CBN – Parrot Mouth Blog

CBN spent $669m to shield Naira in Q1 2025

The Central Bank of Nigeria (CBN) used approximately $669 million in foreign exchange interventions during the first quarter of 2025 in a bid to prop up the naira from further weakening. In a report by investment house AIICO Capital Limited, dollar sales totaling $668.8 million were made in the face of falling dollar inflows and rising offshore demand for foreign exchange. The report highlighted that despite such interventions, the Nigerian currency continued to be severely pressured, as the naira dipped by 2.97 percent during the month of March alone from ₦1,492.49/$ to ₦1,536.82/$. The exchange rate had started the month at ₦1,510/$, and high demand—particularly by foreign portfolio investors and domestic corporates—continued to weigh down the market. The parallel market witnessed the same tension, with the naira losing ₦43.50 to close at ₦1,536.00/$. In another move to stabilize the parallel market, the CBN directed Bureau de Change operators to purchase $25,000 from authorized dealer banks at the official exchange rate. This notwithstanding, Nigeria’s external reserves declined to $38.31 billion at the quarter-end, reversing from a three-year peak of $43 billion due to debt service commitments and consistent dollar sales. The AIICO report further pointed out that whereas mid-month liquidity was briefly ensured by CBN injecting dollars, it was inadequate to halt the sustained demand on the Nigerian Foreign Exchange Market. The naira continued to weaken, therefore, despite the intervention by the central bank and incremental gains. The Nigerian currency volatility is happening amid global economic uncertainty. President Donald Trump’s sweeping tariffs rocked global markets, sending stocks tumbling at Monday’s opening, adding to investors’ woes and mounting pressure on emerging market currencies like the naira Related Posts Nigeria and the British Monarchy: A Legacy of Visits and Diplomatic Ties Throughout history, Nigeria has enjoyed a unique relationship with the British Monarchy, marked by mutual visits that reflect shared historical, Read more Peter Obi Dismisses Merger Talks Ahead of 2027 Election, Calls for Unity Against APC Peter Obi, the Labour Party’s (LP) 2023 presidential candidate, has clarified that no merger agreements are in place with the Read more Obasanjo Reveals Yar’Adua Rejected Dangote’s $750 Million Offer for Refineries Former President Olusegun Obasanjo has revealed that his successor, Umaru Musa Yar’Adua, turned down a $750 million offer from Aliko Read more NNPCL Invites Obasanjo to Tour Port Harcourt Refinery Following His Criticism The Nigerian National Petroleum Company Limited (NNPCL) has extended an invitation to former President Olusegun Obasanjo to visit the Port Read more Olawale Moses OyewoleOlawale Moses Oyewole is an adept writer who stays on top of current events and curate informative and engaging articles for his readers. He is a digital strategist who help brands gain online visibility.

CBN Governor Cardoso: JP Morgan, Citi Bank, and IMF Visits Show Improved Investor Confidence

CBN Governor Olayemi Cardoso has referred to recent visits by JP Morgan’s senior management, Citi Bank, and the International Monetary Fund (IMF) as a clear indicator of growing investor confidence in the trajectory of Nigeria’s economy. Addressing a gathering of Harvard Kennedy School (HKS) Africa Trek scholars at the CBN headquarters in Abuja, Cardoso highlighted the successes achieved in stabilizing the foreign exchange market, curbing inflation, and addressing key economic challenges. “Their interest is a sign that we are going in the right direction,” Cardoso said, adding that international financial institutions act on facts and economic figures and not emotion. The Africa Trek delegation of 50 students from 19 nations represented leading institutions like Harvard Kennedy School (HKS), Harvard Business School, the Massachusetts Institute of Technology (MIT), and Stanford University. Their trip to Nigeria came after a previous visit to Ghana as part of a larger initiative to meet with African policymakers and economic stakeholders. As an alumnus of HKS and the first African pioneer in the worldwide HKS Alumni Board of Directors, Cardoso also reaffirmed CBN’s quest for intellectual debate and policy solution. “As we redraw the Bank, we aim to be thought leadership centers. The exposure it provides us, from Harvard, is just invaluable, and we view it as a call to form longer-term alliances,” he said. The President of Harvard Kennedy School Alumni Association of Nigeria (HKSAAN), Ms. Adaora Ndukwe, and Ms. Sheffy Kolade, Lead of the HKS Nigeria Trek Delegation, appreciated the CBN for its openness. The Bank was praised for being receptive to having future policymakers listen to its experts and gain first-hand information on Nigeria’s evolving economic landscape. Related Posts Market offers rent-now, pay-later answer to tenants. Prospective renters in Nigeria can now breathe a sigh of relief as a rental solution that simplifies renting and facilitates Read more Rwanda retreat: Nigerian governments discuss complex issues. The Nigerian governors will attend and participate in a three-day leadership retreat in Kigali, Rwanda, designed to provide a platform Read more Shaibu: I support Obaseki and seek governorship. Philip Shaibu, the deputy governor of Edo State, has pledged to remain loyal to Edo State’s governor, Godwin Obaseki, despite Read more Citigroup expects more foreign investment in Nigeria and others despite FX turmoil. Citigroup Inc. has stated that Nigeria, Angola, and Kenya are among the African nations that are anticipated to attract more Read more Olawale Moses OyewoleOlawale Moses Oyewole is an adept writer who stays on top of current events and curate informative and engaging articles for his readers. He is a digital strategist who help brands gain online visibility.

CBN Reaffirms Commitment to FX Stability, Inflation Control, and Economic Recovery

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has outlined key economic priorities for 2025, focusing on foreign exchange (FX) stability, inflation moderation, and economic recovery through coordinated fiscal and monetary policies. At its first MPC meeting of 2025, the apex bank reviewed recent policy interventions that have driven positive macroeconomic outcomes, including exchange rate convergence, increased investor confidence, and GDP growth. However, inflation remains a major challenge, and structural constraints persist. FX Market Stability and Exchange Rate Convergence A major highlight of the meeting was Nigeria’s improved FX market stability. Policy interventions, such as the introduction of the Electronic Foreign Exchange Matching System (B-Match) and the Nigeria Foreign Exchange Code, have narrowed the gap between the official and parallel market rates. Financial expert Bismarck Rewane noted on Arise TV that the difference between the official and parallel market rates has dropped to less than 1%, a significant improvement from previous gaps as high as 10-20%. As of February 2025, the Naira traded at ₦1,503.63 per dollar in the official market and ₦1,500.00 in the parallel market, reflecting increased market stability. However, a Purchasing Power Parity (PPP) analysis suggests the Naira remains undervalued by 26.35%, indicating room for further realignment. Inflation Pressures and Policy Response Despite FX stability, inflation remains a concern, with the National Bureau of Statistics (NBS) reporting a headline inflation rate of 24.48% in January 2025. Food inflation stood at 26.08%, while core inflation was 22.59%, driven by high import costs, insecurity, and supply chain disruptions. Economic analysts, including Umeje Chukwuma, argue that insecurity, logistical challenges, and climate-related issues are key drivers of food inflation. Many experts have urged the federal government to strengthen security efforts to attract foreign direct investment (FDI) and stabilize food prices. The CBN has responded by adjusting the Monetary Policy Rate (MPR) and enhancing monetary policy transmission mechanisms, but experts stress the need for better fiscal-monetary coordination to curb inflation effectively. Oil Production, External Reserves, and Investment Outlook Higher oil production levels (1.54 million barrels per day as of January 2025) have strengthened Nigeria’s external reserves, which now stand at $39.4 billion, covering 9.6 months of imports. This has boosted investor confidence and is expected to increase FDI, portfolio inflows, and diaspora remittances. Nigeria’s trade balance has also improved, with a $6.06 billion current account surplus as of Q3 2024, reflecting reduced import dependence and rising export earnings. GDP Growth and Economic Diversification Nigeria’s GDP grew by 3.84% year-on-year in Q4 2024, up from 3.46% in Q4 2023, with the services sector leading at 5.37% growth and contributing 57.38% to GDP. Experts, including Dr. Ayo Teriba, believe that non-oil sector diversification, particularly in technology, fintech, and telecommunications, is yielding results. However, infrastructure deficits, power supply issues, and oil market fluctuations pose risks to long-term stability. Key Takeaways and Policy Recommendations While CBN-led reforms have stabilized FX markets and improved economic indicators, experts caution that sustained policy efforts are necessary to consolidate these gains. Key recommendations include: Strengthening fiscal-monetary coordination to effectively tackle inflation. Addressing insecurity to unlock agricultural productivity and attract investments. Sustaining FX market reforms to maintain investor confidence. Encouraging domestic and foreign investments through a more business-friendly environment. With the right mix of policy consistency and strategic planning, analysts believe Nigeria can build on its economic progress and achieve long-term stability. Related Posts Market offers rent-now, pay-later answer to tenants. Prospective renters in Nigeria can now breathe a sigh of relief as a rental solution that simplifies renting and facilitates Read more Rwanda retreat: Nigerian governments discuss complex issues. The Nigerian governors will attend and participate in a three-day leadership retreat in Kigali, Rwanda, designed to provide a platform Read more Shaibu: I support Obaseki and seek governorship. Philip Shaibu, the deputy governor of Edo State, has pledged to remain loyal to Edo State’s governor, Godwin Obaseki, despite Read more Citigroup expects more foreign investment in Nigeria and others despite FX turmoil. Citigroup Inc. has stated that Nigeria, Angola, and Kenya are among the African nations that are anticipated to attract more Read more Olawale Moses OyewoleOlawale Moses Oyewole is an adept writer who stays on top of current events and curate informative and engaging articles for his readers. He is a digital strategist who help brands gain online visibility.

CBN Governor Olayemi Cardoso Sets Sights on Reducing Inflation to Single Digits

The Central Bank of Nigeria (CBN) has set its sights on reducing inflation to single digits in the medium to long term, according to CBN Governor Olayemi Cardoso. Speaking in Abuja after the 299th Monetary Policy Committee (MPC) meeting, Cardoso discussed the recent rebasing of the Consumer Price Index (CPI), which resulted in a decrease in Nigeria’s inflation rate from 34.8 percent to 24.8 percent. Cardoso emphasized that the new inflation figures provide a more accurate reflection of the country’s economic reality and align with global best practices. He stated: “Despite the positive shift in inflation figures, the MPC opted to maintain the current MPR to ensure sustained economic stability,” he said. “As always, we are data-driven. What we have is a CPI which is more reflective of the consumption pattern. To that extent, one commends the NBS for bringing this to reality.” The CBN governor also reassured that the bank would remain vigilant, continuing to monitor both domestic and global risks to ensure proactive measures are taken to safeguard the economy. He further highlighted the CBN’s long-term goal of reducing inflation to single digits, stating: “Our objective, in the medium to long term, is to ensure that we are able to bring this down from the double digits to the single digit,” he said. “As we continue with the policies that we have embarked upon, we believe that the road of travel will be in that direction.” Cardoso emphasized the importance of cooperation between monetary and fiscal authorities in achieving this goal. He acknowledged that progress would require both sectors working in tandem and stated: “I will be deceiving you to say the fiscal will do it on its own, the monetary will do it on its own. It won’t be. Coordination has always been important. But at no time can it be as important, in my view, as the situation we have now, because we can see change in a positive direction, and we need to not only maintain and hold but also improve it.” The recent monetary policy forum, which brought together fiscal and monetary authorities, marked a significant step toward improved coordination and economic stability, according to Cardoso. In discussing Nigeria’s external reserves, Cardoso revealed that they stood at $39.4 billion as of February 14, providing an import cover of 9.6 months for goods and services. However, data from the CBN’s website indicated a slight decrease, with reserves falling to $38.7 billion by February 19, a drop of $261.5 million. Related Posts Market offers rent-now, pay-later answer to tenants. Prospective renters in Nigeria can now breathe a sigh of relief as a rental solution that simplifies renting and facilitates Read more Rwanda retreat: Nigerian governments discuss complex issues. The Nigerian governors will attend and participate in a three-day leadership retreat in Kigali, Rwanda, designed to provide a platform Read more Shaibu: I support Obaseki and seek governorship. Philip Shaibu, the deputy governor of Edo State, has pledged to remain loyal to Edo State’s governor, Godwin Obaseki, despite Read more Citigroup expects more foreign investment in Nigeria and others despite FX turmoil. Citigroup Inc. has stated that Nigeria, Angola, and Kenya are among the African nations that are anticipated to attract more Read more Olawale Moses OyewoleOlawale Moses Oyewole is an adept writer who stays on top of current events and curate informative and engaging articles for his readers. He is a digital strategist who help brands gain online visibility.

CBN Increases ATM Withdrawal Fees, New Charges Take Effect March 2025

The Central Bank of Nigeria (CBN) has announced a review of ATM transaction fees, with the new charges set to take effect on March 1, 2025. The revision is aimed at addressing rising operational costs and improving the efficiency of ATM services across the country. This is the first adjustment to ATM withdrawal charges since 2019 when fees were reduced from N65 to N35 per transaction. However, with the latest changes, some transactions will now cost more. The CBN stated that the review aligns with Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020) and is expected to encourage the deployment of more ATMs while ensuring fair charges for consumers. Under the revised policy: Withdrawals at your bank’s ATMs will remain free. Withdrawals at bank branch ATMs (on-site transactions) will attract a N100 fee per N20,000 withdrawn. Withdrawals from other banks’ ATMs will also incur a N100 fee, plus an additional surcharge of up to N450 per N20,000 withdrawn. The surcharge will go to the ATM deployer and must be disclosed to customers before withdrawal. International ATM transactions will now include a cost-recovery charge, meaning banks can charge customers the exact amount billed by international acquirers when withdrawing cash abroad. The three free monthly withdrawals from other banks’ ATMs (Remote-On-Us transactions) will no longer be available. In a circular signed by John Onojah, Acting Director of the Financial Policy and Regulation Department, the CBN urged all financial institutions to comply with the new guidelines and ensure transparency in implementing the revised charges. Related Posts Market offers rent-now, pay-later answer to tenants. Prospective renters in Nigeria can now breathe a sigh of relief as a rental solution that simplifies renting and facilitates Read more Rwanda retreat: Nigerian governments discuss complex issues. The Nigerian governors will attend and participate in a three-day leadership retreat in Kigali, Rwanda, designed to provide a platform Read more Shaibu: I support Obaseki and seek governorship. Philip Shaibu, the deputy governor of Edo State, has pledged to remain loyal to Edo State’s governor, Godwin Obaseki, despite Read more Citigroup expects more foreign investment in Nigeria and others despite FX turmoil. Citigroup Inc. has stated that Nigeria, Angola, and Kenya are among the African nations that are anticipated to attract more Read more Olawale Moses OyewoleOlawale Moses Oyewole is an adept writer who stays on top of current events and curate informative and engaging articles for his readers. He is a digital strategist who help brands gain online visibility.

CBN Approves Inclusion of CFA Franc on Nigeria’s Export Proceeds Form

The Central Bank of Nigeria (CBN) has authorized the inclusion of the CFA franc on Nigeria’s export proceeds (NXP) form, facilitating the repatriation of funds from transactions conducted in this currency by Nigerian exporters. Nonye Ayeni, executive director of the Nigeria Export Promotion Council (NEPC), disclosed this development during a media briefing in Abuja on Friday, where she highlighted the non-oil export performance for 2024. Ayeni emphasized that after engaging with the CBN, the NEPC successfully advocated for the inclusion of the CFA franc, underscoring its importance in cross-border trade. She confirmed that Nigerian banks are now officially recognizing the currency for export transactions. “I am pleased to announce that the CBN has graciously approved the inclusion of the CFA franc on NXP forms for the repatriation of export earnings,” Ayeni stated. “We will collaborate closely with the CBN and banks to ensure smooth implementation.” The NEPC has also been actively supporting non-oil exports through initiatives such as distributing hybrid seedlings and agricultural inputs to over 1,200 farmers across Nigeria. These efforts are aimed at enhancing production capacities for crops like sesame, hibiscus, cashew, and palm seedlings in different regions of the country. In addition, the council is advancing its “Go Global, Go for Certification” campaign to enhance the quality of Made-in-Nigeria products. Ayeni revealed that 400 small and medium-sized enterprises (SMEs) have begun the certification process, with plans to support a total of 855 SMEs by 2025, enabling them to access specialized international markets. Furthermore, Ayeni highlighted the NEPC’s initiative to formalize informal border trade, aiming to boost foreign exchange earnings and enhance Nigeria’s export data collection capabilities. Related Posts Market offers rent-now, pay-later answer to tenants. Prospective renters in Nigeria can now breathe a sigh of relief as a rental solution that simplifies renting and facilitates Read more Rwanda retreat: Nigerian governments discuss complex issues. The Nigerian governors will attend and participate in a three-day leadership retreat in Kigali, Rwanda, designed to provide a platform Read more Shaibu: I support Obaseki and seek governorship. Philip Shaibu, the deputy governor of Edo State, has pledged to remain loyal to Edo State’s governor, Godwin Obaseki, despite Read more Citigroup expects more foreign investment in Nigeria and others despite FX turmoil. Citigroup Inc. has stated that Nigeria, Angola, and Kenya are among the African nations that are anticipated to attract more Read more Olawale Moses OyewoleOlawale Moses Oyewole is an adept writer who stays on top of current events and curate informative and engaging articles for his readers. He is a digital strategist who help brands gain online visibility.

Nine banks are sanctioned by the CBN for not using ATMs to disburse cash

Nine Deposit Money Banks (DMBs) were sanctioned by the Central Bank of Nigeria (CBN) for neglecting to provide Naira notes via automated teller machines (ATMs) during the Yuletide season. Following spot checks on its branches, each bank was fined N150 million for non-compliance with the CBN’s cash distribution standards, sending a strong message that cash flow disruptions would not be tolerated, the bank said in a statement on Tuesday. The enforcement move comes after the CBN repeatedly cautioned banking institutions to ensure smooth cash availability, especially during times of high demand. First Bank Plc, Fidelity Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank are among the impacted financial institutions. Related Posts Market offers rent-now, pay-later answer to tenants. Prospective renters in Nigeria can now breathe a sigh of relief as a rental solution that simplifies renting and facilitates Read more Rwanda retreat: Nigerian governments discuss complex issues. The Nigerian governors will attend and participate in a three-day leadership retreat in Kigali, Rwanda, designed to provide a platform Read more Shaibu: I support Obaseki and seek governorship. Philip Shaibu, the deputy governor of Edo State, has pledged to remain loyal to Edo State’s governor, Godwin Obaseki, despite Read more Citigroup expects more foreign investment in Nigeria and others despite FX turmoil. Citigroup Inc. has stated that Nigeria, Angola, and Kenya are among the African nations that are anticipated to attract more Read more Olawale Moses OyewoleOlawale Moses Oyewole is an adept writer who stays on top of current events and curate informative and engaging articles for his readers. He is a digital strategist who help brands gain online visibility.

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