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Naira Falls Massively At Black Market, See New Exchange Rate Today

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The dollar index remained near its weekly high, while the Nigerian naira fell below a key support line. The local currency dropped below the N1,600/$ support level in the black market, JomogNews Nigeria reports.

Market fundamentals indicate renewed demand pressure and an expanding supply gap, leading to another round of naira depreciation.

The naira’s value fell from N1,625 per dollar last weekend to N1,635/$ yesterday.

The local currency is under severe pressure this month, struggling to maintain the critical N1,500 support level, according to market indicators, despite slight improvements in some macroeconomic conditions in the Nigerian foreign exchange market.

Fundamentals suggest that if the local currency cannot maintain its current levels, it may decline towards N1,800/$. Even ardent supporters of free market economics may now doubt that the naira will strengthen to its March highs this quarter.

The Central Bank of Nigeria plans to issue treasury bills valued at N2.2 trillion in the fourth quarter of 2024. This substantial issuance, a direct response to the nation’s current economic difficulties, aims to stabilize the naira while managing liquidity in the financial market.

In response to soaring inflation, the Nigerian apex bank has adopted a tight monetary policy, raising interest rates on treasury notes to provide more incentives in the Nigerian capital market. The interest rates on 364-day bills increased from approximately 15–18% at the end of 2023 to 21.49% in the first half of 2024.

U.S. Dollar Index Hits Two-Week High

The dollar strengthened to its highest level since August 20, driven by rising long-term Treasury rates and inflation data indicating a smaller rate cut. The dollar index consolidated around 101.67 index points after reaching a peak of 101.79, a level not seen since August 20.

For the first time since July 2023, it fell as low as 100.51 index points last week following Fed Chair Powell’s statement that the easing campaign would begin at the next policy meeting. Data on U.S. gross domestic product also suggested that the economy is strong enough to allow the Federal Reserve to be less aggressive in loosening policy.

Currently, traders fully price in a quarter-point reduction in the Fed rate, with a 33% chance of a 50-basis point cut this month. Expectations for a larger decline were 36% a week ago.

U.S. payroll data, due on Friday, will be significant as Federal Reserve Chair Jerome Powell has shifted from combating inflation to preparing to protect against job losses. Analysts believe the employment data will influence the extent of the expected rate cut by the Federal Reserve. Markets have already been pricing in a 25-basis point cut for weeks.

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Tragedy In Ondo: Gunmen Attack Palace, Traditional Ruler Killed

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The Ondo State Police Command has confirmed the assassination of Oba Kehinde Falodun, the traditional ruler of the Agamọ community.

According to command spokesperson DSP Abayomi Jimoh, the monarch was attacked on Wednesday at approximately 7:10 p.m.

Jimoh said the information was received by the division at about 7:50 p.m. from a community leader, High Chief Ajewole Clement of New Town, Itaogbolu,

He said the information indicated that approximately six armed men stormed the residence of the traditional ruler, forcibly took him from his compound, and subsequently fled the scene.

“The victim was later found a few metres away with gunshot wounds. He was confirmed dead at the scene.

“Upon receipt of the report, the Divisional Police Officer (DPO), alongside tactical teams from the command, promptly mobilised officers in collaboration with local security outfits.

“Atuluse Security, local hunters, and Amotekun operatives also assisted to comb adjoining bushes and surrounding areas in a bid to apprehend the perpetrators. Efforts are ongoing to track down and arrest the fleeing suspects.

“Monitoring and surveillance activities have been intensified across the area to ensure the safety of residents and prevent further breakdown of law and order.

“The public are assured that no stone will be left unturned in bringing those responsible for the heinous act to justice,” he said.

According to him, members of the public with credible and actionable information are urged to report to the nearest police station or contact the command.

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37 Miners Killed By Toxic Gas In Plateau; FG Yet To React

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The Federal government has remained silent after reports emerged that carbon monoxide, a poisonous gas, left 37 miners dead and 25 hospitalized at a mining site located in the Zurak Wase Local Government of Plateau State.

This was disclosed in a report by a security journalist, Zagazola Makama, on Wednesday.

Sources told Makama that the incident occurred at the Solid Mining Company early on Feb. 18.

The victims are between 20 and 35 years old and were conducting routine mining operations when they inhaled toxic gas that had accumulated in the poorly ventilated tunnels, the report said.

Makama said, “The site is under strict control, and emergency protocols are being followed to manage the situation,” a source told Makama.

Meanwhile, there is no indication that the Nigerian government nor the Plateau State, and security operatives have reacted to the incident or done anything on the matter.

There are no official statements from both quarters confirming or debunking the incident as of filing this report on Wednesday.

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Dangote Projects Naira Appreciation To N1,100/$ In 2026

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Aliko Dangote, Chairman of the Dangote Group, forecasts that the naira will appreciate to N1,100 per dollar within 2026.

He shared this outlook on Tuesday during the federal government’s unveiling of the National Industrial Policy 2025.

The naira has strengthened in recent weeks, appreciating to N1,335.95 per dollar at the official market and N1,380/$ at the black market on Tuesday.

Commenting on the development, the billionaire businessman said the country has the potential to generate large-scale consumption, industrial growth, and disposable incomes.

“I mean today if you look at it, your excellency, I believe with the policies that you have implemented in government, people now have started seeing the result and manufacturers are very very happy,” Dangote said.

“Today, the dollar is N1,340. Mr. Vice-President, I can assure you with what I know, blocking all this importation and co, naira this year will be as low as N1,100 if we are lucky.

“The only thing is for maybe the government to stop the naira from getting stronger so that they will keep collecting more naira.

“But it’s a catch-22 situation where, now, if the naira gets stronger it means that everything will go down. Everything will go down because we are an import-based country which we shouldn’t be.

“What you should be is to manufacture all the things that we need.”

On February 12, Femi Otedola, the chairman of First HoldCo, expressed optimism that the naira will strengthen meaningfully and will trade below N1,000/$1 before year-end as domestic refining is fully underway.

 

 

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