Connect with us

Business

Naira Tumbles Against Dollar As CBN Vows BDC Operators Clampdown

Published

on

The naira tumbled against the United States dollar at the parallel market on Wednesday, closing at 900/dollar.

This came barely two weeks after the local currency was sold 960/dollar at the black market.

Advertisement

The naira, which had gained in recent days, returned to a downward trend as the shortage of the greenback hit the black market again.

The local currency had traded between 850/dollar and 880/dollar earlier this week.

On Wednesday, the naira fell further at the parallel market, while it also fell on the Investor & Exporter window to 773.42/$. The local currency had closed at 757.10/$ at the I&E Window on Tuesday.

Advertisement

READ ALSO: New Ministry: Nigeria To Benefit From $1.5trn Global Blue Economy Annually

Bureau De Change operators in Lagos, Kano Abuja and airports told the dollar between 895/dollar and 905/dollar on Wednesday.

A BDC operator at the Lagos airport, who simply identified himself as Sanusi Ibrahim told The PUNCH that “We bought and sold the naira today at 890/$ and N900/$.”

Advertisement

At the Central Business District in Abuja, a BDC operator, Yusuf Kareem, said, “The dollar is still scarce. We sold for N900 today.”

As naira continued to defy efforts to tame its slide, the Central Bank of Nigeria has threatened to revoke operating the licences of BDCs who violated its rules.

The President, Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, confirmed this to The PUNCH, after a sensitisation engagement with BDC opoperators.

Advertisement

READ ALSO: Naira Slides Further As Dollar Shortage Hits Banks

“At a sensitisation engagement between the CBN and our compliance officers across the zones, the apex bank reiterated that by 31st of August, 2023, any operator that breaches its circular on the allowable margin of -2.5 per cent and +2.5 per cent on average weighted rate of I&E closing rate, rendition of returns and payment of penalties, risks the revocation of the operating licence,” he said.

On Friday, the apex bank announced operational mechanism for the BDCs to trade foreign currencies at similar rate obtainable on the Investor & Exporter forex window.

Advertisement

It gave the directive to BDCs in a circular dated August 17, 2023, and titled, ‘Operational mechanism for Bureau de Change operations in Nigeria.’

It read in part, “The spread on buying and selling by BDC operators shall be within an allowable limit of -2.5 per cent to +2.5 per cent of the Nigerian exchange market window weighted average rate of the previous day.

“Mandatory rendition by BDC operators of the statutory periodic reports (daily, weekly, monthly, quarterly and yearly), on the financial institution forex rendition system which has been upgraded to meet operators’ requirements.”
PUNCH

Advertisement

Business

Naira Continues To Appreciate Against Dollar On Official Market

Published

on

The naira continued its appreciation against the dollar at the foreign exchange market on Tuesday.

Accordingly, the naira strengthened further to N1,533.18 against the dollar on Tuesday, from N1,534.21 traded the previous day.

Advertisement

This represents a gain of N1.03 against the dollar on a day-to-day basis and marks the second consecutive day of appreciation at the official FX market.

READ ALSO:Woman Arrested For Killing, Selling Pregnant Nurse’s Body Parts

Meanwhile, on the black market, the naira depreciated further to N1,545 per dollar on Tuesday from N1,537 traded on Monday.

Advertisement

Recall that the naira had similarly closed Monday’s trading session with mixed sentiments, recording gains at the official market but depreciating at the parallel market.

Advertisement
Continue Reading

Business

Dangote Refinery Gets New CEO

Published

on

The Dangote Petroleum Refinery and Petrochemicals has appointed David Bird, the former head of Oman’s Duqm Refinery, as its new Chief Executive Officer.

A report by S&P global on Friday said, Bird heads the refinery’s petroleum and petrochemicals division in a strategic move to overcome production challenges and advance its next wave of expansion.

Advertisement

Effective from July 2025, the former Shell head of operations at its Balau Pokom refinery stepped in as CEO of the Dangote Group’s fuels and petrochemicals business, which commissioned the world’s largest single-train refinery last year.

Our correspondent also observed that the CEO participated at the just concluded Dangote Leadership Development Program Graduation Ceremony.

The appointment signals the company’s renewed focus on scaling production, streamlining operations, and positioning itself as a dominant force in Africa’s refining and petrochemical landscape.

Advertisement

READ ALSO:Dangote Cement Gets New Chairman As Aliko Dangote Retires

The report read, “Nigeria’s Dangote Group has appointed the former head of Oman’s Duqm refinery as CEO of its petroleum and petrochemicals business as it strives to overcome production challenges and advance its next wave of expansion.”

It, however, noted that the Dangote Group founder Aliko Dangote, will remain as chairman of the refining business and CEO of the wider conglomerate, which is also active in cement, fertilizers and sugar refining.

Advertisement

The business is expected to tap Bird’s experience expanding the Duqm refinery and diversifying its crude slate as CEO of OQ8, a role he adopted months before the Omani complex began its first test runs in 2023.

Commenting on his appointment, Bird said his focus at Dangote will involve advancing the group’s footprint beyond the Nigerian market and across the African continent.

As CEO of the refining business, he will be responsible for ensuring maximum output and efficiency for the refinery, and aims to make the group a leader in the global market, a LinkedIn update noted.

Advertisement

READ ALSO:JUST IN: Dangote Refinery Hikes Petrol Ex-depot Price

The appointment comes after a string of unit upsets and “design issues” that have stalled the ramp-up process of the 650,000-b/d refinery, while its leadership has called out a hostile business environment for challenging its operations.

Since it was commissioned in January 2024, Dangote has quickly grown its market share in the Nigerian fuel sector, displacing large volumes of gasoline imports that the country once relied on.

Advertisement

However, Aliko Dangote has railed against “rent-seeking” trade partners and substandard fuel imports for putting strain on the business.

In a previous interview with Platts, Bird emphasised a trading-led approach to achieve a competitive edge in the refining sector, with a focus on high utilisation rates, efficiency and feedstock flexibility.

His approach aligns with a recent shift from the Dangote complex to process a wider range of crude grades, partially spurred by limited availability of the Nigerian oil it was designed to process.

Advertisement

READ ALSO:World Bank Appoints Africa’s Richest Man, Dangote

However, the Nigerian refinery is still obliged to sell fixed volumes of its oil products into the domestic crude market under a naira-based trade agreement with the Nigerian National Petroleum Company, a 7.2 per cent stakeholder in the business.

As the Dangote Group eyes its next wave of growth, it plans to expand the capacity of the Lagos refinery to 700,000 barrels per day, build out port infrastructure and establish foreign storage assets in Namibia and other countries.

Advertisement

In August, it is set to roll out its own distribution business with a fleet of 4,000 CNG-powered trucks.

Dangote Group officials have also shared ambitions to list the refining business on the London and Lagos stock exchanges, and Aliko Dangote reiterated plans to take the business public.

READ ALSO:Dangote Petrol: MRS Increases Fuel Price

Advertisement

After years of setbacks and budget challenges, the speed of the refinery’s ramp-up in 2024 caught many analysts by surprise, and the complex quickly began exerting pressure on global oil benchmarks as it began exporting its products.

Yet despite beginning test runs on its main gasoline outlet, the residue fluid catalytic cracker, in Q3 2024, the company has since suffered repeated outages on the unit in 2025, forcing it to rely on its lower-yield reformer and sacrifice output over extended periods.

Speaking to Platts earlier in July, a Dangote executive said the RFCC was running at 85 per cent. He denied reports that the company will undergo a planned turnaround on the unit in December.

Advertisement

According to S&P Global Commodities at Sea data, Nigeria exported some 220,000 b/d of petroleum products in July 2025, when outages at NNPC facilities made Dangote the country’s only active refiner.

The complex exported 30,000 b/d of residual fuel, a refining byproduct which would normally be kept on site for further processing in the RFCC under normal operations.

Exports continue to be dominated by jet fuel, which accounted for 45 per cent of total shipments, and gasoil with a 24 per cent share.

Advertisement

 

Advertisement
Continue Reading

Business

Petrol Tankers To Stop Loading Beyond 45,000 Litres By October 1 – IPMAN

Published

on

The Western Zone of the Independent Petroleum Marketers Association of Nigeria has said tankers will no longer load more than 45,000 litres of the product from October 1.

The Chairman of the zone, Chief Oyewole Akanni, disclosed this in an interview with the News Agency of Nigeria in Ibadan on Friday.

Advertisement

Akanni stated that the measure was adopted in a joint meeting involving IPMAN, the government and other stakeholders, held to reduce the cases of petroleum tanker accidents.

The stakeholders, he said, are the Petroleum Tanker Drivers, Nigerian Association of Road Transport Owners, the Nigerian Midstream and Downstream Petroleum Regulatory Authority and oil marketers.

READ ALSO:Five Things To Know About Gabon

Advertisement

He said, “Before now, some tankers carried up to 90,000 or 60,000 litres, which was dangerous.

“Those big tankers damage our roads, as the trucks are made to carry far more than they were designed for.

“And when overloaded, they become unstable and fall, causing accidents.”

Advertisement

Akanni stated that the government had also mandated all tankers to install safety covers that prevent spillage in the event of a crash.

With these covers, even if a tanker falls, fuel won’t spill, except if the tank is punctured,” he said.

READ ALSO:Petrol Tanker Explodes In Ibadan

Advertisement

He, however, lamented the activities of vandals, who deliberately puncture fallen tankers to steal fuel, describing it as a major challenge.

The IPMAN chairman also said that PTD discovered that most accidents occurred at night due to fatigue.

We have, therefore, instructed drivers not to drive at night.

Advertisement

“Once it is 7.00 p.m., they must park and continue their journey by 7.00 a.m. the next day, but some still disobey this directive,” he said.

READ ALSO:Petroleum Minister, Lokpobiri, Reveals When Fuel Will Be Available

Akanni assured that IPMAN would continue to work with stakeholders to ensure that tanker-related accidents were minimised.

Advertisement

He said that the spate of fatalities had triggered federal interventions, calling for stricter regulations, mass education, and enforced safety reforms.

According to Akanni, the incidents form part of a broader wave of tanker disasters across Nigeria.

These are marked by systemic failures, including overloading, poor infrastructure, inadequate enforcement, alongside dangerous public practices like fuel scooping,” he said.

Advertisement

NAN

Advertisement
Continue Reading

Trending