Economy
CBN’s Forex Supply to BDCs Damaging Economy—Analysts
By Modupe Gbadeyanka
The Central Bank of Nigeria (CBN), as part of its commitment to keep the exchange rate of the Naira and Dollar stable at the foreign exchange (forex) market, started the supply of forex to authorized traders at the market.
The first was to make forex readily available to investors as well as exporters of some essential products and materials and it created the Investors and Exporters (I&E) FX window.
Thereafter, the apex bank started the regular supply of forex to Bureau De Change Operators (BDCs) and since then, the exchange rate at the commercial banks and BDCs has been narrowed, which many had called for in the past.
According to the International Monetary Fund (IMF), the CBN operates up to five different forex market segments and they are the CBN official window rate of N305/$1, a retail/wholesale window rate of N325-330/$1, the I&E window rate of N360/$1, the invisible transactions through BDC and SMEs separate window rate of N360-365/$1, and some government transactions (e.g. FAAC allocations) at a rate closer to N320-325/$1.
But analysts at Investment One believe the supply of forex to BDC operators is doing the nation’s economy more damage than good. In a report last week, it said, “Evidently, the adoption of liberal dollar supply to BDCs has done much harm to the economy.”
In the report titled Multiple Exchange Rates, one of the firm’s analysts opined that, “The multiple exchange rate regime that we operate promotes currency speculation at the expense of real production domestically.
“You would see some traders who would sell dollar at a higher price in a window having accessed it at a cheaper price in another window, taking advantage of price differences in the market.”
It was stated in the report that BDCs may have graduated from merely meeting the retail requirements of travelers to becoming hard-core suppliers of foreign exchange for money laundering and trafficking purposes!
The motivation for money laundering and currency trafficking has taken root from the free access to public sector dollars made available to BDCs by CBN. Here is another report that puts more colour to the picture.
While currency speculation has led to the depreciation in Naira on several occasions, other illegal practices by politically exposed persons have starved the industrial and manufacturing sector of forex for raw materials, machinery and spare parts hence inhibiting potential for economy growth and development, the report disclosed.
Investment One advised the CBN to return to the regime of a single market for forex like Nigeria did in 1987 before it introduced the multiple foreign exchange policy to facilitate non-oil inflows into the Deposit Money Banks and mitigate the depreciation in the local currency.
The investment company noted that, “Our neighboring country, Ghana grows faster, and yes, they operate a flexible market-based exchange rate regime.”
However, it pointed out that, “Of course, no two economies are the same. However, economists have always favoured a single exchange rate system over a multiple exchange regime. Former CBN Governor, Professor Charles Soludo, speaks in support of the above in this write up.”
By Modupe Gbadeyanka
The transition guidelines on the Tax Acts 2025 to provide direction to taxpayers, tax practitioners, revenue authorities and other stakeholders on how to address various issues arising from the old regime to the new framework have been released by the federal government.
The framework was issued on Thursday via a statement signed by the Director of Press Relations in the Federal Ministry of Finance, Efe Ovuakporie.
The guidelines set out the process for transition from the repealed tax laws to the new tax framework effective January 1, 2026.
Under the guidelines, the Tax Acts 2025, comprising the Nigeria Revenue Service (Establishment) Act, the Nigeria Tax Act, the Nigeria Tax Administration Act, and the Joint Revenue Board (Establishment) Act, apply from the respective commencement dates as enacted in each law. In particular, January 1, 2026, for the Nigeria Tax Act, 2025.
Tax liabilities, assessments, audits, investigations, disputes and enforcement actions relating to periods before that date will be treated under the repealed tax laws, the notice stated.
Tax returns relating to accounting periods ending before January 1, 2026, will be filed under the previous tax laws, while returns relating to accounting periods ending from January 1, 2026, onward will be administered under the new tax framework.
The document also covers the treatment of income taxes, transaction taxes, development levies, tax incentives, exemptions, record-keeping obligations and transactions that span both the old and new tax regimes.
Existing tax incentives and exemptions granted under the repealed laws will remain in place until their expiration dates. New applications and pending requests, however, will be considered under the provisions of the Tax Acts 2025.
The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, described the Tax Acts 2025 as a significant milestone in Nigeria’s tax reform programme, noting that the Guidelines set out how existing obligations, ongoing matters and future transactions will be treated under the new regime.
According to the Minister, the guidelines are anchored on three key principles – clarity, fairness and administrative certainty, adding that they are intended to promote uniform implementation and support effective administration across the Nigeria Revenue Service, State Internal Revenue Services, the FCT Internal Revenue Service, Local Government Revenue Committees, tax practitioners and taxpayers nationwide.
By Adedapo Adesanya
The Federation Account Allocation Committee (FAAC) has shared a total of N2.300 trillion among the federal government, state governments, and Local Government Councils from the revenue generated in May 2026.
The amount is slightly higher than the N2.257 trillion distributed last month, according to a statement issued by the Head of Information at the Federal Ministry of Finance, Mrs Efe Ovuakporie.
The FAAC allocation was confirmed at its June 2026 meeting following consideration of revenue receipts for the month of May.
The total distributable revenue of N2.300 trillion comprised N1.611 trillion from statutory revenue and N688.785 billion from Value Added Tax (VAT).
From the distributable amount, the federal government received N818.680 billion, while state governments got N759.141 billion. Local Government Councils were given N534.277 billion, and oil-producing states received N188.132 billion as 13 per cent derivation revenue.
The gross statutory revenue for the month stood at N2.652 trillion, representing an increase of N273.623 billion compared to the N2.378 trillion recorded in April 2026.
FAAC reported significant increases in collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and oil royalties during the period under review.
However, collections from Import Duty, Value Added Tax (VAT), Excise Duty, and Common External Tariff (CET) levies recorded declines compared to the previous month.
Gross VAT revenue for May 2026 stood at N743.668 billion, lower than the N806.617 billion collected in April 2026.
The committee noted that despite the decline in VAT collections, overall revenue performance for the month was strengthened by improved receipts from petroleum-related taxes and Companies Income Tax.
By Aduragbemi Omiyale
Trading in the equities of Fortis Global Insurance Plc on the floor of the Nigerian Exchange (NGX) Limited has been suspended.
The action was taken on Wednesday, June 17, 2026, by the regulatory subsidiary of the NGX Group Plc, NGX Regulation (NGX RegCo) Limited.
It was to prevent investors from buying and selling the company’s securities on the stock market ahead of its share reconstruction.
According to a circular signed by the Head of Issuer Regulation Department of NGX RegCo, Mr Godstime Iwenekhai, the suspension is also to determine the shareholders who are entitled to receive the reconstructed shares.
“Trading license holders and the investing public are hereby notified that trading in the shares of Fortis Global Insurance Plc was suspended on Wednesday, June 17, 2026.
“The suspension is necessary to prevent trading in the shares of Fortis Global Insurance Plc to enable the Company’s Registrars and the Central Securities Clearing System Plc (CSCS) to reconcile their books for the listing of the reconstructed shares on Nigerian Exchange Limited (NGX).
“The suspension is also required for the purpose of determining the shareholders who are entitled to receive the reconstructed shares,” the notice stated.
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