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CBN tightens grip as interbank deficit hits N4.1tn

In a strategic move to curb rising food and fuel prices, the Central Bank of Nigeria has tightened its grip on the financial system, pushing the interbank deficit to N4.1tn. By vacuuming out excess liquidity through high-yield government bills, the CBN is betting that a short-term drought in the banking system is a necessary sacrifice to stabilise the naira and prevent inflation from spiralling out of control after its recent jump to 15.4 per cent.

According to the latest Afrinvest Weekly Market and Economic Analysis, the interbank system remains under immense pressure as the apex regulator prioritises the containment of resurgent inflation and exchange rate volatility.

The report reveals that system liquidity conditions, representing the volume of discretionary cash available for banks to lend to one another, remain deep in negative territory. While the average system deficit narrowed by 18.7 per cent to settle at N4.1tn, down from N5.0tn the previous week, the figures signal a deliberate drought orchestrated by the regulator to mop up excess money supply.

Mop-up operations

Analysts at Afrinvest noted that this persistent shortfall is not accidental but a core feature of the current fiscal defence strategy. “The persistent system liquidity shortfall reflects sustained monetary tightening by the CBN, driven by a combination of OMO-induced sterilisation and limited offsetting inflows,” the report stated.

To anchor inflation expectations and prevent excess naira from chasing limited foreign exchange, the CBN utilised Open Market Operations. By offering N600bn in high-yield OMO bills, the CBN effectively mopped up cash from the banking system, locking it away to prevent it from driving up general price levels.

Despite the cash scarcity, investor appetite remains voracious. The 140-day and seven-day bills saw massive oversubscriptions, with bid-to-cover ratios of 8.6x and 4.3x, respectively. “Investor demand was robust, underscoring continued appetite for high-yield government securities despite prevailing liquidity constraints,” the analysis added.

Liquidity divide, stability

A striking takeaway from the analysis is the growing liquidity segmentation within the Nigerian banking sector. This phenomenon occurs when a few large, cash-rich banks hold massive surpluses while smaller institutions struggle with deficits.

Instead of lending to their struggling peers in the interbank market, often due to heightened risk concerns, these surplus institutions are choosing to park their money back with the CBN.

The report highlighted that Standing Deposit Facility placements averaged N4.1tn, noting that “these placements highlight continued liquidity segmentation as surplus institutions maintained significant deposits at the CBN despite the broader system deficit.”

Surprisingly, despite the liquidity crunch, interbank funding rates remained stable. The Open Repo rate held steady at 22.0 per cent, while the Overnight rate moderated slightly to 22.3 per cent.

Analysts suggest this indicates that the market has fully priced in the CBN’s hawkish stance, meaning banks have already adjusted their operations to a high-interest-rate environment.

Inflationary pressures

Looking ahead, the forecast remains consistent as the tight grip is not expected to loosen soon. Experts expect “liquidity conditions to remain constrained in the near term, and funding rates are likely to remain elevated but stable”, anchored by the prevailing monetary policy.

This aggressive tightening comes at a pivotal moment for the national economy. After eleven months of cooling prices, Nigeria’s headline inflation rebounded to 15.4 per cent in March 2026. This spike was largely driven by a global energy shock that pushed crude oil prices above $100/bbl, leading to higher domestic fuel and logistics costs.

By keeping the interbank system thirsty for cash, the CBN aims to support the naira and control the Consumer Price Index. While the squeeze on liquidity raises the cost of funds for banks, the apex bank appears convinced that a short-term sting in interest rates is a necessary price to pay to avoid the long-term pain of runaway inflation.

by admin — April 21, 2026 in Business 0

Nigeria exports 55.39m barrels as Dangote battles crude shortage

Nigeria exported 55.39 million barrels of crude oil in the first two months of 2026, even as the Dangote Petroleum Refinery continues to struggle with inadequate domestic feedstock supply.

According to the latest data from the Central Bank of Nigeria, the country shipped out 31.31 million barrels in January and 24.08 million barrels in February. In January, crude production averaged 1.46 million barrels per day with exports at 1.01 mbpd. In February, production fell to 1.31 mbpd while exports averaged 0.86 mbpd.

Total crude production for the two months stood at 81.94 million barrels, meaning that 26.55 million barrels were left behind for local refineries in the first two months of 2026.

The strong export figures come at a time when the 650,000-barrel-per-day Dangote refinery is battling an acute shortage of local crude. The refinery has repeatedly complained of receiving far below its required volumes from domestic sources, forcing it to import crude from international markets.

This situation persists despite Nigeria’s position as Africa’s largest crude oil producer. Industry sources note that a significant portion of produced crude continues to be exported while the country’s flagship refinery grapples with supply constraints under the naira-for-crude arrangement.

Before the Nigerian National Petroleum Company Limited recently increased crude supply to the Dangote refinery from five cargoes to 10 cargoes, The PUNCH reports that the ambitious deal between the Dangote refinery and the NNPC faced challenges, as the refinery experienced a crude oil supply shortfall of approximately 79.53 million barrels between October 2025 and mid-March 2026.

Data obtained from an impeccable senior management source within the refinery indicated that the facility, which requires approximately 19.77 million barrels of crude monthly to operate at full capacity, received significantly lower volumes during the period.

The official argued that, under the Petroleum Industries Act, the export of crude before meeting local demand was clearly prohibited, stressing that the $20bn Lekki-based plant had been grappling with inadequate crude volumes, while the country, through NNPC, continued to export some of its oil.

A breakdown of the figures shows that the refinery is supposed to get about 19.77 million barrels of crude monthly, but it got 4.55 million barrels in October, 6.45 million barrels in November, 4.30 million barrels in December, 5.65 million barrels in January, and 4.66 million barrels in February. For March, only 3.6 million barrels were delivered between the 1st and 15th.

In total, crude supplied within the five-and-a-half-month period stood at 29.21 million barrels, compared to an estimated 108.74 million barrels required for the same duration. This translates to a supply performance of about 26.9 per cent, indicating that more than three-quarters of the refinery’s crude needs were not met.

Earlier, the Dangote refinery had repeatedly lamented that it was not getting enough crude locally for its operations.

As the Iran-US war continues to disrupt global oil supply, the Dangote refinery effected multiple fuel price increases, raising the petrol pump price above N1,300 per litre before it was later reduced to the current N1,250 per litre.

Defending these price hikes, the Dangote refinery said in a statement that local crude producers were refusing to supply feedstock to its facility, forcing it to rely more on imported crude.

According to the company, the refinery received just five cargoes every month from the national oil company instead of 13 cargoes, adding that the cargoes were paid for at international market prices.

“While we receive about five cargoes a month from NNPC, which we pay for in naira, these cargoes are priced at international market prices plus premium and fall short of the 13 cargoes which we require to support sales into Nigeria.

“The high crude cost is compounded by the fact that Nigeria’s upstream producers have failed to supply crude oil to the refinery as required under the Petroleum Industry Act, forcing us to source a substantial portion through international traders who charge an additional premium,” it stated.

However, reliable sources at the NNPC, who pleaded anonymity due to the sensitivity of the matter, confirmed to our correspondent that the company was leveraging its global crude trading network to source third-party crude for the 650,000-barrel Lekki refinery.

According to the source, the NNPC would sell the crude to the refinery at prices that are competitive with prevailing international market rates, ruling out calls by some stakeholders that the Federal Government should sell feedstock to local refineries at rates designed locally to shield Nigeria from the global price rise.

“Leveraging our global crude trading network, we are sourcing third-party crude for the refinery at prices that are competitive with prevailing international market rates.

“As the national oil company entrusted with safeguarding Nigeria’s energy security, NNPC Limited remains fully committed to supporting domestic refining, including the Dangote Petroleum Refinery. Within the framework of our existing agreements, we continue to facilitate crude supply to the refinery in the face of temporary availability constraints,” he explained.

Our correspondent gathered from other sources within the national oil company that there was truly a shortfall because some volume of NNPC’s daily crude output had been front-sold in the past.

“Indeed, there’s a shortfall, but it wasn’t deliberate. You know that some volumes have been front-sold in the past. That is causing some form of distortion, but that doesn’t mean the NNPC will not meet up. The company is looking at other alternative sources,” it was said.

Recently, Africa’s richest man and President of the Dangote Group, Aliko Dangote, revealed in a report by Bloomberg that the refinery received 10 cargoes of crude oil from the state-owned oil firm in March, compared to an average of about five cargoes monthly since late 2024.

Dangote said the shipments included six cargoes paid for in naira and four in dollars, under the crude supply arrangement between the refinery and the NNPC. However, this is still below the over 19 million barrels required by the refinery monthly.

The Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, called for increased crude supply to local refineries.

Idoko declared that refiners would intensify demand for more crude with the reported improvement in national production. The CORAN spokesman explained that consistent crude supply would improve refinery operations and profitability, noting that modular refineries would not make profits unless they get enough feedstock locally.

“If we get crude, of course, we will make gains; we have our cash flow. If we get regular products like we ought to do, yes, we would make gains. But without products, we are not making gains. If the oil producers give us feedstock, we will make gains. That’s how good the refining business is,” he said.

by admin — April 20, 2026 in Business 0

Petrol price drop in doubt after Hormuz disruption

The decision by Iran to reclose the Strait of Hormuz has dampened hopes that fuel prices would crash in Nigeria.

The Strait of Hormuz was opened on Friday following a ceasefire deal between Iran and the United States. But barely 24 hours later, Iran reclosed the strait, calling the decision a response to a continued blockade of its ports by the United States.

The Iranian military on Saturday said control of the strategic waterway, through which 20 per cent of globally traded oil transits, had “returned to its previous state”, with reports saying Iranian gunboats fired at a merchant vessel as it attempted to cross.

Fuel marketers had earlier projected that petrol prices could drop from the current N1,250 to about N900 when the strait was opened on Friday.

The spokesman of the Petroleum Products Retail Outlet Owners Association of Nigeria, Joseph Obele, said on Friday that the prices of crude oil had crashed following the reopening of the strait.

Obele recalled that petrol was around N800 before February 28, when the crisis started, expressing optimism that a sharp reduction should be expected if the development had been sustained.

“With the reopening of the Strait of Hormuz, Nigerians should expect a very significant reduction in petrol prices. Petrol will fall below N1,000 by next week, probably to N900 per litre. Don’t forget that the product was N800+ before the Middle East crisis. Now that the war is over, we should be expecting a return to that price regime,” he said on Friday.

But on Sunday, Obele told our correspondent that the reclosure of the Hormuz had dashed hopes of a price drop projection. Obele said the status quo would remain at the moment, pending when both Iran and the US agree on a lasting ceasefire.

President Donald Trump said Sunday that Iran had violated the ceasefire agreement with the US by attacking ships in the Strait of Hormuz, and he repeated threats to attack Iranian energy infrastructure unless it accepts a deal to end the war.

Our correspondent observed, however, that there has not been a major oil price surge since Saturday when the strait was reclosed by Iran. According to oilprice.com, Brent traded at $90 per barrel on Sunday, up from $88 before the Hormuz Strait reclosure. Recall that Brent was $95 as of Friday morning.

Meanwhile, US President Donald Trump said Sunday that Iran had violated the ceasefire agreement with the US by attacking ships in the Strait of Hormuz, as he repeated threats to attack Iranian energy infrastructure unless it accepts a deal to end the war.

“Iran decided to fire bullets yesterday in the Strait of Hormuz — a total violation of our ceasefire agreement!” he posted on Truth Social. “That wasn’t nice, was it?”

“We’re offering a very fair and reasonable deal, and I hope they take it because, if they don’t, the United States is going to knock out every single power plant and every single bridge in Iran,” he continued. “No more Mr Nice Guy!” he said.

Trump disclosed that negotiators would arrive on Monday evening in Islamabad, Pakistan, which last weekend hosted direct talks between the two sides, with the current two-week ceasefire set to end on Wednesday.

by admin — April 20, 2026 in Business 0

Reforms saved Nigeria from severe hardship a Reforms saved Nigeria from severe hardship after global shocks – CBN fter global shocks – CBN

The reforms implemented by the Central Bank of Nigeria have helped cushion the impact of global economic shocks on Nigerians, preventing more severe hardship despite ongoing external pressures, the apex bank has said.

CBN Governor Olayemi Cardoso disclosed this at the final briefing of the bank during the just-concluded Spring Meetings of the World Bank/International Monetary Fund in Washington DC.

“The decisions of the MPC (Monetary Policy Committee), as we consistently emphasise, are data-driven. They are not based on emotion but on careful analysis of available information, and we respond accordingly. I am pleased that this cautious approach has proven justified by subsequent developments.

“I would also add that if we had not taken the steps we did at the time—and if the reforms had not been implemented when they were—the outcome for the country could have been far more difficult and painful,” Cardoso stated, while responding to a question on the March uptick in inflation.

On Friday, The PUNCH reported that Nigeria’s inflation rate rose to 15.38 per cent in March 2026, reversing the recent easing trend as global shocks from the US–Iran conflict pushed up energy, transport, and food costs. The PUNCH also observed that this is the first increase in headline inflation since March 2025.

Cardoso admitted that the recent National Bureau of Statistics report “showed an uptick in inflation, which, quite frankly, should not be too surprising given the global disruptions taking place at this time. Much of this increase can be attributed to global shocks.”

He noted that it was important to remind ourselves that, up to this point, the country had experienced consistent deceleration in inflation. “We had also begun the process of reducing rates, although we remained cautious. At the time, we were careful to avoid easing too early, as doing so could expose the economy to exactly the kind of shocks we are now witnessing—and that is precisely what has happened.

“There was an expectation that the central bank, given several months of deceleration, would adopt a more aggressive approach to reducing rates.

“However, this underscores an important point: members of the MPC have access to data and insights that are not always visible to the public. This situation clearly demonstrates why there was concern about potential shocks on the horizon. We wanted those uncertainties to clear before taking more decisive action.”

In direct response to the question on inflation, Cardoso insisted that the recent uptick was largely the result of global shocks. “Nonetheless, we remain committed to building resilience and staying the course on our long-standing objective of bringing inflation down to single digits,” he stated.

The CBN boss added, “Despite current challenges, we will maintain this focus because we believe it directly addresses the key concerns of Nigerians, particularly the real impact of macroeconomic developments on everyday life. Encouragingly, stability has begun to take hold, meaning that some of the negative consequences associated with instability can now be put behind us.”

Recall that both the Minister of Finance/Coordinating Minister for the Economy, Wale Edun, and the CBN governor, Cardoso, had earlier declared that Nigeria is currently in a sound position to withstand global economic shocks stemming from the Middle East crisis or other issues.

Both men took turns reiterating this position during a press briefing at the Spring Meetings of the World Bank and the International Monetary Fund in Washington, DC, United States.

Speaking at the briefing, Edun said, “Nigeria came to this meeting with a clear message: our reforms are durable, self-sustaining. We are more resilient to global shocks, and we are focused on inclusive growth.

“Due to the reforms undertaken under the leadership of His Excellency, Mr President, Nigeria is well-positioned to withstand external shocks, such as the one we are witnessing at this time.

“Across our engagements this week, there has been strong recognition and commendation that Nigeria’s reform programme is strengthening our economic fundamentals and restoring confidence. This has placed us in a stronger and better position to withstand the ongoing situation described as the Israeli–US–Iran conflict.

“With the economy now operating a market-reflective foreign exchange regime and market-based pricing for petroleum products, adjustments are occurring relatively smoothly—without distorted controls, unsustainable subsidies, or a rapid depletion of reserves, based on the data available to the Central Bank of Nigeria.”

Edun noted that this improved resilience was “widely acknowledged throughout the week at our various meetings, including at the International Monetary Fund, the World Bank, and in our engagements with other development partners and bilateral counterparts.”

by admin — April 20, 2026 in Business 0

Banking the Economy That Actually Exists

There is a version of the Nigerian economy that the banking sector has always served well. It is the economy of salaried professionals, corporate treasurers, documented collateral, and monthly pay cycles. It is the economy that fits neatly into conventional credit models, standard account structures, and the risk frameworks that Nigerian banking inherited from its colonial and post independence institutional architecture. That economy is real, and serving it matters.

There is another version. It is the economy of the cooperative chairwoman in Ogun whose members pool contributions weekly. The textile trader in Balogun who turns inventory four times a month but has never had a formal credit history. The agro dealer in Kaduna whose working capital needs spike in planting season and collapse in the dry months. The artisan in Aba whose business has been profitable for fifteen years, but whose collateral is her workshop and her reputation. This economy is also real. It is, by most measures, larger than the first; and for most of Nigerian banking history, the sector was not designed to serve it.

The gap is not a matter of intention. It is a matter of architecture. Conventional banking products were designed around a specific customer profile: formally employed, predictable monthly income, assets that could be valued and pledged, credit history held in a bureau. Nigerians who fit that template, whether men or women, whether in Lagos or Kano, were served well. Those who did not, regardless of how productive their economic activity, were structurally underserved. They were not refused service. The products simply did not fit the shape of their lives.

The numbers confirm what anyone who has spent time in a Nigerian market already knows. According to the 2023 EFInA report, 26 per cent of Nigerian adults remain financially excluded. The World Bank’s surveys of Nigerian SMEs consistently identify access to finance as the single largest constraint on business growth, particularly among enterprises operating in the informal and semi formal sectors.

These are not idle businesses. They are enterprises generating real output and real employment, operating in a financial blind spot that the banking sector created not through malice but through product design.

A small number of institutions have begun to close that gap by building differently. Union Bank of Nigeria is one of them.

Through alpher, the bank’s financial proposition designed specifically for underserved market segments, Union Bank disbursed over ₦150 million in cash flow loans to entrepreneurs in a single three month window in 2025. The underwriting methodology behind alpher was built for businesses whose income flows through market associations and cooperative structures rather than through conventional payroll. These are businesses that traditional credit scoring cannot see, not because they are risky but because the scoring model was never calibrated for them.

Through alpher partnerships, the bank extended more than ₦106 million in discounted credit to seventy one businesses operating in market clusters that had previously sat outside the formal banking system. Its financial literacy outreach through alpher reached over 230 individuals in targeted sessions, and a parallel programme supported fifty nine previously unbanked entrepreneurs with micro grants and account opening.

The significance of these numbers is less in their volume and more in their method. alpher represents a decision to redesign the product rather than wait for the customer to fit the existing one. That is a meaningful institutional choice, because it requires a different kind of underwriting capability, a different kind of relationship management, and a different kind of patience than conventional retail or SME banking demands.

What makes Union Bank’s work on financial inclusion credible is that the institutional culture behind it is itself built on inclusion. Forty-five per cent of the bank’s board is female, exceeding the Central Bank of Nigeria’s thirty per cent governance threshold by fifteen percentage points.

The Managing Director and Chief Executive Officer, Mrs Yetunde B. Oni, leads an institution whose most recent graduate intake was sixty per cent female. The bank offers five month fully paid maternity leave, among the longest in the Nigerian banking sector, alongside ten day fully paid paternity leave, formalised adoption and surrogacy leave, and the CareCube crèche facility at the head office. These are not separate from the bank’s external inclusion work.

They are the internal architecture that makes it possible. An institution that invests in the breadth of its own talent base develops a broader product imagination than one that does not.

The honest assessment is that the Nigerian banking sector as a whole has a considerable distance still to cover. The informal and semi formal economy remains the largest segment of Nigerian economic activity, and it remains the least well served by formal financial institutions.

The products available to this segment are still too few, still too expensive in many cases, and still too narrowly distributed. Closing the gap will require more institutions to make the same architectural choice that the early movers have made: to build for the economy that actually exists, not for the economy that conventional banking assumed it was serving.

As Union Bank enters its 109th year, the inclusion question is not peripheral to its institutional story. It is central to it. A bank that has been present in Nigeria since 1917 has watched the country’s economic structure change repeatedly. The cooperative economies of the North, the trading networks of the South West, the manufacturing clusters of the South East, and the digital enterprises of Lagos each demand different financial products and different engagement models. The institutions that build for that diversity will be the ones that remain relevant. The ones that do not will find that the economy they were designed to serve is no longer the economy they need to serve.

Nigeria’s productive economy is broader, more diverse, and more resilient than any single customer profile can capture. The banking sector’s next chapter will be defined by which institutions recognised that earliest and built accordingly.

Union Bank of Nigeria has started. The work continues.

by admin — April 20, 2026 in Business 0

Govt urges airlines to halt shutdown over fuel crisis

The Federal Government has appealed to domestic airlines to suspend plans to halt flight operations and reconsider any increase in airfares following the sharp rise in the price of Jet A1 fuel.

The Minister of Aviation and Aerospace Development, Festus Keyamo, made the appeal in a letter addressed to the Airline Operators of Nigeria on Thursday. The move comes amid growing concerns over threats by airlines to suspend operations next week due to the rising cost of aviation fuel.

In the letter, the minister stated, “I write in reference to your correspondence dated April 14, 2026, concerning the operational challenges currently confronting your member airlines, especially the sudden hike in Jet A1 fuel from N900 per litre as at February 28, 2026, to N3,300 per litre as at today, representing a 300 oer cent increase.”

He commended the resilience of airline operators despite the challenging operating environment. The letter read, “At the outset, I wish to commend the resilience, professionalism, and steadfast commitment of your members in sustaining air transport services under evidently difficult conditions.”

Reaffirming the Federal Government’s commitment to the aviation sector under President Bola Ahmed Tinubu, the minister emphasised the strategic importance of the industry.

He said, “Let me reiterate that the administration of President Bola Ahmed Tinubu accords the aviation sector the highest strategic importance. In line with the provisions of the Civil Aviation Act, 2022, the sector remains a critical national asset essential to trade facilitation, national security, employment generation, and overall economic integration.”

“You will also acknowledge that the Government of President Bola Ahmed Tinubu has initiated unprecedented reforms in the sector aimed at supporting the growth and sustenance of the businesses of local operators.”

Keyamo urged the airlines to exercise restraint in adjusting ticket prices despite mounting operational costs.

He stated, “First, I urge your members to exercise restraint with respect to any proposed increase in airfares at this time. While the prevailing cost pressures on your operations are fully acknowledged, any immediate upward adjustment in ticket prices would impose significant hardship on the travelling public, potentially depress demand, and limit accessibility to air transport for a broad segment of Nigerians.”

The minister also appealed to operators to reconsider any plans to suspend flights, warning of wider economic consequences.

He added, “Secondly, I appeal for the reconsideration of any planned suspension of flight operations. Such action would have far-reaching adverse implications for the national economy, disrupt critical mobility and logistics networks, erode public confidence, and undermine the progress recorded under the ongoing reforms within the aviation sector.”

He assured stakeholders that the Federal Government was already taking steps to address the situation. According to him, “I wish to formally assure you that the concerns raised by your members have received the full attention of the Federal Government and we shall take immediate steps to address the issues.”

The minister further disclosed that an emergency stakeholders’ meeting had been convened to find a lasting solution.

He said, “Accordingly, a high-level emergency stakeholders’ meeting has been scheduled to be held on Wednesday, April 22, 2026, in Abuja, bringing together all relevant stakeholders and regulatory authorities with a view to achieving a prompt, practical, and sustainable resolution. The venue and time will be communicated in due course.”

Airlines have recently raised concerns over the soaring cost of Jet A1 fuel, warning that the situation could force them to suspend operations if urgent intervention is not provided.

The development follows earlier warnings by the Airline Operators of Nigeria that domestic carriers may be forced to shut down operations from April 20 if the rising cost of aviation fuel is not urgently addressed. In a letter dated April 14, 2026, the operators said the price of Jet A1 had surged from N900 per litre as at February 28 to N3,300 per litre, representing an increase of over 300 per cent, which they described as “astronomical and artificial.”

The operators noted that airlines had continued to operate for weeks despite mounting losses, stressing that the situation had become unsustainable as revenues could no longer cover even the cost of fuel alone. They warned that the trend posed an existential threat to the aviation industry and could force multiple airlines to suspend operations if no intervention is made.

They further cautioned that a shutdown of flight operations would have far-reaching consequences on the economy, including job losses, disruption to financial institutions, and increased insecurity, while also noting that any attempt to pass the cost to passengers through higher fares could significantly reduce demand for air travel.

by admin — April 18, 2026 in Business 0

MAN rejects petrol import proposal

The Manufacturers Association of Nigeria has urged the Federal Government to reject policy recommendations suggesting the reinstatement of petrol import licences, describing the proposal as flawed and harmful to Nigeria’s industrialisation drive.

The position follows the now-retracted recommendation by the World Bank in its April 2026 Nigeria Development Update. In a statement on Friday, Director-General of MAN, Segun Ajayi-Kadir, said the idea of reopening the country to petrol imports as a long-term solution to inflation was misguided.

“It is not, and should not be considered as an option. Suggesting that Nigeria should open its borders to imported Premium Motor Spirit to solve an inflationary crisis is structurally flawed, counterproductive, and highly detrimental to Nigeria’s industrialisation agenda,” Ajayi-Kadir said.

He warned that such a move would worsen Nigeria’s economic structure, noting that “in the long run, it will perpetually constrain Nigeria into the circle of exporting jobs and wealth, and importing poverty.”

MAN faulted the World Bank’s earlier position that suspending import licences reduced competition and contributed to rising fuel prices, arguing that the analysis ignored key macroeconomic realities.

Ajayi-Kadir said, “Promoting PMS imports means returning to the era of fiercely competing for scarce foreign exchange to fund foreign refineries. Such depletion of FX depreciates the naira further, and a weakened naira spikes the cost of importing critical raw materials and machinery for domestic manufacturers.”

He added that an increased reliance on imports would trigger broader inflationary pressures across sectors, extending beyond fuel pricing.

The MAN DG also warned that reinstating fuel importation would reverse gains recorded in Nigeria’s energy sector.

“For decades, Nigeria exported raw crude only to import refined products; effectively exporting our wealth, jobs, and capital to subsidise the manufacturing sectorsof Europe and Asia. Reverting to importation is to succumb to economic sabotage,” Ajayi-Kadir said.

On energy security, he stressed that dependence on imported fuel would expose the country to global shocks. “Relying on imported fuel exposes Nigeria to damaging external supply shocks. True and lasting price stability can only be achieved through local production, where internal supply buffers insulate the domestic market,” he noted.

Instead of fuel importation, MAN proposed a set of alternative measures to tackle inflation and stabilise the energy market. Ajayi-Kadir called for improved implementation of the naira-for-crude policy, saying, “The Federal Government should mandate total transparency in the domestic pricing matrix and ensure that local refineries receive their full, unhindered daily crude quotas.”

He also urged the government to accelerate the adoption of alternative energy sources, particularly compressed natural gas. “The government should accelerate the Presidential CNG Initiative by heavily subsidising the conversion of commercial and industrial transport fleets. Shifting from PMS and diesel to locally sourced CNG is the ultimate inflation-buster,” he said.

The association further advocated targeted support for manufacturers, including easing trade bottlenecks and providing affordable credit. “We should not expand trade deficits through petroleum imports; we should focus on removing supply-side bottlenecks for manufacturers,” Ajayi-Kadir added.

He also emphasised the need to invest in power infrastructure to reduce dependence on costly fuels for industrial production. Ajayi-Kadir reiterated that Nigeria must prioritise local production over import dependence.

“It is not in our national interest to perpetuate avoidable dependence on imported fuel when we have domestic capacity to meet demand. We must strive to produce what we consume and consume what we produce,” he said.

He warned the government against adopting policies that could undermine local industries. “We urge the Federal Government to be wary of neo-liberal prescriptions that could jeopardise our hard-won domestic manufacturing capabilities. The path to inclusive growth and a strong naira is surer when we protect our local industries,” Ajayi-Kadir stated.

The MAN DG concluded with a strong caution: “We should therefore reject any policy recommendation that would ultimately lead to the exportation of jobs and importation of poverty.”

by admin — April 18, 2026 in Business 0

CBN And FMDA Agrees On Introduction Of NOFR As New Money Benchmark

The Central Bank of Nigeria (CBN), in collaboration with the Financial Markets Dealers Association (FMDA), has announced the introduction of the Nigerian Overnight Financing Rate (NOFR), a standardized benchmark aimed at enhancing transparency, strengthening monetary policy transmission, and deepening Nigeria’s money market.

The NOFR was developed to align Nigeria with global best practices in short-term interest rate benchmarks. It is expected to improve price discovery and transparency while promoting consistent pricing of money market instruments. It will enhance the

effectiveness of monetary policy, support financial innovation, boost investor

confidence, and strengthen risk management across the financial system.

The introduction of NOFR positions Nigeria alongside leading global benchmarks such as SOFR (United States), SONIA (United Kingdom), €STR (Eurozone), and TONA

(Japan).

It also complements African benchmarks such as JIBAR (South Africa).

Following a stakeholder engagement session held on February 27, 2026, where

market participants formally adopted the benchmark, and subsequent regulatory

approval, NOFR is now in use, with the CBN serving as the benchmark administrator.

The Bank will ensure governance, transparency, and regular publication of the rate.

by admin — April 18, 2026 in Business 0

NGX Expands Trading Window From 9:00 A.M. To 4:00 P.M

Nigerian Exchange Limited (NGX) announces the expansion of its trading hours from 9:00 a.m. to 4:00 p.m. (WAT), effective Monday, 27 April 2026, in a move designed to deepen market liquidity, enhance price discovery, and broaden investor access.

Approved by the Securities and Exchange Commission (SEC) Nigeria, the expansion shifts the market opening earlier from 9:30 a.m. to 9:00 a.m. and extends the close from 2:30 p.m. to 4:00 p.m., marking a significant evolution in the Exchange’s market structure.

The extended trading window will provide greater flexibility for investors, improve responsiveness to market-moving information, and support broader participation across the market. The development builds on the momentum of Nigeria’s recent reclassification to Frontier Market status by FTSE Russell, reinforcing NGX’s global positioning and enhancing its attractiveness to a broader pool of domestic and international investors.

This reform reflects strong regulatory collaboration and underscores the Securities and Exchange Commission’s continued commitment to advancing market development initiatives. Alongside Nigeria’s Frontier Market reclassification, it signals a deliberate shift towards a more accessible, liquid, and globally competitive market.

The implementation follows extensive stakeholder engagement, ensuring alignment and operational readiness ahead of the go-live date. NGX Regulation Limited will continue to provide robust oversight to support a smooth and orderly transition, while maintaining high standards of transparency and investor protection.

With this development, NGX reinforces its position as a leading multi-asset exchange, deepening liquidity, improving market access, and supporting efficient capital formation within Nigeria’s financial markets.

by admin — April 18, 2026 in Business 0

No plan to borrow from IMF’s $50bn fund – FG

The Federal Government on Thursday declared that it has no plan to approach the International Monetary Fund to borrow from the estimated $50bn, which the IMF had earlier announced on Wednesday that it plans to use and support struggling economies in Africa.

The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, disclosed this at a press briefing during the ongoing Spring Meetings of the World Bank/IMF in Washington DC, United States.

The PUNCH earlier reported that the Managing Director, IMF, Kristalina Georgieva, had advised countries facing economic pressures to act swiftly in seeking financial support when necessary, warning that delays could worsen economic conditions.

“My advice is that when you need help financially, don’t hesitate to move fast, because the sooner we act, the more we protect the economy,” she

Georgieva also revealed that the institution was committed to financially supporting member countries through the current challenges, adding that about $20bn to $50bn was being planned by the IMF for this exercise.

“We anticipate financial demand for IMF support to range between $20bn and $50bn, which represents augmentation of some existing problems and prospective demands from new problems from at least a dozen countries, a number of them in Sub-Saharan Africa,” she said.

But while responding to a question on Thursday, whether the Federal Government would approach the IMF to borrow from the fund, Nigeria’s finance minister, Edun, responded negatively.

“Nigeria has no plan at the moment to approach the IMF for any other such burden,” Edun declared.

The minister also told the meeting on Thursday that African nations need “extra help” at this moment.

He noted that the Middle East crisis is one that affects African countries and economies disproportionately, stressing that while nations in this region “are not creators in any way of this situation, they stand to command greater pressure than perhaps any other region.”

The minister added, “This is in terms of the threat to macroeconomic stability, growth trajectories, and their ability to create jobs and reduce poverty in their countries.

And I think that is a clear statement, particularly to those identified as the most vulnerable oil-importing countries. They need and deserve extra help at this time.”

Recall that Georgieva earlier observed that many of the countries most affected by the Middle East crisis are located in Sub-Saharan Africa, adding that the IMF was working to identify those in urgent need of assistance. “We are very determined to use this week to identify which of the countries must get our support,” she stated.

She emphasised the importance of strong fiscal and economic policies, urging governments to build buffers during periods of economic stability to better withstand future shocks. According to her, prudent economic management in good times remains critical for resilience during downturns.

The IMF chief also disclosed that during a meeting with central bank governors and finance ministers from Africa held the previous day, officials did not request immediate financial assistance but instead sought policy guidance.

“But, of course, there could be a need for financial support. And my advice is that when you need help financially, don’t hesitate to move fast, because the sooner we act, the more we protect the economy,” she said.

Georgieva highlighted the broader global implications of the Middle East conflict, noting that it has already inflicted significant economic damage. “We have been watching developments in the Middle East. A war that causes significant pain to people and economies in the region and around the world. The impact on the global economy is already large,” she said.

She explained that supply chain disruptions and damage to infrastructure are driving up prices and slowing global economic growth. According to her, global growth is projected to decline from 3.4 per cent last year to 2.1 per cent in 2026. She warned that if the conflict persists and oil prices remain elevated for a prolonged period, global economic conditions could deteriorate further.

“But if the conflict persists, and oil prices stay high for an extended period, we must brace for tough times ahead,” she added.

On the IMF’s global outlook, Georgieva cautioned that in a worst-case scenario, global growth could fall to two per cent, stressing that the impact would be widespread. She noted that countries that depend on energy imports are particularly vulnerable, many of which are low-income or fragile economies.

“In the most adverse case, growth could fall to two per cent, and the shock is global,” she said, adding that the highest negative impact is being felt by energy-importing nations.

by admin — April 17, 2026 in Business 0