Foreign Exchange

Nigeria foreign exchange market is a decentralized or over-the-counter market for the trading of currencies. This includes the value of Nigeria naira to US dollars, Pounds Sterling and other foreign currencies across the World.

Alternatives To Send Funds To Your Kids Studying Abroad If You Exceeded CBN Dollar Allocation

6 Alternatives To Send Money To Your Kids Studying Abroad If You Exceeded CBN Dollar Allocation

The forex allocation for students studying abroad is $15,000 per semester, so what happens if a student exceeded the allocation and needs to meet personal upkeep. read more

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Naira Begins 2022 With NGN562/$1 At Blackmarket Rate

The Naira may continue to maintain its instability in the foreign exchange market in 2022 as one US dollar was sold at NGN562/$1 by some Bureau De Change operators Saturday, January 1, 2022

The BDCs bought $1 at NGN555 at Ikeja and other parts of Lagos, Nigeria’s commercial city. It’s NGN565 and NGN550.

Before 2021 ended, demand for forex was higher than supply at the parallel market, thereby pushing it to NGN570/$1 on December 20. It traded at NGN565/$1 in the earlier week.

The margin may be considered again for the troubled Nigerian currency, it’s however not significant considering how NGN fell heavily since the removal of BDCs from the forex value chain by Nigeria’s apex bank in July 2021.

The best performance Naira pulled was NGN525/$1 on November 12, 2021, while the worst was NGN575 since the new CBN forex policy

Blackmarket rate is unofficial

The black market rate or street market is characterised by the power negotiations between the seller and buyer.

The Central Bank of Nigeria (CBN) has consistently maintained that the parallel market should not be used to determine Nigeria’s foreign exchange rate, while some financial analysts stated that the CBN has been over-valuing Naira as the official price doesn’t align with the rate Nigerians get it at the banks.

For instance, banks do not have a unified price, thereby making the official market rate questionable or showing a slack in the efficiency of the regulator to check the excesses of the banks.

P2P Exchange Rate read more

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Approved Documents for Invisible Transactions in Nigeria

There are important documents applicants need to submit to the Central Bank of Nigeria (CBN) for the processing of fees for foreign services, such payment is known as invisible transactions in international trade.

This isn’t limited to Nigeria. It is a general practice around the world. Foreign invisible transactions are prevalent in Nigeria because of the craze for foreign services (and goods).

Even the government that should take the lead in patronising indigenous services prefer importation of services from UAE, USA, Germany, Italy, and China among others.

The billions of dollars in invisible transactions that have been spent through estacodes for politicians are unimaginable.

That said, political spending isn’t the only invisible transaction that take place in Nigeria. Private company and incorporation do send members of their staff to foreign seminars, workshops and training, payment for their hotel lodge constitute invisible transactions.

And there are approved documents to access the official foreign exchange rate for such foreign transactions, they constitute invisible trade, trade that do not involve exchange of physical objects.

What are the documents for invisible transactions?

Apart from the completion of Form A which is required for all the services outlined in this guide, the kind of services determines the documents applicants would attach to their applications.

This means that the document to attach to a foreign seminar is completely different from a postgraduate studies invisible transaction application at the bank.

Here is the complete required documents for all invisible transactions in Nigeria.

NOTE: Application to make payment for all these services can be done on the Trade Monitoring System designed by Nigeria’s apex bank (which some people prefer to call Single Window payment platform)

Correspondence Courses:

There are several digital online courses that involve registration, membership subscription and examination fee for individuals and corporate bodies. Important documents for application for forex for these courses are:

  • Duly completed form A
  • Evidence of membership and/or enrolment
  • Demand Note/Invoice
  • Your Bank Verification Number (BVN)
  • Internal Passport (Nigerian)

BTA:

We’ve discussed in our previous guides the requirements to apply for Business Travel Allowance. If it’s your first application, here are the documents for invisible transactions for BTA:

  • Duly completed e-Form A on TRMS portal
  • Letter of invitation from the overseas business partner
  • Certificate of the business registration/incorporation
  • Valid International Passport and Visa
  • Letter of request from the corporate body stating the purpose of visit
  • Return Ticket

=&4=&: Applicants are entitled to US$5,000 per quarter

Freight Payment:

This payment is common among exporters for transportation invoices

  • Completed Form A
  • Fill form NXP/NCX on TRMS
  • Freight Invoice
  • Bill of Lading
  • Confirmation of reasonableness BY NSC

PTA:

For Personal Travel Allowance, the required documents you need to upload on the TRMS are:

  • Duly completed Form A (which is online)
  • Valid International Passport and Visa
  • Return Ticket

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Why CBN Should Adopt Flexible Exchange Rate Policy – CPPE

The Central Bank of Nigeria (CBN) should adopt a flexible exchange rate that will allow a pricing mechanism strategy that reflects the demand and supply fundamentals in the foreign exchange market.

The Centre for the Promotion of Private Enterprise (CPPE), made the call in its 2021 review of the various policies that were introduced by the CBN as the year wind down.

One of such policies was the removal of the Bureau De Change (BDC) operators from the foreign exchange value chain. The apex bank diverted the weekly forex for BDCs to financial institutions with forex licence, the policy was filled with mixed reactions.

While some hailed the CBN policy, a few others said it was a move by the Godwin Emefiele-led management to fix price, some financial analysts said CBN was manipulating the forex market by using the official exchange rate that doesn’t reflect what is obtainable in the parallel market.

On the need for a flexible exchange rate, the economists at the CPPE said its advice shouldn’t be misconstrued as a “devaluation proposition” but a model that is sustainable, predictable and transparent.

The body of economic experts stated that the flexible exchange policy regime would reduce uncertainty and inspire the confidence of investors.

6 Benefits of Flexible Exchange Rate Market

  1. It increases investors’ confidence
  2. It enhances liquidity in the forex market
  3. It ensures a more transparent model for forex allocation
  4. It minimises discretion and arbitrage in the foreign exchange allocation mechanism.
  5. It dynamic and able to cope with changing demand and supply conditions in the forex market.
  6. It liberalises inflows from export proceeds, diaspora remittances, multinational companies, donor agencies, diplomatic missions among others.

Review 40 Items That Can’t Access Forex

Some time ago, the CBN listed some items that can’t access foreign exchange in a move to boost local production of such items and in November 2021, launched a “100 for 100 Policy on Production and Productivity (PPP) to boost local manufacturing.

But the Centre for the Promotion of Private Enterprise, said the apex bank should have a rethink over the policy in order to save the Nigerian currency which has lost value since the CBN started rolling out some of its forex policies.

CPPE advised that if CBN needs to improve dollar liquidity to rescue the naira and help industries to grow and expand. It stated that the current policy is negatively affecting investors and stakeholders in the manufacturing sectors.

It states in a statement, “Some of the products on this list are intermediate products for some manufacturing firms which have negatively impacted some manufacturers. It would be advisable for the CBN to have a robust engagement with the stakeholders to review this list in the New Year.”
CBN CRR Policy Preventing Banks from Playing Financial I=&7=&

business opportunities in Calabar Cross River Nigeria

What Constitutes Invisible Trade?

Payment for services like website design, security consultancy, hotel lodge, medical bills, education fees, and business consultancy are some services that constitute invisible trade; because they are services that do not require the transfer of physical objects.

Simplifying Invisible Trade

The purchase of the Lamborghini Essenza SCV12 is a visible trade. But the buyer wants more on maintenance and he seeks consultancy from an expert which he also pays for, the consultancy is an invisible trade.

For instance, in August 2020, the Central Bank of Nigeria (CBN) hinted that it engaged the services of a Barbados -based Fintech coy Bitt Inc, to design its digital currency eNaira. The service between Bitt Inc and CBN is known as invisible trade.

There were criticisms form some quarters that why would the Nigeria’s apex bank go all the way to Barbados to seek the services of foreign company when there were more than enough blockchain and fintech firms in Nigeria that could handle the project. But the CBN hinged its decision on Bitt’s implementation experience, efficiency, and technological competence among others.

What is Invisible Trade?

In international trade, invisible trade refers to transactions in foreign exchange in services that do not involve tangible goods or physical objects.

In Nigeria, estacode by politicians and senior civil servants, payment of foreign school fees by the privileged few, payment in forex of medical fees fall under invisible trade.

As such, Nigeria’s apex keeps a close eye on its invisible trade because it’s useful in calculating the total balance of trade and to keep a close tap on the foreign exchange market.

What Constitute Invisible Transactions In Nigeria

Invisible transactions are payments that require duly completed Form A which is a regulatory form to be completed by customers on the =&7=&

Trade Monitoring System To Access Forms A, NXP, NCX In 10 Easy Steps

How To Apply for Forex in Nigeria on Trade Monitoring System In 11 Easy Steps

The Trade Monitoring System or TRMS is a digital platform designed by the Central Bank of Nigeria (CBN) to enable students, exporters, anyone seeking medical attention in the overseas countries to apply for foreign exchange (US dollar, GBP, and Euro) through trade forms like NXP, NCX, and form A.

In essence, the TRMS is aimed at simplifying data exchange between stakeholders in the trade chain. The beauty of the platform is that it’s all-encompassing as applications for foreign exchange for both visible and invisible trades can be submitted within a few seconds.

What’s new about Trade Monitoring System?

Unlike the conventional and the old method of application for Personal Travel Allowance (PTA), Business Travel Allowance (BTA), foreign school fees, foreign medicals where you had to fill out forms and forced to visit the branch of your preferred bank, the Trade Monitoring System has brought everything online. And in one place.

This means you don’t need to visit the bank again, right on your smartphone or device, you can conveniently submit applications for forex needs.

With the TRMS, the apex bank can monitor applications for forex real-time and track applicants with their BVN or TIN. We’ll talk more about the benefits of the Trade Monitoring System and some of its challenges.

According to a statement signed by CBN’s Director of Trade and Exchange Department, Dr S.O. Nnaji:
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Daily Update of PTA Exchange Rate in Nigeria

BTA-PTA Exchange Rate in Nigeria Today

There are several questions revolving around the official exchange rate for PTA, BTA, Medical trips, and for students who need to access foreign exchange to settle foreign school fees.
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British Pound Sterling To Naira

British Pound Sells for NGN745/£1 At Parallel Market Wednesday, December 15, 2021

Nigeria’s foreign exchange market continues its poor performance as one British pound sterling was sold by Bureau De Change operators for N745//£1 Wednesday, December 15, 2021, in Lagos State, Nigeria’ commercial capital.

In the past, naira gained at FX market during Yuletide considering the inflow of forex to the country courtesy of Nigerians in the diaspora who either come home or send funds to their families at home

When there is a surplus, NGN will have an advantage over dollars, Pounds Sterling, Euro and other foreign currencies. Stiff policy and insecurity in Nigeria may be attributed to the latest trend.

Dollars to Naira Blackmarket Rate

Also, the dollar to naira exchange rate showed a similar downward performance as $1 was sold by BDCs for NGN570 at the time of filing this report.

In fact, some of the BDCs were ready to pay NGN573 for higher volume. But they buy from a holder at the rate of NGN565 or NGN567, depending on the volume. This can be attributed to a shortage of supply as against demand. When demand is higher than supply, the price goes up.

Naira remained unstable since the decision of the Central Bank of Nigeria (CBN) on July 27, 2021, to remove BDC operators from the forex value chain.

Importer & Exporter Exchange Rate read more

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Naira Crashes to NGN575/USD At Parallel Market on Friday, December 10, 2021

Naira crashed to NGN575/$1 at the close of business at the parallel market on Friday, December 10, 2021, in Lagos, Nigeria’s commercial city. read more

defending_naira_with_foreign_reserves_in_nigeria_infomediaNG_Business_Solutions

10 Economic Implications of Defending Naira with Foreign Reserves

On November 10, 2021, the governor of the Central Bank of Nigeria (CBN) Godwin Emefiele at the France-Nigeria Security and Economic Summit, in Paris, France, expressed optimism that by the middle of 2022, Nigeria’s foreign reserves will surpass the $42 billion thresholds.

It’s been turbulent for Nigeria’s economy and its foreign exchange market in recent times, but Nigeria’s apex bank boss had consistently boasted that his team is in control and would stabilise the troubled Forex market.

Severally, financial and global economy analysts have accused the Emefiele-led CBN management of defending Naira with Nigeria’s foreign reserves, a policy they said would have consequences on the economy and the naira.

For instance, Leo Ukpong, a Professor of Financial Economics once accused CBN of manipulating the foreign exchange, stating that the gap between the official rate and the parallel rate should worry everyone who has been following Nigeria’s FX market closely.

The world-renowned economist isn’t the first to criticise CBN for defending naira with foreign reserves. World Bank had also cautioned Nigeria’s apex bank, advising it to stop defending the troubled Nigerian currency with its external reserves.

What Are Nigeria’s Foreign Reserves?

Nigeria’s foreign reserves stood at $34.80 billion in the first quarter of 2021, it declined to $33.3 billion in the second quarter, it then rose to $36.7 billion in the third quarter. It is predicted to rise to about $41.82 at the end of 2021, according to data from the National Bureau of Statistics (NBS).

Nigeria’s foreign reserves are assets held on reserve by the Central Bank of Nigeria (CBN) which are used to back liabilities and influence monetary policy.

The external reserves include foreign banknotes, deposits, bonds, treasury bills and other foreign government securities.

Foreign reserves simplified

Foreign reserves or external reserves are like a salary earner who saves part of his monthly salary for rainy days. In case of emergencies, he goes there to withdraw. On the other hand, another salary earner who has no savings is most likely going to borrow when exigency arises.
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US dollar how to pay off business debt

US Dollar Gains Against Naira, Sells at NGN565/USD At Black Market

The exchange rate of the US dollar to Naira on Monday, December 6, 2021, shows the value of the Nigerian currency isn’t showing any sign of improvement, most especially at the black market (parallel market).

Black market rate

As of Monday, December 6, 2021, 11:45 AM, $1 was selling at NGN565 (buy) and NGN560/$1 (sell), according to one of the Bureau De Change (BDC) agents t Allen, Ikeja, Lagos. It’s NGN560-NGN555 last week.

The exchange rate depends largely on the volume of your trade and your power of negotiation as you can be “cheated” if you failed to compare prices before buying or making sales.

In Osogbo, Osun State capital, it’s NGN550/$1 (buy) and NGN540 for buy, depending on the volume of trade.

Position of CBN read more

godwin-emefiele-biography

5 Ways 100 for 100 Policy Will Crash US Dollar Exchange Rate in Nigeria

For close to three decades, Nigeria’s economy has depended largely on the importation of finished products, even some indigenous manufacturing companies import raw materials.

To put a stop to an importation economy, the Central Bank of Nigeria (CBN) on October 25, 2021, launched “100 for 100” Policy on Production and Productivity (PPP).

The laudable policy is going to reduce demand for foreign currencies, it will not only force the US dollar exchange rate to crash in Nigeria, it will also effect a positive change in the value of Naira and gradually eliminate the implications of naira depreciation on the economy.

The 100 for 100 policy initiative coincides with the official launch of the eNaira, the first Central Bank Digital Currency (CBDC) in Africa.

Meaning of 100 For 100 Policy

100 for 100 means one hundred companies will be selected within the application time frame every one hundred days. The successful 100 companies would receive a maximum of NGN5,000,000,000 from the apex bank to boost local production and manufacturing.

For us at InfomediaNG Business Solutions, the PPP is the best in recent times aimed at, not just boosting local production and reducing importation, but the transparent financial support and the single-digit credit facility the apex bank would be providing for local manufacturing companies in Nigeria.

CBN is saying it’s ready to give a local company NGN5 billion to source raw materials locally, show evidence of exports of your finished products, show evidence of a reduction in the importation of materials, and capacity to create jobs for the millions of youths.

5 Long-Term Impacts of 100 for 100 Policy on Forex

Policy on Production and Productivity is one of the perfect long-term policies investment and financial analysts, and economists had been clamouring to boost production and productivity as a tool to transform and catalyse the productive base of Nigeria’s economy.

Here is how the 100 for 100 policy will make the naira regains its value, which will lead to the crash of US dollar exchange rate in the FX market:

Percentage Increase In Export Volume

Sufficient local production, if effectively sustained, will translate to exports of such products to other countries around the world.

For instance, Malaysia’s palm oil revenue was more than what Nigeria got from oil revenue as of 2006. Unbelievably, Malaysia got palm oil seedlings from Nigeria in the 1960s.

Apart from meeting local consumption of palm oil in Malaysia, it’s able to meet international demand. This is the direction the =&4=&

US dollar how to pay off business debt

Again, Naira Appreciates, Exchanges for NGN525/USD at Black Market

The naira continued its appreciable performance against the US dollar on November 12, 2021, at the black market, it closed at NGN525 at the close of business on Friday. read more

volume of naira in circulation in Nigeria for 2020

Naira Gains Against USD, Trades N540/$1 at Black Market

The naira is showing an improvement at the exchange market as it gained against the US dollar early morning of Thursday, November 11, 2021

On September 30, USD traded NGN580 while it went for NGN575 on October 6, five days after the Central Bank of Nigeria (CBN) postponed the launch of its digital coin dubbed eNaira which eventually launched on October 25.

Since the launch of eNaira, the first Central Bank Digital Currency (CBDC) in Africa, the fiat currency (naira) has been making a significant gain against foreign currencies at the exchange market. A few days ago, InfomediaNG Business Solutions (IBS) reported how eNaira is effecting change in exchange at the forex market.

Exchange Rate on November 11, 2021 read more

enaira vs USD to Naira black market rate

eNaira Crashes Dollar to Naira At Black Market Rate 

eNaira, Nigeria’s digital coin, seems to be having a good impact on the fiat version of Nigeria’s currency. On Wednesday, November 3, 2021, $1USD was NGN557 as against NGN565/$1 a month ago. read more

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GTCO Sells US Dollar At NGN480.96/$1 To Online Buyers

Guaranty Trust Holding Company (now Guaranty Trust Bank) is selling US dollars to online buyers at NGN480.96/$1, research by InfomediaNG Business Solutions (IBS) has shown.

Most times, commercial banks that have foreign exchange licences do not sell forex at a unified rate to customers as they determine what their rate would be.

When a team member of IBS paid for $30 service, the bank deducted NGN14,428.8, translating to NGN480.96 per US Dollar.

The Downfall of Naira

Naira has been under intense pressure since the Central Bank of Nigeria (CBN) in July 2021, technically made move to kick out Bureau De Change (BDC) operators from the FX value chain.

The apex bank boss Godwin Emefiele described some of their FX dealings as shady which some members perpetrated to the detriment of Nigeria’s economy, but since then things have not changed.

The apex bank stopped the sales of forex to hundreds of BDCs operators in Nigeria and chose to sell directly to banks with FX licence.

The action was hailed by some financial analysts, yet it comes with some supply and demand implications which were believed to be temporary if CBN could monitor the activities of the banks who are now in charge of forex.

For instance, CBN mandated the banks to create FX teller points at their branches to enable Nigerians to access forex for Personal Travel Allowance (PTA), Business Travel Allowance, and schools abroad among other legitimate use.

But some members of the public who needed forex to pay foreign school fees had to wait for two weeks or more. InfomediaNG user, Gbenga, who expressed frustration about the delay in accessing FX at Nigerian bank said:
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Does Buhari Have The Capacity To Lift 100million Nigerians Out of Poverty

Naira Falls To NGN422/USD At Official Rate, The Worst In History

Again, Nigeria’s foreign exchange has broken another jinx, on the poor side as the naira falls to an all-time low against the US dollar at the official rate as $1 traded at NGN422.07 at the close of trading.

When the Nigerian currency’s depreciation at the black market rate continued some weeks back, the apex bank’s governor Godwin Emefiele first blamed the Bureau De Change (BDC) operators for sharp practices.

But when the stoppage of sales of forex to the BDCs further worsened the situation, the apex bank blamed abokifx founder Oniwinde Adedotun for manipulating the rate, using the large following of the platform, yet nothing changed.

At the time, Oniwinde taunted Emefiele, saying he would deactivate the forex rates on his platform, “if that would make the naira to regain its value”

At the time of filing this report, $1 was NGNG575 at the black market in Lagos, NGN570 in some parts of Ibadan, Oyo State capital.

While everyone thought the measures by the CBN would make a significant impact, rather the naira continues to lose value both at the official and parallel market.

The official trading rate on the CBN website was NGN410.91/$1 (selling) and NGN409.91/$1 (buying) at the time of this report.

But rather for the rate at the Investor & Exporter foreign exchange window to gain, it depreciated from NGN413.15/$1 to 422.07/$1. It is the worst rate in the history of Nigeria at the Investor & Exporter foreign exchange window.

What’s the cause?

Emefiele may not have direct control over the regulation of the foreign exchange market because it seems he has lost his regulatory powers to the political class, a financial analyst who doesn’t want to be named said.
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dollar-debit-card-application-nigeria

2 Easy Ways To Obtain Dollar Debit Card For PTA, BTA

In July 2021, the Central Bank of Nigeria (CBN) announced that financial institutions that have foreign exchange licence would be in charge of selling forex to eligible Nigerians to meet their foreign exchange needs.

Technically, it means that Bureau De Change operators would no longer be able to buy FX from the apex bank. Since then, Nigerians who need forex for foreign needs need to apply at the banks, but some applicants revealed that the bureaucracy is annoying.

The question we asked some of those who contacted InfomediaNG Business Solutions is: Why did you choose to stress yourself when you can fund your Dollar Debit Card and spend it in any part of the world?

Domiciliary Debit Card

The need to simplify the process of buying forex in Nigeria came to the fore when Access Bank Plc announced that it launched Dollar Mastercard for Nigerians to have access and spend forex in any part of the world.

But in an actual sense, this is a technology that banks like GTCO and 10 other Nigerian banks already have. We’d tell you the banks in the later part of this guide.

First…

What Is Dollar Debit Card?

A dollar debit card is a debit card that carries out transactions in US Dollars. It operates like the Naira Debit card, the major difference is that it’s denominated in USD or whatever foreign currencies’ transactions it’s designed to perform.

obtain dollar_debit_card_to_access_forex for_pta_bta outside nigeria
Photo credit: GTCO

Some banks in Nigeria have Pound Debit Card, which means that the handler of Pound Debit card can easily use it in the UK and other transactions that support the Great Britain Pounds (GBP).

6 Benefits of Dollar Debit Card

Holding and operating a domiciliary card has its a lot of advantages most especially for entrepreneurs whose business depend largely on online shopping and importation; for students who want to settle school fees online etc.

  1. You can access your fund 24/7 in any part of the world.
  2. It simplifies online shopping
  3. It’s faster most especially when you have to use it at ATM terminals and PoS
  4. It has a global acceptance
  5. You don’t have to worry about currency conversion
  6. It is secured because it uses Chip and PIN technology to block unauthorised transactions.

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usdollar_to_naira_exchange_rate_parallel_market

5 Implications of Using 40 Percent of Forex For Fuel Importation in Nigeria

Nigeria is in a dire economic crisis as the country uses 40% of its foreign exchange to import the resources it produces as non of its refineries remain redundant.

The country is one of the major producers of crude oil, yet it finds it difficult to refine the fuel it consumes daily, but the Nigerian National Petroleum Corporation (NNPC) which is in charge of importing the refined products says all is well and continues to declare what some analysts described as non-existent profit.

The country exports the crude oil to overseas country and imports it for its local consumption.

A Country On An Economic Reverse

In February 2018, Nigeria’s former Minister of Petroleum Dr. Ibe Kachikwu revealed that the CBN spent 30% of the country’s foreign exchange earnings on importing petroleum products in 2016.

Kackikwu was one of the ministers President Buhari dropped after winning a second term. He appointed a former governor of Bayelsa State, Timipre Sylva as the minister of state for petroleum resources while President Muhammadu Buhari keeps the senior portfolio for himself.

After two years into the second term of the APC-led government, the amount Nigeria spends on the importation of refined crude oil has increased by 10%, meaning the country’s economy isn’t getting any better.

On Thursday, October 14, 2021, Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele reechoed the lamentation of the Ibe Kackikwu.

The CBN boss revealed that 40% of its foreign exchange goes to the importation of petroleum products.

The announcement comes at a time Nigeria is battling with forex crisis after it stopped the sales of FX to Bureau De Change operators which have imparted FX prices of goods and services.

Severally, Emefiele has attributed the FX crisis to the sharp practices of BDC operators, then to AbokiFx, this time to the high spending of the foreign earnings to importation.

How Much Forex Has CBN Spent On Fuel Importation in 2021?

Between January to August 2021, the CBN dip its hand into Nigeria’s forex and made available to the NNPC $690.19m or about N285.95bn, using N414.3/$ to import refined petroleum products.

Data seen by InfomediaNG Business Solutions on sectoral utilisation for transactions valid for forex reveals how Nigeria spends more of its forex on consumption instead of production.

Month Importation Cost
January $45.76m (NGN18.4billion)
February $64.67m (over NGN26billion)
March $142.31m (over NGN58billion)
April $77.96m (NGN31.6Billion)
May $85.64m (almost NGN35billion)
June $86.42m (more than NGN35billion)
July $83.73m (more than NGN34 Billion)
August $103.70m (more than NGN42billion)

What are the implications of this practice?

Economically, to spend 40% of a country’s forex on importation is not only counterproductive, but it’s a recipe for inflation.

Below are some of the implications:

  1. Pressure on Nigeria’s Forex
  2. Nigeria May Be Stranded
  3. Waste of Nigeria’s Resources
  4. Taking Out Job Instead of Creating Jobs
  5. Bad for USD/NGN Exchange Rate

Pressure on Nigeria’s Forex

Before now, CBN was selling between $50,000-$20,000 to the BDC operators, but Emefiele said it was unsustainable, and removed them from the FX chain.

At the moment, there is scarce of FX which has technically caused inflation due to the fact that Nigeria relies heavily on the importation of goods.

This means there will be more pressure on Nigeria’s forex, Emefiele said at the International Monetary Fund (IMF)/World Bank annual meetings in Washington DC.

He said once the Dangote Refinery and Petrochemical Plant commence operations around July 2022, Nigeria would be able to save the 40% expended on importation of petrol.

Meaning, the present government doesn’t have solution to the present economic challenges.
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US Dollar Goes For NGN575 At Black Market Rate Today October 6, 2021

The pressure on naira at the parallel market isn’t over as one USD was traded at N575 Wednesday, October 6, 2021 in locations like Allen, Opebi, Isale-Eko, and other parts of Nigeria’s commercial city read more

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