Economy
CBN Extends Naira for Dollar Promo Deadline
By Dipo Olowookere
The deadline for the promo introduced by the Central Bank of Nigeria (CBN) to boost diaspora remittances in the country has been extended.
The initiative tagged Naira 4 Dollar allows beneficiaries of foreign fund transfers through any of the accredited International Money Transfer Operators (IMTOs) to earn N5 for every $1, which could be cashed out over-the-counter or transferred into the beneficiary’s bank account.
The promo started on March 8, 2021, and was supposed to end on May 8, 2021, but the apex bank has now extended the deadline indefinitely.
In a circular issued by A.S. Jibrin for the Director of Trade and Exchange Department of the CBN, it was stated that the promo will continue till further notice.
“Further to the CBN circular referenced TED/FEM/PUB/FPC/01/003 dated March 5, 2021, on the above subject matter, we hereby announce the continuation of the scheme until further notice.
“All aspects of the operationalization of the programme remain the same.
“Please take note and ensure compliance,” the circular stated.
Business Post reports that the CBN introduced the Naira for Dollar promo to increase the flow of Dollars into the country, especially at a time the country was experiencing a shortage in FX earnings from crude oil sales.
The apex bank had said the promo would help Nigeria “to make the process of sending remittance through formal bank channels cheaper and more convenient for Nigerians in the diaspora.”
It had also said the scheme would “ensure that remittance flows and diaspora investments become a significant source of external financing” for the nation.
The Governor of the CBN, Mr Godwin Emefiele, had explained that the models had been applied in Pakistan and Bangladesh. He said both South Asian countries had introduced reimbursement schemes to support inflows.
In the CBN chief’s words, “In Pakistan, the scheme, which is known as free send, has enabled record amount of inflows of over $2 billion a month even during the COVID-19 pandemic.
“Bangladesh introduced its own scheme in June 2019, which is a two per cent rebate on remittance inflows. Following this action, they have also seen a 20 per cent boost in remittance inflows.”
A respected Economist, Mr Bismarck Rewane, while speaking on the likely implications of the currency promo during a chat with Business Morning on Channels TV in March, said it was designed to increase the country’s awareness and the inflows of Nigeria’s diaspora into the country’s financial system.
However, he noted that it was rare for the government to use such promotional schemes to promote inflows into the country.
“What is challenging here is that it is very unusual for policies to be tied around promos or gimmicks. Usually, promos and gimmicks are used by manufacturers to launch or push products, or airlines when they have low sales.
“So, they tie this kind of promo to buy one get one free or to revamp stagnant sales. So, it’s very unusual and peculiar for governments to engage in gimmicks or promos,” he noted.
But he warned that there are a lot of risks associated with the policy because some people will round trip the policy using arbitrage. Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from tiny differences in the asset’s listed price.
“So, people will try to use arbitrage on the system. But the fact is that Nigeria is number six in the world in terms of diaspora and workers remittances. It is estimated at about $20 to $25 billion [annually].
“The current pandemic and unemployment rates in the US, Canada, the European Union and the United Kingdom are also going to affect the ability of Nigeria to remit money in.
“These two trends have actually dropped sharply because of vaccination certificates and all sorts of the pandemic effect. So, basically, in the end, I think it’s a gimmick. It is a promo, the central bank will fully understand in the end that there’s no other way of managing an exchange rate than converging them, having one rate so that people don’t stop exploiting it.
“In any case, you collect cash, and you take it to the parallel market or autonomous sources to sell the Naira, and then come back and you get the N5. What could happen is that you could turn $1,000 back again to your brother, who will bring it back.
“So, what could happen is that there could be what I call playing with neurons, the same money turning around the velocity of separation increasing, whilst the quantity supplied into the market will not increase.
By Adedapo Adesanya
Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.
In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.
Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.
“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.
He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.
Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.
“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”
By Adedapo Adesanya
The Naira closed the pre-Christmas trading day positive after it gained N6.61 or 0.46 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 24, trading at N1,443.38/$1 compared with the previous day’s N1,449.99/$1.
Equally, the Naira appreciated against the Pound Sterling in the same market segment by N1.30 to close at N1,949.57/£1 versus Tuesday’s closing price of N1,956.03/£1 and gained N2.94 on the Euro to finish at N1,701.31/€1 compared with the preceding day’s N1,707.65/€1.
At the parallel market, the local currency maintained stability against the greenback yesterday at N1,485/$1 and also traded flat at the GTBank forex counter at N1,465/$1.
Further support came as the Central Bank of Nigeria (CBN) funded international payments with additional $150 million sales to banks and authorised dealers at the official window.
This helped eased pressure on the local currency, reflecting a steep increase in imports. Market participants saw a sequence of exchange rate swings amidst limited FX inflows.
Last week, the apex bank led the pack in terms of FX supply into the market as total inflows fell by about 50 per cent week on week from $1.46 billion in the previous week.
Foreign portfolio investors’ inflows ranked behind exporters and the CBN supply, but there was support from non-bank corporate Dollar volume.
As for the cryptocurrency market, it witnessed a slight recovery as tokens struggled to attract either risk-on enthusiasm or defensive flows.
The inertia follows a sharp reversal earlier in the quarter. A heavy selloff in October pulled Bitcoin and other coins down from record levels, leaving BTC roughly down by 30 per cent since that period and on track for its weakest quarterly performance since the second quarter of 2022. But on Wednesday, its value went up by 0.9 per cent to $87,727.35.
Further, Ripple (XRP) appreciated by 1.7 per cent to $1.87, Cardano (ADA) expanded by 1.2 per cent to $0.3602, Dogecoin (DOGE) grew by 1.1 per cent to $0.1282, Litecoin (LTC) also increased by 1.1 per cent to $76.57, Solana (SOL) soared by 1.0 per cent to $122.31, Binance Coin (BNB) rose by 0.6 per cent to $842.37, and Ethereum (ETH) added 0.3 per cent to finish at $2,938.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
The oil market settled lower on Wednesday as investors weighed US economic growth and assessed the risk of supply disruptions from Venezuela and Russia.
Brent crude futures depleted by 14 cents or 0.2 per cent to close at $62.24 a barrel and the US West Texas Intermediate (WTI) crude futures declined by 3 cents or 0.05 per cent to $58.29 per barrel.
US data showed the world’s largest economy grew at its fastest pace in two years in the third quarter, fueled by robust consumer spending and a sharp rebound in exports.
The stronger-than-expected increase in gross domestic product last quarter, which was reported by the Commerce Department on Tuesday, showed gross domestic product (GDP) increased at a 4.3 per cent annualized rate last quarter, the fastest pace since the third quarter of 2023.
Still, Brent and WTI prices are on track to drop about 16 per cent and 18 per cent, respectively, this year, their steepest declines since 2020 when the COVID pandemic hit oil demand, as supply is expected to outpace demand next year.
On the supply side, disruptions to Venezuelan exports have been the most significant factor pushing up oil prices, while market analysts noted that Russian and Ukrainian attacks on each other’s energy infrastructure have also supported the market.
Recently, Ukraine launched a drone strike on a Russian shadow fleet vessel in the Mediterranean. The country has been attacking Russian oil refineries throughout 2024 and 2025, but has visibly widened its campaign in recent weeks, striking oil rigs in the Caspian Sea and claiming credit for sea-drone attacks on three tankers in the Black Sea.
Russian President Vladimir Putin, who ordered a full-scale invasion of Ukraine in February 2022, has threatened to sever Ukraine’s access to the Black Sea in response to the attacks on tankers, which he regards as piracy.
In Venezuela, loaded vessels are waiting for new directions from their owners after the US seized the supertanker Skipper earlier this month and targeted two additional vessels over the weekend.
Reuters reported that oil shipments from Kazakhstan via the Caspian Pipeline Consortium are set to drop by a third in December to the lowest since October 2024 after a Ukrainian drone attack damaged facilities at the main CPC export terminal.
The American Petroleum Institute (API) estimated that crude oil inventories in the US saw a build of 2.4 million barrels in the week ending December 19. Crude oil inventories shrank by 9.3 million barrels in the week prior. The US Energy Information Administration (EIA) is due to release official inventory data on Monday, later than usual due to the Christmas holiday.
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