Economy
Banks Ignoring CBN Directive to Sell Forex to BDCs—ABCON
By Adedapo Adesanya
Deposit money banks (DMBs) in Nigeria have been implored to see Bureaux De Change (BDC) operators as their partners in currency market for the benefit of the local currency, the Naira.
The forex traders, under the aegis of the Association of Bureaux de Change Operators of Nigeria (ABCON), said some banks did not comply with the directive of the Central Bank of Nigeria (CBN) for the sale of FX to BDCs at the official rate.
Last year, the central bank allowed BDC operators to access about $25,000 weekly through the Electronic Foreign Exchange Matching System (EFEMS) for 42 days, which expired a few days ago.
But last week, the CBN, a circular signed by its acting director of the Trade and Exchange Department, Mr W. J. Kanya, extended this window to May 30, 2025, in a bid to ensure the stability of the Naira.
The circular, titled Sales of Foreign Exchange To BDCs To Meet Retail Market Demand For Eligible Invisible Transactions, shifts the previous deadline of January 31 to May 30.
It extends the temporary access granted to BDCs to the NFEM for purchasing FX from authorised dealers, subject to a weekly cap of $25,000.
Commenting on this development, the president of ABCON, Mr Aminu Gwadabe, said the extension demonstrates the commitment of the CBN to stabilising the FX market, noting that it promotes inclusiveness through EFEMS.
However, expressed concern that banks failed to comply with the initial notice of the apex bank in December 2024, which instructed them to sell forex to BDCs, urging them to support the CBN and comply with the latest directive.
“ABCON and its members indeed received the news as a good development. We considered it as part of the CBN efforts at ensuring continuity and its determination for the inclusiveness of our sub-sector in the EFEM Market.
“We, however, call on all money deposit banks to partner with CBN and our members in the implementation of this circular to ensure liquidity in the retail end sector and the naira’s ongoing stability.
“On behalf of my members, I extend my sincere gratitude to the CBN management for their flexibility and transformative leadership. I assure them that we will continue to serve as a vital third-leg mechanism, committed to eliminating volatility and narrowing the gap between the parallel market and the EFEM market,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.16 per cent on Monday, December 22 as investors showed hunger for unlisted stocks.
Trading data showed that the volume of securities traded at the session surged by 532.9 per cent to 12.6 million units from the previous 1.9 million units, as the value of transactions jumped by 64.3 per cent to N713.6 million from N80.3 million, though the number of deals moderated by 13.5 per cent to 32 deals from the 37 deals recorded in the previous trading session.
Infrastructure Credit Guarantee Company (InfraCredit) Plc ended the day as the most traded stock by value on a year-to-date basis with 5.8 billion units sold for N16.4 billion, followed by Okitipupa Plc with 178.9 million units worth N9.5 billion, and MRS Oil Plc with 36.1 million units transacted for N4.9 billion.
InfraCredit Plc also finished the trading day as the most traded stock by volume on a year-to-date basis with 5.8 billion units traded for N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with the sale of 1.2 billion units for N420.7 million, and Impresit Bakolori Plc with a turnover of 537.0 million units valued at N524.9 million.
The unlisted securities market printed a price loser, FrieslandCampina Wamco Nigeria Plc, which dropped 20 Kobo to sell at N53.80 per share versus last Friday’s closing price of N54.00 per share.
However, the loss was offset by the trio of NASD Plc, Golden Capital Plc, and UBN Property Plc.
NASD Plc gained N5.00 to close at N60.00 per unit versus N55.00 per unit, Golden Capital Plc appreciated by 77 Kobo to N8.45 per share from N7.68 per share, and UBN Property Plc improved by 22 Kobo to N2.43 per unit from N2.21 per unit.
As a result, the market capitalisation increased by N3.38 billion to N2.125 billion from N2.121 trillion, and the NASD Unlisted Security Index (NSI) grew by 5.65 per cent to 3,552.06 points from 3,546.41 points.
By Dipo Olowookere
The bulls remained on the floor of the Nigerian Exchange (NGX) Limited on Monday, rallying by 0.26 per cent at the close of transactions.
This was buoyed by the gains recorded by 34 equities on Nigeria’s stock exchange, which outweighed the losses posted by 20 equities, indicating a positive market breadth index and strong investor sentiment.
Aluminium Extrusion gained 9.72 per cent to quote at N13.55, International Energy Insurance improved by 9.69 per cent to N2.49, Mecure Industries rose by 9.64 per cent to N60.30, Royal Exchange expanded by 9.60 per cent to N1.94, and Austin Laz grew by 9.50 per cent to N2.65.
On the flip side, Custodian Investment depleted by 10.00 per cent to N35.10, ABC Transport crashed by 10.00 per cent to N3.15, Prestige Assurance weakened by 7.41 per cent to N1.50, and Guinea Insurance slipped by 7.38 per cent to N1.13.
During the session, investors traded 451.5 million shares worth N13.0 billion in 33,327 deals compared with the 1.5 billion shares valued at N21.8 billion transacted in 25,667 deals in the preceding session, showing spike in the number of deals by 29.84 per cent, and a decline in the trading volume and value by 69.90 per cent and 40.37 per cent apiece.
The first trading session of the Christmas week had Tantalizers as the most active with 50.2 million units sold for N127.5 million, First Holdco transacted 32.6 million units worth N1.5 billion, Access Holdings exchanged 27.3 million units valued at N562.3 million, Custodian Investment traded 22.1 million units for N857.8 million, and Chams transacted 21.3 million units valued at N71.1 million.
When the closing gong was struck at 2:30 pm to end trading activities, the All-Share Index (ASI) was up by 401.69 points to 152,459.07 points from 152,057.38 points and the market capitalisation went up by N256 billion to N97.193 trillion from N96.937 trillion.
By Adedapo Adesanya
The Naira opened the week stronger against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) by N7.93 or 0.54 per cent on Monday, December 22, trading at N1,456.56/$1 compared with last Friday’s value of N1,464.49/$1.
The local currency also appreciated against the Euro in the same market window yesterday by N4.04 to close at N1,710.59/€1 versus the preceding session’s N1,714.63/€1, but depreciated against the Pound Sterling by 3 Kobo to finish at N1,957.33/£1 compared with the previous session’s N1,957.30/£1.
At the GTBank FX counter, the Nigerian Naira lost N3 against the greenback during the session to end at N1,470/$1 versus N1,467/$1 and remained unchanged in the parallel market at N1,485/$1.
Despite the market facing seasonal pressure, the Central Bank of Nigeria (CBN) conducted FX intervention sales, which have significantly reduced but not remove pressure from the Naira. The lender sold $150 million to authorised dealers and banks to absorb pressures from increasing demand for Dollar.
Meanwhile, Nigeria’s foreign exchange (FX) reserves have recorded the first decline in 25 weeks, falling by $263.151 million to $45.21 billion as of December 17, 2025, according to new data from the apex bank.
This marks a reversal of a long-running accumulation trend that pushed reserves to their highest level in six years. The contraction ended a sustained build-up that had peaked at $45.472 billion on December 12.
As for the cryptocurrency market, the bears dominated, with traders remaining cautious about a significant recovery with the market facing exhaustion.
While the total crypto market capitalization has surpassed $3 trillion, analysts warn that the market outcomes in the next few weeks may be driven by exhaustion rather than renewed confidence.
Ripple (XRP) depreciated by 1.9 per cent to $1.88, Ethereum (ETH) slid by 1.8 per cent to $2,971.28, Bitcoin (BTC) went down by 1.4 per cent to sell at $87,599.57, and Solana (SOL) slumped by 1.1 per cent to $124.89.
Further, Litecoin (LTC) declined by 0.9 per cent to close at $76.84, Dogecoin (DOGE) shrank by 0.7 per cent to $0.1310, Binance Coin (BNB) lost 0.6 per cent to sell for $852.09, and Cardano (ADA) fell by 0.1 per cent to $0.3655, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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