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<p>Governor of the Central Bank of Nigeria, Godwin Emefiele says the Naira depreciated at the official window and now hovers around 410 naira per dollar.</p>


Naira depreciates to N410/$ at official window

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<p>The Governor of the Central Bank of Nigeria Godwin Emefiele says it is unfair that experts are using the parallel market rate to back their argument that the naira is overvalued and therefore calling for devaluation. While stressing the stability of the naira at the official window, the CBN governor noted that the naira had already been devalued by about 28 per cent this year. Analysts have in recent times raised concerns about the gap between the official naira exchange rate and that of the parallel market. Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria and Dipo Ajayi, Head of Fixed Income and Forex at Chapel Hill Denham joins CNBC Africa.</p>


What’s the true value of the naira?

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<p>With the recent 5.5 per cent devaluation in naira at the SMIS window, what currency risks are Nigerian businesses exposed to? Winston Osuchukwu, Co-Founder of Trans-Sahara Incorporated joins CNBC Africa for more.</p>


How the naira devaluation impacts Nigerian businesses

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<p>No doubt Nigeria&#8217;s currency has come under pressure in recent months; the Central Bank of Nigeria says it is working towards the gradual unification of exchange rates.  But what does the CBN&#8217;s recent move in asking lenders to bid for dollars at 5 per cent above the official rate mean for the markets going forward? Victor Aluyi, Head of Portfolio Management at Comercio Partners joins CNBC Africa for more.</p>


Naira Outlook: CBN working on gradual unification of exchange rates

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<p>CFG Advisory says the pandemic shock and the naira devaluation are expected to have a negative impact on the Nigerian economy. Tilewa Adebajo, CEO of CFG Advisory joins CNBC Africa for more.</p>


CFG Advisory: COVID-19 shock & naira devaluation to negatively impact Nigeria

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<p>Traders at United Bank for Africa (UBA) say they do not forecast pressure on the Naira as the Investors and Exporters window has been relatively stable, while the Central Bank of Nigeria has continued to use the FX reserves to defend the Naira. Nkechi Ezugha, Forex Trader at UBA joins CNBC Africa for more.</p>


Nigerian fixed income & Fx watch

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<p>The naira appreciated by 0.1 per cent to 362 naira 21 Kobo at the Investors and Exports (I &#038; E) window on Monday, while parallel market rates weakened by 0.3 per cent. To review Nigeria&#8217;s money market as the U.S face-off with China escalates, Chioma Udu, Forex Dealer at GT Bank joins CNBC Africa for more.</p>


US-China trade war: How is it affecting the naira?

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<p>Traders say the 264 billion naira mopped up at Thursday&#8217;s OMO auction had little impact on Nigeria&#8217;s currently liquid money market. Taiye Owonubi, Senior Portfolio manager at AXA Mansard joins CNBC Africa for more.</p>


CBN mops up 264bn naira in Thursday’s OMO auction

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<p>Traders say Federal Account Allocation Committee (FAAC) inflows valued at 320 billion naira bolstered market liquidity in Nigeria’s Money Market as the Central Bank of Nigeria auctioned T-bills worth 89 billion naira on Wednesday. Nnamdi Olisaeloka, Fixed Income, Currencies and Commodities Analyst at Zedcrest Capital joins CNBC Africa for more.</p>


FAAC inflows boost market liquidity in Nigeria’s money market

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<p>Following the Central Bank of Nigeria’s new policy on the manhandling of naira notes, CNBC Africa took to the street of Lagos to find out reactions.</p>


Nigerians speak out on ‘new policy on the manhandling of naira notes’

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<p>The Central Bank of Nigeria has stepped up its efforts to rid the country of dirty naira notes and make lower denominations available. The apex bank has also spelt out new regulations on naira handling. Winston Osuchukwu, Chief Executive Officer of First Ally Asset Management joins CNBC Africa to review CBN&#8217;s latest strategies to curb abuse of the naira.</p>


CBN moves to curb abuse naira abuse

<p>ABUJA (Reuters) &#8211; Nigeria will offer a 12.7 billion naira ($41.6 million) mining contract to eight companies in exploration and consultancy, its junior mining minister said on Wednesday, adding both foreign and local firms were encouraged to participate.</p>
<p>Nigeria’s economy, one of Africa’s largest, has been built largely on its rich crude oil reserves, leaving other sectors to stagnate. In an attempt to diversify, President Muhammadu Buhari’s administration is now seeking to build up other sectors, including mining, though results have been mixed, according to economic data.</p>
<p>“Today the Federal Executive Council (Nigeria’s cabinet) approved the contract for exploration and consultancy on some of our targeted minerals &#8211; like gold, industrial minerals, earth metals, iron ore &#8211; for four companies in exploration and four companies in consultancy,” Abubakar Bawa Bwari, the minister of state for solid minerals, told reporters after the cabinet meeting.</p>
<p>Bwari said the exploration and consultancy work would result in data that would encourage potential mining firms to invest in Nigeria.</p>
<p>“Our major challenge is the bankable data, most mining companies will not want to come into your country when they are not sure of what they are going to meet,” he said.</p>
<p>($1 = 305.2000 naira)</p>
<p>Reporting by Felix Onuah; Writing by Paul Carsten; Editing by Mark Potter and David Evans</p>


Here’s why Nigeria is offering eight firms $41.6 million in mining contracts

<p>LAGOS (Reuters) &#8211; Annual inflation in Nigeria slowed to 11.61 percent in May, its lowest level in more than two years and its 16th straight monthly drop, the National Bureau of Statistics said on Wednesday.</p>
<p>It fell from 12.48 percent in April. A separate food price index showed inflation at 13.45 percent in May, compared with 14.80 percent in April.</p>
<p>Food inflation has been in double digits for almost three years, but has slowed for more than six months.</p>
<p>The statistics office said the highest increases were recorded in potatoes, yam and other tubers, as well as vegetables plus fish, bread and cereals.</p>
<p>Last month the central bank governor held interest rates at 14 percent, saying that inflation was still above its single-digit target. The bank said inflation could worsen again with the influx of cash from spending related to Nigeria’s much-delayed 2018 budget.</p>
<p>Nigeria emerged from its first recession in 25 years in 2017, helped by higher oil prices, but growth remains fragile.</p>
<p>It passed a record 9.12 trillion naira budget last month meant boost growth, but excessive spending could stoke inflation especially in the run-up to February 2019 presidential election.</p>
<p>The central bank has kept benchmark rates tight for more than a year to curb inflation, support the naira and attract foreign investors into its debt market.</p>
<p>Reporting by Chijioke Ohuocha and Didi Akinyelure; Editing by Alison Williams</p>


Nigeria’s inflation hits two-year low in May: Here are the country’s highest increases recorded

<p>Britain’s export finance agency will add the naira to its list of “pre-approved currencies”, allowing it to provide financing for transactions with Nigerian businesses denominated in the local currency.</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-41537 size-full" src="http://cnbc.africa/wp-content/uploads/2017/02/naira_-_635.gtbank.co_.jpg" alt="Nigeria to abandon naira peg in favour of open market trading" width="1280" height="720" /></p>
<p>The naira will become one of three West African currencies that UK Export Finance has pre-approved for its programme of funding transactions that promote trade with Britain, it said.</p>
<p>Britain voted in 2016 to leave the European Union, which has forced London to rethink its trade ties with the rest of the world. The United Kingdom and the EU struck an agreement in December that opened the way for talks on future trade ties.</p>
<p>“This is a clear indication of how much value the UK places on its relationship with Nigeria,” Paul Arkwright, the British High Commissioner to Nigeria, said in the UK’s credit agency statement. “It will provide a firm foundation for a significant increase in trade and investment between both countries.”</p>
<p>The statement said the UK will provide up to 85 percent of funding for projects containing at least 20 percent British content.</p>
<p>The naira financing will follow the same structure as a someone buying in sterling, except that Nigerian firms taking out a loan in the local currency can benefit from a UK government-backed guarantee.</p>
<p>Analysts welcomed the impact of the financing option on the local currency. But they said it might increase Nigeria’s liability as trades mature for settlement and questioned the rate at which funds would be disbursed, since local interest rates are in high double-digits.</p>
<p>Bismark Rewane, head of Lagos-based consultancy Financial Derivatives said the financing deal with the UK would help local importers buy British goods. They had struggled to get foreign exchange at the peak of Nigeria’s currency crisis.</p>
<p>Severe dollar shortages in Nigeria in 2016 caused by lower oil prices forced the central bank to allow the naira to float, after which it lost third of its official value. The naira has since traded within a range supported by the central bank on the interbank market.</p>
<p>“If I buy a Rover, the British government is now guaranteeing that I can pay in naira, so the foreign exchange risk has been shifted from me to the Nigerian government,” Rewane said.</p>
<p>“If the Central Bank of Nigeria is unable to remit funds to the UK, then the liability will be on Nigeria.”</p>
<div class="Attribution_attribution_o4ojT">
<p class="Attribution_content_27_rw">Editing by Larry King</p>
</div>


Britain to add Nigeria’s naira to list of accepted trade currencies

<p data-reactid="32">Nigeria’s central bank said on Tuesday it had injected $210 million into the interbank foreign exchange market, extending efforts to boost liquidity and alleviate dollar shortages.</p>
<p data-reactid="32"><img decoding="async" loading="lazy" class="aligncenter wp-image-41537 size-full" src="http://cnbc.africa/wp-content/uploads/2017/02/naira_-_635.gtbank.co_.jpg" alt="Nigeria to abandon naira peg in favour of open market trading" width="1280" height="720" /></p>
<p data-reactid="40">The bank said in a statement it had released $100 million earmarked for the wholesale market, $55 million for small businesses and individuals, and $55 million for certain dollar expenses such as school fees and medical bills.</p>
<div class="Attribution_attribution_o4ojT" data-reactid="41">
<p class="Attribution_content_27_rw" data-reactid="42">Reporting by Paul Carsten; Editing by Hugh Lawson</p>
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Nigeria central bank injects $210MN into currency market

<p>Nigeria’s government expects the naira currency to strengthen and does not see a significant risk of devaluation in the medium term, Finance Minister Kemi Adeosun said on Thursday.</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-80946 size-full" src="http://cnbc.africa/wp-content/uploads/2017/02/1571595826001_5161115461001_5161087598001-vs.jpeg" alt="Finance Minister Kemi Adeosun addresses Nigeria's recession" width="640" height="360" /></p>
<p>The naira has been stable across its multiple exchange rates for more than three months, while the central bank continues to intervene with dollar sales on the official market.</p>


Nigeria does not see devaluation risk in midterm: finance minister

<p><em>This comment piece was written by Charlie Robertson, Global Chief Economist, Renaissance Capital</em></p>
<p>Uuumm .. that’s a toughie.  But we really should know so we can drop it into conversation in a casually cool way – I always find listing the 54 African countries by GDP in 2017 makes me pretty popular – and I want to give you too the chance to gain a reputation for exciting repartee.</p>
<p>What do we know ? Based on the dodgy exchange rates being used in Egypt until November 2016 and in Nigeria/Ethiopia/Angola etc all year – Nigeria was the largest economy in Africa in 2016, followed by Egypt and then SA.  All of Africa had a similar GDP to India, but was not as big as California. That goes a long way to explaining relative news coverage.</p>
<p><img decoding="async" loading="lazy" class="alignnone size-full wp-image-287920" src="http://cnbc.africa/wp-content/uploads/2017/10/RM1.jpg" alt="" width="875" height="427" /><br />
Source: IMF with a little help from Renaissance Capital</p>
<p>What about 2017 ? “We have a problem here Captain” as Scottie would have said because we just worked out that the IMF is using an average exchange rate for Nigeria of 304/$ for its GDP estimates. Now I like the IMF resident a lot – but I think this is hard to justify. The I and E fx window rate has averaged 368/$ from 25 April to 11 October. What about Jan-Apr? Do we use the parallel market rate that hit as weak as 520/$ in early 2017, or the Naira rate quoted on Bloomberg which was 313/$ ? In the graph below, we show both Nigeria using the IMF figure, and Nigeria using a 367/$ average. If you believe the IMF, Nigeria was number 1. If you think 367/$ is more realistic, it was number 2 and SA swept past both Egypt* and Nigeria to take number 1 slot again. Humble South Africans can once again stand tall, arm in arm with President Zuma, a man who has helped ensure per capita GDP in 2017 is not above the lofty heights it achieved in 2007. To be fair to Zuma, Brexit has helped push UK per capita GDP back to below 2006 levels. This must be a deliberate part of the UK charm offensive to rebuild links to the old Empire so that will help make Britain great again.<br />
<em><br />
*at least Nigeria has an IMF implied exchange rate, Egypt doesn’t let the IMF publish one, so you are relying on us for that figure </em></p>
<p><img decoding="async" loading="lazy" class="alignnone size-full wp-image-287923" src="http://cnbc.africa/wp-content/uploads/2017/10/RM2.jpg" alt="" width="482" height="300" /></p>
<p>Meanwhile Ethiopia cleverly timed its devaluation until just after the IMF publication so it can lay claim to 8th place .. when the deval probably means it is 9th behind Kenya.</p>
<p><img decoding="async" loading="lazy" class="alignnone size-full wp-image-287924" src="http://cnbc.africa/wp-content/uploads/2017/10/RM32.jpg" alt="" width="908" height="524" /></p>
<p>Source: IMF with a lot more interference from RenCap in this one</p>
<p>What about GDP per capita ? Nigeria, Kenya, Ghana, Ivory Coast are all in roughly the same place – just ahead of Bangladesh &#8211; with wealth levels double that of Rwanda or Uganda. Of these, Kenya, Ghana and southern Nigeria are best placed to industrialize in the same way that southern Bangladesh has.</p>
<p>I tested this last chart on twitter and the instant response is … “not Equatorial Guinea”. Fair enough, the average per capita GDP may bear no relation at all to GDP per person once the boss has nabbed all the oil wealth. But the point is, India is mid-way between countries like Egypt, Nigeria, Ghana and Kenya, and positive themes should be found in a few of them.</p>
<p>Re the Kenyan elections – what we heard at our East Africa conference is that President Kenyatta would probably win a re-run, especially if Odinga boycotted the second round.</p>
<p><img decoding="async" loading="lazy" class="alignnone size-full wp-image-287919" src="http://cnbc.africa/wp-content/uploads/2017/10/RM4.jpg" alt="" width="980" height="543" /><br />
Source: IMF, Renaissance Capital, World Bank (for Somalia population)</p>
<p><strong>CONCLUSION:</strong> GDP per capita has probably bottomed now in Egypt, Nigeria and a fair few others. The next move should be up again as we enter 2018. Nigeria may have lost out to SA in terms of being the largest economy in Africa in 2017 (let’s see what happens to the ZAR by year-end) but this SA resurgence won’t last for too long. We continue to see Morocco, Egypt, Tunisia, Ghana and Kenya as among those best placed to industrialize in the coming years.</p>


naira

Naira depreciates to N410/$ at official window

What’s the true value of the naira?

How the naira devaluation impacts Nigerian businesses

Naira Outlook: CBN working on gradual unification of exchange rates

CFG Advisory: COVID-19 shock & naira devaluation to negatively impact Nigeria

Nigerian fixed income & Fx watch

US-China trade war: How is it affecting the naira?

CBN mops up 264bn naira in Thursday’s OMO auction

FAAC inflows boost market liquidity in Nigeria’s money market

Nigerians speak out on ‘new policy on the manhandling of naira notes’

CBN moves to curb abuse naira abuse

Here’s why Nigeria is offering eight firms $41.6 million in mining contracts

Nigeria’s inflation hits two-year low in May: Here are the country’s highest increases recorded

Britain to add Nigeria’s naira to list of accepted trade currencies

Nigeria central bank injects $210MN into currency market

Nigeria does not see devaluation risk in midterm: finance minister

Africa’s economies ranked by GDP, which is really the largest?

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naira

Naira depreciates to N410/$ at official window

What’s the true value of the naira?

How the naira devaluation impacts Nigerian businesses

Naira Outlook: CBN working on gradual unification of exchange rates

CFG Advisory: COVID-19 shock & naira devaluation to negatively impact Nigeria

Nigerian fixed income & Fx watch

US-China trade war: How is it affecting the naira?

CBN mops up 264bn naira in Thursday’s OMO auction

FAAC inflows boost market liquidity in Nigeria’s money market

Nigerians speak out on ‘new policy on the manhandling of naira notes’

CBN moves to curb abuse naira abuse

Here’s why Nigeria is offering eight firms $41.6 million in mining contracts

Nigeria’s inflation hits two-year low in May: Here are the country’s highest increases recorded

Britain to add Nigeria’s naira to list of accepted trade currencies

Nigeria central bank injects $210MN into currency market

Nigeria does not see devaluation risk in midterm: finance minister

Africa’s economies ranked by GDP, which is really the largest?

News Tips

Advertise With Us

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