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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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Tinubu has concluded his work vacation ahead of schedule and will return to Abuja on Tuesday, Says Onanuga

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President Bola Tinubu will on Tuesday, September 16, return to Abuja to resume official duties after ending his vacation earlier than planned.

The Special Adviser to the President on Information and Strategy, Bayo Onanuga, confirmed the development in a statement on Monday.

He said, “President Bola Ahmed Tinubu has concluded his work vacation ahead of schedule and will return to Abuja on Tuesday, September 16, 2025, to resume official duties.”

The President had departed Nigeria for France on September 4, 2025, to spend part of his annual holiday. He was initially scheduled to split the period between France and the United Kingdom.

While in Paris, Tinubu held a private luncheon with French President Emmanuel Macron at the Élysée Palace.

Both leaders reportedly reviewed key areas of bilateral cooperation and agreed to strengthen partnerships in pursuit of mutual prosperity and global stability.

This trip is Tinubu’s seventh visit to Paris since assuming office in May 2023 and his first since the BRICS summit in July and August’s TICAD9 in Japan.

In the first nine months of 2025, the President has undertaken 15 international trips across 11 countries.

These include high-level summits, bilateral engagements, presidential inaugurations, and annual leaves.

On January 6, Tinubu kicked off his diplomatic itinerary with a visit to Accra, the capital of the Republic of Ghana, to attend the inauguration of President-elect John Dramani Mahama on January 7.

He was in the United Arab Emirates to attend the Abu Dhabi Sustainability Summit from January 12 – 16, where he held side meetings with Gulf investors and officials on trade and energy cooperation.

From January 27-28, he visited Dar es Salaam, Tanzania, to participate in the Africa Heads of State Energy Summit.

February saw the President travel to France before attending the 37th African Union Summit in Ethiopia, where he joined other African leaders in discussions on regional security, climate adaptation, and continental trade integration under the AfCFTA.

From April 2-21, Tinubu embarked on a two-week working visit that included France and the United Kingdom.

In mid-May, the President travelled to Vatican City, attending the historic inauguration of Pope Leo XIV in Rome.

From June 28 to July 4, Tinubu undertook a landmark state visit to Saint Lucia, where he addressed CARICOM leaders in Castries.

From Saint Lucia, he proceeded to Brazil, arriving in Rio de Janeiro for the 17th BRICS Summit (July 4–7).

The Brazil visit continued into August, with President Tinubu returning for a two-day state visit.

This came after he visited Japan in the same month to attend the Tokyo International Conference on African Development, where he pitched Nigeria’s investment readiness to Japanese multinationals and met Prime Minister Fumio Kishida on maritime security and digital infrastructure.

Before he arrived in Japan, Tinubu and his entourage stopped over in Dubai, UAE, on August 15 and arrived in Yokohama early in the morning on August 18.

It was his second visit to the Gulf state within the year.

In September, he again embarked on a working vacation to the United Kingdom and France, his third visit to Paris this year and second to London.

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Catholic Bishops Conference : Let us build prosperity together and promoting interfaith harmony, Tinubu urges church leaders

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President Bola Ahmed Tinubu has urged faith leaders to join hands with him to build a strong economy in which the people will prosper.

He also urged them to remain steadfast in promoting interfaith harmony and denouncing violence.

He pledged to partner them and their institutions to tackle poverty, unemployment and inequality.

Tinubu spoke at the opening of the Second Plenary Meeting of the Catholic Bishops Conference of Nigeria (CBCN) in Ikot Ekpene, Akwa Ibom State, yesterday. He said his request to the religious leaders was hinged on the fact that faith-based organisations are “a vital bridge for peace, unity and moral renewal in the country.”

‘’Our efforts in tackling insecurity, expanding social investment programmes, strengthening agriculture and revitalising infrastructure are geared towards creating an enabling environment for Nigerians to live in peace and fulfill their potential.

“I reassure you that the Federal Government will deepen collaboration with the Catholic Church and other faith-based Organisations in key sectors as education, healthcare, social welfare and skills development.

‘’Together, we can tackle poverty, reduce inequality and build stronger communities,” the President said.

He was represented at the event by Secretary to the Government of the Federation (SGF), George Akume.

Senate President, Godswill Akpabio, and Akwa Ibom State Governor, Umo Eno, attended the event, which was witnessed by the representative of Pope Leo XIV, Apostolic Nuncio Most Rev. Michael Francis Crotty, and some members of the National Assembly.

Tinubu told the bishops that genuine reconciliation and national cohesion can only be achieved when spiritual leaders preach peace, discourage extremism, hatred, and divisive tendencies.

He challenged them ‘’to continue speaking truth to power, not only to government but to society.’’

Read Also: Be patient with Tinubu’s reforms, prosperity will come — Akpabio tells Nigerians

Tinubu, in a statement by Akume’s Special Adviser on Media and Publicity, Yomi Odunuga, reminded the clerics that while ‘’speaking truth to power,’’ they should ‘’offer constructive solutions that will help us build a nation where integrity, hard work and compassion are hallmarks of public and private life.”

He lauded the Catholic Bishops and other clerics across denominations for championing dialogue and tolerance in a diverse nation like Nigeria.

“The Catholic Church has been a credible partner in the journey towards national renewal. Your investments in education, health and social welfare—often in remote and underserved communities—speak louder than words. You have stood with the people in times of hardship, provided comfort in times of grief and raised your voice against injustice and corruption,” Tinubu said.

The President assured them that his administration is committed to addressing insecurity and social unrest, including poverty, unemployment and inequality.

He cited removal of fuel subsidy, unification of exchange rates and efforts to curb leakages in public finances as steps toward stabilising the economy and laying a foundation for long-term prosperity.

These policies, though demanding sacrifices in the short term, Tinubu noted, are necessary to put the nation back on the path of growth and long-term prosperity.

The President emphasised that beyond stabilisation, his government is working to attract local and foreign investments by creating an enabling environment for businesses to thrive.

He highlighted reforms in key sectors, such as agriculture, energy, and infrastructure, which are expected to stimulate job creation, boost productivity, and expand opportunities for young Nigerians.

Tinubu said while the results may not be immediate, the reforms are structured to deliver enduring benefits that will uplift lives and secure a brighter economic future for the nation.

He said: “This administration came into office with a firm commitment to renew hope, strengthen our democratic institutions and build a Nigeria that works for all. We have taken steps to stabilise the economy, attract investment and implement reforms that will, in due course, yield enduring benefits for our people.

‘’We recognise that good governance is not just about economic growth, it is about justice, fairness, transparency, accountability and the dignity of every Nigerian.

“It’s also about ensuring that no one is left behind – whether in urban centres or rural communities, whether majority or minority, whether rich or poor.

Tinubu called on religious leaders to complement the government’s initiatives by nurturing honesty, hard work, and compassion in their communities.

He urged the church to continue offering guidance in civic education, environmental protection and youth empowerment.

The President further urged the church to collaborate with the government in advancing civic education, protecting the environment, and empowering young people, so future generations will gain not only academic knowledge but also values needed to uphold the moral fabric of society.

Akpabio urges patience

Akpabio urged Nigerians to be patient with the Tinubu administration’s reforms, as they will soon yield results.

“Let me urge my compatriots to be patient with your government as we lay again the foundations of this house. Do not despair when the winds blow strong or the scaffolding shakes,’’ Akpabio said in a statement by his Special Assistant on Media/Communication, Anietie Ekong.

He said it was important for people to note that a country is like a cathedral that cannot be built in a short space of time

“A nation is like a mighty cathedral — it is not raised overnight, but stone by stone, prayer by prayer, hand by hand – They that wait upon the Lord shall renew their strength; they shall mount up with wings as Eagles (Isaiah 40:31), he said.

“Let us renew hope in the Nigerian enterprise. Let us believe again that our land can be great, that our children can inherit a future brighter than our present.

“Let us bind the wounds of division, banish the cynicism of despair, and walk together—Church and State, pulpit and parliament, faith and policy—towards the dawn.

“Transformation is not the burden of one arm of society, or the privilege of a select few. It is a covenant of partnership. As St. Paul declares: ‘We are co-workers in God’s service; you are God’s field, God’s building.’”

Governor Eno noted that the Catholic Church has played key roles all over the world in fighting injustice, enthroning democratic governance and placing the welfare of the people at the centre of its policies.

Eno called for continued support of the Church in delivering dividends of democracy to the people.

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Update : No going back on free fuel distribution, says Dangote

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‘We offer cheaper fuel despite importing 60% of crude’
Recent attacks against Dangote Petroleum Refinery from some associations in the oil and gas industry were orchestrated to derail the planned free fuel distribution logistics initiative, the management of Dangote Refinery said last night.

It however foreclosed backtracking on the initiative, adding that the attacks lack genuine and patriotic concerns.

In a statement last night, the Refinery said the position of National Union of Petroleum and Natural Gas Workers (NUPENG) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) lacks legitimacy and has nothing to do unionisation as being claimed.

“Their position”, according to the statement , “have made it abundantly clear that the actions and threats issued by them is not borne out of legitimate concerns about unionisation, but a calculated campaign of economic sabotage that is orchestrated by vested interests who perceive progress as a threat to their entrenched positions.”

Reacting to a press statement by DAPPMAN, which was published, in some newspapers at the weekend, Dangote Refinery accused the association of misleading Nigerians, noting that their claims were contradicted by established facts.

The statement by Dangote Refinery reads: “In January 2022, the Nigerian National Petroleum Company (NNPC) reported that one of DAPPMAN’s members had supplied petrol containing over 15% methanol, well above acceptable limits (Methanol which is not a standard industry practice or procedure for refinery, but blenders use it to prompt up the octane rating to an acceptable level that is well above anti-knocking ratio).

“The result was widespread engine damage for thousands of end users. Yet, no transparent government inquiry or independent investigation was ever conducted to determine the source, intent, or full impact of the adulterated fuel.”

The refinery also described as incorrect, the claim that the price of petrol in Togo is lower than in Nigeria. It revealed that the average pump price in Lomé stands at approximately 680 CFA francs per litre, equivalent to N1, 826.

“This figure reflects the very scenario that DAPPMAN and its affiliates appear to advocate for in Nigeria. The Dangote Refinery has positioned Nigeria as a primary source of affordable petrol feedstock for West Africa, despite the refinery importing over 60% of the crude oil it processes. Remarkably, the refinery is able to offer petrol at prices below the international benchmark within the sub-Saharan region.

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