Latest CBN News & Dollar to Naira Update Today 24 February 2024 can be accessed below.
In this latest update on the Central Bank of Nigeria (CBN) and the Dollar to Naira exchange rate for today 24 feb 2024 , we delve into the significant developments affecting the Nigerian economy. From the impact of FX crises , cement prices , Fuel price, CBN Restricting Nigerians from accessing Binance, and the challenges faced by the Naira in the foreign exchange market, we cover it all.
Exchange Rate of Dollar To Naira in Black Market Today Feb 24th 2024?
| Dollar to Naira (USD to NGN) | Black Market Exchange Rate Today |
| Buying Rate | 1750 |
| Selling Rate | 1800 |
BDCs Introduce New Tool to Fight Market Speculators as Naira Nears N2,000/dollar
The Association of Bureau de Change Operators of Nigeria has initiated a move to digitize its trading processes in an effort to curb the influence of market speculators and eradicate the activities of illegal street vendors. This initiative is a response to the government’s recent crackdown on unauthorized foreign currency transactions on the streets.
According to The Punch, the naira has seen a significant depreciation against the dollar, plummeting to N1,900 as of Wednesday, February 23, amid challenges of liquidity and heightened demand for the US dollar.
In a proactive step towards modernization, ABCON’s President, Aminu Gwadabe, disclosed in an interview with Punch that the organization has developed a digital platform that promises to transform the retail foreign exchange market, pending approval from the Central Bank of Nigeria (CBN).
The launch of this automated system is slated for three weeks from now, contingent upon receiving a “no objection” consent from the CBN.
Gwadabe emphasized the detrimental impact of street traders on licensed operators, explaining that their presence hinders clients from accessing official bureau de change services. He also highlighted the complex factors contributing to the foreign exchange market’s instability, including the disparity between supply and demand and liquidity issues.
To combat these challenges, Gwadabe urged members of the association to conduct their operations within their offices and comply with existing foreign exchange regulations to prevent potential shutdowns.
Furthermore, addressing rumors about the closure of forex operations by Bureau de Change operators in Abuja, Gwadabe clarified that such reports were baseless and did not originate from ABCON’s national or zonal offices.
Good News as CBN Slashes Customs Exchange Rate For Cargo Clearance by 7.3 Per Cent
The Central Bank of Nigeria (CBN) has reduced the exchange rate used for calculating Customs duties at Nigeria’s seaports, a move prompted by the appreciation of the naira in the official market.
On February 23, 2024, the CBN announced a reduction in the exchange rate for cargo clearance from N1,605 to N1,488.896 per dollar, as indicated on the official trade portal of the Nigeria Customs Service. This adjustment marks a 7.3% decrease from the previous rate of N1,605.82 per dollar, effective until February 22, 2024.
This revision aims to alleviate some financial strain on importers and is the second such reduction by the apex bank this year. However, the CBN’s ongoing modifications to the Customs exchange rate have sparked criticism among Nigerians, who argue it could deter importers and investors.
Labour Party presidential candidate Peter Obi voiced concerns that these adjustments negatively impact businesses, complicating planning for importers and contributing to business losses and inflation.
Despite these criticisms, the CBN has adjusted the Customs exchange rate six times in the past five weeks, reflecting the naira’s fluctuating value.
Amid these changes, the naira saw an appreciation in the official foreign exchange market, reaching N1542.5 to the dollar at the Nigeria Autonomous Foreign Exchange Market (NAFEM) on February 21, 2024. This is an improvement from the rate of N1,621.41 to the dollar recorded on February 21.
In related developments, the Nigeria Customs Service has begun distributing seized food items to alleviate hardships faced by Nigerians, as directed by the Nigerian government.
Cement Price Rises To N7,000 Per Bag
Cement Price Surge in Nigeria Amid Industry Challenges
The retail price of cement in Nigeria has surged significantly from N5,000 in December 2023 to between N6,500 and N7,000 per bag as of February 22ND 2024. Investigations reveal that members of the Cement Manufacturers Association of Nigeria (CMAN) have increased prices by over N1,000 per bag. This price hike has led to retail prices soaring to N6,200 or higher in Lagos and the Southwest region, while in the Southeast and Abuja, prices have escalated to N6,500 or more.
This spike in cement prices has triggered a ripple effect on related industries, with the cost of sandcrete blocks witnessing an increase from N450 to N500 for a six-inch block, and from N550 to N600 for a nine-inch block. Moreover, the price of ready-mix concrete has surged, alongside the anticipated rise in the cost of in-situ concrete production. These developments are poised to exacerbate economic challenges, leading to increased costs for new homes, rents, and maintenance expenses.
The Nigerian cement sector is predominantly dominated by three major players, with Dangote Cement Plc leading the market share at 60.6%, followed by Lafarge Africa Plc with 21.8%, and BUA Group at 17.6%. Stakeholders attribute the price surge to various infrastructural challenges, including inadequate transportation networks and an unreliable power supply, which compound operational costs for cement producers.
A report by Cardinal Stone titled “Nigeria Cement Rebounding from a Tumultuous Year” anticipates sustained high cement prices in 2024. The report cites challenges faced in 2023, such as cash scarcity due to the poorly executed naira redesign, currency devaluation in June, and heavy rainfalls in the third quarter. However, it projects a sectoral rebound in 2024, driven by increased infrastructure budgets, the establishment of the Infrastructure Support Fund (ISF), and active implementation of the African Continental Free Trade Area (AfCFTA) agreement.
Despite these projections, concerns persist regarding continued high cement prices due to producers’ efforts to offset operational costs, forex market volatility, and inflationary pressures. Industry experts emphasize the critical role of cement in Nigeria’s infrastructure development but stress the urgent need to address macroeconomic challenges to mitigate the adverse effects on construction projects, housing needs, and overall economic stability.
Dr. Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), underscores the necessity of addressing macroeconomic issues, including high inflation, depreciating exchange rates, and energy costs, to alleviate the burden on construction projects and the economy at large. He advocates for measures such as improving liquidity in the forex market, strengthening the naira, and promoting local production of petroleum products to mitigate the challenges faced by the cement industry and the broader economy.
Fuel Price per litre nin Nigeria Today 24th Feb 2024
Current Fuel Prices Across Nigeria: An Update for February 24, 2024
As of February 24, 2024, fuel prices in Nigeria have seen a notable fluctuation, with costs varying significantly across different states, including major cities like Abuja, Lagos, and Port Harcourt. The current fuel price in Abuja stands at approximately 670 to 700 Naira per litre, influenced by governmental policies and the Naira’s exchange rate against the US Dollar.
In Lagos, known as Nigeria’s commercial hub, fuel prices are slightly lower, hovering around 670 Naira per litre as of today. This variance in fuel prices between cities underscores the impact of local demand, supply conditions, and operational costs on pricing. Meanwhile, in Port Harcourt, the fuel price ranges from 650 to 700 Naira per litre, reflecting similar factors that affect fuel pricing nationwide.
The Nigerian National Petroleum Corporation (NNPC), the state-owned oil company, plays a pivotal role in setting fuel prices across the country. The NNPC’s pricing strategy accounts for regional disparities, with the official pump price of petrol (PMS) today marked at around 568 Naira in Lagos and between 599 to 610 Naira per litre in other regions. These prices are subject to adjustments based on global crude oil prices, exchange rate shifts, and local market dynamics.
Economic stability and a robust foreign exchange reserve are crucial for maintaining manageable fuel prices in Nigeria. The Naira’s performance against the US dollar significantly impacts the cost of fuel imports, which in turn affects domestic pump prices.
Below is a summary of the NNPC’s current petrol pump prices across various Nigerian states:
- Lagos: ₦488
- Ogun, Oyo, Osun, Ondo & Ekiti: ₦500
- Kwara, Abia, Imo, Akwa Ibom & Bayelsa: ₦515
- Rivers, Cross River, Edo & Delta: ₦511
- Ebonyi, Anambra & Enugu: ₦520
- Abuja, Plateau, Nasarawa, Kogi, Benue & Niger: ₦537
- Sokoto, Katsina, Kaduna, Kano, Jigawa & Zamfara: ₦540
- Kebbi: ₦545
- Adamawa, Bauchi, Taraba & Gombe: ₦550
- Borno & Yobe: ₦557
It’s essential for consumers to stay informed about the latest fuel prices and factors influencing these costs, as they have a direct impact on daily living and the economy at large.
