Business
Naira Continues to Weaken Amidst Central Bank Interest Rate Hike
The Nigerian naira has continued to weaken on the foreign exchange market, with the dollar-to-naira exchange rate showing a noticeable depreciation on Monday.
According to data from FMDQ, the naira fell to 1,586.71 against the dollar on Wednesday, down from 1,548.76 the previous day, marking a decline of 37.95 naira.
At the black market, the naira also experienced a drop, weakening to 1,585 naira per dollar from 1,580 naira the day before. This ongoing depreciation has persisted since last week, despite the Central Bank of Nigeria (CBN) releasing foreign exchange reserves to authorized dealers in an attempt to stabilize the currency.
Bismarck Rewane, the Chief Executive of Financial Derivatives, noted in a recent interview with Channels TV that the naira’s sharp decline is partly in response to the CBN’s recent decision to raise interest rates by 50 basis points to 26.75 percent.
The CBN had previously indicated that the country’s foreign exchange market is under strain due to increased demand, a situation exacerbated by the summer holidays.
Nigerian Businessman Dr. Cosmos Maduka analyzes popular Billionaire, Aliko Dangote and describes him as the biggest debtor in Nigeria.
The businessman highlighted the fact that people who seem to have the most money are often the largest debtors.
“The number one debtor in Nigeria is Aliko Dangote. He’s the wealthiest man in Africa. The number one debtor in the world is the United States of America and you call them the richest in the world.”
“As you admire all of those things, it’s all credit. It’s all about credit. So you should leverage on loan, but you have to have a good structure that will support that loan.”
Dangote Petroleum Refinery has once again slashed the pump price of petrol across Nigeria, offering some relief to consumers. The new price now falls between N875 and N905 per litre, reflecting a N15 drop. This update was shared on the refinery’s official social media page on Thursday.
According to Dangote, the price cut affects major fuel distributors working with the refinery, including MRS, Ardova, Heyden, Optima Energy, Techno Oil, and Hyde Energy. With this change, Lagos residents will now buy petrol at N875 per litre. Those in the South-South and South-East regions will pay N905, while the South-West sees a new rate of N885.
In the North-West and central parts of the country, it’s N895, and the North-East will also pay N905. Dangote added that their petrol and diesel are not only high-quality but also designed to support engine efficiency and reduce environmental impact.
Dangote Petroleum Refinery has lowered the price of Premium Motor Spirit (PMS), or petrol, to N825 per litre, down from N835, as competition heats up in Nigeria’s fuel market.
This follows last month’s price reduction, when the 650,000 barrels per day refinery dropped the price from N865 to N835. The recent price change is aimed at providing more value to customers while strengthening Dangote’s position as a leader in the domestic market.
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