Economy
Rewane Explains Implications of CBN Naira 4 Dollar Scheme
By Adedapo Adesanya
Last week, the Central Bank of Nigeria (CBN) shocked Nigerians when it launched a new initiative tagged Naira 4 Dollar Scheme.
The scheme was part of efforts to incentivize senders and recipients of international money transfer. Under the campaign, all recipients of diaspora remittances through licensed International Money Transfer Operators (IMTOs) will be paid N5 for every $1 received as remittance inflows.
This has sent many Nigerians wondering what the new policy meant for the Nigerian currency, which has faced headwinds in the last few months.
Speaking on the likely implications of the currency promo, a renowned economist and the Chief Executive Officer of Financial Derivatives Company, Mr Bismarck Rewane, during a chat with Business Morning on Channels TV on Monday, explained that the initiative from the CBN was a promo designed to increase the country’s awareness and the inflows of Nigeria’s diaspora into the country’s financial system.
He, however, noted that it was rare for the government to use such promotional schemes to promote inflows into the country.
“What is challenging here is that it is very unusual for policies to be tied around promos or gimmicks. Usually, promos and gimmicks are used by manufacturers to launch or push products, or airlines when they have low sales. So, they tie this kind of promo to buy one get one free or to revamp stagnant sales. So, it’s very unusual and peculiar for governments to engage in gimmicks or promos,” he noted.
He further said that the apex bank tailored the actions towards reducing the cost of remittances from the current cutthroat rates charged by the IMTOs.
The Governor of the central bank, Mr Godwin Emefiele, had recently explained that the models had been applied in Pakistan and Bangladesh. He said both South Asian countries had introduced reimbursement schemes to support inflows.
In the CBN chief’s words, “In Pakistan, the scheme, which is known as free send, has enabled record amount of inflows of over $2 billion a month even during the COVID-19 pandemic.
“Bangladesh introduced its own scheme in June 2019, which is a two per cent rebate on remittance inflows. Following this action, they have also seen a 20 per cent boost in remittance inflows.”
Breaking it down further, Mr Rewane noted that the current diaspora inflows to Nigeria are estimated between $5 million and $7 million per day and that the central bank aims to increase to $30 million per day.
“In other words, 30 times 20 working days, you will get maybe $600 million. Well, that is not the point. The point is that it is an effective depreciation of 1 per cent of the currency because ever since this year, the Investors and Exporters’ (I&E) window rate had gone from N390 to N411. So, if you add N5, it is another 1 per cent.
“Nominally, the exchange rate is unchanged, but in reality, it is a depreciation of 1 per cent de facto.”
He noted that there a lot of risks associated with the policy because some people will round trip the policy using arbitrage. Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from tiny differences in the asset’s listed price.
“So, people will try to use arbitrage on the system. But the fact is that Nigeria is number six in the world in terms of diaspora and workers remittances. It is estimated at about $20 to $25 billion [annually].
“The current pandemic and unemployment rates in the US, Canada, the European Union and the United Kingdom are also going to affect the ability of Nigeria to remit money in.
“These two trends have actually dropped sharply because of vaccination certificates and all sorts of the pandemic effect. So, basically, in the end, I think it’s a gimmick. It is a promo, the central bank will fully understand in the end that there’s no other way of managing an exchange rate than converging them, having one rate so that people don’t stop exploiting it.
“In any case, you collect cash, and you take it to the parallel market or autonomous sources to sell the Naira, and then come back and you get the N5. What could happen is that you could turn $1,000 back again to your brother, who will bring it back.
“So, what could happen is that there could be what I call playing with neurons, the same money turning around the velocity of separation increasing, whilst the quantity supplied into the market will not increase.
“So, but again, heavy innovation leads to some kind of creativity and will help. But in the end, let me put it this way, the price mechanism, the exchange rate has to be market-determined.
“Policymakers will intervene, to preserve to ensure that we don’t suffer from shocks, but it’s a work in progress, and then we’ll wait and see what happens.”
The promo is expected to run from March 8 through the next two month till May 8.
By Adedapo Adesanya
The Managing Director of Lekki Port LFTZ Enterprise Limited, Mr Wang Qiang, says the port has reached half of its designed operational capacity, with steady growth in container throughput since September 2025, reflecting increasing confidence by shipping lines and cargo owners in Nigeria’s first deep seaport.
“We already reached 50 per cent of our capacity now, almost 50 per cent of the port capacity.
“There is consistent improvement in the number of 20ft equivalent units (TEUs) handled monthly,” he said.
Mr Qiang explained further that efficient multimodal connectivity remains critical to sustaining and accelerating growth at the port.
According to him, barge operations have become an important evacuation channel and currently account for about 10 per cent of cargo movement from the port.
Mr Qiang mentioned that the ongoing Lagos–Calabar Coastal Road project would help ease congestion and improve access to the port.
He said that rail connectivity remained essential, particularly given the scale of industrial activities emerging within the Lekki corridor.
He said that Nigeria Government was concerned about the cargoes moving through rail and that the development would enhance more cargoes distribution outside the port.
Mr Qiang reiterated that Lekki port was a fully automated terminal, noting that delays may persist until all stakeholders, including government agencies, fully aligned with end-to-end digital processes.
He explained that customs procedures, particularly physical cargo examinations, and other port services should be fully digitalised to significantly reduce cargo dwell time.
“We must work together very closely with customers and all categories of operations for automation to yield results.
“Integration between the customs system, the terminal operating system and customers is already part of an agreed implementation schedule.
“For automation to work efficiently, all players must be ready — customers, government and every stakeholder. Only then can we have a fantastic system,” Mr Qiang said.
He also stressed that improved connectivity would allow the port to effectively double capacity through performance optimisation without expanding its physical footprint.
By Aduragbemi Omiyale
The series 1 of the N10 billion Commercial Paper (CP) issuance of Legend Internet Plc recorded an oversubscription of 19.7 per cent from investors.
This reaffirmed the strong confidence in the company’s financial stability and growth trajectory.
The exercise is a critical component of Legend Internet’s N10 billion multi-layered financing programme, designed to support its medium- to long-term growth.
Proceeds are expected to be used for broadband infrastructure expansion to deepen nationwide penetration, optimise the organisation’s working capital for operational efficiency, strategic acquisitions that will strengthen its market position and accelerate service innovation.
The telecommunications firm sees the acceptance of the debt instruments as a response to its performance, credit profile, and disciplined operational structure, noting it also reflects continued trust in its ability to execute on its strategic vision for nationwide digital infrastructure expansion.
“The strong investor participation in our Series 1 Commercial Paper issuance is both encouraging and validating. It demonstrates the market’s belief in our financial integrity, operational strength, and long-term vision for digital infrastructure growth. This support fuels our commitment to building a more connected, competitive, and digitally enabled Nigeria.
“This milestone is not just a financing event; it is a strategic enabler of our expansion plans, working capital needs, and future acquisitions. We extend our sincere appreciation to our investors, advisers, and market partners whose confidence continues to propel Legend Internet forward,” the chief executive of Legend Internet, Ms Aisha Abdulaziz, commented.
Also commenting, the Chief Financial Officer of Legend Internet, Mr Chris Pitan, said, “This achievement is powered by our disciplined financing framework, which enables us to scale sustainably, innovate continuously, and consistently meet the evolving needs of our customers.
“We remain committed to building a future where every connection drives opportunity, productivity, and growth for communities across Nigeria.”
By Adedapo Adesanya
President Bola Tinubu will, on Friday, present the 2026 Appropriation Bill to a joint session of the National Assembly.
The presentation, scheduled for 2:00 pm, was conveyed in a notice issued on Wednesday by the Office of the Clerk to the National Assembly.
According to the notice, all accredited persons are required to be at their duty posts by 11:00 am on the day of the presentation, as access into the National Assembly Complex will be restricted thereafter for security reasons.
The notice, signed by the Secretary, Human Resources and Staff Development, Mr Essien Eyo Essien, on behalf of the Clerk to the National Assembly, urged all concerned to ensure strict compliance with the arrangements ahead of the President’s budget presentation.
The 2026 budget is projected at N54.4 trillion, according to the approved 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
Meanwhile, President Tinubu has asked the National Assembly to repeal and re-enact the 2024 appropriation act in separate letters to the Senate and the House of Representatives on Wednesday and read during plenary by the presiding officers.
The bill was titled Appropriation (Repeal and Re-enactment Bill 2) 2024, involving a total proposed expenditure of N43.56 trillion.
In a letter dated December 16, 2025, the President said the bill seeks authorisation for the issuance of a total sum of N43.56 trillion from the Consolidated Revenue Fund of the Federation for the year ending December 31, 2025.
A breakdown of the proposed expenditure shows N1.74 trillion for statutory transfers, N8.27 trillion for debt service, N11.27 trillion for recurrent (non-debt) expenditure, and N22.28 trillion for capital expenditure and development fund contributions.
The President said the proposed legislation is aimed at ending the practice of running multiple budgets concurrently, while ensuring reasonable – indeed unprecedentedly high – capital performance rates on the 2024 and 2025 capital budgets.
He explained that the bill also provides a transparent and constitutionally grounded framework for consolidating and appropriating critical and time-sensitive expenditures undertaken in response to emergency situations, national security concerns, and other urgent needs.
President Tinubu added that the bill strengthens fiscal discipline and accountability by mandating that funds be released strictly for purposes approved by the National Assembly, restricting virement without prior legislative approval, and setting conditions for corrigenda in cases of genuine implementation errors.
The bill, which passed first and second reading in the House of Representatives, has been referred to the Committee on Appropriations for further legislative action.
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