Economy
FG, CBN’s Silence Create Confusion as Traders, Supermarkets, Others Reject Old Naira Notes
By Dipo Olowookere
The inability of the federal government and the Central Bank of Nigeria (CBN) to give a direction on the old Naira notes, which the apex bank earlier said would cease to be legal tender in the country from February 10, 2023, is creating confusion.
Business Post gathered that in Lagos, some traders, supermarkets, eateries and others now reject old Naira notes; N200, N500, and N1,000. They insist on collecting the redesigned currencies or being paid through the Point of Sale (POS) machine.
At one of the prominent eateries on the Egbeda-Idimu Road in the Egbeda area of Lagos, customers expressed bitterness over the refusal of the management of the facility to accept payment with the old notes on Friday night.
“I wanted to pay for the food I bought, but I was told they would not accept the old currency notes except the new ones. I had to use my debit card to pay through their POS machine,” one of the customers, Mr Aigbe James, told this reporter.
Recall that on Wednesday, the Supreme Court granted an interim injunction sought by the Governors of Kaduna, Kogi, and Zamfara States, to stop the implementation of the deadline of the currency swap policy of the central bank.
The Governors claimed that the policy was making residents of their states go through untold hardship as it was already causing protests in some parts of the country.
The apex court ruled that the status quo should be maintained until the matter is heard next Wednesday. This meant that the old and new notes should be allowed to co-exist until a final judgement is given.
On Friday, an emergency Council of State meeting was conveyed by President Muhammadu Buhari to discuss the policy and others, including the general elections starting in two weeks’ time.
Briefing newsmen after the meeting, the Attorney-General of the Federation and Minister of Justice, Mr Abubakar Malami, said the council threw its weight behind the policy but advised the CBN to print more banknotes or recirculate the old Naira notes to ease the cash crunch in the country. He also said the government was advised to obey the Supreme Court order, meaning the deadline will no longer be applicable.
But some banks sent messages to their customers yesterday, informing them that the deadline remained February 10.
“The old designs of N200, N500 and N1000 will no longer be accepted as legal tender after today, February 10, 2023. Deposit your old notes now at any of our branches,” one of the banks stated.
At the Ikeja area of Lagos State on Saturday, some traders at the popular Computer Village refused to accept the old notes.
It was a similar story in Maryland as a few supermarkets visited by this reporter rejected the old Naira notes, insisting on the new currency notes or card payments.
Those who spoke with this newspaper stressed that their refusal was because the government was yet to speak on the deadline and do not want to lose their money.
When reminded that the CBN had earlier said after the deadline, Nigerians could still deposit their old notes till February 17, the respondents said they just want to be on the safer side.
Meanwhile, some POS operators still accept the old banknotes, especially as they battle with getting the new notes.
“I still accept the old notes because I can still take them to the bank before February 17.
“Getting the new notes is very difficult, and we purchase the old notes at an exorbitant price. I pay between 10,000 and N17,000 to get N100,000 in old notes in this area; that is why we charge our customers almost N2,000 for N10,000.
“Some people think we are taking advantage of the situation to hike our charges, but it is not our fault. I am only buying [the old notes] because I don’t want to go out of business,” one of the operators in the Iyana Ipaja area of Lagos State, Ms Toyin Sokoya, informed Business Post.
By Adedapo Adesanya
The federal government has begun the process of repaying the N4 trillion debt owed to Power Generation Companies (GenCos) with the launch of a N590 billion first-tranche bond issuance.
The initial tranche, part of the wider N4 trillion Nigerian Bulk Electricity Trading (NBET) Finance Company Plc Bond Programme, comprises N300 billion in cash bonds to be issued to the market and N290 billion in non-cash bonds to be directly allotted to GenCos on identical terms.
The bond term sheet revealed that the Series 1 bond will be issued between November and December 2025 with CardinalStone Partners Limited serving as the lead issuing house and financial adviser.
The seven-year bond has a coupon range of 16.25 per cent to 16.75 per cent and carries a full sovereign guarantee and will be listed on both the Nigerian Exchange Limited and FMDQ Securities Exchange, making it eligible for investment by pension fund administrators, banks, asset managers, insurers and high-net-worth investors.
According to the term sheet, “Series 1 Tranche A involves N300bn issued to the market for cash, while N290bn under Tranche B is allotted to the GenCos on identical terms. The bond will be issued between November and December, with a seven-year tenor on a fixed-rate coupon, redeemed on an amortising basis and paid semi-annually in arrears.”
The bond issuance marks a major step by President Bola Tinubu’s administration to resolve what experts describe as one of the most crippling financial crises in Nigeria’s power sector. The Series 1 bond carries a seven-year tenor, a fixed coupon rate, and semi-annual interest payments, and will be amortised over its lifespan.
The issuer also retains the discretion to absorb oversubscription of up to N1.23tn, creating room for additional non-cash bond allocations to GenCos if required.
The term sheet added, “Pricing will be based on the yield of the seven-year FGN bond plus a spread, and the issuance will be conducted through a book-build process. The minimum subscription is N5m, representing 5,000 units at N1,000 each, with additional subscriptions in multiples of N1,000.
“Proceeds from the issuance will be used to settle outstanding liabilities owed to GenCos. The instrument is guaranteed by the full faith and credit of the Federal Government, enjoys CBN liquidity status, meets PenCom compliance requirements, qualifies under the Trustee Investment Act, and will be listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange.”
It further noted that “oversubscription may be absorbed at the discretion of the issuer up to a maximum of N1,230,000,000,000 approved for Phase 1 of this transaction. The issuer reserves the right to increase the size of the non-cash bonds to be issued to the GenCos under any Series or accommodate additional allotments as may be required.”
By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited and Heirs Energies have signed a deal to capture and use the gas flared at their onshore OML 17 joint venture in a bid to monetize the resource and reduce flaring.
The state oil company and Heirs Energies have signed the Gas Flare Commercialisation Agreements under the Nigerian Gas Flare Commercialisation Programme (NGFCP), a deal that will see both entities capture the gas flared across OML 17 and deploy it for use in power generation, industrial applications, liquefied petroleum gas (LPG), and compressed natural gas (CNG).
The agreements bring together Heirs Energies, as operator of the OML 17 Joint Venture, and approved flare gas offtakers – AUT Gas, Twems Energies, Gas & Power Infrastructure Development Limited (GPID), PCCD and Africa Gas & Transport Company Limited (AGTC) – under frameworks designed to eliminate routine flaring while converting previously wasted resources into economic value. The move is aligned with Nigeria’s gas development priorities and energy transition goals, Heirs Energies said in a statement.
Gas flaring has been a major issue at Nigeria’s oilfields where it is wasted instead of used for many industrial purposes, and holds back the country’s targets to reduce emissions.
Last year, World Bank data showed that Nigeria saw flaring volumes jump by 12 per cent, the second largest increase globally behind Iran.
Flaring at oil and gas facilities operated by the national oil company and several smaller companies, likely with limited expertise or funding for gas utilization, accounted for 60 per cent of Nigeria’s gas flaring and 75 per cent of the increase in 2024, the report found.
Commenting on the deal to monetize gas at OML 17, Heirs Energies CEO, Mr Osa Igiehon said that “Through disciplined investment, partnership with regulators and credible offtakers, and a clear execution focus, we are converting waste into value, strengthening domestic energy supply and supporting responsible operations across OML 17.”
On his part, the Chief Upstream Investment Officer of NNPC Upstream Investment Management Services (NUIMS), Mr Seyi Omotowa, representing NNPC Limited, described the milestone as a practical demonstration of Nigeria’s commitment to gas-based development.
“Flare gas commercialisation is not a compliance exercise; it is a strategic pathway to improving energy availability, deepening gas-based industrialisation and strengthening Nigeria’s position as a responsible energy producer. OML 17 has become a practical model of this vision, moving decisively from approval to delivery.”
He commended Heirs Energies for disciplined execution and investment, noting that the JV continues to set benchmarks for operational delivery and gas development within Nigeria’s upstream sector.
By Adedapo Adesanya
Data sourced from the latest Fact Sheet released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that daily petrol consumption in Nigeria dropped by 6.8 per cent to an average of 52.9 million litres in November 2025.
The November figure marked a decline from the 56.74 million litres per day recorded in October 2025.
Of the total petrol consumed last month, 19.5 million litres per day were supplied by local refineries, higher than the 17.08 million litres per day recorded a month earlier.
A major driver of this increase was the Dangote Refinery, supplying an average of 23.52 million litres per day, up from 18.03 million litres daily in the previous month.
The Fact Sheet showed that imports accounted for 52.1 million litres per day of total consumption, showing an increase from 27.6 million litres per day in October.
The NMDPRA described Dangote’s current output as a significant milestone in reducing Nigeria’s reliance on imported fuel.
In contrast, the NNPC-operated Port Harcourt, Warri, and Kaduna refineries recorded zero petrol output during the period, and all three facilities remained in various states of rehabilitation or shutdown.
According to the regulator, the surge in imports was triggered by low supply levels in September and October 2025, which fell short of national demand, the need to shore up national stock ahead of end-of-year peak consumption, NNPC’s importation efforts to rebuild inventory and ensure supply security, and delayed offloading of 12 vessels initially scheduled for October but discharged in November.
October 2025 recorded the highest consumption within the one-year review period, followed by November 2024 (56 million litres) and April 2025 (55.2 million litres), the report noted.
The data showed that Nigerians also consumed an average of 15.4 million litres/day of diesel daily in November, alongside 2.5 million litres/day of aviation fuel and 3,992 million litres/day of cooking gas.
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