Economy
Naira May Recover As Travelex Begins Weekly Dollars Sales To BDCs
Dipo Olowookere
The naira is expected to make a surprise recovery from today as Travelex, a global foreign exchange (forex) dealer, begins the sale of $15,000 weekly to each of the 3,000 Bureaux De Change (BDC) operators.
Association of Bureau De Change Operators of Nigeria (ABCON) President Aminu Gwadabe, who broke the news yesterday, said $45 million will flow into the financial system with each of the BDCs getting $15,000.
The exercise, he said, would strengthen the naira in both the official and parallel markets.
The naira was yesterday exchanging at N473 to dollar in the parallel market and N310 to dollar in the official market. The local currency has lost over 70 per cent of its value in both markets year-to-date due to plunge in crude oil prices which cut the country’s dollar earnings.
Gwadabe explained that the funds to be disbursed to BDCs today, were from the Diaspora remittances estimated at $21 billion annually. He said the CBN took the right steps by authorising Travelex to take responsibility of disbursing the Diaspora to licensed BDCs. He said the $15,000 weekly dollar sales, was an improvement from the initially approved $10,000 weekly, would deepen dollar liquidity in the system and strengthen the naira against the dollar.
The ABCON boss said the experience and integrity of Travelex will be key in getting the dollars down to BDCs.
He urged all BDC operators, as a matter of urgency, to visit CBN branches in their respective zones to validate their en-cashers and signatory mandate cards for Travelex biometric data capturing exercise.
Gwadabe said the biometric data capturing project would enable the BDCs access the International Money Transfer Operators (IMTOs)/Travelex dollars window.
He said remittances have direct positive and significant impact on consumption, investment, and demand in the country as it can be used to address short-run output shocks, and even long run growth. He said that remittances tend to be stable and to increase during periods of economic downturns and natural disasters.
He said the CBN is reaffirming the country’s commitment to building an enabling environment and level-playing field for international money transfer services to Nigeria.
He said that by increasing the number of IMTOs from three to 14, the CBN under its Governor, Godwin Emefiele, is setting the economy on the path of development in the medium- to long-term and also, restore integrity in the international money transfer business.
Gwadabe said the ongoing dollar sales to BDCs would strengthen the operators to meet the forex demand at the retail end of the market so that they can continue to enhance employment generation in the country.
The ABCON boss believes that despite the challenges facing the economy, the CBN and BDCs would continue to work together and find sustainable solutions that can help the country wriggle out of the ongoing forex crisis and achieve full economic recovery.
He pledged that ABCON would continue to ensure that purchased funds were sold to end users and for eligible transactions and also render returns promptly. He further promised to ensure strict compliance to the provisions of the anti-money laundering laws observance of appropriate Know Your Customer principles in the handling of forex transactions.
http://thenationonlineng.net/naira-recovery-likely-travelex-begins-weekly-dollars-sales-bdcs/
By Aduragbemi Omiyale
The Securities and Exchange Commission (SEC) has been praised by the House of Representatives Committee on Finance for improving its fiscal sustainability through cost-cutting measures and enhanced revenue generation.
The Deputy Chairman of the panel, Mr Saeed Musa Abdullahi, speaking on Tuesday during the 2026 Revenue Monitoring Exercise with the commission in Abuja, however, challenged the organisation to exceed its 2026 revenue target.
He commended the regulator’s efforts to strengthen its finances and urged it to sustain the momentum.
“You have done significantly well. We have followed the progress of the SEC over the years and urge you to keep the flag flying. We will continue to celebrate you when you do well.
“This exercise is not to witch-hunt any agency; it is aimed at ensuring better performance, especially at a time when the country is facing serious fiscal challenges,” the lawmaker said.
“You have told us your revenue projection for 2026, but we believe you can do more. We urge you to surpass your projection by at least 20 per cent, or even more,” Mr Abdullahi stated.
Earlier, the Director-General of the SEC, Mr Emomotimi Agama, told the committee that, in line with the principles of the International Organisation of Securities Commissions (IOSCO), securities regulators are expected to operate independently, with governments providing financial support where necessary.
According to him, his organisation currently receives no budgetary allocation from the federal government, relying instead on income generated from the capital market while still remitting funds to the government.
“Going by IOSCO principles, the SEC is expected to be financially independent. The government is supposed to provide support for the running of the Commission.
“However, due to the paucity of funds, all the money used to fund the commission comes from the market. The SEC does not receive any funding from the government; rather, it pays money to the government,” he said.
The DG explained that once the commission’s revenues are paid into its account with the Central Bank of Nigeria (CBN), statutory deductions are made automatically before the SEC can access the funds.
“When these funds hit our account with the CBN, deductions are made directly by the government. We do not have access to the funds before the deductions are effected,” he added.
Mr Agama noted that as a regulator, the SEC is careful not to overburden market operators with additional charges to fund its operations. To ease financial pressure, he said the agency secured approval from the Minister of Finance for a waiver allowing it to retain 20 per cent of its income.
“We are regulators and are not expected to ask the market for money. With the kind permission of the Minister of Finance, we obtained a 20 per cent waiver on deductions to ensure our operations are not hindered,” he said.
The SEC boss also disclosed that the commission had secured a grant from the African Development Bank (AfDB) to acquire a modern market surveillance system, which is expected to be deployed this year to strengthen oversight of Nigeria’s capital market and align it with international standards.
By Adedapo Adesanya
S&P Global has agreed to acquire a majority stake in Agusto & Co., a leading Pan-African rating agency with operations in Nigeria, Kenya, Rwanda and Ghana.
The investment, a strategic step for both companies, will complement and support the growth strategy of the S&P Global Ratings division in Africa. The terms of the transaction were not disclosed.
The company said in a statement on Tuesday that by combining S&P Global’s international expertise and resources with Agusto & Co.’s strong Pan-African presence and reputation for excellence, the partnership aims to expand market insights, strengthen credit transparency, and support market participants across the region.
“We are delighted to partner with Agusto & Co. to strengthen our domestic ratings presence across Africa,” said Mr Yann Le Pallec, President, S&P Global Ratings. “This transaction underscores our commitment to supporting growth and transparency in local credit markets throughout the continent. Africa’s opportunity is extraordinary, and by combining our global expertise with Agusto & Co.’s deep local insights, together we can foster informed analysis, constructive market dialogue, and greater investor confidence both regionally and internationally.”
“This partnership is a transformational milestone for Agusto & Co. and African capital markets, fulfilling our late founder’s vision of affiliating with a leading global rating agency,” said Yinka Adelekan, Managing Director of Agusto & Co.
“For more than 30 years, we have built a trusted credit rating institution across Africa. By combining our deep Pan-African market knowledge and analytical independence with S&P Global Ratings’ global expertise, resources and affiliate network, we believe this partnership will create new opportunities, enhance value for market participants, and support the continued development of transparent and resilient credit markets across the continent.”
Agusto & Co. is a leading Pan-African credit rating agency with a strong presence in Nigeria and other key African markets, rating financial institutions, corporates and other entities. Following the transaction, Agusto & Co. will continue to operate as a separate ratings entity and issue its own credit ratings and methodologies in accordance with applicable regulatory requirements.
The transaction is subject to customary closing conditions, including receipt of required regulatory approvals.
Subject to obtaining all required regulatory approvals, the transaction is expected to close during the second half of 2026.
The transaction is not expected to have a material impact on the financial results of S&P Global or S&P Global Ratings, the agency said.
Agusto & Co. was founded in 1992 by the late Nigerian economist and chartered accountant, Mr Olabode (Bode) Agusto. It was established as the first credit rating agency in Nigeria.
Mr Agusto, who served as the firm’s first managing director for 11 years, died in October 2023.
By Adedapo Adesanya
The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to suspend plans to increase Nigeria’s mandatory pension contribution rate.
The chamber’s Director General, Dr Chinyere Almona, warned that the move could worsen the challenges facing businesses, threaten jobs and discourage investment.
She noted that while improving retirement security is important, raising pension contributions at a time when businesses are grappling with soaring inflation, extremely high borrowing costs, exchange rate volatility, rising energy prices and multiple taxes would place an unbearable burden on employers.
According to the DG, Nigeria’s existing contribution rate is already comparable with global standards, noting that the country’s 18 per cent mandatory contribution is close to the OECD’s 18.8 per cent average and significantly higher than rates in countries such as the United Kingdom (8 per cent), the United States (12.4 per cent) and Kenya (12 per cent).
She warned that increasing payroll costs at this time would discourage recruitment, suppress wage growth, place disproportionate pressure on micro, small and medium-sized enterprises (MSMEs), reduce Nigeria’s attractiveness to investors and push more businesses into the informal sector.
The advocacy group called on the government to defer the proposal until a comprehensive Nigeria-specific actuarial and economic impact assessment is conducted and extensive consultations are held with the organised private sector and labour unions.
The group recommended that instead of increasing mandatory contributions, the National Pension Commission (PenCom) should focus on developing innovative investment instruments capable of delivering higher returns on existing pension assets, saying this would improve contributors’ retirement savings without imposing additional financial pressure on businesses.
PenCom had recently proposed an increase in mandatory pension contributions as well as a 3 per cent mandatory annual contribution equivalent to 3 per cent of the total wage bill.
According to the insurance regulator, the proposal forms part of broader pension sector reforms designed to strengthen the financial security of Nigerian workers in retirement.
LCCI’s opposition to this proposed policy comes after the Organised Private Sector of Nigeria expressed its disdain over the issue, also citing rising inflation and economic hardship for its rejection.
