Blackout fears grow over gas plant maintenance

Gas plantSeven power plants across Nigeria are expected to experience gas supply constraints as Seplat Energy shuts down a major facility for scheduled maintenance, raising fears of potential electricity shortfalls and looming blackouts, the Nigerian Independent System Operator has warned.

In a notice issued on Thursday, NISO alerted electricity market participants and consumers that the maintenance, slated for February 12 to 15, 2026, would temporarily reduce gas availability to some thermal power plants. The system operator emphasised that critical national infrastructure and essential services would be prioritised should load management measures be required during the period.

Power stations projected to be directly affected include Egbin, Azura, Sapele, and Transcorp Power Plants, while NDPHC Sapele, Olorunsogo, and Omotosho plants are likely to experience indirect constraints due to network-wide gas balancing effects.

The planned maintenance affects gas supply into the NNPC Gas Infrastructure Company Limited (NGIC) pipeline network and is expected to temporarily reduce thermal generation capacity on the national grid. At least seven power stations are projected to face direct and indirect constraints during the exercise.

In a separate press statement issued by NISO management and the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, the system operator confirmed that gas availability to seven grid-connected power plants would be curtailed during the four-day exercise.

Earlier assessments by NISO indicate that the maintenance could result in a generation shortfall of about 934.96 megawatts, representing roughly 19.67 per cent of the combined available thermal and hydro generation capacity of 4,753.10MW on the grid.

The notice read in part: “The Nigerian Independent System Operator hereby informs the general public and all electricity market participants of anticipated gas supply constraints affecting some major thermal power generating stations connected to the national grid.

“This situation arises from a formal notification received on the scheduled maintenance shutdown of a major gas supply facility from 12 to 15 February 2026 (both days inclusive). Full gas supply is expected to be restored on 16 February 2026.

“During the maintenance period, gas availability to certain power plants that depend on this supply network will be temporarily reduced. This will result in a temporary reduction in available thermal generation capacity across the national grid. This reduction underscores the need for careful system operation to maintain grid stability and reliability.”

NISO, which recently assumed the role of independent system operator under Nigeria’s restructured electricity market framework, said it would deploy real-time operational measures to preserve grid integrity throughout the maintenance window.

“In line with its statutory mandate, NISO will deploy appropriate real-time operational measures to safeguard the integrity and security of the national grid throughout the maintenance window,” the statement added.

“Any load shedding, if required, will be implemented in a structured, transparent, and equitable manner in close coordination with distribution companies. Priority will be accorded to critical national infrastructure, essential services, and security installations,” it emphasised.

The operator assured stakeholders that all decisions taken during the period would follow established grid security and reliability standards. “NISO assures all stakeholders and electricity consumers that every action taken during this period will be strictly guided by established operational procedures, grid security requirements, and reliability standards.

“The National Control Centre will intensify real-time system monitoring and contingency planning, while also ensuring fair load allocation based on available generation capacity,” the statement added.

Nigeria’s electricity grid remains heavily dependent on thermal power plants, which account for over 70 per cent of installed generation capacity and run primarily on natural gas supplied through pipelines and upstream processing facilities concentrated in the Niger Delta.

While Nigeria has abundant gas reserves—the largest in Africa—persistent supply bottlenecks, pipeline vandalism, payment arrears, and infrastructure maintenance have repeatedly disrupted electricity generation.

Industry data show that even when installed capacity exceeds 13,000MW, actual available generation often hovers between 4,000MW and 5,000MW due to gas shortages, transmission constraints, and plant outages.

Egbin, for instance, remains the largest single thermal power station in Nigeria with an installed capacity of 1,320MW. Azura-Edo contributes 461MW, while Transcorp’s Ughelli plant has over 900MW installed capacity. Any reduction in gas supply to these facilities typically has an immediate ripple effect across the national grid.

In a related statement titled “Notice of Scheduled Maintenance on Major Gas Plant and Facilities,” the Nigerian National Petroleum Company Limited confirmed the routine maintenance on its gas production facilities from February 12 to 15.

Seplat, a joint venture partner of NNPC Ltd and a key supplier of gas into the NGIC pipeline network, described the exercise as part of standard safety and asset integrity protocols.

“The public is hereby informed that Seplat Energy Plc, a Joint Venture partner of NNPC Ltd and a key supplier of gas into the NNPC Gas Infrastructure Company Limited pipeline network, has scheduled routine maintenance on its gas production facilities from 12th to 15th February 2026.

“This planned activity forms part of standard industry safety and asset integrity protocols designed to ensure the continued reliability, efficiency, and safe operation of critical gas infrastructure. Periodic maintenance of this nature is essential to sustain optimal system performance, strengthen operational resilience, and minimise the risk of unplanned outages,” the statement said.

The company acknowledged that the maintenance would temporarily reduce gas supply into the NGIC network, with possible knock-on effects on electricity generation.

“During the four-day maintenance period, there will be a temporary reduction in gas supply into the NGIC pipeline network. As a result, some power generation companies reliant on this supply may experience reduced gas availability, which could modestly impact electricity generation levels within the timeframe,” it added.

NNPC Ltd and Seplat said they were working to ensure the exercise is completed as scheduled, while mitigation measures are being put in place. “NNPC Ltd and Seplat Energy are working closely to ensure that the maintenance is executed safely and completed as scheduled.

In parallel, NNPC Gas Marketing Limited is engaging alternative gas suppliers to mitigate anticipated supply gaps and maintain stability across the network. Upon completion of the maintenance exercise, full gas supply into the NGIC system is expected to resume promptly, enabling affected power generation companies to return to normal operations.”

The Executive Director of PowerUp Nigeria, Mr Adetayo Adegbemle, faulted the handling of the planned maintenance, describing it as evidence of poor long-term planning in the power sector. Reacting to the announcement of anticipated gas constraints, Adegbemle said the development reflects a systemic failure to build buffers into critical infrastructure planning.

“This announcement shows our inability to plan ahead. Nothing says we should not have storage facilities that would hold us for days while this maintenance is being done,” he said. He argued that with better foresight, the impact of routine maintenance on electricity generation could be significantly reduced.

SEC seeks NOA partnership to curb illegal schemes

Managing DirectorThe Securities and Exchange Commission has expressed openness to collaborating with the National Orientation Agency to enlighten Nigerians on illegal investment schemes.

The Director-General of the SEC, Dr Emomotimi Agama, stated this during a meeting with the Director-General of the NOA, Mallam Lanre Issa-Onilu, in Abuja on Thursday.

He said, “These are not supposed to be, but many people fall victim due to a lack of knowledge. We know these schemes are springing up daily and these people are defrauding Nigerians. People are always gullible due to the need to survive. As management, we decided to move out to enlighten people; we cannot assume that people know. We need to go out for mass communication; hence, this collaboration. It is only by co-operation that we can achieve the purpose of our existence.”

Agama solicited the co-operation of the NOA to reach Nigerians because of its capacity and vast medium of mass communication to ensure that the message gets to every nook and cranny of the country.

“This collaboration is important because it will go a long way in ensuring that Nigerians are no longer victims of these fraudulent schemes. We appreciate that you value this country, and we value the work that you do,” he added.

In his response, Issa-Onilu commended the SEC on the achievements of the capital market in recent times, adding that the Commission has not been celebrated enough.

He stated, “We commend you and thank you on behalf of the country, but most Nigerians are not aware of the opportunities in the capital market. An ignorant society will fall victim to many avoidable things. It is our responsibility to enlighten people to make the right decisions.

“We request that you provide information on what you do to enable us to propagate them. Our primary assignment is to serve all government institutions as the communications arm. We do a lot of enlightenment in places like the religious houses, motor parks, town halls, etc.”

Issa-Onilu said the NOA engages in civic education to create the right values that will help most Nigerians become better citizens.

“Many Nigerians are deficient in good behaviour. Both the Ponzi scheme promoters and those that patronise them are suffering from the wrong attitude and values. We have to encourage people to have the right attitude so they do not fall victim to Ponzi schemes. We have created a lot of platforms to interact with Nigerians. At the moment, we have 193 radio stations and five television stations that we collaborate with for our communication,” he added.

NDIC insures 99% depositors, urges BVN linkage

ndic-Logo-1024×433-1The Nigeria Deposit Insurance Corporation has said that about 99 per cent of depositors in Nigerian banks are fully covered under its enhanced deposit insurance scheme, urging customers to link their Bank Verification Numbers to their accounts to guarantee seamless access to insured deposits in the event of bank failure.

The Managing Director/Chief Executive Officer of NDIC, Thompson Oludare, disclosed this on Wednesday at the NDIC Special Day of the 47th Kaduna International Trade Fair, held in Kaduna.

The trade fair, organised by the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, had as its theme, “From Reforms to Results: Economic Transformation through Sustained Local Content Development.”

Represented by Dr Regina Dinlung, Assistant Director, Communication and Public Affairs Department,  Oludare said the theme aligned with ongoing reforms in the financial sector aimed at delivering tangible benefits to Nigerians.

“For over three decades, the Nigeria Deposit Insurance Corporation has played a critical role in protecting depositors’ funds, particularly those of the most vulnerable, from the negative effects of bank failure,” he said.

Highlighting the corporation’s mandate, Oludare explained that it encompasses deposit insurance, supervision of insured institutions, distress resolution, and the orderly liquidation of failed banks.

According to him, NDIC works closely with the Central Bank of Nigeria to strengthen risk-based supervision, resolution planning, and inter-agency collaboration to safeguard the banking system and minimise systemic disruptions.

“Our tagline, ‘Protecting Your Bank Deposits,’ reflects our enduring commitment to financial inclusion and stability, reassuring Nigerians that their savings are safe,” he stated.

Oludare disclosed that in 2024, the corporation enhanced the maximum deposit insurance coverage as part of efforts to strengthen depositor protection and public confidence.

He said depositors of Deposit Money Banks, Mobile Money Operators, and Non-Interest Banks are currently insured up to ₦5m per depositor per bank, while those of Payment Service Banks, Microfinance Banks, and Primary Mortgage Banks are covered up to ₦2m per depositor per bank.

“This expanded coverage protects about 99 per cent of depositors, underscoring our commitment to safeguarding the savings of Nigerians,” he said.

He explained that in the event of a bank failure, insured depositors are paid promptly up to the guaranteed limit, while those with balances above the insured threshold receive liquidation dividends as assets of the failed bank are realised.

Citing recent interventions, Oludare referenced the closures of Heritage Bank Limited, Union Homes Plc, and Aso Savings and Loans Plc as examples of improved payout efficiency.

“In those instances, the corporation used the Bank Verification Number of depositors as a unique identifier to locate their alternate accounts into which their claims were transferred. This enabled the payment of claims within days of the banks’ closure,” he said.

“I therefore urge all depositors to ensure that their BVNs are properly linked to their bank accounts and identity records, as this greatly facilitates seamless and timely access to insured deposits in the event of bank failure,” he added.

Oludare also invited participants at the trade fair to visit the corporation’s pavilion to obtain information on deposit insurance and how to avoid fraudulent schemes.

He reaffirmed the NDIC’s commitment to evolving into a more responsive and technology-driven deposit insurer that not only resolves bank failures effectively but also works to prevent them and strengthen public trust in Nigeria’s financial system.

Earlier, the President of the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, Alhaji Farouk Suleiman, commended the corporation’s role in safeguarding depositors’ funds, noting that it remained critical at a time when economic confidence and institutional trust were under pressure.

“We are delighted to host one of Nigeria’s most critical financial sector institutions, an institution whose work often operates quietly behind the scenes, yet whose impact is felt profoundly across the economy,” he said.

According to him, NDIC’s participation in the fair underscored its commitment not only to regulation but also to public enlightenment and stakeholder engagement.

Nigeria underperforms OPEC oil quota for six months

OPECNigeria failed to meet its crude oil production quota of 1.5 million barrels per day approved by the Organisation of the Petroleum Exporting Countries in the first month of 2026, extending its streak of underperformance to six consecutive months.

According to OPEC’s Monthly Oil Market Report, Nigeria produced about 1.46 million barrels of crude oil per day in January 2026. Specifically, output rose from 1.422 mbpd in December 2025 to 1.459 mbpd in January, representing an increase of about 38,000 barrels per day.

Despite the marginal improvement, production remained below the 1.5 mbpd quota, marking the sixth straight month the country has missed its OPEC target, spanning August 2025 to January 2026.

Crude oil output had dipped in December 2025 by 14,000 barrels per day, despite government efforts to ramp up production. Data from the Nigerian Upstream Petroleum Regulatory Commission showed that production fell from 1.436 mbpd in November to 1.422 mbpd in December, instead of rising to meet the OPEC quota.

In 2025, Nigeria’s crude oil production fell below its OPEC quota in nine months, meeting or slightly exceeding the target only in January, June, and July. Year-on-year, crude production declined by over 80,000 barrels per day. Nigeria opened 2025 strongly, producing 1.54 mbpd in January, about 38,700 barrels per day above its OPEC allocation.

Output, however, slipped below the quota in February at 1.47 mbpd and weakened further in March, when production averaged 1.40 mbpd, representing one of the widest shortfalls of the year.

Although output recovered modestly in April at 1.49 mbpd and May at 1.45 mbpd, Nigeria remained under its OPEC ceiling until June, when crude production edged up to 1.51 mbpd, marginally exceeding the quota. The country sustained this momentum in July, producing 1.51 mbpd, before slipping below the threshold again in the following months.

As 2026 progresses, expectations are that Nigeria will ramp up crude production, especially as the Dangote refinery announced it has reached its full capacity of 650,000 barrels per day.

Meanwhile, the new Chief Executive of the NUPRC, Oritsemeyiwa Eyesan, has pledged to increase oil production. In a statement issued by the commission’s Head of Media and Strategic Communication, Eniola Akinkuotu, the NUPRC boss said her vision for the upstream sector rests on three pillars: production optimisation and revenue expansion; regulatory predictability and speed; and safe, governed and sustainable operations.

According to her, the agenda aligns with President Bola Tinubu’s Renewed Hope Agenda and the administration’s plan to grow Nigeria’s crude oil production to 2 mbpd by 2027 and 3 mbpd by 2030.

Eyesan said the commission would pursue production and revenue growth by recovering shut-in volumes with economic value, arresting natural field decline, reducing losses, and accelerating time-to-first oil, without imposing additional regulatory burdens or transaction costs on operators.

US Congress: Kwankwaso caught in web of international hypocrisy, blackmail – NNPP

The New Nigeria Peoples Party, NNPP, has said it received with shock reports that the Congress of the United States of America is considering a bill titled The Nigeria Religious Freedom and Accountability Act, 2026 (H.R. 7457), in which the national leader of the party, Rabiu Kwankwaso, was named as the sole individual, alongside the Miyetti Allah Cattle Breeders Association and a Fulani ethnic militia, to face targeted sanctions, including visa bans and asset freezes.

This, according to the reports, is due to his purported responsibility for “severe religious freedom violations.”

Responding to the reports, the NNPP National Publicity Secretary, Ladipo Johnson, dismissed any suggestion that Senator Rabiu Kwankwaso has been responsible, in any way, for religious freedom violations.

The party said it was curious and regrettable that Kwankwaso would be cited for issues he knew nothing about.

“We see this development as a contrived action against an innocent man who clearly has no relationship with religious fundamentalism in Nigeria.

“His record is in the public domain, both in public office and in private life, and it is advisable for people to investigate such matters properly before reaching such conclusions,” the party said.

Johnson stated that months before the latest development, Kwankwaso had openly reacted when President Donald Trump redesignated Nigeria as a Country of Particular Concern over alleged religious persecution.

In a statement posted on his X handle at the time, Senator Kwankwaso cautioned against what he described as oversimplified characterisations of Nigeria’s internal challenges.

Kwankwaso stated that it was important to emphasise that Nigeria is a sovereign nation whose people face diverse threats from outlaws across the country.

However, in a post shared on X, Rep. Riley Moore of the U.S. Congress stated to Kwankwaso: “Governor, do you care to comment on your own complicity in the death of Christians? You instituted Sharia law. You signed the law that makes so-called blasphemy punishable by death.”

The NNPP said this allegation stemmed from the fact that Kano State, under Kwankwaso’s leadership, brought the Islamic legal code into full effect, joining other northern states such as Zamfara, Sokoto, Katsina, Yobe, Jigawa, and Borno.

“But is this enough to accuse Kwankwaso of severe religious freedom violations? Why were the other state governors who introduced Sharia in their states not accused as well?” the statement asked.

“Is Rep. Moore being fair or selective? Isn’t the U.S. in good relations with Qatar and Saudi Arabia, both Sharia countries? Why is this coming just after our government apparently paid for a consultant in the U.S.? Isn’t it strange that it is Kwankwaso, an opposition leader who has spoken out repeatedly about insecurity under this administration, that the United States now seems to be turning on?”

The party recalled that as governor of Kano State, Senator Kwankwaso ensured that the Boko Haram sect was wiped out of the state, adding that his close relationships with Christian leaders in Kano and across the country attest to his credibility as a national leader and statesman.

“Even when he was pressured to introduce Sharia, he still lost his election because predominantly Muslim voters punished him for supporting a Christian presidential candidate, Chief Olusegun Obasanjo. Furthermore, in 2023, he ran his presidential campaign with a Christian bishop, Bishop Isaac Idahosa, as his running mate.

“These are the facts which we believe should guide the Congress and its leaders, particularly Reps. Riley Moore and Chris Smith, to carry out a thorough investigation into the credibility of our leader, Senator Rabiu Musa Kwankwaso, so that justice is done to his noble name and he is cleared of such undue embarrassment,” Johnson said.

APC National Secretary visits Kano Governor, Yusuf

The National Secretary of the ruling All Progressive Congress, APC, Surajudeen Basiru, on Wednesday paid a courtesy visit to Kano State Governor, Abba Yusuf.

Basiru in a statement described the meeting as an opportunity to explore ways to further consolidate the APC’s presence in Kano State.

“I paid a courtesy visit to the Kano State Governor, H.E. Abba Yusuf, at the Kano Governor’s Lodge.

“The visit afforded us the opportunity of discussing how to further strengthen and unify our party, the APC, in Kano State and further the support base of the Governor,” he said.

The visit comes weeks after Governor Yusuf’s high-profile defection from the New Nigeria Peoples Party, NNPP, to the APC in late January 2026.

Judges, magistrates tools in hands of politicians – NBA President, Osigwe

President of the Nigeria Bar Association, NBA, Afam Osigwe, SAN, has lamented that judges and magistrates appear to be tools in the hands of politicians and ‘big men’.

Osigwe said this on Wednesday during an interview on Arise Television’s ‘Prime Time’ monitored by DAILY POST.

He said that free speech is being concealed in Nigeria under the guise of cyber crime and defamation.

“Free speech is being muzzled in Nigeria under the guise of charging people to court and investigating them for cyber crime and criminal defamation.

“Even when the matters are ordinarily bailable, judges and magistrates appear to be tools in the hands of politicians and ‘big men’ and refuse bail even where there is no basis for not granting bail.

“This is a violation of the right to freedom of expression and an abuse of the democratic space.

“Because these public office holders should be held to a higher standard of accountability and if they deprive people of the ability to criticize and hold them to account, then democracy dies.

“If our judges become willing tools in giving them that which they desire, which is to put those people out of circulation, then there’s something wrong and the judiciary becomes a willing tool in the hands of the oppressors and thereby becomes an oppressor itself,” he said.

Traffic diversion begins as Lagos City Marathon holds February 14

Lagos State Government has announced a comprehensive traffic diversion plan ahead of the 2026 Lagos City Marathon scheduled to take place on Saturday, February 14, 2026.

The plan, released by the Lagos State Ministry of Transportation, is aimed at ensuring smooth traffic management and public safety during the event, which will feature both 42-kilometre and 10-kilometre races taking place simultaneously across designated routes in the state.

According to the ministry, the 42-kilometre marathon will commence at Ahmadu Bello Way, by the MRS Gas Station, and run through the entire stretch of the Coastal Road, which will serve as the finishing point of the race.

The 10-kilometre race, on the other hand, will begin at Durosimi Etti Street in Lekki Phase 1. From there, runners will proceed through Ozumba Mbadiwe, Bishop Oluwole Street, Akin Adesola Street and Sanusi Fafunwa Street, which marks the endpoint of the shorter race.

In line with the traffic management arrangement, the state government disclosed that all adjoining roads, junctions and intersections connected to both race routes will be temporarily blocked from 12:00 a.m. to 12:30 p.m. on Saturday, February 14, 2026. The roads, however, will be opened intermittently to motorists as the race progresses.

The ministry further stated that all affected roads will be manned by operatives of the Lagos State Traffic Management Authority (LASTMA), alongside other security agencies, to restrict access to the main race corridors and ensure orderliness throughout the duration of the marathon.

Reacting to the development, the Lagos State Commissioner for Transportation, Mr. Oluwaseun Osiyemi, reassured residents that adequate measures had been put in place to ease movement during the event.

“Traffic Management Officials will be strategically positioned to help motorists navigate their journeys,” Osiyemi said, while urging Lagosians to plan their trips ahead of time.

He also advised members of the public to make use of alternative routes and, where possible, adopt other modes of transportation to reduce inconvenience during the partial road closures.

In an advisory issued by the ministry, motorists were implored to remain patient, noting that the temporary restrictions form part of the traffic management plans for the 11th edition of the Access Bank Lagos City Marathon Race 2026.

The state government appealed for the understanding and cooperation of road users, stressing that the measures are necessary for the successful hosting of the marathon and the safety of participants and the general public.

Tension mounts over NHIA office relocation in Edo

UntitledA socio-cultural organization, Edo First, has accused Obaro Ologbo, the South South Zonal Director of the National Health Insurance Authority’s (NHIA) of influencing the relocation of the NHIA office from Benin to Port Harcourt, River State.

However, Ologbo described the allegation as a “big, fat lie”, stating that the decision to relocate the office is the decision of the Abuja office.

In a February 4 internal memo signed by Director, Human Resources, Halima Zakari, named new seven zonal offices that have been created to run the affairs of the NHIA.

The memo stated in part, “This is to inform all that the NHIA Governing Council at its first retreat in August, 2025 approved the creation of two news departments – Strategic Purchasing Department Risk and Regulatory Services Department

“These Departments have been forwarded to the Office of the Head of the Civil Service of the Federation for ratification. However, the Departments have commenced operational activities.

“Furthermore, the organizational structure of the Authority now has seven Zonal Offices as follows. They are North Central Zonal Office (Ilorin);  North East Zonal Office (Maiduguri); North West Zonal Office (Kano}; South East Zonal Office (Enugu); South-South Zonal Office (Port Harcourt); South West Zonal Office (Ibadan) and Lagos Zonal Office (Lagos).

“All staff are requested to take note.”

The group said the decision to relocate its zonal office from Benin City to Port Harcourt, is a deliberate affront on Edo State.

A statement on Tuesday signed by the group President, Edosa Idahosa and Secretary, Ehiadolor Osakue, accused the zonal director of orchestrating the move for selfish reasons, citing proximity to his adopted home base of Bayelsa.

The statement read in part, “The relocation of the NHIA from Benin to Port Harcourt can be traced to the zonal director.

“The Edo State Government in its magnanimity provided rent-free accommodation for about 20 years and a Certificate of Occupancy for a permanent site, but the zonal director, from Delta State, refused to work in Benin. The zonal office is currently suffering from neglect

“We, therefore call on the Oba of Benin, Omo N’Oba N’Edo Uku Akpolokpolo, Oba Ewuare II, and influential Edo State personalities to look into the matter and prevent the relocation.

But Ologbo told the PUNCH in a telephone interview that he was not instrumental to the relocation of the zonal office, noting there are channels of decision in the organization.

He said, “Why would I do that? There is a board, there is a top management. There are a lot of channels before decisions are taken. If there is a group saying things, they may not know how the decisions are being made.

“I am happy you are reaching out to me. I am denying the claim. It is not true. It is absolutely a big, fat lie. I can’t be instrumental to government’s decisions. It’s not me. Why should that be?”

The National Health Insurance Agency is a government body, established to provide financial access to healthcare for all citizens, aiming for universal coverage by pooling funds, regulating schemes, and managing enrolment for formal and informal sectors, replacing older, less effective systems like Nigeria’s previous National Health Insurance Scheme (NHIS).

It manages contributions, offer benefit packages (for employees, families, elderly, self-employed), and partner with providers to ensure affordable, quality care for everyone.

Naira set to strengthen with new BDC dollar limit

Naira and DollarFinancial market analysts have said that the naira would strengthen as the Central Bank of Nigeria announced that licensed Bureau de Change operators can purchase up to $150,000 weekly.

The experts spoke to The PUNCH in separate chats on Wednesday following the move of the CBN.

In a circular signed by the Director of the Trade and Exchange Department, Dr Musa Nakorji, and addressed to authorised dealer banks and the general public on Tuesday, the apex bank said that the move was aimed at improving foreign exchange liquidity in the retail segment of the market and meeting the legitimate needs of end users.

The Chief Executive Officer of Arthur Stevens Asset Management, Tunde Amolegbe, said the naira is likely to strengthen further against the United States dollar as forex availability improves.

“Expect further strengthening of the naira against the US dollar, which will be positive for companies with significant foreign currency-denominated inputs such as consumer goods and industrial companies,” Amolegbe said.

According to him, a firmer domestic currency would reduce the cost burden on manufacturers and import-dependent firms, particularly in the consumer goods and industrial sectors where raw materials and machinery are largely dollar-denominated.

Similarly, the Head of Financial Institutions at Agusto & Co., Ayotunde Olubunmi, described the development as part of broader CBN efforts to address distortions in the foreign exchange market, especially the widening gap between the official and parallel market rates.

“This is one of the measures by the CBN to address the widening gap between the official market and the parallel market. This is expected to improve liquidity of the BDC segment and moderate the margin,” Olubunmi said.

He explained that increasing liquidity in the Bureau de Change segment should reduce speculative pressure and arbitrage opportunities, thereby narrowing spreads and promoting a more unified exchange rate framework.

The Chief Executive Officer of CFG Advisory, Tilewa Adebajo, also emphasised the importance of widening forex distribution channels.

“Availability of forex through more channels is helping with rate stabilisation,” Adebajo said.

The apex bank also imposed strict reporting and transparency requirements, directing that “all licensed BDCs shall ensure the timely and accurate submission of returns to the Central Bank electronically and in accordance with extant regulations.”

Also, BDCs are mandated to sell back all unutilised balances to the market within 24 hours, stating that “BDCs are not permitted to keep funds purchased from NFEM in their positions.

“Settlement of foreign exchange transactions by BDCs with Authorised Dealers and/or with end-user customers shall be conducted exclusively through settlement accounts held with licensed financial institutions. Third-party transactions are prohibited, and settlement of foreign exchange sales in cash is limited to a maximum of 25 per cent of each transaction amount.”