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Economy Reform : All exchange rate segmentation is “abolished with immediate effect,” Says CBN Director

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…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 : Nigerian Soldiers Kill ISWAP Cameraman, Uncover Foreign Terrorist Network in Borno

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Troops of Operation Hadin Kai have neutralised an Islamic State West Africa Province cameraman and recovered video materials indicating the presence of three foreign facilitators, including a Palestinian Arab identified as a trainer and a Moroccan Arab serving as a medical doctor for the terrorist group in Borno State.

The Acting Military Information Officer, Joint Task Force North East, Operation Hadin Kai, Capt. Muhammed Goni, disclosed this in a statement on Sunday.

According to him, the operational success was recorded on Saturday following a failed infiltration attempt by members of ISWAP terrorists into Cross Kauwa, Kukawa Local Government Area of Borno State.

Goni said the terrorists attempted to exploit the cover of darkness to breach the troops’ position and loot cholera medical supplies.

The statement read, “Troops of 19 Brigade, Sector 3, Joint Task Force North East, Operation HADIN KAI (OPHK), have decisively foiled an attempted infiltration by ISWAP terrorists into Cross Kauwa, Kukawa Local Government Area of Borno State, inflicting heavy casualties on the attackers and forcing them to retreat in disarray.

“The successful defence of the location further demonstrates the vigilance, combat readiness and operational effectiveness of troops who continue to deny terrorist elements freedom of action across the North East Theatre.”

The failed attack, he said, occurred at about 10:20 p.m. on July 11, 2026, when the terrorists attempted to exploit the cover of darkness to breach the troops’ position.

“Alert troops swiftly detected the hostile movement and responded with coordinated and overwhelming firepower, compelling the terrorists to abandon their mission of looting cholera medical supplies and withdraw in confusion after suffering severe losses,” Goni said.

According to him, the attempted looting further lends credence to recent intelligence reports of a cholera outbreak within terrorist enclaves, as well as reports of the execution of some affected members by the group.

“The neutralisation of a terrorist cameraman during the failed assault led to the recovery of a Sony camcorder containing highly sensitive recordings of terrorist activities, including operational footage and propaganda materials.

“Preliminary forensic analysis of the last available video recorded prior to the attack indicates that the operation was coordinated by four senior ISWAP commanders (Qai’ds), alongside three foreign terrorist facilitators. They include a Palestinian Arab identified as Abu Ishaq, assessed to be ISWAP’s overall trainer; a Moroccan Arab identified as Abu Thaiba, a medical doctor serving within the terrorist network; and another Arab operative whose identity is yet to be established,” he added.

He said the presence and active involvement of the foreign nationals further reinforced intelligence assessments that ISWAP continued to benefit from external support, specialist expertise and transnational terrorist linkages.

“Following the successful engagement, troops immediately dominated the area and conducted exploitation operations to ascertain the full extent of the terrorists’ losses,” he added.

The Army spokesman said troops recovered the Sony camcorder, several rounds of PKT and 7.62mm Special ammunition, terrorist uniforms and other combat items during the operation.

He further stated that initial analysis of post-engagement satellite imagery revealed terrorists evacuating the bodies of some of their neutralised fighters during their withdrawal.

“This has since been corroborated by credible human intelligence sources, which confirmed that the terrorists suffered heavy casualties, with many others sustaining gunshot wounds during the engagement,” he said.

According to him, two soldiers sustained gunshot wounds during the firefight and were promptly evacuated by air for advanced medical care, adding that both personnel remained in stable condition.

“The failed infiltration attempt represents yet another significant operational setback for ISWAP and caps a costly weekend for the terrorist group following sustained offensive operations and intensified military pressure across the North East Theatre,” he said.

He added that the outcome underscored the increasing difficulty the terrorists faced in executing coordinated attacks against highly alert and combat-ready troops while further degrading their combat capability, morale and freedom of action.

“Operation HADIN KAI remains resolute in sustaining offensive operations, protecting vulnerable communities and dismantling terrorist networks until lasting peace and security are fully restored across the North East,” he assured.

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BREAKING: Security Forces Rescue Kidnapped Pupils, Teachers in Oyo Forest Operation

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Eight kidnappers arrested

Ibadan, Oyo State – Nigerian security agencies have successfully rescued a group of kidnapped pupils and teachers following a coordinated operation in Orire Local Government Area of Oyo State.

Photos circulating after the operation show the rescued victims gathered in a rural forest location alongside security personnel shortly after they regained their freedom.

According to available information, the victims were abducted by suspected kidnappers before security operatives launched an intensive search-and-rescue mission. The operation, carried out through coordinated efforts by security agencies, led to the safe recovery of the pupils and their teachers.

The rescued victims have since been reunited with security officials and are expected to undergo medical examinations and trauma counselling before being reunited with their families.

Authorities have not yet disclosed whether any arrests were made during the operation or if a ransom was paid. However, investigations are ongoing to identify and apprehend those responsible for the abduction.

The successful rescue has been welcomed by residents of the area, who commended the swift response of the security agencies while calling for increased security around schools and rural communities to prevent similar incidents.

The incident once again highlights the persistent security challenges facing some parts of the country, particularly the threat of school-related kidnappings, which have raised concerns among parents, educators, and community leaders.

Security agencies have assured the public that efforts are continuing to track down the perpetrators and strengthen measures aimed at protecting schools and vulnerable communities across the country.

Further official details are expected as the authorities provide updates on the operation.

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BREAKING: Tinubu Picks Shettima Again, APC Completes INEC Nomination Process

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…party predicts landslide victory at the poll
The ruling All Progressives Congress (APC) on Friday formalised its presidential ticket for the 2027 general election, as President Bola Ahmed Tinubu officially retained Vice President Kashim Shettima as his running mate. ExecutiveBranch

Displaying absolute confidence ahead of the polls, party leadership declared that its victory is already “assured,” citing a rock-solid foundation of over 12 million registered members and the visible milestones of the current administration.

The duly completed nomination forms for both President Tinubu and Vice President Shettima were submitted to the APC National Chairman, Prof. Nentawe Yilwatda, at a colourful ceremony at the Ladi Kwaki International Conference Centre of Abuja Continental Hotel for onward transmission to the Independent National Electoral Commission (INEC) portal.

Alhaji Ibrahim Masari, the Special Adviser to the President on Political Matters, submitted the documents on the President’s behalf.

The high-profile ceremony drew heavyweights from across the party, including members of the Progressive Governors’ Forum (PGF) led by Imo State Governor Hope Uzodimma, representatives from the National Assembly, the Federal Executive Council (FEC), and state party chairmen.

Welcoming dignitaries to the brief but solemn ceremony, APC National Organising Secretary Sulaiman Muhammad Argungu noted that the event was the natural climax of a highly transparent internal process.

“The presidential flag bearer emerged through a thoroughly transparent primary process,” Argungu said, while praising President Tinubu’s “positive strides” and urging party faithful to remain united, prayerful, and steadfast.

The ceremony culminated in the presentation of the completed nomination forms for the President and his running mate by the Presidential Adviser, Masari, who was accompanied by all the governors in attendance, members of the National Assembly and the Federal Executive Council (FEC).

Reinforcing the governors’ total commitment to the ticket, PGF Chairman Governor Hope Uzodimma stated that the transparent nature of the primaries had made marketing the candidates seamless.

“We are delighted that this event is coming after a well-organised and thoroughly supervised primary process,” Uzodimma said. “We reiterate our commitment to continue supporting President Tinubu and the party.” ExecutiveBranch

Uzodimma described the APC as a beacon of internal democracy and inclusiveness, promising that the governors would spearhead a total clean sweep at the polls.

“We will continue to support him in the larger interest of Nigerians and to take the country to greater heights. Together, we are going to deliver victory for President Tinubu and ensure the party wins all elective positions, including the National and State Assemblies,” Uzodimma added.

Receiving the nomination forms, APC National Chairman Prof. Nentawe Yilwatda stated that the revalidation of the Tinubu-Shettima ticket represents the authentic heartbeat of the party’s grassroots.

“Today is a reflection of the wishes of over 12 million members of our party who supported the President’s candidature,” Yilwatda remarked. “We are proud of the support already in the kitty of President Tinubu, and we are convinced that many more Nigerians will vote for him.” ExecutiveBranch

Yilwatda pointed to key initiatives such as the student loan scheme—which he noted has already benefited over 1.5 million students—alongside targeted agricultural interventions and nationwide infrastructure projects as verifiable proof of performance.

He urged party members to return to their local communities armed with facts rather than rhetoric to dismantle opposition narratives.

“While others are busy spreading propaganda, let us counter them with facts. Nigerians have seen governance that touches lives across the six geopolitical zones,” Yilwatda stated. GeographicReference

The National Chairman emphasised that the APC holds a distinct institutional advantage over its rivals, being the only political platform in the country backed by a fully digitalised and verified membership database.

“We already have about 12 million verified members. We are going round the country to mobilise support for the President. I am also confident that our governors will compete among themselves to deliver the highest number of votes,” Yilwatda said.

Sending a clear message to the President, the APC Chairman told Masari: “Go and tell the leader of our party (President Tinubu) that our members and Nigerians will vote for him to continue the excellent work he is doing. As a party, we are proud to be presenting the best candidate. There is no shaking at all. Come 2027, our victory is assured.”

Asked on the sidelines of the ceremony to confirm the party’s presidential running mate, as no name was mentioned throughout the ceremony, APC National Publicity Secretary Felix Morka said, “The presidential candidate of the party is President Bola Ahmed Tinubu GCFR, the Commander in Chief of the Armed Forces of the Federal Republic of Nigeria, and our Vice Presidential candidate is Senator Kashim Shetima.” ExecutiveBranch

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