Economy
Naira Appreciates After CBN Rules Out Devaluation
By Adedapo Adesanya
Calm return to the foreign exchange market in Nigeria on Friday after the Central Bank of Nigeria (CBN) on Thursday said it was not going to devalue the Naira as earlier being feared in some quarters.
This made the local currency to retreat to N380/$1 at the parallel market yesterday, after the value depreciated to N400/$1 at the black market due to panic demand for forex. This consequently made dealers to hoard the ones with them.
However, the local currency depreciated by N2 against the Euro at the same market segment, selling on Friday at N416/€1 instead of the N414/€1 it was traded on Thursday. But the domestic currency maintained stability against the Pound Sterling at N490/£1.
Business Post observed that the assurance from the CBN about the devaluation rumour boosted the confidence of investors at the Investors and Exporters (I&E) segment of the market yesterday.
Data from FMDQ showed that the Nigerian currency appreciated by N5.53k or 1.48 percent against the US Dollar to close at N368.47/$1 compared with N374/$1 it traded at the previous session.
The value of transactions at the I&E window significantly increased during the session as transactions worth $1.03 billion were carried out in contrast to $156.42 billion achieved on Thursday, representing an increasse by 5, 578 percent or $872.58 million.
In the statement issued by spokesman of the banking industry regulator in Nigeria, Mr Isaac Okorafor, it was stressed that, “The Central Bank of Nigeria wishes to note with displeasure, the rumours and speculative activities of unscrupulous players in the foreign exchange market, borne out of the impression that the CBN is on the verge of devaluing the Naira, and triggering panic in the FX Market.”
At the interbank segment of the market, which is the government’s exchange rate, the Naira remained flat at N306.95/$1.
At the Bureaux De Change (BDCs) segment in Lagos, the Naira gained N12 to close at N370/$1 in contrast to N382/$1 it quoted the previous session. Against the Pound, the domestic currency remained unchanged at N490/£1, while it declined by N8 on the Euro to close at N416/€1 compared with N408/€1 it was sold on Thursday.
In Abuja, the local currency appreciated by N2 against the greenback to N366/$1 from N368/$1. However, it depreciated against both the Euro by N6 to N424/€1 from N418/€1 and lost N1 on the Pound to close at N488/£1 in contrast to the previous rate of N487/£1.
In Port Harcourt, the local currency appreciated by N11 against the American currency to N370/$1 from N381/$1, and gained N13 against the British Pound to N476/£1 from N489/£1, while it appreciated by N63 on the Euro to N417/£1 from N480/€1.
In the city of Kano, the value of the Naira was strengthened against the Dollar by N13 to close at N367/$1 compared with N380/$1 it was traded the previous day. However, it closed flat against the Pound Sterling and the Euro at N475/£1 and N417/€1 respectively.
In its statement on Thursday, the CBN warned against panic buying, noting that it has commenced investigations in collaboration with the Nigerian Financial Intelligence Unit (NFIU) and related agencies to uncover the persons and FX dealers behind the panic calls.
“The CBN will invoke the full weight of applicable sanctions on any persons and authorised dealers found to be involved in such disruptive and speculative market behavior,” the CBN warned, maintaining the country has what it takes to defend the Naira.
By Adedapo Adesanya
The National Pension Commission (PenCom) has defended its decision to allow Pension Fund Administrators (PFAs) to invest in the parent companies of their custodians, insisting that adequate safeguards are in place to protect contributors’ funds.
The director-general of the pension regulator, Ms Omolola Oloworaran, speaking on Tuesday during the Meet the Press Briefing at the Presidential Villa, Abuja, said the commission’s decision to relax the investment restriction followed a comprehensive risk assessment that found minimal conflict of interest.
She explained that under PenCom’s investment regulations, PFAs are only permitted to invest pension assets in carefully selected instruments that meet stringent criteria, including profitability, strong credit ratings and proven track records.
According to her, the commission regularly reviews its investment regulations, conducts routine examinations and spot checks on PFAs to ensure strict compliance with established risk management guidelines.
“PFAs cannot just go into the stock market and buy any kind of stock. There are strict guidelines. Companies must demonstrate profitability, have a proven track record and satisfy other criteria before pension funds can invest,” she said.
Ms Oloworaran noted that each PFA also operates under the oversight of a board, an investment committee and a risk management committee, providing additional layers of governance to safeguard contributors’ funds.
She said PenCom recently issued a circular allowing PFAs to invest in the parent companies of their custodians after determining that the potential conflict of interest was negligible.
The PenCom boss explained that the parent companies involved are largely Tier-1 banks, including First Bank, United Bank for Africa (UBA) and Zenith Bank, which she described as A-rated institutions with strong financial foundations.
She said the policy was intended to widen investment opportunities for pension funds without compromising safety.
Using Stanbic IBTC as an example, Ms Oloworaran explained that if its custodian is Zenith Bank, the previous restriction prevented the pension administrator from investing in Zenith Bank shares despite the bank’s strong performance.
“We reviewed the risks and any potential conflict of interest and found the risks to be very low. That is why we opened that investment window,” she said.
By Aduragbemi Omiyale
Analysts at Meristem Research have predicted that the inflation rate for June 2026 in Nigeria should marginally rise to 15.95 per cent on a year-on-year basis from the 15.93 per cent reported in May 2026.
The National Bureau of Statistics (NBS) is expected to release inflation numbers for last month later today, Wednesday, July 15, 2026.
In its report sighted by Business Post, Meristem Research said it expects inflationary pressures to re-emerge across key economies in the near term, as the re-escalation of the US-Iran conflict has reignited upward pressure on global oil prices.
It disclosed that this marks a sharp reversal from most of June, when the ceasefire between the two countries helped drive oil prices lower, raising expectations of some relief on the inflation front.
With conflicts now flaring up again, oil prices are likely to increase again, and the anticipated easing in energy-driven inflation may not materialise as broadly as earlier envisaged.
“Nonetheless, some relief is likely from the food segment, where robust supply conditions across major producing regions and softening demand should continue to ease food price pressures,” it stated.
The team also explained that it projected a 15.95 per cent inflation rate because of the lingering effects of persistent food price pressures.
“However, we expect core inflation to moderate as the sharp reversal in energy prices begins to filter through to transportation, distribution, and other energy-related costs, easing underlying price pressures.
“On a month-on-month basis, the combined effect of lower petrol prices, a relatively stable Naira, and the gradual pass-through of reduced energy costs across the supply chain should exert further downward pressure on inflation.
“Based on our assessment, food inflation is expected to remain the key swing factor, as seasonal pre-harvest supply constraints are likely to offset some of the gains from lower logistics costs,” it said.
By Adedapo Adesanya
The duo of Central Securities Clearing System (CSCS) Plc and Afriland Properties Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.61 per cent on Tuesday, July 14.
CSCS Plc saw its stock value drop N9.08 to close at N82.40 per share compared with the preceding session’s N91.48 per share, and Afriland Properties Plc slid by 17 Kobo to sell at N15.00 per unit versus N15.70 per unit.
The losses recorded by the two securities pulled back the market capitalisation by N41.64 billion to N2.546 trillion from N2.587 trillion, and cracked the NASD Security Index (NSI) by 69.36 points to 4,242.31 points from 4,311.67 points.
It was observed that the exchange witnessed two price advancers during the session, led by FrieslandCampina Wamco Nigeria Plc, which gained N1.37 to end at N151.37 per share compared with the previous day’s N150.00 per share, and Food Concepts Plc chalked up 5 Kobo to settle at N2.50 per unit versus N2.45 per unit.
The volume of securities traded by market participants surged by 50.7 per cent to 13.7 million units from the previous 9.1 million units, while the value of securities went down by 79.7 per cent to N65.2 million from N320.4 million, and the number of deals crashed by 3.6 per cent to 27 deals from the previous session’s 28 deals.
At the close of transactions, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with the sale of 3.4 billion units for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc, which exchanged 2.3 billion units valued at N6.5 billion, and CSCS Plc with 73.9 million units transacted for N5.2 billion.
GNI Plc also closed the trading day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
