Economy
CBN Sells Dollar to BDCs at N1,101/$1 to Cheapen Exchange Rate
By Adedapo Adesanya
As part of its efforts to continue to ease the exchange rate in the country and strengthen the Naira, the Central Bank of Nigeria (CBN) has offered to sell Dollars to Bureau De Change (BDC) operators at N1,101/$1.
In a circular issued on Monday, the CBN announced the sale of $10,000 to each of the approved 1,588 BDCs in the country, directing them to sell to their eligible customers at a rate not exceeding 1.5 per cent above the purchase price.
According to the notice seen by Business Post, these forex traders are not allowed to exchange the local currency with the American currency higher than N1,117/$1, as failure to adhere to this could attract sanctions.
The selling rate is below the N1,251.05/$1 recorded at the end of last week, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).
At the cost of N1,101/$1, the auction of the $10,000 means the CBN made over N15.89 billion from the 1,588 eligible BDCs highlighted in the circular.
Last week, the Naira posted further appreciation for the entire four days of trading at the official market, as it moved to post-devaluation levels. It is now cheaper to get FX on the streets than at official, regulated channels following recent policies by the CBN under Governor Yemi Cardoso.
The CBN this year alone has raised the benchmark interest rate by 600 basis points to 24.75 per cent in response to the country’s rapidly rising inflation. However, the CBN’s overall aggressive strategy has brought about some stability.
The use of unorthodox strategy, including cracking down on unofficial market operators and virtual service providers who it believes are exploiting the Naira’s weakness by driving demand for the US Dollar pegged USDT, has also provided support for the local currency.
Despite the return of the BDC players, the Association of Bureau de Change Operators of Nigeria (ABCON) in a letter signed by its President, Mr Aminu Gwadabe, to the Director, Trade and Exchange Department, said CBN’s selling rate to BDCs is very expensive.
The association, which is an umbrella body for CBN-licensed BDC operators, insisted that the Naira’s speedy recovery, which was faster than expected, had made it difficult to offload to retail end buyers that are trooping to the undocumented forex operators for cheaper rates and avoiding its services.
By Adedapo Adesanya
Oil prices surged over 5 per cent to a two-week high on Wednesday after US President Donald Trump declared that the interim ceasefire agreement with Iran is officially.
Brent futures rose $4.40 or 5.9 per cent to settle at $78.02 a barrel, while the US West Texas Intermediate (WTI) crude increased by $3.64 or 5.2 per cent to $73.52 per barrel.
The American President said an interim deal signed last month to end the war with Iran was “over” and that the US was likely to launch new strikes on Wednesday night following Iranian attacks on US bases in the Gulf and tankers in the Strait of Hormuz.
Asked before a NATO summit in Turkey whether the memorandum of understanding was over, President Trump said: “It’s a very interesting question. To me, I think it’s over. I don’t want to deal with them.”
He later ruled out the restart of full-fledged war with Iran, which pulled oil benchmarks lower from the session’s highest gains of as much as 9 per cent.
A fifth of global oil supplies moved through the Strait before the Iran war began on February 28 after US-Israeli airstrikes against Iran, which led to retaliation that forced Middle Eastern oil producers to cut millions of barrels of oil production.
Iran on Tuesday attacked three commercial vessels transiting the Strait of Hormuz, prompting retaliatory attacks by the US. A Saudi-flagged LNG tanker was struck on its port side, causing an engine room fire, while the supertanker suffered minor damage off the coast of Oman.
In response, US Central Command (CENTCOM) conducted massive offensive airstrikes hitting more than 80 military targets inside Iran while the Trump administration also revoked a temporary sanctions waiver that allowed Iran to sell oil and petrochemicals, cutting off a key revenue stream for the oil producer.
Freight rates for tankers operating in the Gulf have surged as shipowners demand higher risk premiums, while refiners in Asia are scrambling to secure alternative cargoes from West Africa, the US, and Latin America in case Hormuz remains closed.
The International Monetary Fund (IMF) downgraded its 2026 global economic growth forecast to 3 per cent, down from 3.5 per cent posted in 2025, with the impact of the Iran war expected to negate gains made by the ongoing AI boom.
By Adedapo Adesanya
The Independent Petroleum Producers Group (IPPG) is pushing for a harmonised tax regime for Nigeria’s oil and gas sector, citing the burden of more than 270 different taxes, fees and statutory levies imposed on operators.
The Chairman of IPPG, Mr Adegbite Falade, stated this in his keynote address at the opening of the 2026 NOG Energy Week in Abuja.
He said a situation where oil firms pay as many as 270 different types of taxes and levies discourages investment and threatens the viability of many projects.
Mr Falade said while recent government reforms have improved investor confidence, the multiplicity of charges imposed by different government agencies risks undermining those gains.
“Today, the Nigerian oil and gas industry remains the most taxed and levied in the country, and perhaps globally, with over 270 separate fees, taxes and levies,” he said.
According to him, the cumulative burden of these charges has begun to outweigh the incentives introduced under the Petroleum Industry Act (PIA), particularly for smaller indigenous operators managing mature oil assets.
He warned that the situation could force some operators to abandon projects, urging the federal government to harmonise the various charges into a transparent and globally competitive fiscal framework.
“We therefore urge the government to undertake a comprehensive harmonisation of all fees and levies across all agencies to eliminate duplication, ensure transparency in how these charges are computed and applied, and align the overall fiscal burden with the incentive-driven spirit of the PIA,” he said.
Beyond fiscal reforms, the IPPG chairman identified an emerging manpower crisis as another major threat to the industry, noting that the retirement of experienced professionals and recent international oil company divestments have created significant skills gaps that require urgent investment in workforce development.
Mr Falade also called for a comprehensive review of the PIA five years after its enactment, to address implementation challenges and incorporate presidential directives that have improved investment conditions.
He stressed that Nigeria must shift its focus from simply increasing crude oil production to creating greater value through refining, gas processing, power generation, fertiliser production and petrochemicals.
According to him, the country’s vast hydrocarbon resources should serve as a catalyst for industrialisation rather than continued exports of raw crude and gas.
While commending the administration’s reforms that have helped secure more than $8 billion in upstream final investment decisions since 2023 and boosted oil production to about 1.6 million barrels per day, Mr Falade maintained that sustainable growth would depend on creating a more competitive operating environment for investors.
By Aduragbemi Omiyale
The embargo earlier placed in the trading of Thomas Wyatt Nigeria shares has been lifted by the Nigerian Exchange (NGX) Regulation Limited.
The regulatory subsidiary of NGX Group lifted the suspension on Monday, July 6, 2026, via a notice signed by Bonaventure Onwuji on behalf of the Head of the Issuer Regulation Department of NGX RegCo.
Investors were earlier prevented from buying and selling equities of the organisation after it failed to submit its relevant financial statements as required by the listing rules.
The embargo was placed on October 31, 2025, in line with the provisions of Rule 3.1: Rules for Filing of Accounts and Treatment of Default Filing, which provides that if an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: a) send to the issuer a second filing deficiency notification within two business days after the end of the cure period, b) suspend trading in the issuer’s securities, and c) notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.
After filing the results with NGX Limited, and pursuant to Rule 3.3 of the Default Filing Rules, which states that the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided the exchange is satisfied that the accounts comply with all applicable rules of the exchange. The exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension, that the suspension has been lifted, the suspension was lifted.
