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Economy

CBN Insists FX Sales to BDCs Not Sustainable, Says Emefiele Won’t Resign

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Godwin Emefiele CBN Governor

By Dipo Olowookere

The Central Bank of Nigeria (CBN) has again defended its decision to stop the sale of foreign exchange (FX) to Bureaux De Change (BDC) operators on July 27, 2021, maintaining that it was the right step.

The Director of Corporate Communications at the CBN, Mr Osita Nwanisobi, while addressing reporters on Monday in Abuja, said the apex bank took the action because it was not sustainable in the long run.

“Such a practice was not sustainable in the long run, considering that many of the BDCs had since deviated from the purpose for which they were issued licenses in the first instance,” he explained to newsmen.

Speaking further, the central bank’s image-maker emphasised that, “The rate in the CBN-unrecognised parallel market was not the reference rate of the Naira.

“So, Nigerians should be wary of the activities of speculators who sought to manipulate the market for unpatriotic reasons.”

Mr Nwanisobi faulted calls from different quarters for the resignation of the CBN Governor, Mr Godwin Emefiele, saying those who want to continue to milk the country dry were behind the development.

Some Nigerians had asked the CBN chief to resign from office following the worsening decline in the value of the local currency at the market, blaming his policies for this.

But Mr Nwanisobi disagreed with them, stressing that “those behind such calls were only pursuing their selfish agenda fuelled by those who had long benefitted from rent-seeking practices in the parallel forex market.”

He assured Nigerians of the CBN’s commitment to meeting the forex requests of travellers with legitimate needs as they relate to travel allowances, payment of tuition and medical fees, among other invisibles, emphasising that there was enough supply of FX to the banks to meet legitimate demands from customers.

According to him, no customer in need of foreign currencies for genuine transactions would be turned back by their banks but said even if such happens, customers can report the bank through the advertised channels.

The CBN spokesman appealed to the banking public to disregard claims aimed at impugning the reputation of the apex bank, noting that the banking sector regulator remains committed to carrying out its mandate for the good of the Nigerian people.

He further said the central bank would not be distracted in its mandate by yielding to selfish tendencies, stressing that the CBN was in control of the situation.

On Tuesday, the Naira appreciated against the United States Dollar at the Investors and Exporters (I&E) segment of the FX market by 40 kobo or 0.10 per cent to trade at N413.28/$1 in contrast to N413.68/$1 it traded on Monday.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

Economy

Tolaram Lauds Stanbic IBTC Capital’s Role in Guinness Nigeria Minority Equity Buyout

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Stanbic IBTC Capital

By Dipo Olowookere

A leading investment banking and capital markets solutions provider, Stanbic IBTC Capital, has been commended for its role in the Mandatory Takeover Offer (MTO) of minority shareholders of Guinness Nigeria Plc by Tolaram.

The deal underscored Stanbic IBTC Capital’s expertise in advising on complex transactions and delivering comprehensive financial solutions to clients.

Tolaram, acting through N Seven Nigeria Limited, contracted the services of Stanbic IBTC Capital as financial adviser for the transaction.

After acquiring a 58.02 per cent stake in Guinness Nigeria in 2024, Tolaram moved to take over the shares of minority investors of the brewery giant.

To make the minority equity boyout successful and meet regulatory requirements, Stanbic IBTC Capital provided comprehensive end-to-end support across both transactions, delivering a full suite of investment banking and capital markets solutions to facilitate the successful completion of this complex corporate action.

This helped Tolaram to, on May 20, 2025, to complete the purchase of the 283,099,431 shares held by minority investors for N22.94 billion, raising its shareholding in Guinness Nigeria to 70.85 per cent.

“We are grateful for the end-to-end support Stanbic IBTC Capital provided Tolaram throughout the MTO process.

“Their on-the-ground presence and expertise was invaluable in navigating the regulatory landscape and ensuring that interested Guinness Nigeria minorities were given the opportunity to sell their shares at the same price that Tolaram acquired the Guinness Nigeria stake from Diageo Plc.

“Guinness Nigeria has sufficient free float despite the MTO and Tolaram intends to continue to maintain Guinness Nigeria’s listing on Nigerian Exchange Limited,” the Group Finance Director of Tolaram, Mr Dinesh Rathi, stated.

In his remarks, the chief executive of Stanbic IBTC Capital, Mr Oladele Sotubo, said, “We thank Tolaram for the longstanding partnership and for trusting Stanbic IBTC Capital to handle this important MTO, having also advised Tolaram on its acquisition of Guinness Nigeria last year.”

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Economy

Verto Launches Auto Exchange For Affordable FX Rates

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Verto Auto Exchange

By Adedapo Adesanya

Global payments solutions platform, Verto, has launched a new solution which will allow businesses to secure optimal foreign exchange (FX) rates automatically.

According to a statement shared with Business Post, Auto Exchange, as the new feature is called, was designed to help rate-sensitive customers secure their target FX rates without constant monitoring.

As a platform, Verto simplifies international money transfers and currency exchange for businesses of all sizes. With a focus on transparency, speed, and cost-effectiveness, Verto empowers businesses to thrive in the global marketplace.

The new tool allows users to set their desired exchange rate and trade amount within the Verto platform, enabling automatic execution when the Verto rate reaches their specified level.

Verto has automating the monitoring and execution process, empowering customers to capture their target rates even when they are not actively logged into the platform. It says this will allow many businesses prioritize achieving the most favorable exchange rates amid market fluctuations.

Auto Exchange provides a seamless and efficient solution, thereby making users can optimise their time and reducing missed opportunities.

“We’re thrilled to introduce Auto Exchange, a feature designed to bring both efficiency and peace of mind to our customers’ FX operations,” says Verto Product Director, Mr Tomasz Bilakiewicz, adding that “No more constant refreshing or fear of missing a target rate. With Auto Exchange, businesses can set their parameters and trust Verto to execute automatically, allowing them to focus on what truly matters – growing their business.”

Verto users can easily set up Auto Exchange orders within the platform by specifying the currency pair for exchange, their desired target exchange rate, the amount they wish to exchange, as well as the direction of the exchange (e.g., GBP to USD).

Auto Exchange is part of a suit of FX solutions offered by cross-border payment platform Verto. With the ability to exchange with bank-beating rates across 49 currencies, Verto is revolutionising cross-border payments with a focus one merging markets.

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Economy

Nigeria’s Oil Production Rigs Jumps 475% to 46 in July 2025

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oil production rig

By Adedapo Adesanya

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that the nation’s oil production rig has witnessed a 475 per cent rise from eight in 2021 to 46 in July 2025.

The chief executive of the agency, Mr Gbenga Komolafe, disclosed this on Wednesday in Abuja at the inauguration of a media workshop organised for journalists covering the oil and gas sector.

The rig countis a key metric for measuring vibrancy and performance in the oil and gas industry.

The rig which is a key equipment on which the oil is drilled reveals the level of vibrancy and the activities in the industry.

According to the commission’s data, about 46 active rigs are driving the current oil production in Nigeria.

Mr Komolafe, however, attributed the steady growth in the rig count to the Petroleum Industry Act (PIA) enactment in 2021, and the commission’s commitment geared towards increasing oil production in the country.

He said the NUPRC through its Project One Million Barrels initiative had scaled up Nigeria’s oil production from one million barrels per day, oscillating around 1.7 million barrels.

The NUPRC boss said the initiative which was inaugurated in October 2024, was expected to increase oil production by one million additional units per year, adding that about 300,000 barrels of oil per day has been achieved since the inauguration of the programme.

He commended President Bola Tinubu for the Executive Orders 40, 41, and 42, which encouraged tax incentives and tax remission as well as redefined the contracting circle and the threshold in the industry.

Mr Komolafe said the 2024 Executive Orders: 40 on fiscal incentives, 41 on local content, and 42 on cost efficiency and contract timelines, had catalysed massive investment inflows.

“These have yielded positive results in terms of the Final Investment Decisions (FIDs) that have attracted huge amounts of money, billions of dollars to the country,” he said.

He urged the media practitioners to report the commission activities professionally in such a way that Nigerians would appreciate and understand its operations.

“As a regulator, we are wrongly perceived, often times people fail to understand the difference between a regulator and an operator.

“As a regulator, our activities put us in a quasi-judicial position, in position to mediate, it is an omnibus job,” he said

He reiterated that the commission will continue to play its role in Nigeria’s oil and gas development.

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