Economy
CBN Naira Redesign Policy Tears Senate Apart
By Adedapo Adesanya
The Senate was thrown into a rowdy session on Wednesday when lawmakers began a debate on the motion on the Naira redesign policy of the Central Bank of Nigeria (CBN).
The motion, moved by the Chairman of the Senate Committee on Banking, Insurance, and other Financial Institutions, Mr Uba Sani, urged the Senate to provide legislative support for the policy.
He also wants the red chamber to mandate his committee to embark on aggressive oversight on the matter.
Mr Sani also urged the Senate to support the CBN design policy, including the January 31 deadline for compliance.
However, things took a turn when a host led by Senators Ali Ndume, Abiodun Olujimi, Betty Apiafi, Barau Jibrin, Chukwuka Utazi, and Orji Uzor Kalu supported the CBN policy but suggested the extension of the deadline for compliance.
Mr Kalu specifically wanted the Senate to invite the Governor of the CBN, Mr Godwin Emefiele, to throw more light on the policy, while he should be persuaded to extend the deadline to April 30, 2023.
But Senator Gabriel Suswan disagreed with Mr Kalu and others, claiming that the CBN Governor has always shunned the Senate invitations.
He urged his colleagues to ignore the CBN policy and let the country damn the consequences.
Senator Bassey Akpan stressed the need to support the CBN Governor, adding that there should be no discussion on the matter.
Senators Suswan and Akpan’s submissions did not go down well with those seeking an extension of the deadline, and the chamber turned rowdy.
It took the persistent appeals by the presiding officer, Deputy Senate President Ovie Omo-Agege, to maintain normalcy after 10 minutes of hot arguments among the senators.
Mr Omo-Agege said it was the prerogative of the CBN to redesign the Naira and put a deadline for compliance.
It also mandated the Senate Committee on Banking and Financial Institutions to go on oversight.
Mr Ndume had said there are only five banks in the 27 local government areas of Borno State since the insurgency started in the state.
Mr Olujimi also said the one and a half months timeframe was too short of withdrawing all the money in circulation to avoid shutting down the economy.
Mrs Apiafi said the Senate should invite the CBN Governor for further explanation on the issue, adding that rural banking had been shut down hence the January deadline should be extended.
She said counterfeiting wasn’t enough to change the fate of the Naira.
She said the implications of the redesign should be critically examined in view of the fact that bandits have said they would be collecting ransom in foreign currencies.
Mr Jibrin said the Naira redesign cannot halt terrorism but could only reduce it.
Mr Utazi said because of the rural nature of the country, the leadership of the Senate should interface with the CBN Governor to explain the implications of the peculiarity of the country, adding that the CBN should visit all the rural communities to get first-hand information.
Mr Kalu suggested the extension of the deadline from January 31 to April 31. The Committee on Banking and Finance should meet with the CBN Governor on the matter.
After all and sundry, the lawmakers offered to provide legislative support for the policy.
By Adedapo Adesanya
Oil prices climbed about 2 per cent to a one-month high on Tuesday after the US reportedly reimposed a naval blockade on Iran, which will reduce oil flows from the region through the Strait of Hormuz.
Brent futures rose by $1.43 or 1.7 per cent to settle at $84.73 per barrel, while the US West Texas Intermediate (WTI) crude increased by $1.20 or 1.5 per cent to $79.34 a barrel.
Brent closed at its highest since June 12, and WTI at its highest since June 15. The closing price increase kept Brent in technically overbought territory for a second day in a row for the first time since March.
Before the Iran war, about 20 per cent of global oil supplies flowed through the strait.
US President Donald Trump stepped back from a proposal to charge a 20 per cent fee to guard the Strait of Hormuz as part of the conflict with Iran, saying he would instead seek investment deals with Gulf states.
US forces had carried out waves of attacks for the third night after Iran said it had closed the strait. President Trump on Monday reinstated a blockade of Iranian shipping and proposed the fee, but hours before the fee was to take effect, the American President said the strait was open to all shipping traffic except that of Iran.
The renewed attacks have fed doubts that a memorandum of understanding signed last month will lead to a permanent halt in the war that has disrupted global energy supplies and stoked inflation fears.
Data showed that US consumer inflation slowed more than expected in June as energy prices retreated, but financial markets still expect an interest rate hike from the Federal Reserve.
The Federal Reserve Chairman Kevin Warsh on Tuesday vowed to “do my job” if challenged by President Trump, who has said he wants the US central bank to cut interest rates and boost economic growth.
The American Petroleum Institute (API) estimated that crude oil inventories in the US fell by 564,000 barrels in the week ending July 10. In the week prior, US crude oil inventories fell by 399,000 barrels.
Although commercial crude oil inventories excluding the SPR have been falling rapidly for three months now, shedding just over 60 million barrels over the last twelve weeks, US crude inventories are only down 9.2 million barrels so far this year. The US Energy Information Administration (EIA) will release its report later on Wednesday.
By Adedapo Adesanya
The 700,000 barrels per day Dangote Petroleum Refinery has begun pricing fuel products for the local market in US Dollars amid crude supply challenges.
The company cited difficulties securing sufficient crude under the government’s Naira-for-crude programme and rising global oil prices as reasons for the development.
The Naira-for-crude programme, launched in October 2024, allowed domestic refiners to purchase crude in the local currency and reduced pressure on the foreign exchange market.
Mr Edwin Devakumar, the vice president of the Dangote Group, said the refinery had been absorbing a currency mismatch by selling products in Naira while sourcing crude in Dollars, but limited crude supply under the Naira-for-crude programme had undermined the arrangement’s viability.
Dangote has now set the ex-depot price of petrol at $0.779 per litre, diesel at $1.087 per litre and aviation fuel at $0.942 per litre, according to a pricing template circulated to marketers.
Although the Nigerian National Petroleum Company (NNPC) Limited increased Dangote’s allocation to seven cargoes in May from about five previously, the refiner has said it requires 13 to 15 cargoes a month and has been forced to import the remainder at international prices.
The decision could boost demand for Dollars among fuel marketers and make domestic fuel prices more sensitive to exchange-rate fluctuations.
Dangote Refinery is steadily ramping up operations toward full capacity after a gradual start since late 2023. In April alone, it received 21 separate crude cargoes, with all supplies coming from West Africa, mainly Nigerian crude grades, with one cargo from Cameroon; however, it boosted international cargoes in recent months.
The refinery has been broadening the range of crude grades it processes as part of its ambition to operate as a fully merchant refinery. In 2025, about 70 per cent of the refinery’s crude imports came from Nigeria, while 24 per cent originated from the United States.
Dangote plans to double the refinery’s processing capacity to 1.4 million barrels per day by the end of 2028, a level that would enable it to process about 80 per cent of Nigeria’s recent crude oil production in a single day.
By Adedapo Adesanya
The Nigeria Customs Service (NCS) is seeking a reduction in import duty exemptions, which rose to N34 trillion, limiting its ability to increase its revenue generation threshold.
The Comptroller-General of the Customs Service, Mr Adewale Adeniyi, disclosed that the value of import duty exemption certificate approvals increased to that level in 2025, describing the policy as one of the major factors restricting its revenue generation.
At an investigative session of the Senate Committee on Finance with revenue-generating agencies in Abuja on Monday, Mr Adeniyi explained that government fiscal policies have continued to impact the revenue-generating capacity of the Customs Service, both positively and negatively.
“The NCS would have generated significantly higher revenue over the years if not for government-approved import duty waivers and other external factors affecting collections,” he said.
He added that the Import Duty Exemption Certificate scheme, introduced in March 2020, accounted for about N34 trillion in approvals in 2025, with nearly 60 per cent covering duty-free importation of military hardware due to Nigeria’s prevailing security challenges.
Other government-backed duty waivers, he noted, covered the importation of Compressed Natural Gas (CNG), electric and hybrid vehicles, healthcare equipment and medical supplies, industrial machinery and manufacturing inputs, as well as food import intervention programmes.
While acknowledging the impact of the waivers on Customs revenue, Mr Adeniyi argued that fiscal policy should not be assessed solely on the basis of revenue generation but also on its broader economic and social objectives.
He, however, urged the federal government to establish stronger monitoring mechanisms to ensure beneficiaries of duty waivers deliver the intended economic outcomes, including lower consumer prices, increased local production and improved healthcare access.
The committee also expressed displeasure over the absence of several heads of government agencies invited to the hearing, including the Nigerian Civil Aviation Authority (NCAA), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Industrial Training Fund (ITF), and the Federal Medical Centre (FMC), Jabi.
The Chairman of the Senate Committee on Finance, Mr Sani Musa, warned that the affected chief executives must appear at the committee’s next sitting or face severe sanctions under the Senate’s rules.
