Business

Naira Note Swap: Why CBN Bowed To Pressure On Deadline Revealed

Published

2 years ago

January 30, 2023

The Central Bank of Nigeria, CBN, finally bowed to pressure on Sunday after vowing not to extend the January 31 deadline for the swap of the old naira notes.

CBN Governor, Godwin Emefiele, last Tuesday, at a meeting of the Monetary Policy Committee in Abuja, ruled out the postponement.

“Unfortunately, I don’t have good news for those who say we should shift the deadline. We do not see any reason to begin to talk about a shift. We believe 100 days is more than adequate,” Emefiele had said.

It was gathered on Sunday that security reports indicated that Nigerians were increasingly furious over the non-availability of the new naira notes.

The anger grew as people in the informal sector which has the highest population of workers – market men and women, traders, artisans, farmers, transporters, hawkers, etc, complained of slow sales and patronage.

A source said the Federal Government and the CBN had no choice than to bow to the masses who may decide to revolt.

“I don’t know why they delayed the shift till now, it should have been before the weekend. See how everyone was panicking about the cash shortage.

“On Friday, Muslims were complaining that the government was starving them of money. Today, some Pastors openly expressed frustration that people are getting stranded.

“So religious leaders, their followers, and others are not happy with the CBN. Look at all the pressure and criticisms from all corners. Security reports favoured an extension,” he disclosed.

A survey in Lagos by DAILY POST confirmed the challenges people had to bear in the past week in efforts to withdraw from Automated Teller Machines, ATMs.

It was discovered that many banks across the State limited the withdrawal limit for cards owned by other banks to as low as N4,000.

Residents living on the Mainland and Island confirmed the adjustment, with one narrating the stress he went through before he was able to get money which was insufficient.

“I live in Lekki but the places to withdraw cash were few on Friday night. The branches available had only one ATM working with very long queues.

“I drove to VI and could only withdraw N4,000 from a Heritage Bank branch. They said that’s the limit for other banks. Since I use Zenith Bank, I went to their ATM Gallery on Ajose Adeogun.

“There you can withdraw up to N30,000 with their card but the limit for other banks is N5,000. I stayed in the queue but when it was almost my turn, there was no money left. Everyone left disappointed”, said Kingsley, a company staff.

The currency scarcity is compounded by the fact that Point of Sale, PoS, operators also do not have enough cash to cater for demands.

But the naira scarcity took another dimension when the All Progressives Congress (APC) presidential candidate, Bola Tinubu declared that the situation was planned to reduce his electoral chances.

“Hide the petrol, hide the naira, we will still vote! We will win,” the former Lagos governor said last week at a campaign rally in Abeokuta, capital of Ogun.

“Even if you change the ink on naira notes, what you want will not happen. We will win. That umbrella party will lose. We will take this government from them, saboteurs that are dragging power with us.”

Despite saying “this government”, Tinubu later rubbished comments by the Peoples Democratic Party, PDP, and its presidential candidate, Atiku Abubakar that the outburst was targeted at President Muhammadu Buhari and his administration.
DAILY POST

Business

JUST IN: Dangote Refinery Hikes Petrol Ex-depot Price

Published

1 week ago

June 20, 2025

Editor

Nigerians may soon pay more for petrol as the Dangote Petroleum Refinery on Friday increased its ex-depot price for Premium Motor Spirit to N880 per litre, raising fresh concerns over fuel affordability and price volatility in the downstream sector.

Checks on petroleumprice.ng, a platform tracking daily product prices, and a Pro Forma Invoice seen by The PUNCH confirmed the hike, representing a N55 increase from the previous rate of N825 per litre.

The increment would ripple across the entire fuel distribution chain, likely pushing pump prices above N900/litre in some parts of the country, especially in areas far from the distribution hubs.

The hike comes despite global crude prices falling. Brent crude dipped by 3.02% to $76.47, WTI fell to $74.93, and Murban dropped to $76.97 on Friday. The decline in benchmarks offers little relief due to persistent fears of sudden supply disruptions.

The refinery has increased its reliance on imported U.S. crude and operational costs amid exchange rate instability, which adds to its pricing pressure.

On Thursday, the President of the Dangote Group, Aliko Dangote, said his 650,000-barrel capacity refinery is “increasingly” relying on the United States for crude oil.

This came as findings showed that the Dangote Petroleum Refinery is projected to import a total of 17.65 million barrels of crude oil between April and July 2025, beginning with about 3.65 million barrels already delivered in the past two months, amid ongoing allocations under the Federal Government’s naira-for-crude policy.

Dangote informed the Technical Committee of the One-Stop Shop for the sale of crude and refined products in naira initiative that the refinery was still battling crude shortages, which had led it to resort to imports from the United States.

On Monday, the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, accused oil marketers of exploiting Nigerians through inflated petrol prices, insisting that the current pump price of PMS should range between N700 and N750 per litre.

He criticised the disparity between falling global crude oil prices and the stagnant retail price of petrol in Nigeria.

“If you go online and check the PLAT cost per cubic metre of PMS, convert that to litres and then to our Naira, you will see that with crude at around $60 per barrel, petrol should be retailing between N700 and N750 per litre.”

He asserted that if Nigerians bear the brunt of higher fuel costs, they should be allowed to enjoy the benefit of low pricing.

His forecast of increased costs now appears spot on, considering the latest developments.

Marketers are already adjusting. Depot owners and fuel distributors in Lagos and other cities anticipate a domino effect, with new price bands expected to follow Dangote’s lead.

Many had held back pricing decisions since Tuesday, when the refinery halted sales and withheld fresh PFIs. The delay fueled speculation, allowing opportunistic price hikes across various depots.

Business

Naira Appreciates At Official Market

Published

1 month ago

May 24, 2025

Editor

The Naira, which has seen steady appreciation against the Dollar all week, closed stronger on Friday, trading at ₦1,580.44 in the official forex market.

Data from the Central Bank of Nigeria’s website show the Naira gained ₦4.51k against the Dollar on Friday alone.

This marks a 0.28 per cent appreciation from Thursday’s closing rate of ₦1,584.95 in the official foreign exchange window.

The local currency maintained consistent strength throughout the week, recording gains daily.

On Monday, May 19, it traded at ₦1,598.68; on Tuesday, at ₦1,590.45; and on Wednesday, at ₦1,584.49.

These gains suggest increased investor confidence and improved forex supply, contributing to the naira’s performance.

Meanwhile, the CBN, at its 300th Monetary Policy Committee meeting held Monday and Tuesday, retained the Monetary Policy Rate at 27.5 per cent.

Business

BREAKING: Again, Dangote Refinery Cuts Petrol Price

Published

1 month ago

May 22, 2025

Editor

The Dangote Petroleum Refinery has announced a nationwide reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, with new prices now ranging between ₦875 and ₦905 per litre, depending on location.

The ₦15 per litre cut applies across all regions and partner fuel stations, and was confirmed via an official announcement posted on Dangote Refinery’s social media channels on Thursday.

Major marketers participating in the new pricing regime include MRS, Ardova, Heyden, Optima Energy, Techno Oil, and Hyde Energy — partners in the distribution of Dangote-refined products.

Under the previous pricing structure, Lagos residents paid ₦890 per litre, while prices reached ₦920 in the North-East and South-South regions. With the latest adjustment, Lagos now pays ₦875 per litre, while the North-East and South-South will see prices drop to ₦905.

A regional breakdown of the revised prices is as follows: Lagos: ₦875, South-West: ₦885, North-West & Central: ₦895, North-East & South-South: ₦905 and South-East: ₦905.

In its announcement, Dangote Refinery encouraged consumers to purchase fuel only from authorised partner stations and urged the public to report any cases of non-compliance via its official hotlines: +234 707 470 2099 and +234 707 470 2100.

“Our quality petrol and diesel are refined for better engine performance and are environmentally friendly,” the company said.