily Truck Out Report indicates that only 16 out of Nigeria’s 36 states received product allocations from the Nigerian National Petroleum Company Limited (NNPCL) in August.
This left many states grappling with petrol shortages throughout the month.
Among the states receiving allocations, Niger led with 21 trucks, equating to 940,000 litres per day. Lagos followed with 12 trucks (726,001 litres), and Kaduna received 12 trucks (454,001 litres). Other states, including Oyo, Kano, and Ondo, received smaller allocations. However, several states, such as Sokoto, Ogun, and Benue, received limited supplies, contributing to a fuel scarcity in those regions.
President Tinubu’s subsidy removal policy was seen as a necessary step to stabilize the economy, though it has resulted in a sharp decline in fuel availability, as evidenced by the drop in consumption and state-by-state fuel distribution challenges.
Money market rates fell Monday as liquidity in the financial sector strengthened ahead of bond auction debits. The lack of large inflows into the financial markets has kept rates high.
Furthermore, the market has been saturated with primary market auctions as part of measures to control liquidity expansion in Nigeria’s economy and markets. To satisfy their funding needs, local deposit money banks have used monies from the Central Bank of Nigeria’s (CBN) standing lending facility. Cash-rich banks have always taken advantage of rate adjustments through placement in standing deposit facilities.
On Monday, the Nigerian interbank offered rate (NIBOR) showed mixed movements across all maturities, according to Cowry Asset Limited. Analysts said 3-month and 6-month tenors increased by 0.09% and 0.33%, closing at 29.42% and 30.25%, respectively.
However, the 1-month tenor declined by 0.17% to settle at 28.62%, while the overnight NIBOR remained unchanged.
Key money market rates, such as the Open Repo Rate (OPR) and Overnight Lending Rate (O/N), also declined by 0.08% and 0.06%, closing at 32.25% and 32.50%, respectively.
Liquidity in the banking system showed slight improvement at the beginning of the week, although it remains in negative territory, AIICO Capital Limited said in a note.
While there was gradual improvement in interbank rates, analysts maintained that the market condition would remain tight due to outflow relating to FGN bond auction.
Exchange rates fell across the currency market due to a record US dollar deficit in both the official and unofficial markets. With experts predicting more volatility, the naira fell by 15 basis points despite an increase in the nation’s gross foreign reserves.
According to FX spot data from the FMDQ website, the Naira fell by 0.15% and closed at ₦1,603.16 per US dollar in the official market. The local currency’s value fell as demand for US dollars soared in the Nigerian autonomous foreign exchange market on Monday.
Last week, the Central Bank of Nigeria (CBN) defended the naira on the official market by selling $60 million to authorized dealer banks. The naira is decreasing while the government is increasing the country’s external reserves with lower US dollar volume sales to boost liquidity in the official FX market.
According to the most recent statistics, Nigeria’s foreign reserve balance has increased to almost $39 billion, the highest level since 2022 during the oil boom. According to CBN data, Nigeria’s external reserves presently stand at $38.992 billion in gross balance.
In the parallel market, the Naira finished at N1,705 per dollar, owing to a persistent surge in demand for invisible payments.
At current exchange rates in both the informal and official markets, the FX spread has increased to N102, offering an incentive for speculative currency trade.
Oil prices rose by more than 1% on the global commodities market after China announced a cut in its benchmark lending rate. Brent crude rose to $74.15 and WTI to $70.62.
In the precious metals market, gold surged to a record high, while silver approached a near 12-year peak. These gains were fueled by growing uncertainties surrounding the upcoming U.S. presidential election and the ongoing conflict in the Middle East.
Additionally, expectations of easing interest rates further contributed to gold’s rally, which traded at around $2,738.00 per ounce.
According to an official statement from Dangote Refinery, the firm has not filed any new cases against Nigeria National Petroleum Corporation Limited (NNPCL).
In response to the news that the Refinery and Petrochemicals FZE has petitioned the Federal High Court in Abuja to cancel import licenses granted to the Nigeria National Petroleum Corporation Limited and five other firms for the purpose of importing refined petroleum products, the company stated.
The case against oil regulators focused on the importation of refined petroleum products, which Dangote Refinery said were already produced domestically without shortages.
Dangote Refinery has filed a lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) seeking ₦100 billion in damages.
The refinery claimed that the NMDPRA unlawfully continued to give import permits to NNPCL, Matrix Energy, and others for items including as diesel and jet fuel, despite Dangote’s output capacity surpassing Nigeria’s current daily use of these products.
The defendants in the lawsuit are: NMDPRA, NNPCL, A.Y.M Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
In its originating summons, Dangote argued that the NMDPRA has violated sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses under circumstances where no product shortfall exists.
The refinery contended that such licenses should only be granted when there is a demonstrated need for imported products.
The affidavit from Dangote Refinery Group stated that the import licenses issued to other companies are detrimental to Dangote’s business, which has invested billions of dollars into production. The company claimed that these actions have resulted in a lack of patronage for Dangote’s products.
The group alleged that NMDPRA has threatened to impose a 0.5% levy on Dangote’s wholesale transactions, which contravened statutory provisions that restrict such levies on transactions within free zones, arguing that the establishment of free zones aims to encourage competition and attract foreign investment.
Dangote’s legal team asserted that the situation necessitated judicial intervention to prevent ongoing violations of statutory provisions favouring certain entities over others.
The refinery sought an injunction to prevent the NMDPRA from issuing or renewing import licenses for the defendants.
Additional reliefs sought include general damages of ₦100 billion against NMDPRA, an order directing the NMDPRA to seal off all facilities used by the defendants for storing imported refined petroleum products, a declaration that as a registered free-zone enterprise, Dangote is exempt from all federal, state, and local government taxes, levies, and rates, a declaration that imposing additional levies on Dangote is contrary to various legislative acts, an order directing the NMDPRA to withdraw all import licenses issued to the defendants.
At Monday’s proceeding, Dangote’s legal team informed the court of ongoing discussions between the parties aimed at reaching a settlement. He requested an adjournment to facilitate these negotiations.
The presiding judge, Justice Inyang Ekwo subsequently adjourned the case to January 20, 2025, for the report.
“This is an old issue that started in June and culminated in a matter being filed on September 6, 2024. Currently, the parties are in discussion since the President Bola Tinubu’s directive on Crude Oil and Refined products sales in Naira Initiative, which was approved by the Federal Executive Council (FEC).
“We have made tremendous progress in that regard and events have overtaken this development. No party has been served with court processes and there is no intention of doing so. We have agreed to put a halt to the proceedings.
“It is important to stress that no orders have been made and there are no adverse effects on any party. We understand that once the matter comes up January 2025, we would be in a position to formally withdraw the matter in court”, Dangote said in a statement.
The federal government (FG) has given official clearance to Seplat Energy’s acquisition of Exxon Mobil’s onshore assets, which are worth $1.28 billion.
Gbenga Komolafe, Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), confirmed the clearance during the agency’s 3rd anniversary celebration in Abuja on Monday.
Komolafe confirmed that the required governmental permission had been acquired. In a statement issued on October 1, President Bola Tinubu stated that final permission will be granted within days after regulatory clearance.
With this permission, Seplat Energy will acquire a 40% share in four oil mining licenses.
Additionally, the company will gain access to essential infrastructure, including the Qua Iboe export terminal and a 51 percent stake in the Bonny River natural gas liquids recovery plant, both of which were previously operated by Exxon’s local subsidiary, Mobil Producing Nigeria Unlimited.
The FGN bonds market began the week rather calmly, with the average yield rising by a basis point to 19.31%, according to traders’ notes. The selloffs occurred in the secondary market as focus shifted to the prime auction.
Weak liquidity in the financial market has continued to influence trade directions, but investors have also begun to consider the effects of disinflation on portfolios. On Monday, the Debt Management Office (DMO) came in the market to do its monthly auction. Traders said the main market auction diverted investors’ focus amid a limited bond supply.
Ahead of the auction, fixed income market investors had raised bets on federal government borrowing instruments on Friday. Analysts predicted the auction would be well received as supply of bonds has reduced to N200 billion from N360 billion.
This reflected on the trading pattern in the secondary market at the beginning of the week, Riskoff sentiment caused some selloffs witnessed across the tenors.
Analysts reported that across the curve, yields increased slightly at the short end (+2bps) due to selloffs on the MAR-25 FGN Bonds paper which gained 17 basis points.
However, the yield was unchanged at the mid and long segments due to thin transactions.
Overall, the FGN bonds market operated calmly because participants focused on today’s primary market auction. The average mid-yield ultimately settled at 19.26%.
“We expect investors to have mixed to bearish sentiments tomorrow after today’s FGN bond auction results”, AIICO Capital Limited said.
Equities investors won N376 billion on the Nigerian Exchange (NGX) trading platform as oil, banking, and consumer goods stocks gained traction.
SEPLAT (+9.99%), UBA (+4.33%), OANDO (+3.77%), GTCO (+2.00%), and NESTLE (+1.72%) also witnessed increases in their stock prices. As a result, the market index or All-Share Index increased by 624.57 basis points in today’s trading session, closing at 98,694.80, or a 0.64% gain. Similarly, the market capitalization increased by ₦378.43 billion, or 0.64%, reaching ₦59.80 trillion.
According to stockbrokers, today’s excellent performance was driven by investors’ renewed purchasing interest in major market sectors, notably the Oil & Gas sector, which increased by an astonishing +4.43%.
Data revealed that trading activity in the market improved, with total volume and total value traded increasing by 12.87% and 130.46% respectively.
Atlass Portfolios Limited said that roughly 405.02 million units worth ₦27,568.62 million were sold in 8,281 agreements. UBA was the most traded stock by volume, accounting for 34.12% of total trading volume on the Exchange.
Other volume drivers are STERLINGNG (9.77%), ACCESSCORP (7.40%), NB (5.78%), and FCMB (4.98%), which round out the top five. SEPLAT emerged as the most traded stock in terms of value, accounting for 66.57% of total transactions on the exchange.
DAARCOMM and IKEJAHOTEL topped the advancers’ chart with a price appreciation of 10.00 percent each. Other gainers include SEPLAT (+9.99%), PZ (+9.90%), CHAMPION (+9.65%), NNFM (+8.48%), TRIPPLEG (+7.60%) and twenty-four others.
Seventeen stocks depreciated, according to trading record. REGALINS was the top loser, with a price depreciation of -8.20%. Other decliners include CILEASING (-5.01%), DANGSUGAR (-3.00%), CHAMS (-1.50%), MTNN (-1.31%), and FIDELITYBK (-0.36%).
Today, the market breadth closed positive, recording 31 gainers and 17 losers. Sectoral performance was bullish, with four out of the five indices closing positive.
The oil and gas (+4.43%), Insurance (+1.07%), Banking (+0.96%) and Consumer goods (+0.23%) indices all closed in positive terrain, reflecting investors’ interest in SEPLAT (+9.99%) MANSARD (+3.45%), UBA (+4.33%) and NESTLE (+1.72%), respectively. Elsewhere, the Industrial Goods (-0.04%) indices declined due to selloffs in WAPCO (-0.82%), respectively.
Overall, the equities market capitalisation of the Nigerian Exchange rose by N376 billion to N59.80 trillion.
The Federal Government lost N13.2 trillion in missed income as a direct result of implementing its foreign currency subsidy policy between 2021 and 2023, according to the World Bank.
It said that the government lost N2 trillion in 2021, N6.2 trillion in 2022, and N5 trillion in 2023. The amount of income lost was due to its insistence on controlling the value of the naira against the dollar in the official exchange market while permitting a fair market value price in the parallel market.
This subsidy, intended to stabilize the currency and boost specific industries, resulted in considerable decreases in the government’s income sources during this time.
Last Thursday, during the unveiling of the World Bank Nigeria Development Update paper, Finance Minister Wale Edun announced the termination of gasoline and foreign exchange subsidies, bringing an end to a long-debated policy. Edun stated that these subsidies have depleted the country’s economy and would no longer be applied by the government.
“Fuel and FX subsidies have been eliminated,” Edun stated, emphasizing the financial pressure these policies have placed on the country.
For decades, Nigeria had maintained a subsidy scheme for fuel and foreign exchange spending, giving a considerable percentage of its earnings to cushion the mostly unknown economic repercussions.
But in the latest NDU report, the World Bank stressed that the country lost N13.2tn in revenue that benefitted certain groups at the expense of the entire country. From the amount, N3.9tn was lost from the non-oil sector as tax revenue.
The institution also highlighted that the government terminated the foreign exchange subsidy in February 2024, contrary to the policy announcement made by the Central Bank in July 2023.
The report read, “Quantifying the fiscal cost through forgone revenue of multiple exchange rates: Prior to the full FX unification in February 2024, the presence of a parallel FX premium generated enormous fiscal costs in the form of forgone revenues.
“This situation emerged because FX revenue inflows—such as oil and customs revenues, as well as a portion of domestic VAT and CIT, which are paid in FX—were transferred to the Treasury at the official exchange rate.
“However, due to the significant difference between the official and parallel market rates, the amount of naira-denominated revenue received by the Federation from FX-linked revenues was significantly reduced.
“The unification of the FX rate has therefore eliminated the forgone revenues that previously benefited certain groups at the expense of the entire nation.”
According to the report, the implicit forgone revenue from the premium is the rate’s impact on five major revenue streams for the government: oil and gas revenue, import and excise duties, value-added tax revenue, corporate income tax, and revenue accrued from government-owned enterprises.
The list of GOEs includes the Nigerian National Petroleum Corporation, the Federal Airports Authority of Nigeria, the Nigerian Ports Authority, and the Nigerian Maritime Administration and Safety Agency.
More specifically, it stated that VAT on imported items, which amounts to 44.3% of net VAT income, was levied in foreign currency between 2021 and 2023, while 40% of total CIT revenue received by the federation was paid in FX during the same time.
The Bretton Woods institution added, “The estimated implicit forgone revenues from the FX premium were even larger than the PMS subsidy, underscoring the importance of maintaining a unified FX rate.
“In 2022, when the cost of the PMS subsidy reached N4.5tn, representing 2.2 per cent of the Gross Domestic Product, the revenues forgone that emerged due to the large parallel rate premium are estimated to have been N6.2tn, representing 3 per cent of GDP.
“N4.5tn of FX revenue was forgone from gross oil revenues and N1.7tn from the FX revenue forgone from non-oil tax revenues.
“These findings demonstrate that the FX unification reform not only addresses distortions in the FX market and the real economy but also has a substantial impact on restoring fiscal space.”
It, therefore, urged the government to maintain a unified FX rate to benefit the economy by removing the large distortions the previous regime imposed.
“Therefore, maintaining the unified FX rate that Nigeria has achieved since February 2024 is essential from a fiscal perspective.
“It should be noted that in addition to the large estimated fiscal benefits, the FX reform is also expected to benefit the economy by removing the large distortions the previous regime imposed, such as skewing the competitive landscape in favour of importers with preferential access to FX, making it more difficult and less profitable to export, and fueling rent-seeking and illicit activity,” it concluded.
Speaking at the launch, the bank’s Chief Economist in Nigeria, Alex Sienart, said the recent increase in the federal government’s revenue in the first half of the year is largely due to the removal of implicit FX subsidies.
According to him, the implicit FX subsidy in 2022 was larger than the much-talked-about fuel subsidy, which was removed in June 2023.
He said, “We are seeing a fiscal consolidation underway with the fiscal deficit shrinking from 6.2 percent of GDP in the first half of 2023 to 4.4 percent of GDP in H1, 2024, and that is largely due to expenditure being roughly constant.”
“So this surge in revenue is largely due to the removal of the implicit subsidy, which was even larger than the PMS subsidy that we talk about.”
He also explained that with the official exchange rate in 2022 being around N460 and the parallel being around N700, the federal government was losing around N250 for every dollar-denominated revenue.
In the secondary market, the average yield on Nigerian Treasury bills edged higher again at the beginning of the week due to sell pressure triggered by disinflation.
The inflation rate rose in September to 32.70% after two consecutive month’s decline, according to data reported by the statistic office. The increase in headline inflation pushed negative interest yields higher while the market continued to experience spot rate adjustments at the Central Bank auctions.
Despite a relatively high yield on the naira assets, portfolios investors in the local debt market has continue to seek higher rates due to inflation pressure.
Inflation is anticipated to maintain uptrend in the latter part of the year due to increase in petrol price. At the same time, the market anticipates that the apex bank would maintain interest rate tightening to combat inflation headlong.
Reacting to the market dynamics, trading activities on Nigerian Treasury bills ended on a bearish note in the secondary market.
Due to investors selling down their interest in Nigerian Treasury bills, the average yield expanded by 2bps to 24.2%, according to market updates released by investment firms.
In its update, Cordros Capital Limited said the average yield declined at the short (-4bps) and long (-2bps) ends. The yield contraction was driven by record demand across the short, belly and ling end of the curve.
Traders said investors raised bet on 80-day to maturity bills, which then caused a -4bps yield decline on that line. Demand for 318 day to maturity also dragged its yield down by -84bps.
However, yield expanded at the mid (+13bps) segment due to profit-taking activities on the 157-day to maturity which shed +90bps. Conversely, the average yield dipped by 5 basis points to 25.9% in the OMO bill segment in the fixed income market.
In the OMO space, steady interest was shown in the paper maturing on October 7, 2025. Overall, the average mid-rate for the benchmark NTB declined by 23 bps, closing at 21.29%.
Matthew Ryan, Head of Market Strategy at Ebury, forecasts further depreciation of the Naira in 2025, though less severe than the declines seen in 2023 and 2024.
In an interview with CNBC Africa, Ryan highlights Nigeria’s foreign reserves, oil prices at $74 per barrel, and a narrowed gap between official and parallel market exchange rates as factors providing some stability to the currency.
Ryan explains, “We expect continued devaluation of the Naira, but at a smaller scale. The gap between official and parallel exchange rates has shrunk significantly, down to about 5%, and foreign exchange reserves remain strong, covering 16 months of imports. These factors allow the Central Bank of Nigeria (CBN) room to intervene and stabilize the currency.”
Ebury’s 2025 outlook for seven African currencies presents a mixed forecast. According to their report, four currencies are projected to either remain stable or appreciate, while three—including the Nigerian naira, Angolan kwanza, and Ghanaian cedi—are expected to lose value. The analysis is based on each country’s economic fundamentals and commodity price projections.
The Naira is projected to lose 2.4% of its value in 2025, settling at approximately N1,700 to the dollar.
Naira’s 2024 Performance Shows Sharp Decline
The Naira has experienced significant volatility throughout 2024, starting the year at N907 per dollar and closing the third quarter at N1,541, marking a nearly 70% depreciation in the official market. The parallel market shows even greater instability, with the Naira trading as high as N1,700 per dollar in September.
Beginning November 1, 2024, Air Peace has announced fare charge to N200,000 for a one-way flight from Lagos to Abuja, marking a significant fare increase that highlights the ongoing challenges facing Nigeria’s aviation sector.
This adjustment comes as airlines wrestle with rising operational costs, forcing many to raise ticket prices amid growing frustration from passengers.
The fare hike positions Air Peace as the most expensive option for domestic flights on this route, with competitors like Aero offering tickets ranging from N94,000 to N109,000, Arik Air priced between N104,405 and N139,292, and Ibom Air charging between N124,000 and N133,000.
These increases have led many travelers to reconsider air travel altogether, with some opting for road transport instead.
Reports from the airport indicate that the surge in airfares has resulted in stranded passengers, particularly on the high-demand Lagos-Abuja route.
Many travelers are struggling to secure seats, exacerbating the frustration felt by those reliant on air travel for business and personal commitments.
The trade relationship between the United States and Nigeria has reached a significant milestone, now valued at $10 billion annually, as reported by Will Stevens, the U.S. Consul-General in Lagos.
This announcement was made during a workshop aimed at maximizing the benefits of the African Growth and Opportunity Act (AGOA) for Nigerian businesses.
Stevens highlighted the unique nature of the trade partnership, noting that it is nearly evenly split, with approximately $5 billion in goods flowing from the U.S. to Nigeria and an equal amount in the opposite direction.
However, a substantial portion of Nigeria’s exports to the U.S. under AGOA is about $3.8 billion and consists of oil-related products, raising questions about the underrepresentation of other Nigerian goods in the American market.
“Surprisingly, oil and gas make up less than 8% of Nigeria’s economy,” Stevens pointed out. He urged Nigerian entrepreneurs to explore the vast opportunities available under AGOA, which grants them duty-free access to the U.S. market—a market that comprises 27% of the global economy.
To illustrate the potential impact, he compared the market size of New York State to Nigeria’s entire economy, emphasizing the significant gains that could be achieved.
The workshop, part of the Prosper Africa initiative, aims to strengthen trade ties between the U.S. and Africa by facilitating the export of Nigerian products to American consumers.
“It’s not just about us selling our products to you, but also about helping you sell your products to us,” Stevens stated, underscoring the reciprocal nature of the partnership.
He encouraged Nigerian businesses to leverage AGOA, envisioning a future where success in the U.S. market could pave the way for entry into other major global markets, including Asia and Europe. “If you can succeed in the U.S. market, you can succeed anywhere,” he concluded, urging attendees to cultivate connections that could enhance their export capabilities.
Nigeria’s government lost a staggering N13.2 trillion due to mismanagement of foreign exchange between 2021 and 2023, according to a recent World Bank report.
The losses, which stemmed from maintaining dual exchange rates—an official and a parallel market rate amounted to N2 trillion in 2021, N6.2 trillion in 2022, and N5 trillion in 2023.
The report revealed that the difference between these rates, where the official rate was controlled and the parallel market was dictated by supply and demand, resulted in significant revenue loss for the government.
This dual-rate policy, intended to stabilise the naira and support specific sectors of the economy, ultimately became an unsustainable financial burden.
Speaking last Thursday, Nigeria’s Minister of Finance, Wale Edun, announced that the government would discontinue fuel and foreign exchange subsidies.
“Fuel and FX subsidies are extinguished,” Edun stated during the launch of the World Bank’s development report on Nigeria, explaining that these policies had been detrimental to the economy.
For years, Nigeria has subsidised both petrol and foreign exchange to keep prices low, spending vast sums with little transparency on the overall economic impact. The World Bank report estimates that of the N13.2 trillion lost, N3.9 trillion came from forgone non-oil sector taxes, which could have significantly benefited the broader population but instead served the interests of certain groups.
Despite the Central Bank of Nigeria’s initial plan to unify the exchange rate in July 2023, the government only fully implemented the measure in February 2024. The World Bank notes that this delay caused further financial strain.
“Prior to the full FX unification in February 2024, the presence of a parallel FX premium generated enormous fiscal costs in the form of forgone revenues,” the report highlighted. A large portion of foreign exchange-linked revenues, such as oil, customs, VAT, and corporate income taxes, were transferred to the government at the official exchange rate, resulting in significantly reduced naira revenue due to the disparity between the official and parallel rates.
The report underscores that the unification of exchange rates has eradicated these revenue losses, benefiting the entire nation by removing a system that had favoured a select few. It also highlighted that FX mismanagement affected five key revenue streams: oil and gas revenue, import and export duties, VAT, company tax, and income from government-owned entities like NNPC, FAAN, NPA, and NIMASA.
Between 2021 and 2023, the report found that 44.3% of net VAT revenue came from imported goods, paid in foreign currency, while 40% of company tax was settled in foreign currency. The estimated forgone revenues from the FX premium surpassed those from the petrol subsidy, further underscoring the importance of a unified FX rate.
In 2022, the PMS (petrol) subsidy cost Nigeria N4.5 trillion—representing 2.2% of GDP—while the revenue losses from the parallel FX rate premium were estimated at N6.2 trillion, or 3% of GDP. Gross oil revenues alone accounted for N4.5 trillion of FX revenue forgone, while N1.7 trillion was lost from non-oil tax revenues.
The World Bank report advocates for maintaining a unified exchange rate, stating that this will enhance government revenue and promote fiscal stability. At the report’s launch, Alex Sienart, the World Bank’s lead economist for Nigeria, noted that the government’s revenue improved in the first half of 2024 due to the removal of the FX subsidy.
“We are seeing a fiscal consolidation underway, with the fiscal deficit shrinking from 6.2% of GDP in the first half of 2023 to 4.4% in the first half of 2024,” Sienart said.
He added that this surge in revenue is primarily due to the end of the implicit FX subsidy, which had been more costly than the PMS subsidy.
A recent report reveals that 80% of pharmacies in Nigeria now rely on digital payments for transactions, with 56.8% using point-of-sale (PoS) systems and bank transfers, and 32.9% utilizing direct bank transfers.
This trend, highlighted in a study by payment platform Moniepoint, underscores the growing shift toward digital transactions in the pharmacy sector, especially in response to the 2023 cash shortage that disrupted cash-based payments.
The transition to digital payments has significantly improved operations for pharmacies, enabling smoother transactions, better financial management, and stronger relationships with suppliers. The report notes that only 5.2% of pharmacies still use cash, while 3.2% are experimenting with other payment options, and 1.9% rely on credit facilities.
Customer preferences are also shifting, with 45.39% of Nigerian pharmacy customers opting for digital payment methods such as PoS machines or bank transfers. In contrast, 7.69% of customers continue to use cash, while 46.92% use a combination of both cash and digital payments.
This shift toward digital payments presents an opportunity for pharmacies to enhance customer service by offering more reliable payment options. Medplus, one of the largest pharmacy chains in Nigeria, reports that many of its 2,000 daily customers now prefer digital transactions. Despite these advancements, Medplus’ Head of Strategy and Innovation, Ife Bakare, believes there is still room for improvement in the digital payment infrastructure.
The adoption of digital payments is not only transforming customer transactions but also improving supply chain efficiency. Pharmacies using digital payments have minimized transaction failures, which can lead to disruptions in supplies. Chi, the founder of Dexta Pharmacy, shared an experience where a failed cash transaction nearly jeopardized a relationship with a key supplier. Since switching to digital payments, her business has maintained trust and improved efficiency.
However, despite the benefits of digital payments, the report highlights that pharmacies still face challenges in accessing funding. Only 17.2% have secured loans from banks or financial institutions, while others rely on alternative sources such as cooperatives, family and friends, or grants. Pharmacies that embrace digital payments are better positioned to build financial records, improving their chances of obtaining loans in the future.
As Nigeria’s healthcare sector continues to modernize, digital payments are set to play a pivotal role in enhancing the operations of pharmacies, improving supply chains, and boosting customer service.
Key Insights:
80% of Nigerian pharmacies use digital payments, with 56.8% utilizing PoS systems and bank transfers.
Pharmacies have reduced reliance on cash payments, with only 5.2% still using cash.
Digital payments enhance both customer service and supplier relationships, minimizing transaction failures.
Pharmacies face challenges in accessing loans, but adopting digital payments helps build stronger financial records.
Nigeria has 25,000 registered pharmacies and patent medicine stores, filling healthcare gaps, especially in remote areas.
The Federal Inland Revenue Service (FIRS) reveals plans to initiate a nationwide recruitment drive for tax officers across Nigeria. Though applications have not yet opened, the agency announced on Monday that the recruitment aims to provide young graduates the opportunity to join the organization.
FIRS indicates that Nigerians will soon be able to apply for the roles of Officer II and Officer I through its official website. “We are searching for individuals with integrity, a strong desire to excel, and skills in analysis, problem-solving, and communication,” the agency states. Detailed instructions on application deadlines and procedures will be made available soon on the FIRS site.
While the specific eligibility requirements are still pending, FIRS encourages all qualified candidates, regardless of gender, ethnicity, or background, to apply.
Public Reaction to the FIRS Announcement
The recruitment news has generated a buzz on social media platforms, particularly on X (formerly Twitter). Some Nigerians view the development positively, while others remain skeptical about its transparency.
User Ojo Samuel writes, “This is great. But I hope it’s not just a formality where only connected people benefit. I genuinely wish they handle it fairly.”
Similarly, another user, @ajaxsim1, comments, “If FIRS follows through with this recruitment in a fair and just manner, it will be a huge win for everyday Nigerians.”
However, skepticism persists. Mazi Vion Able Odogwu writes, “They’ve probably already hired people, and this is just to make the process look official. Don’t waste your time applying.”
Background Context
The FIRS recruitment drive comes just three months after the Nigerian National Petroleum Company (NNPC) announced its own hiring process. That announcement marked the first time in five years that NNPC publicly sought new staff, but it faced allegations of employment slot sales, which NNPC vehemently denied, asserting that the accusations were baseless and unrelated to their recruitment process.
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Pool Fixtures For This Week: 18; SEASON: UK 2024/2025
The National Youth Service Corps (NYSC) was established in 1973 with the aim of fostering national unity, developing skills, and promoting the growth of Nigerian youths. Every year, thousands of graduates are deployed across various states to complete this mandatory one-year program. While the NYSC scheme is designed to bring about positive change, corps members often face a mix of challenges and opportunities during their service year.
One of the most common challenges faced by corps members is the issue of deployment. Graduates are often posted to states far from their homes, with some placed in rural areas that lack basic amenities such as clean water, electricity, and adequate healthcare. These conditions can be difficult for corps members to adjust to, especially those coming from urban areas. For many, this is their first real experience of living in a rural environment, and they are forced to adapt quickly to unfamiliar situations.
Additionally, the stipend provided by the government, currently ₦33,000 per month, is often seen as insufficient. The cost of living in some areas far exceeds this amount, especially in cities like Lagos and Abuja. This leaves many corps members struggling to meet their basic needs, particularly when they are stationed in locations without affordable housing or transportation.
Another major concern for corps members is the safety and security of their assigned locations. In certain parts of Nigeria, the threat of violence, kidnappings, and insurgencies has raised fears among many serving youths. While the NYSC management advises corps members to avoid certain high-risk zones, some still find themselves posted to volatile regions.
Opportunities and Growth
Despite the challenges, the NYSC program also presents numerous opportunities for personal growth and career development. Many corps members use their service year as a time to acquire new skills. Through the Skills Acquisition and Entrepreneurship Development (SAED) program, participants are trained in areas such as fashion design, agriculture, ICT, and more. These initiatives provide corps members with the tools they need to become entrepreneurs, especially in a country with a high unemployment rate.
Another significant opportunity comes through networking. During the service year, corps members meet and interact with fellow graduates from different backgrounds, regions, and disciplines. This often leads to lasting professional relationships and friendships. Additionally, for corps members who serve in organizations related to their fields of study, the NYSC year can provide valuable work experience and sometimes even lead to full-time employment.
The community development service (CDS) aspect of NYSC also allows corps members to make a tangible impact in the communities where they serve. From building classrooms to organizing health outreach programs, corps members are encouraged to leave a positive legacy. Many reflect on this part of the program as a rewarding experience that not only benefits the community but also provides a sense of accomplishment.
Bridging the Gap
Despite the obstacles, many argue that the NYSC program remains a vital bridge for national unity and personal development. It brings young Nigerians from diverse ethnic, cultural, and religious backgrounds together, fostering tolerance and understanding. By serving in different parts of the country, corps members gain a deeper appreciation of Nigeria’s diversity and challenges.
The future of the NYSC program, however, lies in addressing its most pressing challenges. Calls have been made for an increase in the monthly stipend, improved security measures, and better living conditions for corps members, particularly in rural areas. Additionally, many advocate for a more transparent deployment process, giving graduates more choice and flexibility in their postings.
Conclusion
The NYSC experience is not without its difficulties, but it also offers a unique platform for growth, development, and national integration. For many Nigerian youths, it is a pivotal year in their transition from university life to the professional world, providing not just challenges, but opportunities to acquire new skills, expand their network, and contribute to society. Ultimately, the experience is what corps members make of it—whether it’s a challenge or an opportunity for growth.
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Week 17 Pool Results 2024: Football pool results for this week are published on this website immediately after full-time confirmation of live score results. We also publish the outcome of postponed matches by the football pool panel at halftime as decided by the football pool.
WEEK: 17; SEASON: UK 2024/2025; DATE: 26-October-2024
The National Examinations Council (NECO) has issued a strong warning to school owners and stakeholders to desist from enrolling candidates for its examinations by proxy.
The council highlighted that this fraudulent practice often leads to identity theft and the circulation of fake results.
In a statement released on Monday, Azeez Sani, Acting Director of Information and Public Relations, explained NECO’s determination to eliminate all forms of examination malpractice.
NECO has introduced several measures to curb impersonation during its examinations. These include the use of biometric data capturing devices, customized answer booklets, and the embossing of candidates’ photographs and birth dates on original certificates.
Additionally, the council launched NECO e-Verify, an online platform designed to confirm or verify NECO results.
The council stressed that any certificate that cannot be authenticated through the e-Verify platform is considered fake, urging state ministries of education and school owners to ensure only genuine candidate details are used during registration.
Sani also revealed that the results of candidates found guilty of impersonation during the recently concluded 2024 Senior School Certificate Examination (Internal) have been withheld as part of NECO’s stringent policies to combat examination malpractice.
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