Economy
CBN Injects $9b into Forex Market in 7 Months—Report
By Modupe Gbadeyanka
Not less than $9 billion has been released to the foreign exchange (forex) market in the last seven months by the Central Bank of Nigeria (CBN) in order to keep the Naira at the current rate it trades at the market, Daily Trust is reporting.
The apex bank started its regular intervention on February 21, 2017 and the forex sales were intended to cover for personal and business travels, medical needs, and school fees, futures market and other approved transactions.
Since then till August 31, Daily Trust said about $9 billion has so far been released based on all the official data of forex sales released to the public by the CBN within the period.
When this intervention began, the local currency was being traded at over N520 per Dollar, but at the moment, it has been hovering around N360 to N370 per Dollar.
On February 21, when the CBN interventions began, the CBN offered for sale $370,810,810.79 to 23 banks to meet the “visible and invincible” requests of customers. At the end of February, the CBN had sold out some $550,900,000 in interventions.
Over the next six months FX sales by the CBN were as follows: March; $1,022,000,000; April, $1,321,860,000; May, N1, 422,800,000; June, $1,651,500,000; July, $1,638,800,000 and August, $1,301,000,000.
Thus in seven months, CBN had intervened in the forex market to the tune of $8,908,860,000. Within the period, the Naira appreciated from N520/$1 to N365 to the Dollar at the parallel market.
The forex intervention also doused tensions in the forex market and forced rent seekers out of the market.
But experts wonder whether the cost to the country of nearly $9 billion, against the gains recorded are worth it.
They argue that it is worrying the CBN is funding the market more than the private sector investors,. The private sector ideally should fund the FX market more than the Central Bank, they argue.
Prior to Nigeria’s forex crisis, the market was funded by both the private sector and the CBN.
At the beginning, Nigeria had about $2.7 billion foreign investment from the JP Morgan and $500 million from Barclays but all of these monies were taken out when the CBN tightened controls on the Naira.
Nigeria’s external reserve dropped to $28 billion and the CBN couldn’t meet a lot of forex demands such as the repatriation of funds by the airlines.
To conserve the foreign reserve, the CBN had even stopped funding BDCs and invisibles in addition to restriction of forex on 41 items.
Mr Moses Azege, a Lagos based financial expert said the CBN intervention was unusual, the market didn’t expect it but it worked in stabilising the market.
“Before the intervention, the market was volatile, a lot of profiteering and the banks also got into the business of round tripping,” he said.
He however noted that, the intervention averted the forex apprehension, and ended business for rent seekers and speculators.
On whether the CBN move was sustainable he said, so far, the CBN has shown it can sustain it with the level of interventions.
Mr Rislanudeen Mohammed, the former Acting Managing Director, Unity Bank Plc, said the “Central Bank intervention over the last several months has impacted positively in stabilizing the foreign exchange market and reducing the gap between parallel and black market rates from about N520 to a dollar to the present rate of about N365.”
The “Forex liquidity has also helped in reducing the impact of cost push and imported inflation as evidenced by consistent reduction in core inflation data to present level of 16.05 percent as released by National bureau of statistics. Introduction of NAFEX has also improved transparency in the market hence incentivizing foreign portfolio as well as direct investments” he noted.
However, he explained that “sustaining this intervention is both unrealistic and impossible in the long term. Note that positive oil price, improved oil output as a result of reduced sabotage by Niger delta avengers as well as output quota waiver by OPEC combined to support improved forex income earnings and consolidating improved foreign reserves despite the intervention and attendant depletion of the reserve. Those three factors may not last ad infinitum. To consolidate on success made so far, we need to expeditiously walk the talk in export income diversification.”
On whether the naira can exchange for N200/$1 in the near future he said, it is basically a function of demand and supply. But even the IMF is looking at N365 as the official rate. But it can be determined by market forces” he said.
Nigeria’s foreign exchange reserves stood at a two and a half-year high of $31.81 billion as of August 29, the CBN data showed yesterday.
The latest figure was at a level it last reached in January 2015. Experts have attributed the appreciation of the local currency to the growth in the external reserve and ability of the apex bank to provide enough forex for the market.
By Aduragbemi Omiyale
President Bola Tinubu has called on investors to collaborate with his administration on the issuance of the third Sovereign Green Bond later this year.
Speaking on Wednesday in the United Arab Emirates (UAE), Mr Tinubu said his government was ready to work with other nations to build a resilient, equitable, and sustainable world for all.
“Our energy transition plans, like many nations, are aimed at diversifying energy sources and reducing dependency on fossil fuels, prioritising the transition to cleaner energy sources as a cornerstone of our national development strategy,” the President said on the second day of the 2025 Abu Dhabi Sustainability Week themed From Climate Imperatives into Economic Prosperity: Bridging Africa with the Global Energy Future.
He called on partner countries to collaborate in mobilising resources to tackle these challenges and embrace innovation and technology.
“To promote a Green Economy in Africa, we must focus on integrating sustainable practices in all sectors of our economy.
“These investments are capital intensive and require international support from partner countries, including multinational organisations, development partners and individuals who share our vision of a sustainable, prosperous and equitable future,” he stated.
President Tinubu said, “Nigeria became the first country in Africa to initiate funding of green projects through Sovereign Green Bond proceeds, the third issuance of which is in progress.
“We urge investors to partner with us in this regard. Our administration remains committed to providing an enabling environment for businesses to thrive in Nigeria.
“By partnering with global leaders and harnessing the power of technology, we are finding new and innovative ways to address our environmental challenges. We have arable agricultural lands for advanced technological farming, including a bright future for Artificial Intelligence.”
He declared that no single nation can walk the road to sustainability alone, stressing that global interconnectedness demands collective action, knowledge sharing, and mutual support.
“The fight against climate change is not merely an environmental necessity but a global economic opportunity to reshape the trajectory of our continent and the global energy landscape.
“As leaders, stakeholders and citizens of our planet, we stand at a critical juncture in human history. To succeed, we must innovate, collaborate and act decisively as one global community,” the Nigerian leader disclosed.
Reiterating his administration’s commitment to reducing carbon emissions, President Tinubu assured the audience that the Nigerian government had developed actionable programmes in line with global expectations, bearing in mind Nigeria’s economic and political expectations.
“We have embraced a vision of sustainability that aligns with global aspirations while addressing local realities. Our efforts are anchored on three pillars: Energy Transition, Climate Resilience, and Sustainable Development.
“My administration recognises the importance of reducing carbon emissions and a just transition to clean and renewable energy, promoting environmental sustainability and economic growth,” he noted.
Mr Tinubu added that Nigeria is developing infrastructure for the widespread use of Compressed Natural Gas and electric vehicles and harnessing the potential in solid minerals to support the green energy transition.
He stressed that his country is also implementing climate-smart agricultural practices to enhance food security and lessen its destructive environmental impact.
These include the introduction of the National Clean Cooking Policy, which aims to promote clean energy, environmental and health benefits, and socio-economic development in the African region.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.04 per cent appreciation on Tuesday, January 14 after the share prices of six stocks on the platform recorded movements.
Business Post reports that the bourse ended with four price gainers and two price losers during the session trading session of the week.
FrieslandCampina Wamco Nigeria Plc lost N2.50 yesterday to finish at N39.50 per share versus the previous day’s N42.00 per share and Central Securities Clearing System (CSCS) Plc dropped N1.15 to wrap up the day at N22.05 per unit compared to Monday’s N23.20 per unit.
On the flip side, 11 Plc gained N25.53 to close at N280.84 per share versus N255.31 per share, UBN Property Plc increased by 20 Kobo to N2.20 per unit from N2.00 per unit, Industrial and General Insurance (IGI) Plc added 10 Kobo to close at N16.20 per share compared with the previous day’s N16.30 per share, and Geo-Fluids Plc gained 10 Kobo to settle at N4.66 per unit versus N4.56 per unit.
When trading activities ended for the day, the market capitalisation went up by N410 million to remain relatively unchanged at N1.061 trillion as the NASD Unlisted Security Index (NSI) inflated by 1.19 points to 3,096.19 points from 3,095.00 points.
The volume of securities traded in the session was up by 28.4 per cent during the session to 3.97 million units from 3.1 million units, the value of shares jumped by 161.8 per cent to N8.3 million from N3.2 million, and the number of deals declined by 16.7 per cent to 25 deals from 30 deals.
FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 3.4 million units worth N134.9 million, Geo-Fluids Plc occupied the second spot with 8.9 million units valued at N43.0 million, and the third position claimed by Afriland Properties Plc with 690,825 units sold for N11.1 million.
IGI Plc ended the session as the most active stock by volume (year-to-date) with a turnover of 23.5 million units valued at N5.3 million, followed by Geo-Fluids Plc with 8.9 million units sold for N43.0 million, and FrieslandCampina Wamco Nigeria Plc with 3.4 million units worth N134.9 million.
By Aduragbemi Omiyale
A pioneering agricultural solutions provider based in Kaduna, Nigeria, NaFarm Foods, has been named as the winner of the food category of the 2025 Zayed Sustainability Prize for its Hybrid Solar Food Dryer.
The company clinched the accolade for its groundbreaking innovation in reducing post-harvest losses, improving food security, and promoting sustainable agricultural practices across Nigeria.
Hybrid Solar Food Dryer was designed by NaFarm Foods to address the critical issue of food spoilage by combining solar heat and electricity generated from solar panels for efficient, all-weather drying of food, even during rainy or cloudy days.
With a capacity of 500kg per unit and the ability to retain the nutritional quality of food while minimising energy costs, the technology has already benefited over 80 communities across six Nigerian states.
By reducing post-harvest losses for over 65,000 farmers, the dryers contribute significantly to food security and rural economic empowerment.
The Hybrid Solar Food Dryer is transforming food preservation by reducing spoilage rates, decreasing greenhouse gas emissions from decomposing food, and lowering reliance on fossil fuels.
With a whole-of-life cost of less than 1 cent per 100 litres, the dryers are accessible and economically viable for smallholder farmers and food processors.
By 2030, NaFarm Foods aims to empower two million farmers and reduce carbon emissions by 50,000 metric tonnes annually.
Business Post reports that NaFarms Foods has won $1 million from Zayed to scale its operations by manufacturing and distributing 100,000 dryers across Nigeria and West Africa.
“We are deeply honoured to be recognised as a winner of the Zayed Sustainability Prize. It signifies global recognition of our efforts to tackle food insecurity and promote equitable and sustainable agriculture in Nigeria and beyond.
“This opportunity inspires us to continue pushing boundaries, knowing that our work is not only transforming lives locally but also contributing to a more sustainable and equitable world. For us, this is more than an achievement; it’s a call to action to drive greater impact,” the chief executive of NaFarms Foods, Ms Fatima Jimoh, said.
The Director of the Zayed Sustainability Prize, Dr Lamya Fawwaz, said, “NaFarm Foods’ innovative approach to sustainable food preservation not only improves food security but also empowers rural communities, particularly women and youth, by creating income-generating opportunities. This aligns with the Prize’s mission to drive progress and improve livelihoods.”
NaFarm Foods plans to expand training programmes to empower an additional 25,000 women and youth, fostering entrepreneurship and sustainable economic growth.
Additionally, it intends to establish distribution hubs and implement advanced cluster mapping systems to ensure technology accessibility and improved marketability of produce.
Each year, the Zayed Sustainability Prize rewards organisations and high schools for their groundbreaking solutions, fostering innovation on global challenges. Over the past 17 years, through its 128 winners, the prize has positively impacted 407 million lives worldwide.
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