The Central Bank of Nigeria (CBN) successfully secured approximately N1.008 trillion during its most recent Open Market Operations (OMO) auction conducted on Friday, April 25, 2025. Driven by robust investor interest, the auction witnessed an impressive oversubscription of 102%, reflecting heightened appetite for high-yield government securities in response to escalating inflation and expanding liquidity in the Nigerian economy. CBN data revealed that the apex financial institution initially proposed N500 billion worth of offerings across two tenors. However, total bids surged close to N1.4 trillion, underscoring aggressive participation from investors eager to capitalize on elevated returns. This strategic move aligns with the CBN’s ongoing commitment to tighten monetary policy, targeting the absorption of surplus liquidity and curbing stubborn inflationary trends, even as Nigeria grapples with high interest rates and a historic cash reserve ratio. Key Highlights from the Auction Overall, the Central Bank managed to raise more than double its initial auction target, solidifying its aggressive liquidity management approach amidst ongoing economic pressures. Why Investor Appetite is Growing The soaring subscription rates point to investors’ strategic shift toward risk-free, high-yield instruments, especially as Nigeria’s inflation rate continues to surge. Analysts suggest that as the money supply expands, opportunities for safer, inflation-beating returns become increasingly attractive (Source). For more insights into CBN’s monetary tightening efforts, you may also read our related article: Related Articles: BUY ANYTHING ON KONG BUY NOW Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Channel
In a significant policy shift, the Central Bank of Nigeria (CBN) has approved the disbursement of Basic Travel Allowance (BTA) in cash for Nigerian pilgrims attending the 2025 Hajj. This move follows Vice President Kashim Shettima’s intervention. A statement issued by Stanley Nkwocha, the vice president’s spokesperson, confirmed that the CBN’s decision overturns an earlier mandate requiring pilgrims to use debit cards exclusively for Hajj-related expenses. This policy change comes after considerable concern from pilgrims and tour operators, who highlighted challenges such as inadequate infrastructure and limited financial literacy. Following a meeting with the vice president, Aliu Abdulrazaq, Commissioner for Policy, Personnel Management & Finance at the National Hajj Commission of Nigeria (NAHCON), confirmed the approval of cash transactions. Abdulrazaq explained that the meeting, which focused on the government’s policy regarding BTA for the 2025 Hajj, resulted in a positive outcome for pilgrims. “The Vice President’s intervention was crucial. He invited the Deputy Governor of the Central Bank and made a plea for a more practical solution,” Abdulrazaq said. “Thanks to the Vice President’s efforts, the CBN agreed to allow pilgrims to carry cash instead of relying on a debit card. This is a significant achievement for NAHCON.” He further explained that cashless transactions presented logistical challenges for many pilgrims. In Saudi Arabia, where the majority of pilgrims go to perform their religious duties, there is often only one ATM at pilgrimage sites, and it tends to be crowded, making it difficult for pilgrims to withdraw money or make purchases. Additionally, most Nigerian pilgrims are peasant farmers with limited experience with electronic payments. Many also struggle to identify foreign currencies, making cash a more practical option for them. “With the cash now available, we are more confident that Hajj operations will proceed smoothly. The major concern was the BTA, but that issue has now been resolved,” Abdulrazaq added. NAHCON’s Secretary, Dr. Mustapha Muhammad Ali, emphasized that this decision should not be misunderstood as a subsidy or government concession. “It’s not a subsidy or a federal government intervention. The Vice President’s intervention was made because many pilgrims prefer to make purchases on the streets of Mecca and Medina, and they do not need a debit card to do so,” he explained. “The CBN will provide the cash at the market rate.” Abba Muhammad Aliyu, Director of Human Resources at the CBN and a board member at NAHCON, elaborated on the decision’s background. “The decision was made with the pilgrims’ welfare in mind, especially considering their limited financial literacy. Many pilgrims struggle to use ATMs, so offering cash is a more suitable solution for them,” he said. This decision marks a pivotal change in Hajj operations, ensuring smoother financial transactions for Nigerian pilgrims during the 2025 Hajj. BUY ANYTHING ON KONG BUY NOW Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Channel
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The Central Bank of Nigeria (CBN) has officially appointed 16 new directors to oversee critical departments, effective March 3. This strategic move aims to enhance the bank’s regulatory, supervisory, and policy-driven functions, ensuring improved efficiency in the nation’s financial system. CBN’s Newly Appointed Directors and Their Departments The newly appointed directors and their respective departments include: In the financial sector, the following individuals have been appointed: Further appointments include: Additionally, the following directors have been appointed to regulatory and operational divisions: Enhancing Operational Efficiency in the Financial Sector These appointments are part of CBN’s ongoing efforts to reinforce its operational structure and regulatory oversight. The newly appointed directors will play a key role in driving Nigeria’s financial policies, ensuring stability, and fostering economic growth. For more details on CBN’s latest reforms, visit the official CBN website. Official CBN website READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Channel
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Introduction The Centre for the Promotion of Private Enterprise (CPPE) has expressed support for the Central Bank of Nigeria’s (CBN) recent decision to pause interest rate hikes. Dr. Muda Yusuf, Chief Executive Officer of CPPE, described this move as a step in the right direction and aligned with economic expectations. CPPE’s Call for Future Rate Reductions Dr. Yusuf has recommended that the CBN consider reducing interest rates in the near future while expressing concerns about the high Cash Reserve Ratio (CRR). He highlighted that with the recently rebased inflation rate computation, Nigeria’s inflation has dropped to 24.48%, a level currently lower than the Monetary Policy Rate (MPR). Yusuf emphasized that maintaining the current rate prevents further financial strain on businesses and individuals with loan exposures. He suggested that a gradual easing of the current tightening measures would help stabilize the economic environment. Implications of High Monetary Policy Rate According to Dr. Yusuf, the current MPR exceeding the inflation rate puts excessive pressure on investors and businesses, making credit more expensive. He urged the CBN to gradually lower the MPR and ease the CRR to create a more favorable economic climate. Impact on Commodity Prices and Economic Stability Dr. Yusuf noted that prices of key commodities, such as petroleum motor spirit (PMS), diesel, pharmaceuticals, and other essential goods, are beginning to decline. He emphasized that maintaining exchange rate stability would contribute to further reductions in product prices, easing inflationary pressures on consumers. Concerns Over Nigeria’s High CRR One of the key issues raised by Yusuf is Nigeria’s CRR, which currently stands at an unprecedented 50%—the highest globally. He pointed out that the closest comparison is Turkey, with a CRR of 25%, and argued that Nigeria’s economic conditions do not justify such a high reserve requirement. Yusuf recommended a reduction in the CRR to enable financial institutions to channel more credit into the real economy, thereby fostering economic growth. Wide Asymmetric Corridor and Its Economic Impact The CPPE also raised concerns about the asymmetric corridor of +500/-100 basis points, stating that it is too wide and could disconnect the financial sector from the real economy. If the current trajectory continues, it may stifle economic expansion and limit access to funding for businesses. CBN’s Monetary Policy Decision During its 299th meeting, the Monetary Policy Committee (MPC) opted to maintain the MPR at 27.5%, along with the asymmetric corridor of +500/-100 basis points. Additionally, the CRR was retained at 50% for Deposit Money Banks (DMBs), 16% for Merchant Banks, and the Liquidity Ratio at 30%. Conclusion Dr. Yusuf urged the CBN to reassess its monetary policy stance and adopt a more flexible approach that fosters economic growth. He stressed the need to relax both the MPR and CRR in future MPC meetings to ensure that businesses and investors can access credit at reasonable costs. For more insights on Nigeria’s monetary policy decisions, visit the Central Bank of Nigeria’s official website. READ ALSO Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Channel
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Central banks play a pivotal role in stabilizing a nation’s currency and economy through the implementation of monetary policies. However, their actions are often misunderstood, especially during times of economic challenges. According to PwC, it is crucial for central banks to communicate their objectives clearly and effectively to foster a proper understanding and positive public perception. This becomes even more important during economic stress periods. The Central Bank of Nigeria (CBN) has been proactively working on various policy options aimed at reviving the economy, despite significant challenges. When the current CBN leadership, under Governor Olayemi Cardoso, assumed office, it inherited an economy grappling with a failed naira redesign policy, rising inflation, and a volatile exchange rate. During his Senate screening, Cardoso acknowledged these issues but expressed optimism in the bank’s ability to implement policies that would stabilize the economy and improve public perception of the CBN. Governor Cardoso, a seasoned banker and public policy expert with a Master’s in Public Administration from Harvard Kennedy School, has a rich background in the financial sector. Prior to his appointment, he served as the Chairman of Citi Bank Nigeria and Commissioner for Economic Planning and Budget in Lagos State. Upon taking office, Cardoso was quick to refocus the CBN’s operations, aiming to minimize inefficiencies and enhance its core functions. This included returning to traditional monetary policy tools and separating the blurred lines between monetary and fiscal policies. Under Cardoso’s leadership, the CBN has centered its efforts on its primary responsibilities—setting interest rates, controlling money supply to achieve stability, formulating monetary policy, managing foreign reserves, and advising the government. One key policy carried forward from the previous administration is the unified and free-floating exchange rate regime. While this approach was supported by the World Bank, some experts warned of potential currency crises, especially as the naira depreciated to N945/USD after its implementation. The free-floating exchange rate offers several advantages, such as attracting foreign investments and allowing the currency to adjust naturally to economic changes. However, it also comes with risks, including volatility, speculation, and the possibility of worsening economic conditions in a struggling economy. Exchange rate management is a critical factor in determining trade flows and the overall health of the economy, with imports and exports playing a significant role. Currency speculation poses a serious challenge to the economy, as it is not backed by any real economic activity but driven by the motive to profit from currency fluctuations. Speculators often destabilize the currency by buying when prices are expected to rise or selling when the currency weakens. To combat this, the CBN has introduced several creative policy measures. For example, the Bank has used dollar injections into the foreign exchange market to stabilize the naira and launched the Price Verification System (PVS) portal for importers and exporters. Additionally, the CBN has directed Bureaux de Change (BDC) to align their exchange rates with those in the Importers and Exporters (I&E) Window to enhance the efficiency of the foreign exchange market. In December 2024, the CBN introduced the Electronic Foreign Exchange Matching System (EFEMS), an online platform designed to match buy and sell orders for foreign exchange transactions. EFEMS aims to reduce speculation and distortions in the market, enabling real-time price discovery. Early reports suggest that EFEMS has helped stabilize the naira’s volatility. On inflation, the CBN has adopted an explicit inflation-targeting framework to improve the effectiveness of its monetary policies. Looking ahead, the CBN is targeting an inflation rate of 15% in 2025 and projects a 4.17% GDP growth, surpassing the 3.2% forecast by the International Monetary Fund (IMF). While the full impact of these policy measures may take time, the CBN is confident in their ability to bring about the desired economic improvements. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
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Discover how the Naira’s continuous devaluation threatens Nigeria’s 2025 fiscal plan, with inflation, exchange rate fluctuations, and budgetary constraints creating significant challenges. Naira Depreciation Threatens Nigeria’s 2025 Fiscal Targets The sharp decline in the value of the Naira is setting up a challenging fiscal year for 2025, posing a significant threat to the Federal Government’s ability to fund its proposed budget. With a devaluation rate that has reduced purchasing power, experts warn that the N49.7 trillion budget presented by President Bola Tinubu may struggle to achieve the same impact as the N28.777 trillion budget of 2024. Struggles with Exchange Rates and Inflation The Central Bank of Nigeria’s (CBN) monetary policy reforms, aimed at stabilizing the currency, initially improved the Naira’s value but failed to sustain the gains. As of December 2023, the Naira traded at approximately N853 to $1. By December 2024, exchange rates surged to as high as N1,700 to $1, before settling at N1,536.93 to $1 on the CBN’s official platform. In addition to exchange rate volatility, inflation continues to rise. The 2024 inflation target was set at 21%, but the current rate stands at 34.6%. For 2025, President Tinubu aims to reduce inflation to 15%, though achieving this may prove difficult. Key Projections for the 2025 Budget President Tinubu’s 2025 budget, dubbed the “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” is built on several economic assumptions: The proposed expenditure of N49.7 trillion includes allocations to defense (N4.91 trillion), infrastructure (N4.06 trillion), health (N2.48 trillion), and education (N3.52 trillion). Debt servicing alone will require N15.81 trillion, while other expenditures account for N17.12 trillion. Challenges and Economic Achievements Despite challenges, President Tinubu highlighted some economic improvements during the 2024 budget presentation. Foreign reserves rose to $42 billion, and Nigeria’s economy grew by 3.46% in Q3 2024, up from 2.54% in Q3 2023. Additionally, the trade surplus hit N5.8 trillion, reflecting increased export activity. However, public sentiment remains cautious. The high “Japa” syndrome, where professionals emigrate due to economic hardship, underscores the challenges many Nigerians face. Critical sectors, such as healthcare and ICT, continue to experience significant brain drain. Will the 2025 Budget Deliver? The 2025 budget aims to restore peace and rebuild prosperity, but achieving these goals hinges on addressing macroeconomic issues like inflation and exchange rates. Without bold and effective reforms, the government risks falling short of its ambitious targets. By stabilizing the Naira and curbing inflation, the Federal Government could pave the way for a more sustainable economic future. Only time will tell if the “Budget of Restoration” will fulfill its promises or become another missed opportunity for economic growth. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
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Foreign Portfolio Investments (FPIs) into the Nigerian stock market saw a remarkable surge of 180.95% between January and October 2024, reaching N344.30 billion compared to N122.55 billion in the same period in 2023. Key Drivers of the FPI Growth Investment analysts attribute this significant growth to the Central Bank of Nigeria’s (CBN) monetary policies, which have increased interest earnings on portfolio investments. The CBN’s consistent hikes in the monetary policy rate have improved investor confidence, especially among foreign participants. However, data from the Nigerian Exchange Limited (NGX) also revealed that foreign outflows rose by 136.95%, from N168.83 billion in 2023 to N400.04 billion in 2024. Overview of Transactions Year-to-Date (YtD) The total foreign transactions for 2024, Year-to-Date, amounted to N744.34 billion, a 155.5% increase from N291.38 billion in 2023. Meanwhile, domestic investors maintained a strong presence, contributing N3.727 trillion, accounting for 83.35% of the N4.470 trillion total transactions recorded by the NGX. Monthly Performance On a month-by-month basis, total transactions rose marginally by 1.97% from N493.01 billion in September 2024 to N502.73 billion in October 2024. Compared to October 2023, where transactions stood at N220.94 billion, this represents a massive growth of 127.54%. Notably, in October 2024, domestic investors outperformed foreign investors, accounting for 82% of the total transaction value. Expert Insights Victor Chiazor, an analyst at Fidelity Securities Limited, commented that the surge in FPI inflows reflects improved investor confidence driven by Nigeria’s fiscal and monetary reforms. He noted, “The CBN’s consistent stance on inflation and its monetary tightening measures have resonated positively with foreign investors.” David Adonri, Vice Chairman at Highcap Securities, added, “The inflow of FPIs positively impacts the foreign exchange market, as the demand-supply dynamics influence FX rates. This also bolsters foreign reserves, signaling greater confidence in Nigeria’s economy.” Ambrose Omordion, COO of InvestData Consulting, remarked that the improved outlook among foreign investors was driven by the stabilizing Naira and the CBN’s anti-inflation measures. He stated, “While higher interest rates typically weigh on stocks, the CBN’s tough stance on inflation and its focus on currency stability have created an attractive environment for foreign investors.” READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
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The Nigerian Naira has experienced a significant drop in the parallel market, depreciating to N1,668 per dollar, compared to N1,600 per dollar the previous day. This marks a noticeable decline in the currency’s value within the informal trading segment. Conversely, in the official foreign exchange market, the Naira showed signs of recovery, appreciating to N1,534.6 per dollar. According to the Daily Nigerian Foreign Exchange Market (NFEM) data released by the Central Bank of Nigeria (CBN), this represents an improvement from N1,545 per dollar recorded on Wednesday, reflecting a gain of N10.4. The divergence between the parallel market and the official market rates continues to widen. As of the latest report, the margin has increased to N133.4 per dollar, compared to a gap of N55 per dollar recorded on Wednesday. This development highlights the ongoing challenges in Nigeria’s foreign exchange landscape, emphasizing the persistent disparity between the parallel and official market rates. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
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The value of the Nigerian naira has surged by nearly ₦100—an over 5% appreciation—within a single week following the Central Bank of Nigeria’s (CBN) implementation of the Electronic Foreign Exchange Market System (EFEMS). This strategic move aims to curb speculative trading and address price distortions in the forex market, introducing a unified and transparent trading framework. Key Highlights of the Naira’s Performance What Is EFEMS? EFEMS is a centralized system consolidating previous forex trading windows—such as the Investors and Exporters (I&E) Window and SME Window—into one unified platform. It ensures all transactions are: Benefits of EFEMS The introduction of EFEMS is expected to: Mandatory Compliance and Reporting CBN has introduced stringent rules for stakeholders to ensure compliance with EFEMS: Bureau De Change (BDC) Participation BDC operators can now actively participate in retail forex activities, but only under specific conditions: The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, commented on the changes: “While this development aims to boost liquidity in the retail forex market, not all licensed BDCs are immediately eligible to access interbank forex. Compliance with the new capitalization guidelines is a key determinant.” Implications for the Forex Market The EFEMS launch marks a bold step towards creating a market-driven, transparent, and efficient forex trading environment in Nigeria. As the system matures, it is expected to stabilize the naira, attract foreign investments, and strengthen the overall economic framework. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
