Category: Business

Nigeria’s economy recorded a sharp rise in net foreign exchange inflows, climbing by 89% to $59.6 billion in 2024 from $31.52 billion in 2023, according to the Central Bank of Nigeria (CBN).

This surge was driven by a 39.7% year-on-year (YoY) increase in net forex inflows from autonomous sources and a significant 140.6% jump in net forex inflows through the CBN.

Data from the CBN’s quarterly Economic Statistics Report showed total forex inflows rose by 49.8% YoY to $98.6 billion in 2024, compared to $65.81 billion in the previous year. Meanwhile, forex outflows also increased, rising by 13.5% to $38.95 billion from $34.29 billion.

Autonomous sources played a pivotal role, with inflows growing by 39.7% to $58.45 billion from $41.83 billion. Outflows from these sources, however, also rose significantly by 63.9% to $7.95 billion in 2024, up from $4.85 billion in 2023. This led to a 36.5% increase in net forex inflow through autonomous channels, reaching $50.5 billion from $36.97 billion.

Similarly, inflows through the CBN rose by 67.5% to $40.17 billion from $23.98 billion, while outflows increased slightly by 5.3% to $31 billion from $29.44 billion. Consequently, net forex inflows through the apex bank moved from a deficit of -$3.81 billion in 2023 to a surplus of $9.17 billion in 2024.

On a quarterly basis, the economy posted a 14.99% quarter-on-quarter (QoQ) growth in net forex inflow in Q4 2024, reaching $17.39 billion from $15.13 billion in Q3.

During the quarter, total inflows rose by 20.62% to $27.81 billion from $23.06 billion. While inflows through the CBN slightly declined by 4.05% to $11.54 billion, autonomous sources recorded a strong 47.55% increase, hitting $16.27 billion from $11.03 billion.

Outflows during the quarter grew by 31.37% to $10.42 billion. The CBN accounted for $8.99 billion of this figure, up 22.98% from the previous quarter, while autonomous sources contributed $1.43 billion, reflecting a 129.59% increase.

Net inflow from autonomous sources climbed to $14.84 billion in Q4 2024 from $10.40 billion in Q3. However, net inflow through the CBN dropped to $2.56 billion, down from $4.72 billion recorded in the previous quarter.

The CBN noted that the increase in net inflow was largely driven by improved performance in autonomous sources, signaling stronger private sector participation in the forex market.

Nigeria’s top business tycoons — Aliko Dangote, Mike Adenuga, Abdulsamad Rabiu, and Femi Otedola — have earned places on the prestigious 2025 Forbes World’s Billionaires list, released last Saturday.

Aliko Dangote, Africa’s richest man for the 14th consecutive year, leads the Nigerian pack with an estimated net worth of $23.9 billion, up sharply from $13.9 billion in 2024. Forbes credited the rise to the inclusion of the Dangote Refinery — now fully operational — in its valuation of his assets.

“The big jump in his fortune is primarily due to Forbes adding the value of his refinery, which opened last year on the outskirts of Lagos after long delays,” the publication stated.

Globacom’s chairman, Mike Adenuga, ranks fifth among Africa’s richest with $6.8 billion, while Abdulsamad Rabiu, head of BUA Group, follows in sixth with $5.1 billion.

Femi Otedola, chairman of First Bank of Nigeria (FBN) Holdings Plc, makes a remarkable return to the billionaires list with $1.5 billion, sharing the 16th spot. Forbes noted the sharp rise in the value of Geregu Power Plc, where Otedola is chairman. Geregu’s shares surged by 40% over the past year following strong revenue and profit growth.

“Another billionaire whose fortune grew more than 30%: Femi Otedola of Nigeria… Shares of Geregu surged some 40% in the past year following a jump in revenue and profits,” Forbes reported.

Nigeria now boasts four billionaires, tying with Egypt. South Africa leads the continent with seven, while Morocco has three. Algeria, Tanzania, and Zimbabwe each have one.

This year also marks a historic milestone for Africa, with the collective wealth of the continent’s billionaires surpassing $100 billion for the first time.

“Africa’s 22 billionaires saw their fortunes rise to a total of $105 billion, up from $82.4 billion and 20 billionaires last year,” Forbes said.

As Nigeria’s elite continue to dominate Africa’s economic landscape, the spotlight shines on the role of strategic investments and industrial growth in wealth creation across the continent.

Nigerians may soon pay less for Premium Motor Spirit (PMS), commonly known as petrol, as international crude oil prices have dropped and OPEC+ moves to increase production.

The price of Brent crude, a major global benchmark, has fallen from $69.90 to $65 per barrel, raising hopes of a reduction in local fuel prices. The decline is attributed to growing market pressure following U.S. President Donald Trump’s announcement of sweeping tariffs, as well as increased oil output by the Organisation of Petroleum Exporting Countries and its allies (OPEC+).

Depot Prices Already Falling

Vanguard’s checks reveal that depot prices across major fuel distributors have begun to reflect the global trend. For instance, the price at Mainland depot has dropped to ₦918 per litre from ₦920, while A.Y.M and Ever now sell at ₦919 from ₦920 per litre.

Similarly, Prudent depot has reduced prices to ₦912 from ₦913, Eterna to ₦897 from ₦900, and Soroman to ₦915 from ₦916 per litre. According to petroleumprice.ng, if the trend continues, oil marketers are expected to lower their pump prices as new stock arrives next week.

Transport and Living Costs May Ease

President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said the ongoing market shift could reduce the cost of transportation, goods, and services if maintained. Speaking to Financial Vanguard, he expressed optimism that market fundamentals support a sustained price decline.

OPEC+ Increases Production

Meanwhile, OPEC+ announced a decision to raise oil production by 411,000 barrels per day starting in May 2025. This is a significant jump from the initially planned increase of 135,000 barrels per day.

In a statement, OPEC said the eight member countries — including Saudi Arabia, Russia, Iraq, UAE, and others — reached the agreement during a virtual meeting on April 3, 2025. The group reaffirmed its gradual and flexible return to pre-cut output levels, adding that the plan allows room to pause or reverse production hikes depending on market dynamics.

The output boost aims to support global oil market stability while allowing countries to compensate for past overproduction. Participating nations are expected to submit updated compensation plans to the OPEC Secretariat by April 15.

If the market momentum continues, Nigerians may soon experience some relief at the pump — and potentially in their daily expenses.

The Manufacturers Association of Nigeria (MAN) has stated that the production of polypropylene by the Dangote Petroleum Refinery & Petrochemicals will revive Nigeria’s struggling textile industry and save the country $267 million in import costs.

In an interview on the Channels Business Incorporated Programme, the Director-General of MAN, Segun Kadir-Ajayi, highlighted the struggle of the textile industry, which was once thriving and employed over 25,000 workers aged between 18 and 40 in the northern region alone. He explained that many companies have been forced to shut down due to the absence of local polypropylene production and the scarcity of foreign exchange required for imports.
He further stated that the production of polypropylene by Dangote Refinery and Petrochemicals will ensure that Nigeria, which currently imports 90% of its annual polypropylene requirements (amounting to 250,000 metric tonnes), will now become a net exporter, generating foreign exchange to strengthen the economy.

“For us in the manufacturing sector, this is a welcome development. It more than covers the 250,000 metric tons that constitute our national demand, which has been severely lacking. You can imagine the sectors it will impact—the textile industry, the plastic industry, the furniture industry. We are looking at an amount in the region of $267 million being saved. This is the amount spent every year in scarce dollars to import these materials. It is a welcome development for manufacturers, as it will incentivize investment in the sector,” he said.

Dangote’s $2 billion Petrochemical Plant in Ibeju-Lekki, Lagos, is designed to produce 77 grades of polypropylene. With a capacity of 900,000 metric tonnes per year and a turnover of $1.2 billion, it aims to meet the growing demand in plastic processing industries both in Africa and globally. The plant is expected to boost investment in downstream industries, create jobs, increase tax revenues, reduce foreign exchange outflow, and contribute to the country’s GDP growth.

Depositors of Heritage Bank with deposits exceeding N5 million have appealed to the National Assembly to intervene and assist   in the resolution   of the bank’s license by the Central Bank of Nigeria (CBN).
The depositors claimed   that the revocation has left them in financial distress, with their livelihoods and businesses hanging in the balance.

The Naira appreciated to N1,590 per dollar in the parallel market on Monday, strengthening from N1,600 per dollar recorded over the weekend.

However, in the Nigerian Foreign Exchange Market (NFEM), the local currency depreciated to N1,549 per dollar, according to data from the Central Bank of Nigeria (CBN). The indicative exchange rate rose slightly from N1,548 per dollar last Friday, marking a N1 depreciation.

As a result, the gap between the parallel market and the NFEM rate narrowed to N41 per dollar, down from N52 per dollar last weekend.

The exchange rate movement reflects ongoing fluctuations in Nigeria’s forex market as authorities continue efforts to stabilize the currency.

The Central Bank of Nigeria (CBN) has reaffirmed its commitment to the Nigerian Foreign Exchange (FX) Code, stating that its operations align with the principles of the code.

In a statement signed by Governor Olayemi Cardoso, Deputy Governor of Economic Policy Mohammad Abdullahi, and Director of the Financial Markets Department Dr. Omolara Duke, the apex bank emphasized that its decision follows a review of the FX Global Code and recognition that the code represents a set of principles widely acknowledged as good practice in the foreign exchange market.

The statement confirmed that the CBN acts as a regulator to market participants as defined by the code and is committed to overseeing FX market activities in a manner consistent with its principles.

“To this end, the Bank has taken appropriate steps, based on the size and complexity of the FX Market, and therefore aligns its roles with the principles of the Code,” the statement added.