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Economy Reform : All exchange rate segmentation is “abolished with immediate effect,” Says CBN Director
…Market-driven currency regime excites financial experts
The Central Bank of Nigeria (CBN) yesterday unified all exchange rates within the economy into the Investors and Exporters (I&E) window.
In a circular to authorised dealers signed by CBN Director, Financial Markets, Angela Sere-Ejembi, the regulator said all exchange rate segmentation is “abolished with immediate effect”.
The CBN said all segments of the foreign exchange market are now collapsed into the I&E window.
It added that applications for medicals, school fees, Business Travel Allowance/Personal Travel Allowance and SMEs would continue to be processed through the I&E window.
Experts spoken to by our correspondence welcomed the development, saying it will remove corruption, increase Forex inflow and boost economic development.
The apex bank action is in line with the directive by President Bola Ahmed Tinubu in his inauguration day speech, which was yet to be carried out by suspended CBN Governor Godwin Emefiele before he was edged out of office last week.
Emefiele is currently under probe for his conduct during his nine years in office.
Under Emefiele, the CBN resisted the pressure from World Bank and the International Monetary Fund (IMF) that the naira should be floated to determine its real value and eliminate the corruption embedded in the multiple exchange rates regime.
In the circular, the CBN also said that the operational changes to the foreign exchange market include the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window.
“Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017 and referenced FMD/DIR/CIR/GEN/08/007.
“All eligible transactions are permitted to access foreign exchange at this window,” it stated.
According to the circular, all operational rates for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two decimal places.
“Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures limits on overbought positions shall be zero.
“Re-introduction of order-based two-way quotes, with bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).
“Re-introduction of Order Book to ensure transparency of orders and seamless execution of trades.
“The operational hours of trades shall be from 9 am to 4 pm, Nigeria time,” the circular said.
Also, there is a cessation of the RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30 June 2023.
Market-driven naira value excites financial experts
The Finance and economic experts, who welcomed the floating of the Naira are the President, the Association of Capital Market Academics, Prof. Uche Uwaleke; Chief Executive Officer, Centre for the Promotion of Private Enterprise [CPPE], Mr Muda Yusuf; Fiscal Policy Partner and Africa Tax Leader, PwC, Taiwo Oyedele; Chief Economist, PwC Nigeria, Andrew Neven; Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe; and President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe.
Others are Senior Credit Research Analyst, REDD Intelligence, Mark Bohlund; former Executive Director, Keystone Bank, Richard Obire; Director General, Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi-Kadiri; Financial analysts, Renaissance Capital, Charles Robertson; and Managing Director, SD & D Capital Management Limited, Mr Gbolade Idakolo.
Uwaleke, who said that the unification of exchange rates would lead to “ a more transparent forex market,” however, advised the CBN to implement the policy ”in a way that it would not cause massive distortions in the general price level.”
He said: “The unification of exchange rates should not be a one-step process but should be implemented over a period of time however short it may be. Empirical evidence suggests that reforms are more successful when they are sequenced and implemented in phases. This is against the backdrop of the oil subsidy removal which, taken together, can result in galloping inflation and rising poverty levels. So, while fiscal and monetary policy reforms are welcome, absolute care should be taken to strike the right balance and minimise their unintended consequences.”
Yusuf said the policy would facilitate the mopping up of naira liquidity in the economy in the short to medium term.
That, according to him, will impact positively on inflation outlook and deepen the autonomous foreign exchange market through the liberalisation of inflows from export proceeds, diaspora remittances, multinational oil companies, diplomatic missions, etc.
He added that “the erstwhile foreign exchange policy regime was for all practical purposes, a fixed exchange rate regime that created distortions and negative outcomes.”
Yusuf said the distortions included “widening the gap between the official, other multiple windows and parallel market exchange rates, collapse of liquidity in the foreign exchange market and high demand for forex .”
He added: “It is important to reiterate that this is not a devaluation policy, it is a normalisation of the foreign exchange policy regime and an adjustment of rate to reflect the fundamentals of demand and supply. It would be dynamic, and the naira will appreciate or depreciate depending on the fundamentals.”
The expert advised the CBN to ”position itself for periodic intervention in the forex market, as and when necessary.”
Oyedele said the decision was a positive move that should bring more benefits than pains to the economy.
He outlined that with the market-driven rate, the aggregate demand for forex across markets should reduce as round-tripping incentive is removed, noting that avenues for corruption such as people who fake foreign travels just to get forex at discounted rates would be.
“Also, Nigeria’s sovereign credit rating should improve if this is complemented with the right fiscal and monetary policies thereby attracting more forex inflows and lowering the cost of borrowing,” Oyedele said.
In a 10-point impact analysis, Oyedele explained that while the decision expectedly would have some negative implications, the overall impact would be positive for the economy, government revenue and the capital market.
Neven expressed support for the policy as it would remove uncertainties and ensure transparency in the forex market.
“We had stated in a report to the CBN that as long as we don’t have a unified exchange rate, and there is a lack of transparency, nobody will invest in Nigeria. We will continue to have insufficient investment and growth and consequently remain poor. What we said years ago came to pass.
”During the (Muhammadu) Buhari Administration, the average growth rate was 1.5 per cent and the population growth was 2.7 per cent. So, it is a necessary condition to get enough investment into the country when we have a unified exchange rate.
“A situation where you have multiple exchange rates, where you don’t know how to have access to foreign exchange or at what price, simply is unworkable. Any system where you have to go to the CBN in order to access foreign exchange or get approval simply isn’t going to work. That is what has been proved over the last decade.
“I think the reaction to President Tinubu’s inauguration statement was very positive, and this latest statement is very positive. We view these as a necessary step toward economic recovery in Nigeria. We’re very much in favour of the unification of the exchange rate,” Neven said.
Ajayi-Kadiri said it was a “positive development and an indication of a far-sighted strategic choice”.
He said the policy, among other range of fiscal measures to promote domestic manufacturing, was borne out of a deep reflection on the current inclement manufacturing environment and the need to stop the drift into inglorious de-industrialization of the Nigerian economy.
The MAN chief, however, said in addition to pursuing the unification of the exchange rate, the CBN should be prevailed upon to take effective action to give priority to the allocations of forex to the productive sector, particularly to manufacturers to import raw materials, spares, and machinery that are not locally available.
Also, Amolegbe said the market-driven rate was another painful reform that needed to be done noting that the multiple exchange rate regime was not doing the economy any good.
“Not only did the former multiple exchange rate system discourage the inflow of much-needed foreign investments, but it also encouraged massive corruption. Harmonizing the rates should lead to better price discovery and hopefully lead to more transparent commerce. That is why the markets responded to it positively,” Amolegbe, a former president of the Chartered Institute of Stockbrokers (CIS) said.
Gwadabe said the removal of the rate cap would allow a true market clearance rate which has been the agitation of several stakeholders in the economy.
He said the move will harness and increase various sources of supply of dollars into the economy like foreign portfolio investment, foreign direct investment, diaspora remittances, and export proceeds, among others.
“The new directive, in my opinion, is to checkmate various illegal economic behaviours like rent-seeking, currency substitution, forex holding positions and frivolous demand in the market,” Gwadabe said.
Obire said eradicating multiple exchange rates would bring about increased dollar supply, and exchange rate stability.
Also, Bohlund said the unification would help the federal government to better balance its books as it is still highly dependent on dollar-linked oil revenue while spending is in naira.
While Robertson said that “Nigeria has become investable again, adding that attracting foreign money is wise when local savings are in short supply.”
Idakolo said the floating of the naira would lead to a free market system that allows market forces to determine the rate.
“This would allow availability to determine the rate and eliminate hoarding,” Idakolo said.
He added that the development “would also encourage foreign direct investment into the economy as restrictions limiting free flow has been lifted. In the long run, as the economy becomes stronger, the naira would begin to appreciate against the Dollar and the economic activities would now determine the strength of our currency going forward.”
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BREAKING: Trump Applauds Tinubu’s Fight Against Terrorism, Pledges Continued US Backing
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United States President Donald Trump has commended President Bola Tinubu for what he described as his decisive leadership in tackling terrorism and insecurity in Nigeria, particularly attacks targeting Christian communities.
Trump conveyed the praise in a letter dated July 6, 2026, the contents of which were made public on Wednesday in a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.
In the letter, titled “President Trump lauds President Tinubu’s decisive leadership against terrorists,” the US President applauded Tinubu’s efforts to confront security challenges and reaffirmed Washington’s commitment to supporting Nigeria’s counter-terrorism operations.
“Thank you for your thoughtful letter. Your kind words mean a great deal to me, and I appreciate your decisive leadership on behalf of the Nigerian people.
“I applaud your resolve to tackle the issues plaguing your nation, especially the violence affecting Christian communities, and it is a true honour to stand with you in the fight against terrorists and to make the Federal Republic of Nigeria stronger and more prosperous,” Trump wrote.
Trump described the relationship between the United States and Nigeria as increasingly important amid growing security challenges across West Africa.
“The United States-Nigeria relationship is crucial at a time when conflict has spread across West Africa and around the world. We both share a mutual goal of confronting terrorism in all its forms, and our historic US-Nigeria 2026 Defence Cooperation Roadmap has established a robust framework to accomplish this feat,” he stated.
The US President also highlighted ongoing defence cooperation between both countries, noting that American Special Operations Forces had been deployed to assist Nigeria’s military.
“I am proud to have deployed the United States Special Operations Forces—among the most elite military units anywhere in the world—to equip the brave men and women in the Armed Forces of Nigeria with the skills, tools and intelligence they need to protect your homeland and ensure the safety and security of citizens, particularly those of faith who have been under attack.
“I look forward to our continued discussions over the course of my Presidency,” Trump added.
According to the Presidency, Nigeria and the United States have expanded security cooperation in recent months following the establishment of a Joint Working Group co-chaired by the National Security Advisers of both countries.
The collaboration has centred on intelligence sharing, military training and coordinated operations against terrorist groups.
The statement noted that one of the key outcomes of the partnership was the joint operation carried out on May 16 against ISIS hideouts in the Lake Chad region, which reportedly led to the killing of the group’s senior leader, Abubakar Al-Minoki, along with several of his lieutenants.
The Presidency also disclosed that the US Assistant Secretary of State for Africa, Frank Garcia, visited Abuja last week, where he held talks with senior Nigerian officials and pledged to deepen bilateral cooperation in security and other strategic sectors.
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UPDATED: Two Ansaru Leaders Get Life Imprisonment Over Oyo Kidnapping
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…Usman, Abba plead mercy
A Federal High Court in Abuja has sentenced a man who claimed to be 50 years old and father of 19 children, Mahmud Usman, to life imprisonment after pleading guilty to offences of kidnapping for ransom, terrorism, among others.
Usman (also known as Abu Bara’a, Abbas and Mukhtar), described by the prosecution as the self-styled Emir of Ansaru, was sentenced, along with his co-defendant, Abubakar Abba (also known as Mahmud al-Nigeri and Malam Mamuda), who is said to be the group’s deputy leader and chief of staff.
Usman and Abba were arraigned earlier this year on a 32-count charge filed by the Department of State Services (DSS).
The two are said to be among the key terrorist leaders who were behind the Oriire, Oyo State school kidnap and demanded to be released by the government.
During their arraignment, Usman pleaded guilty to a count of illegal mining for funding terrorism/arms, and was sentenced to 15 years’ imprisonment.
He pleaded not guilty to the other 31 counts, while his co-defendant, Abba, pleaded not guilty to all the 32 counts.
On July 9, however, Abba informed the court of his intention to withdraw his earlier not guilty plea, but needed some time to consult with his lawyer, a request Justice Emeka Nwite granted and adjourned till July 20.
On Monday, both defendants pleaded guilty to the 32 counts when they were read to them, following which Justice Nwite convicted them accordingly.
While appealing to the court to be lenient in sentencing the defendants, their lawyer, Bala Dakun, said by pleading guilty, his clients now appreciate the gravity of the offence they admitted to committing.
Dakun said the convicts’ guilty pleas were not intended to trivialise the offence or justify their conduct, but a show of remorse and repentance, while seeking mercy from the court.
He said the convicts saved the time of the court and the resources and time the prosecution would have deployed in bringing witnesses to the court and proving their case beyond reasonable doubt.
Dakun told the court that Usman is 50 years old, with 19 children and the sole provider of the family.
He said the second defendant, Abba, is 35 years old, with three children and a wife.
The defence lawyer said both defendants suffer from arthritis and ulcers.
Dakun said his clients promised to work with security agencies by providing them information about the operation, financing and network of the terrorist groups in the country.
He said the convicts should be granted amnesty as has been done for some repentant Boko Haram members, who have been rehabilitated.
With the permission of the court, Usman spoke in English and said he felt remorseful and that they admitted the offences, for the court to have mercy on them and their dependants, who will suffer in their absence.
Usman, who admitted having 19 children, said he suffers from bad health and that he was planning to return to school before he was arrested.
After listening to Dakun and Usman, Justice Nwite, who rose briefly, returned to hand out the sentences. He sentenced the two to life imprisonment in relation to counts 30 and 31.
The judge also sentenced them to 20 years, without an option of fine, on counts 1, 2, 3, 4, 5, 6,7, 9, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29 and 32.
The two defendants were handed 25 years in respect of count 11, while only the second defendant (Abba) got 15 years in respect of count 10.
Justice Nwite ordered that the sentences shall run concurrently from the date of their arrest.
The defendants were arrested by the prosecuting agency (DSS) in separate operations between May and July 2025.
They were charged with various offences including terrorism and terrorism financing, kidnapping for ransom, illegal mining, funding terrorism, fabricating Improvised Explosive Devices (IED), among other charges.
The two defendants were equally accused of coordinating sleeper cells, attacks, and maintaining ties with terrorist groups in the Sahel/Maghreb region.
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JUST IN: Fayose Emerges REA Chairman as Tinubu Announces 26 Key Appointments
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President Bola Tinubu former Ekiti State Governor, Ayo Fayose
President Bola Tinubu former Ekiti State Governor, Ayo Fayose.
President Bola Tinubu has approved the appointment of 26 persons into the boards and leadership of 10 federal government agencies and commissions, including former Ekiti State Governor, Ayo Fayose, as Chairman of the Rural Electrification Agency.
The appointments, which take immediate effect, were announced in a statement on Monday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.
“President Bola Ahmed Tinubu has announced 26 new appointments into 10 Federal Government agencies and commissions, with former governor of Ekiti State, Ayo Fayose, emerging as chairman of the Rural Electrification Agency (REA), and Major General Junaid Bindawa as chairman of the National Salary and Wages Commission,” the statement read.
The Presidency said Fayose would head the REA board alongside Alhaji Ahmadu Abubakar and Engineer Ilyasu Ibrahim Makinta as members and non-executive directors, while “the incumbent DG of the agency, Abba Abubakar Aliyu, and three executive directors previously appointed make up the remaining board members.”
Tinubu also named Major General Junaid Bindawa as Chairman of the National Salary and Wages Commission and approved eight additional appointments into the commission.
The statement added that “Former member of the House of Representatives from Lagos, Olajumoke Okoya-Thomas, is the new secretary of the commission,” while Dr Ogbole Ene Lilian, Oladele Olatubosun and Yakubu Umar Barde were appointed commissioners representing Benue, Oyo and Kaduna states respectively.
It further stated that “Dr Mai Adamu Yau, from Borno, Ginika Florence Tor (Enugu), Engineer Lawrence Okoh (Edo) and Bello Morenike Iyabode (Kogi) were appointed as members of the Commission.”
The President also redeployed Tosin Johnson Adeyanju, who previously served as Executive Secretary of the National Lottery Trust Fund, to the Revenue Mobilisation and Fiscal Commission as Secretary.
Other appointments announced include Dr Abuh Mohammed as Director-General of the National Population Commission, Dr Akinola Odeyemi as Managing Director of the Nigerian Bulk Electricity Trading Plc, Dr Anthony Inalegwu Godwin as Chairman and Chief Executive Officer of the Nigeria Atomic Energy Commission, and Engineer Julius Oloro as Chief Executive Officer of the National Centre for Agricultural Mechanisation.
According to the statement, “Engineer Julius Oloro, a former council chairman, is the new CEO of the Kwara-based National Centre for Agricultural Mechanisation (NCAM), replacing Dr A.R. Kamal, who died last January.”
Tinubu also constituted the board of the Fiscal Responsibility Commission with Dr Abdullahi Maikano Saidu as chairman.
The board members, according to the Presidency, are “Mohammed Asmau, Mohammed Aliyu Makama, Dr Suleiman Gidado, Louis O. Ndukwe, Amaechi Ugwele and Olaniyi Idowu Onikola.”
The President further appointed Shuni Muhammad Dahiru as Executive Secretary of the National Commission for Mass Literacy, Adult and Non-Formal Education, replacing Professor Shu’aibu Shehu Aliyu, who was reassigned to the Petroleum Trust Development Fund in April.
He also named Gisaor Vincent Iorja as Executive Director (Finance) of the Federal Housing Authority, replacing Mathias Byuan, who resigned to contest the Benue State governorship election.
The Presidency said “all the appointments take immediate effect.”
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