Fakoyejo OlalekanThe exchange rate between the Naira and the Dollar settled at ₦462.78/$1 on Monday, 8 May, in the official market, which is backed by the Central Bank of Nigeria (CBN).
At the end of trading, the United States currency increased in value by ₦0.55 kobo, reflecting the Nigerian banknote fell by 0.11 per cent.
This was on the back of the ₦462.23 kobo/$1 the foreign exchange rate closed after the trading session last week Friday, 5 May.
Prime Business Africa learnt that the Naira had exchanged for the Dollar at a high of ₦466/$1 during trading. Also, the exchange rate had fallen to a low of ₦446/$1, but it found its way up, to end the session at ₦462.78/$1.
Before the official market closed, traders had transacted $99.33 million worth of foreign exchange, which is 22.57 per cent less than the previous session.
The value of transactions yesterday was $28.96 million higher than the $128.29 million foreign exchange that investors and exporters traded on Friday.
While the Naira is currently struggling to stabilise, the Nigerian currency will receive relief soon as the Dangote refinery is set to launch on Monday, 22 May.
Naira has been under pressure due to the Nigerian government’s heavy spending of foreign exchange on the importation of petroleum products.
This has continued to deplete the country’s foreign reserves, but that will most likely come to an end at the end of May, as Dangote Refinery will enable Nigeria to save 40 per cent of its foreign exchange earnings, which is often disbursed on importation of petrol.
The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, had once stated that: “By the time the Dangote Refinery begins operation, it would be a major FX saving source for Nigeria.”
Emefiele explained that Nigeria will now spend mostly Naira to buy fuel from Dangote, instead of the forex, “Right now, the overall forex we spend on imported items, the importation of petroleum products consumes close to 30 percent (by the time you add diesel, aviation fuel, petrol and the rest of that).
“The Dangote Refinery has the capacity to produce 650,000 barrels per day. There is a domestic component that is about 455,000 barrels.
“Even if the 455,000 is what is sold to Dangote in naira alone, it is going to be major forex saving for Nigeria,” the CBN bank chief said.
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