News
Debt hits $10bn, dollars nears N1,000 as CBN fails to pay banks
It’s been more than two weeks since the Nigerian central bank promised to pay off over $10 billion of foreign exchange debt owed by Deposit Money Bank.
This came as the naira was sold between 990/$ and 995/$ by Bureau De Change operators on Friday and Saturday in Lagos, Abuja and Kano.
On the Investor & Exporter forex window, the naira however appreciated to 747.76/$ on Friday, from 772.98/$ on Thursday.
The immediate past acting CBN Governor, Folashodun Shonubi, on September 6, 2023, said the apex bank had concluded negotiation on dollar debts with commercial banks, disclosing that all forex exchange backlogs would be cleared within one to two weeks.
According to him, deposit money banks have assisted the apex bank to clear the majority of its overdue FX forward contracts at maturity.
As such, he said the CBN had reached an agreement to reimburse the lenders within one or two weeks following extensive debt restructuring talks that lasted over a long period of time.
“In response to questions about the backlogs, the banks have been working with the CBN on various structures to clear them. So, what happens is that at maturity, they make the foreign exchange available to those that need it.
“We are discussing with them so we can structure their own. So, we are working towards clearing them in the next one or two weeks. It is something we have been discussing for a while,” Shonubi had told audience at a forum in Lagos
However, multiple top bank executives told The PUNCH on Sunday that almost three weeks after the promise, the apex bank had yet to make good its promise.
They said the development had put banks in a very tight FX liquidity position, a situation that has made many lenders to temporarily suspend several FX transactions including school fees and Personal Travel Allowance applications.
Findings show the situation has also worsened dollar liquidity at the parallel market as bank customers shift to the black market to meet their forex needs.
“The FX backlogs have not cleared. The promise has not been made good. We are hoping that the new CBN governor will begin a discussion with banks on it or clear them immediately,” the executive director of a commercial bank told one of correspondents on condition of anonymity.
Also, a top official of Tier-2 bank privy to the development, said, “We have yet to see the FX backlogs cleared including the overdue forward contract obligations. We don’t know when this will be cleared. Unfortunately, the situation has worsened our FX position, making many banks to put some FX demands of their customers on hold.”
A report by JPMorgan, a United States-based lender put the total amount of forward contract debt owed by the CBN at $6.84bn. The CBN has however dismissed the report.
Reports had put forward contracts and dollar swap deals between the apex bank and banks at over $10bn.
The CBN could not be reached for immediate comments as of Sunday.
Naira slumps
On Friday, pressure mounted on the naira at the black market with BDC operators in Lagos, Abuja and Kano lamenting dollar scarcity,
An Abuja-based BDC operator, Sanusi Ibrahim, said, “We sold the naira for as high as 1,000/$ on Saturday. On Friday, we were buying and selling for 980/$ and 995/$.”
Another BDC operator, who is based in Ikeja, Yusuf Kareem, said, the naira was sold for 995/$. It is scarce; I cannot sell below that because I also bought it expensive. Only those who have it can sell.”
At the parallel market, Pound Sterling was bought and sold for £1,235/ and £1,250/, while Euro was bought and sold for 1,025/€ and 1,028/€, according to operators in the segment of the market.
On the Investor & Exporter forex window, the naira however appreciated to 747.76/$ at the close of Friday, from 772.98/$ on Thursday.
Manufacturers fear closure
Meanwhile, operators in the economy have feared further rise in cost of goods and services, and more shutdowns of their operations over the worsening naira value.
They called for urgent intervention in the sector to prevent more hardship on Nigerians.
The National Vice Chairman of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George, said higher prices would be the unavoidable consequence of the current exchange rate.
He expressed dismay that the floating of the naira which was supposed to curb speculation of currency speculation, had consequently escalated the activities of speculators.
According to Kuti-George, unless the government moves swiftly to stem the tide of the naira depreciation especially at the parallel market where more customers access the FX, more factories would be forced to shut down.
He said, “It is ironic that what works in other places don’t work in Nigeria. The cost of production is rising, because we still import a large part of our input, especially equipment. Most of the raw materials that we use are imported.
“So, when the cost of input goes up, the cost of production also goes up. This will happen to the price of products. The question now is – will people be able to afford our products now? Will imported products not be cheaper than our own to the extent that people will be rejecting our products for imported ones? Unless the tide is stemmed, there will be more factories closure.”
Inflation
The President of the Manufacturers Association of Nigeria, Francis Meshioye, said the current exchange rate would inevitably lead to a hike in the prices of products given the toll it would take on manufacturers to access foreign exchange.
According to him, the floating of the exchange rate will not mean anything to operators if the naira continues the free.
Meshioye said, “It is an unpleasant development because that is the major currency through which we purchase our goods outside the bounds of our nation. It means that the cost of raw materials will continue to skyrocket.
“It is unpleasant. We hope that the government will do something about it. While we float the exchange rate, it should not be allowed to be somersaulting and skyrocketing to unreasonable levels which will not augur well for the country, knowing full well that we are not just trading amongst ourselves.”
He added that, “We have to trade outside of our bounds. The implication of this is that our prices may be unreasonably higher than prices of other countries. That implies, among other things, that our products may be found to be too expensive. If you want to look at the unavailability of disposable income among the citizenry, the choice of buying Nigerian-made products, which may be expensive and foreign products which are cheaper is low. It is pathetic.”
Scarcity
The President, Association of Bureaux De Change Operators of Nigeria, Dr. Aminu Gwadabe, said the volatility of the local currency had continued to underpin the nation’s slow economic growth.
He said, “The high demand pressure at the 1&E window and the parallel market due to lack of sufficient liquidity have been fuelling the widening gap between the I&E Window and the parallel market rates.
“Combination of several factors including the investors’ backlog estimated at $6.8bn and disincentives to bring fresh funds into the economy is one of the major concerns.
“In the same vein the dwindling receipt of Diaspora remittances and resurrection of subsidy on petrol are major deterrents and big concerns to fresh liquidity in the market.”
According to him, the uncertainties and loss of public confidence on the local currency has heightened demand pressure in all segments of the market.
He said, “In addressing the challenges of the I&E window, there is need for the legislation of the willing buyer and willing seller concept. This will lead to enhanced liquidity in the foreign exchange market and enhance public confidence.
“It is also imperative in this regard to recognise the inclusion of the BDCs at the I&E window to continue to play their roles of moderating and correcting the markets.”
He advised the Federal Government on how to bring in more Diaspora remittances.
The CBN had recently announced operational mechanism for the BDCs to trade foreign currencies at similar rates obtainable on the Investor & Exporter forex window.
It gave the directive to all BDCs and the general public in a circular number TED/FEM/PUB/FBC/001/007 dated August 17, 2023, titled, ‘Operational mechanism for Bureau De Change operations in Nigeria’.
The circular stated, “The spread on buying and selling by BDC operators shall be within an allowable limit of -2.5 per cent to +2.5 per cent of the Nigerian exchange market window weighted average rate of the previous day.
“Mandatory rendition by BDC operators of the statutory periodic reports (daily, weekly, monthly, quarterly and yearly), on the financial institution forex rendition system which has been upgraded to meet operators’ requirements.”
Confidence
The Director/Chief Executive Officer, Centre for The Promotion of Private Enterprise, Dr Muda Yusuf, said the new CBN Governor, Dr Olayemi Cardoso, was assuming the leadership of the CBN at a very crucial time in the economic history.
He said, “There is a serious confidence crisis in the foreign exchange market fuelling an unprecedented speculative onslaught on the naira. The economy is grappling with severe adverse effects of depreciating exchange rate, soaring energy costs, ravaging inflationary pressures, huge backlog of foreign exchange obligations that needs to be cleared and debt service obligations that need to be redeemed. Sadly, these outcomes are manifesting at a time when the country’s foreign reserves have been substantially encumbered.
“There is an apparent deceleration in the pace of economic reforms as the outcomes are at variance with expectations. The social costs of the reforms were substantially higher than anticipated, resulting in push-backs from the civil society.”
He said the economic management orthodoxy of market forces was being called to question in the light of the social outcomes of the market-oriented reforms.
He said there was a measured re-emergence of political economy with the reappearance of fuel subsidy and divergence in exchange rates.
This was evidently an economic management quandary that the new economic team would have to manage, and urgently too, he said.
Yusuf said, “Meanwhile, the CBN must ensure strategic and transparent intervention in the forex market to minimise volatility, as far as the reserves can support. In addition to the I and E window, it has become necessary to create an autonomous window in the banking system where the currency can trade freely without any encumbrances. This is necessary to avert the diversion of remittances to other jurisdictions or the black market. We cannot afford to live in denial at this time.
“The clearance of the backlog of forex obligations should be accorded high priority to restore the confidence of domestic and foreign investors.”
punch.
Since assuming office, Tinubu rolled out various policies, including the removal of fuel and electricity subsidies, unification of the forex policy, and naira devaluation, all of which were blamed for the food inflation and high cost of living in the country.
The criticisms come as Nigerians reflect on Tinubu’s performance in office. While the government maintains that its reforms are necessary for long-term recovery.
A former aide to ex-President Goodluck Jonathan, has declared that at least 10 miracles are happening under President Bola Tinubu.
One: For the first time in over a decade, Nigeria has overshot its OPEC quota for three consecutive months and is set to do the same for the fourth month, producing an average of 1.71 million Barrels Per Day.
Two: The Nigerian Stock Exchange rises above 130,000 All Share Index for the first time ever.
Three: Food prices have significantly reduced, resulting in a drop in inflation to 20.12% in August 2025, a 1.76% drop from July’s 21.88%.
Four: MTN Nigeria Limited hits a record valuation of ₦10 trillion, the first Nigerian company to do so.
Five: Oil theft has been reduced to less than 10,000 Barrels Per Day, a sixteen-year low.
Six: Nigeria achieved its revenue target for the entire year in August, a first in our history.
Seven: Foreign Reserves are above $41 billion.
Eight: After a record trade surplus last year, Nigeria appears set to beat our 2024 figure. Our trade surplus rose 44.3% in Q2 to ₦7.46 trillion, up from ₦5.17 trillion in Q1.
Nine: Dangote has crashed fuel price to ₦841.
Ten: The Naira has appreciated to ₦1497 to $1, a five-month high.
“We must pray for Wike now,” he said.
The conversation surrounding the health of Nyesom Wike, the Federal Capital Territory Minister, has taken a intriguing turn as a prominent prophet recently shared a prophecy regarding his condition.
The adage “health is wealth” rings especially true in the world of politics, highlighting the necessity for leaders to prioritize their well-being amidst the pressures of public life.
Recent reports from an online news platform suggested that Wike had traveled to the United Kingdom for medical treatment, with allegations indicating a diagnosis of congestive heart failure.
This revelation has stirred concern among his supporters and the general public alike.
In response to these unsettling rumors, Prophet Julius Okonkwo, a well-known cleric and the presiding pastor of Kingdom Seeker Ministries based in the United States, offered reassurance about Wike’s health.
During a recent address, Okonkwo asserted that there is no need for alarm. “Wike is in good health, and he has many more years to live—mark my words,” he declared.
He cautioned that the troubling news circulating about the minister was politically motivated, aimed at instilling fear among Nigerians.
Further emphasizing Wike’s importance to the current administration, the prophet labeled him as “the best minister” in the government and warned that there are adversaries both within and outside his circle.
He urged the public to join in prayer for Wike, underscoring the need for vigilance in the face of potential threats. “We must pray for Wike now,” he said.
The Federal University of Petroleum Resources, Effurun (FUPRE), in partnership with the African Child Foundation (ACF), has fixed Thursday, November 6, 2025, for the much-anticipated FUPRE Oil and Gas Awards.
The ceremony, which has become one of the most prestigious gatherings on Nigeria’s oil and gas calendar, will take place at the University Arena in Effurun, Delta State.
Announcing the date, the Vice-Chancellor of FUPRE, Professor Ezekiel O. Agbalagba, highlighted the institution’s role as Africa’s first petroleum-focused university and one of only six of its kind globally.
Established in 2007, he said the university has consistently driven innovation, research, and manpower development in the petroleum industry, making it a hub of excellence in energy education.
On his part, the Country Director of the African Child Foundation, Olorogun Dr. Donaldson Onosakponome, described the Awards as a platform to raise industry role models by celebrating innovation, efficiency, safety, sustainability, and operational excellence.
“This year’s Awards will not only spotlight outstanding organizations and individuals,” Dr. Onosakponome said, “but also celebrate the resilience of industry players who made possible the recent increase in Nigeria’s oil production.”
Since inception, the FUPRE Awards have recognized excellence across the oil and gas value chain, upstream, midstream, and downstream, while also rewarding corporate social responsibility and environmentally friendly practices.
The 2025 edition, organizers disclosed, will broaden its scope to honor breakthroughs in renewable energy and data-driven innovation, in line with global energy trends.
Nominations and sponsorship opportunities for the event are now open through FUPRE’s media office and the African Child Foundation.
Africa’s richest man Aliko Dangote has addressed the press and confirmed that the price of his petrol has dropped market rate by N259
The refinery hopes to have more impact in the future as it finally begins its direct petrol distribution
Dangote Refinery is celebrating is one year anniversary and it has been confirmed that the capacity will be increased.
Speaking to journalists on Monday, September 15 to mark the refinery’s first anniversary he also said that Nigeria’s decades-long fuel supply crisis has been stopped.
Dangote who was also reacting to intense criticism from National Union of Petroleum and Natural Gas Workers (NUPENG) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) revealed the impacts of his refinery
According to him, the pump price, which stood at about N1,100 per litre last year, has dropped to N841 in the South West, Abuja, Delta, Rivers, Edo and Kwara states.
He said: “Despite opposition and economic headwinds, the refinery has successfully reduced the price of petrol from nearly N1,100 before production began to N841. With the rollout of CNG-powered trucks, this price reduction will soon be felt nationwide.”
African richest man also said that its 650,000 barrels-per-day refinery, Africa’s largest has deployed 1,000 Compressed Natural Gas (CNG)-powered trucks as part of its direct fuel distribution programme.
The initiative, according to Dangote, will create 24,000 jobs in the first phase, the Nation reports.
He added that the refining capacity would rise to 700,000 bpd next year, adding that the plant has the ability to meet Nigeria’s domestic demand while generating foreign exchange through exports. Between June and early September, the refinery exported more than 1.1 billion litres of petrol, he said
Dangote, who backed the federal government’s target of growing Nigeria into a $1 trillion economy by 2031, urged more Nigerians to invest locally.
He acknowledged resistance from some vested interests in the downstream sector, but maintained the project was designed to support growth across Nigeria and Africa.
He said. “We have been battling fuel queues since 1975, but today Nigerians are witnessing a new era. “What we have done is to make our country and continent proud.”
…As Oborevwori Donates Buses To Institute
The Petroleum Training Institute (PTI), Effurun, Delta State, has expressed readiness to collaborate with the State Government on international oil and gas training programmes designed to equip youths with employable skills and drive economic growth in the state.
Speaking during a courtesy call on Governor Sheriff Oborevwori at Government House, Asaba, on Tuesday, the Principal and Chief Executive Officer of PTI, Dr. Samuel Onoji, said the Institute was committed to offering discounted and subsidised international trainings in oil and gas to enhance the employability of Delta youths.
Onoji commended Governor Oborevwori’s infrastructural drive, describing developments under his administration as unprecedented in the history of the state.
He also appreciated the Governor for reconnecting electricity to the Institute and invited the Governor to the Institute’s International Hydrocarbons and Scientific Conference scheduled for October at the PTDF Hall, Abuja.
In his remarks, Governor Oborevwori commended PTI and the Minister of Petroleum, Senator Heineken Lokpobri, for releasing 25 hectares of land to the state government, stressing that the gesture reflected their commitment to Delta’s growth and development.
“PTI is very dear to us in Delta because it opened the door for other federal government establishments to come into our state.
“We don’t take anything concerning PTI lightly. Your visit today is a demonstration of your commitment, and I assure you that this government will continue to support the Institute in all its endeavours,” the Governor said.
As part of his support, Governor Oborevwori approved the donation of a Coaster Bus and an 18-seater Hiace Bus to meet the mobility needs of staff and students of PTI.
Established in 1972, PTI is regarded as the foremost petroleum training institute in Africa, mandated to train and retrain skilled manpower for the oil and gas industry.
News
‘No More N865/Ltr’ – Dangote Releases List of Filling Stations Selling Petrol At Cheaper Rate (New Petrol Prices by States)
The Dangote Petroleum Refinery has announced a fresh reduction in petrol pump prices, offering Nigerians a much-needed relief at a time of rising living costs.
Starting from Monday, September 15, petrol will now be sold below N865 per litre at select partner filling stations across the country.
This announcement comes alongside the refinery’s new distribution model, which involves the use of Compressed Natural Gas (CNG) trucks to deliver fuel directly to stations. The approach is expected to cut down logistics costs and improve fuel availability nationwide.
New Petrol Prices by States
According to Dangote Refinery, the price adjustments will immediately take effect in several states, with plans to expand nationwide.
Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti: N841 per litre (previously between N865 and N880)
Abuja, Delta, Rivers, Edo, and Kwara: N851 per litre (previously between N890 and N910)
Dangote emphasized that this is just the beginning, promising that more states will benefit from similar reductions in the coming weeks.
Partner Filling Stations Selling at New Prices
The refinery has partnered with both long-standing and newly added marketers to make cheaper petrol available to Nigerians.
Existing Partners
MRS
Heyden
Ardova (AP)
Hyde Energy
Optima
Techno Oil
TotalEnergies
New Partners
Garima Petroleum
Sunbeth Energies
Sobaz Nigeria Ltd.
Virgin Forest Energy
Sixxco Oil Ltd.
N.U. Synergy Ltd.
Soroman Nigeria Ltd.
Jezco Oil Nigeria Ltd.
Jengre
Cocean
Kifayat
Triumph
Golden Sifem Global
Riquest
Mamu Oil
Why the price drop matters
The price cut, which averages N24 lower per litre, is directly linked to Dangote’s new direct distribution strategy. By rolling out thousands of CNG-powered trucks and establishing CNG “daughter booster” stations across the country, the refinery aims to reduce dependence on middlemen, thereby slashing transportation costs that usually drive fuel prices higher.
At the moment, Dangote has taken delivery of 1,000 out of the 4,000 trucks it ordered. This investment in logistics is expected to ensure steady nationwide distribution in the months ahead.
Benefits for petrol dealers and marketers
Beyond reducing retail prices, Dangote Refinery has also extended an invitation to filling station owners across Nigeria to join its distribution network. The company is offering:
Free delivery logistics through its CNG-powered truck fleet
Access to credit facilities: Dealers who purchase 500,000 litres can obtain an additional 500,000 litres on credit for two weeks, under bank guarantee
This system is designed to support petrol dealers, manufacturers, transport operators, and other large-scale users while ensuring Nigerians pay less at the pump.
NNPC price comparison
Interestingly, the Nigerian National Petroleum Company (NNPC) Limited has also recently adjusted its pump price to N865 per litre, which remains slightly higher than Dangote’s new rates in most states.
The competition between the state-owned NNPC and the privately owned Dangote refinery may continue to shape petrol pricing in Nigeria in the coming months.
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