In this latest update on the Central Bank of Nigeria (CBN) and the Dollar to Naira exchange rate for September 17, 2023, we delve into the significant developments affecting the Nigerian economy. From the impact of currency crises on cement prices to President Tinubu’s nominations for CBN leadership, and the challenges faced by the Naira in the foreign exchange market, we cover it all.
Table of Contents
- Cement Price Plunged by 30% during Naira Redesign Crises
- Naira Policy Triggers Increase in Cement Price
- Dangote, BUA Cement Spend N205 Billion Powering Generators
- President Tinubu Nominates New CBN Leadership
- CBN Finance Director Arrested by DSS
- Naira Falls to All-Time Low Amid Dollar Shortage
1. Cement prices plunged by 30% during Naira Redesign Crises
- Nigerian Manufacturers revealed cement sales declined due to currency crises earlier in the year.
- According to a report by the association, the action almost sent a lot of manufacturers out of business.
- They added that this led to a decline in their working capital.
2. Naira Policy Triggers Increase in Cement Price
- MAN stated the devastation caused by the naira redesign policy on the manufacturing sector in “Special Focus,” a research on its Manufacturing CEOs Confidence Index.
- The research also claimed the protracted crisis nearly brought manufacturing enterprises to their knees by causing sales of consumer products and cement to decline.
- MAN noted that the crisis had a detrimental effect on the manufacturers by directly reducing their working capital.
3. Dangote, BUA Cement Spend N205 Billion Powering Generators
- Dangote Cement and BUA Cement said they spent about N204.925 billion powering their generators for operations during the half-year ended June 30, 2023.
- The amount represents 41.15% of the total cost of sales for the firms.
4. President Tinubu Nominates New CBN Leadership
- Dr. Olayemi Michael Cardoso Appointed as CBN Governor, pending Senate confirmation.
- New Deputy Governors nominated for CBN: Mrs. Emem Nnana Usoro, Mr. Muhammad Sani Abdullahi Dattijo, Mr. Philip Ikeazor, Dr. Bala M. Bello.
- Outgoing Finance Director at CBN, Benjamin Fakunle, arrested by DSS related to the recently published seven-year audited accounts of the CBN.
- Naira Falls to All-Time Low Amid Dollar Shortage, facing challenges in the foreign exchange market.
Dollar to Naira Black Market Rate Today
1. Current Dollar to Naira Black Market Rates
Let’s begin by addressing the most pressing question on everyone’s mind – what is the current exchange rate for Dollar to Naira in the Black Market? As of today 17 September 2023, the Dollar to Naira Black Market rate stands at ₦955 for buying and ₦960 for selling. However, it’s crucial to acknowledge the volatility of the Black Market rates, which can fluctuate rapidly within hours.
1.1. Black Market Rates – September 17, 2023
On September 17, 2023, sources from Bureau De Change (BDC) confirmed the following exchange rates for the US Dollar to the Nigerian Naira in the Lagos Black Market:
|Dollar ($)||Buying (₦)||Selling (₦)|
Please note that exchange rates can fluctuate frequently, and these rates are for reference purposes based on the provided values of 955 for buying and 960 for selling. Actual rates in the Lagos Black Market may vary at the time of exchange
1.2. CBN Official Rates – September 17, 2023
The Central Bank of Nigeria (CBN) also plays a pivotal role in determining exchange rates. On September 17, 2023, the CBN’s official rates for the US Dollar to the Nigerian Naira were as follows:
|Dollar ($)||Buying (₦)||Selling (₦)|
In this dynamic economic landscape, the impact of currency policies, leadership changes at the CBN, and challenges faced by the Naira are crucial factors affecting Nigeria’s financial stability. The resilience of the manufacturing sector and its ability to adapt to these changes will play a vital role in the country’s economic recovery.
- What caused the decline in cement prices mentioned in the article?
- Cement prices plunged by 30% during the Naira redesign crises, primarily due to currency fluctuations and the economic impact of the crisis on manufacturers.
- How did the Naira redesign policy affect the manufacturing sector?
- The Naira redesign policy had a detrimental effect on the manufacturing sector, leading to a decline in sales of consumer products and cement, reduced working capital, and challenges in attracting customers.
- Why did Dangote Cement and BUA Cement spend a significant amount on powering generators?
- Both companies spent a substantial amount on powering generators to sustain their operations due to challenges with the power supply in Nigeria.
- Who has President Tinubu nominated for key positions in the CBN?
- President Tinubu has nominated Dr. Olayemi Michael Cardoso as the new CBN Governor and four new Deputy Governors: Mrs. Emem Nnana Usoro, Mr. Muhammad Sani Abdullahi Dattijo, Mr. Philip Ikeazor, and Dr. Bala M. Bello.
- What led to the Naira falling to an all-time low in the foreign exchange market?
- Increased demand for dollars for various purposes, including business travel, school fees, medical expenses, and tourism, contributed to the Naira’s decline in the foreign exchange market. Measures to boost forex supply are required to address this issue.