Connect with us

Business

Naira Depreciates By 41% Against Dollar Despite CBN Interventions In 2024

Published

on

The Naira depreciated by 41% and 26% against the dollar in the official and parallel foreign exchange markets, respectively, to end 2024, despite interventions from the Central Bank of Nigeria.

This comes as DAILY POST reports that the exchange rate against the dollar closed at N1,538.25 in the last trading session of 2024.

On a year-on-year basis, the Naira fell by 41% when compared to N907.11 per dollar at the end of 2023, according to FMDQ data.

Advertisement

Similarly, the Naira weakened by 26.6% at the black market compared to the N1,215 per dollar exchange rate at the end of 2023.

READ ALSO: Naira To Depreciate To N1,804 Per Dollar In 2025 – Report

The depreciation in both markets occurred despite the rollout of policy interventions by the Central Bank of Nigeria under Olayemi Cardoso.

Advertisement

Recall that in May 2024, the apex bank introduced fresh guidelines for Bureau De Change (BDC) operators in Nigeria to regulate their activities.

At different intervals, the CBN also intervened in the FX market, supplying dollars to licensed BDC operators at a subsidized rate.

The latest intervention by the CBN was the introduction of the Electronic Foreign Exchange Matching System (EFEMS) in 2024.

Advertisement

In the 2025 projection, President Bola Ahmed Tinubu, in his annual budget presentation, benchmarked the exchange rate at N1,500 per dollar.
DAILY POST

 

Advertisement

Business

Fuel Scarcity Looms As PENGASSAN Stops Gas, Crude Supply To Dangote Refinery

Published

on

The industrial dispute between the Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria took a dramatic turn on Saturday as the union ordered seven branches to cut off crude oil and gas supplies to the $20bn facility.

In a letter dated September 26 and signed by its General Secretary, Lumumba Okugbawa, the union accused the refinery’s management of sacking its members in retaliation for exercising their constitutional right to join the union.

The union’s move marks an escalation in the standoff, with PENGASSAN accusing the refinery of anti-labour practices and the unlawful sack of its members.

Advertisement

In the directive issued to its branch chairmen, PENGASSAN instructed its branch chairmen in key upstream and midstream oil companies, including TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, and Nigerian Gas Infrastructure Company, to immediately cut off all crude oil and gas supplies to the refinery.

READ ALSO:NUPENG Accuses Dangote Of Breaching Agreement, Says Nationwide Strike Inevitable

The directive comes after PENGASSAN alleged that Nigerian workers were sacked by Dangote Refinery after joining the union, claiming that management also withdrew staff buses and denied entry to locals while allowing expatriates access.

Advertisement

The union threatened to picket the refinery if the situation was not addressed.

In a statement on Friday, the refinery clarified that only a small number of workers were affected by what it described as a reorganisation aimed at preventing acts of sabotage within the facility. It said over 3,000 Nigerians remain in employment, rejecting claims of mass layoffs.

Dangote maintained that the restructuring was necessary after what it described as recurring acts of sabotage in different units of the refinery, which posed serious risks to human lives and operations.

Advertisement

READ ALSO:Fuel Scarcity Imminent As NUPENG, Dangote Face-off Festers Business

As a result, PENGASSAN instructed its branches in TotalEnergies, Seplat, Chevron, Oando, Shell Nigeria Gas, Renaissance, and NGIC to cut gas supply to the refinery immediately.

The union described the move as “illegitimate” and accused the refinery of spreading misinformation instead of addressing the matter through dialogue.

Advertisement

“As you are aware, the Management of Dangote Petroleum Refinery has disengaged our members in reaction to the exercise of their constitutional right to being unionized.

“They have gone further on a mission of misinformation and propaganda to justify this illegitimacy rather than engaging meaningfully with us to right the wrong.

READ ALSO:Indian Refiners Abandon Russia For Nigerian Crude, As Dangote Refinery Relies On US

Advertisement

“Consequent to these, you are hereby directed to cut off gas supply to NGIC effective immediately. All crude oil supply valves to the Refinery should be shut. The loading operation for vessel headed there should be halted immediately,” the directive read.

The union further mandated the NGIC Chairman to ensure strict compliance with the order and told all branch chairmen to give regular updates on the action taken.

“NGIC Chairman, ensure that gas supply to the Refinery is cut off effective immediately. All chairmen on this summons are to report promptly the progress of the directive. Kindly accept the assurances of our highest esteem. Thank you,” the statement read.

Advertisement

Reaffirming its solidarity, PENGASSAN ended the directive with its slogan: “Injury to one! Injury to all!”

On Thursday, the company announced it would suspend petrol sales in naira from September 28 following the exhaustion of its crude-for-naira allocations.

Advertisement
Continue Reading

Business

Fuel Price Hike Looms As Dangote Refinery Stops Petrol Sales In Naira

Published

on

The Dangote Petroleum Refinery has announced the suspension of petrol sales in naira, unsettling marketers and raising fresh concerns over fuel pricing and foreign exchange pressure.

In an email sent to customers at 6:42 p.m. on Friday, the refinery said the decision would take effect from Sunday, September 28, 2025, citing the exhaustion of its crude-for-naira allocation as the reason.

The notice, titled “Suspension of DPRP PMS Naira Sales – Effective 28th September 2025” and signed by the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals, also asked customers with ongoing naira-based transactions to formally request refunds.

Advertisement

READ ALSO:‘We Like Greek Gifts,’ Nigerians Blast NUPENG Over Dangote’s Fuel Price Reduction

We write to inform you that Dangote Petroleum Refinery & Petrochemicals has been selling petroleum products in excess of our Naira-Crude allocations and, consequently, we are unable to sustain PMS sales in Naira going forward,” the statement read.

“Kindly note that this suspension of Naira sales for PMS will be effective from Sunday, 28th of September, 2025. We will provide further updates regarding the resumption of supply once the situation has been resolved.

Advertisement

“All customers with PMS transactions in Naira who would like a refund of their current payments should formally request the processing of their refund.”

READ ALSO:JUST IN: Dangote Refinery Reacts To Alleged Mass Sack Of Workforce

The move comes amid a raging dispute between the refinery and labour unions over the alleged mass sack of more than 800 Nigerian workers. This controversy has drawn public outrage and calls for government intervention.

Advertisement

This is the second time the refinery has halted local currency transactions. In March 2025, it briefly suspended sales of refined products in naira, blaming inadequate allocations under the crude-for-naira programme.

Continue Reading

Business

Naira Appreciates Massively Against US Dollar In The Black Market, Highest In 15 Months

Published

on

The naira appreciated massively against the United States dollar at the parallel foreign exchange market.

Abubakar Alhasan, a Bureau De Change operator in Wuse Zone, Abuja, told DAILY POST that the Naira strengthened significantly to N1,490 per dollar on Wednesday, up from N1,520 on Tuesday.

We buy at N1480 and sell at N1490 on Wednesday due to lower FX demand,” Alhasan confirmed to newsmen.

Advertisement

READ ALSO:Naira Appreciates Against Dollar As External Reserves Swell

This means that the Naira gained N30 against the dollar on a day-to-day basis.

The last time they were exchanged at this level in the black market was in June 2024.

Advertisement

Meanwhile, at the official market, it dropped marginally by N1.19 to N1,488.56 per dollar on Wednesday, down from N1,487.37, according to data from the Central Bank of Nigeria.

READ ALSO:Naira Appreciates At Official Market

Analysing the trend at both markets, the difference between official and parallel markets has shrunk to 1.44.

Advertisement

Recall that on Tuesday, the Naira appreciated across official and parallel foreign exchange markets upon an interest rate cut by the apex bank by 50 basis points to 27 per cent.

Continue Reading

Trending