Latest CBN News & Dollar to Naira Update Today 28 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 28 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.
Dollar To Naira Black Market Exchange Rate Today
According to dealers in Zone 4, Wuse Abuja, which happens to be one of the leading BDC Centers in Nigeria, the Dollar was bought at ₦1600 and sold at ₦1610 today.
The Central Bank of Nigeria (CBN) has resumed its foreign exchange sales to qualified Bureau De Change (BDC) operators nationwide, allocating $20,000 to each. This move, outlined in a recent circular by Hassan Mahmud, the Director of the Trade and Exchange Department, reverses the over two-year hiatus in forex sales to BDCs initiated by the previous CBN governor, Godwin Emefiele.
The initiative, dubbed “Sale of Foreign Exchange to Bureau de Change Operators to meet retail demand for eligible invisible transactions,” seeks to correct market imbalances in Nigeria’s retail forex sector and bridge the exchange rate disparity.
The circular specifies that the forex will be distributed at N1,301/$, the lower band rate of spot transactions at the Nigerian Autonomous Foreign Exchange Market as of February 27, 2024. This step is part of broader efforts to establish a market-driven exchange rate for the Naira, tackling the ongoing retail market price discrepancies that have been impacting the parallel market and expanding the exchange rate premium.
To ensure compliance, the CBN mandates that each BDC sells to customers at no more than a 1% margin above their purchasing rate. Furthermore, eligible BDCs are instructed to deposit Naira into specified CBN Foreign Currency Deposit Naira Accounts and provide payment confirmation and required documents for disbursement at designated CBN branches in Abuja, Awka, Lagos, and Kano.
CBN Sells $300m to Access, UBA, Zenith, Others, to Boost Naira Value
The Central Bank of Nigeria (CBN) continues its efforts to bolster the naira’s value against the US dollar across both official and unofficial markets. One of its recent strategies involves selling dollars to Nigerian banks, aimed at enhancing liquidity in the official exchange markets. This proactive approach has yielded notable results, with the naira experiencing a significant recovery in recent days within the forex markets.
Over the past two weeks, the CBN has injected over $300 million into Nigerian banks, as disclosed by the Association of Corporate Treasurers of Nigeria. This move is part of the CBN’s broader initiative to stabilize the naira’s value in the foreign exchange markets. Notably, recent sales of dollars by the CBN to banks have occurred at rates below N1,500 per dollar, providing relief amidst soaring exchange rates.
Reports indicate that these dollar sales were prompted by the rapid depreciation of the naira in preceding weeks. However, the CBN’s interventions appear to be yielding positive outcomes, as evidenced by the recent appreciation of the naira in both official and unofficial markets.
CBN MPR Rate Today in Nigeria: What You Should Know
Current MPR in Nigeria:
As of February 27, 2024, the Monetary Policy Rate (MPR) in Nigeria stands at 22.75%, marking a significant increase from the previous rate of 18.75%. This adjustment represents the highest MPR recorded in Nigeria’s history and follows the decision made after the 293rd meeting of the Monetary Policy Committee (MPC) held in Abuja on February 26-27, 2024.
Reasons for the MPR Increase:
The Central Bank of Nigeria (CBN) raised the MPR to address mounting concerns regarding inflation and the depreciation of the national currency. Notably, the inflation rate surged to 19.8% in January 2024, marking the highest level witnessed in over a decade. Concurrently, the naira experienced a depreciation, reaching N600 per US dollar in the parallel market, amidst challenges in meeting the demand for foreign exchange. CBN Governor Mr. Olayemi Cardoso emphasized the necessity of the MPR hike to signal the bank’s unwavering commitment to price stability and to anchor inflation expectations.
Impact of MPR on the Economy:
The MPR exerts its influence across various economic sectors:
- Money Market: The MPR affects the inter-bank call rate, influencing short-term borrowing and lending among financial institutions. Higher MPR translates to elevated inter-bank call rates and vice versa.
- Banking Sector: Lending and deposit rates offered by banks are impacted by the MPR. Elevated MPR leads to increased lending and deposit rates, and conversely, reduced rates with lower MPR.
- Foreign Exchange Market: MPR influences demand and supply dynamics in the foreign exchange market, thereby impacting the exchange rate of the national currency. Higher MPR fosters attractiveness towards naira-denominated assets, potentially appreciating the currency.
- Real Sector: Production and consumption costs are influenced by the MPR, affecting output and employment levels. Elevated MPR tends to discourage borrowing and investment, potentially leading to reduced output and employment.
Benefits and Risks of a High MPR:
- Benefits: A high MPR can aid in curbing inflation and stabilizing exchange rates, bolstering macroeconomic stability and confidence.
- Risks: Conversely, a high MPR may impede growth and employment prospects, particularly in recessionary environments, by discouraging investment and consumption.
Future MPR Expectations:
Expectations regarding future MPR adjustments hinge on prevailing economic conditions and CBN’s outlook. If inflation and exchange rate pressures persist or exacerbate, further MPR hikes may be considered to tighten monetary policy stance. Conversely, if these pressures alleviate, MPR reduction could be contemplated to ease monetary policy stance. Alternatively, maintaining the MPR at its current level may be deemed appropriate and effective by the CBN. The next MPC meeting, slated for March 25 and March 26, 2024, will provide insights into potential future MPR decisions.
The official current price of bag of cement in Nigeria today varies between ₦10,000 to ₦14,000 on retail. Although the market price of cement in Nigeria has skyrocketed recently, cement is still relatively high when compared to other African countries.
| Cement Brands | Prices |
|---|---|
| Dangote Cement | ₦11,000 to ₦12,500 |
| Lafarge Cement | ₦12,000 to ₦14,000 |
| BUA Cement | ₦10,000 to ₦11,000 |
| UNICEM cement | ₦12,000 to ₦13,000 |
| Ibeto Cement | ₦10,000 to ₦11,000 |
Fuel price in Nigeria today varies according to region. For example, the fuel price per litre in Lagos today is different from the fuel price in Abuja and Port Harcourt. NNPC fuel price in Nigeria is always lower than other fuel refilling stations in Nigeria.
Fuel Price in Abuja Today February 28, 2024
As of today February 28, 2024, the price of fuel in Abuja, Nigeria, is approximately 670 to 700 Naira per litre. This price is subject to change by the Nigerian government.
Fuel Price in Lagos Today
Lagos is one of the most populated cities in Nigeria. It’s the trade hub of the nation. The price of fuel in Lagos is different from that of Abuja. Fuel price in Lagos is lower than that of Abuja. As of today, the fuel price in Lagos, Nigeria, is approximately 670 Naira per litre. Remember that this price varies a little from filling station to filling station.
| States | NNPC Petrol Pump Price (₦) |
|---|---|
| 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 |
