Nigeria’s settles $152 mln naira futures contract, enters new 12-month contract – Reuters

dollar to naira

LAGOS Aug 25 (Reuters) – Nigeria’s central bank has settled $152.48 million of naira futures contracts it sold in June at an exchange rate of 279 naira per dollar, market regulator FMDQ OTC Securities Exchange said.

The bank also entered a fresh 12-month contract at 241 per dollar due on Aug. 16, 2017.

In June, the central bank introduced an over-the-counter futures market on the currency, to help manage dollar demand, quoting the naira at 279 to the dollar in a month’s time and at 210 by April next year.

The local currency closed at 305.50, the level it has closed at since Monday.

Revenue plunges as Nigeria loses aviation hub to Ghana – Guardian

Nigeria has lost its status as the aviation hub in West Africa to Ghana, a neighbouring country.

Already, the revenue that accrued to Nigeria from the fuelling of aircraft and accommodation of cabin crews of foreign airlines has been taken over by Ghana, which now provides these services.

The situation is partly attributable to the 100 per cent increase in the price of aviation fuel in Nigeria, while Ghana slashed the same product by 20 per cent.

Besides, regulatory agencies like the Nigerian Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN) and Nigerian Airspace Management Agency (NAMA) are losing revenue.

The price of Aviation Turbine Kerosene (ATK), also called aviation fuel or Jet-A1, rose from N120 some months ago to N240 per litre since the Central Bank of Nigeria (CBN) introduced the flexible foreign exchange policy.

Aviation fuel is 100 per cent imported, which subjects it to the vagaries of foreign exchange, especially the United States dollar. With the exchange rate around N350 to $1, aviation fuel in Nigeria has become one of the most expensive on the continent.

Due to the price increase, coupled with irregular supply of the product, foreign airlines experienced difficulties refuelling during their trips. For instance, Emirates Airline, which recently reduced its two daily flights from Lagos to just one, last week made a re-route to Ghana, to buy fuel for its Abuja-Dubai flight.

It was learnt that Nigeria’s customer of many decades, British Airways, had started buying fuel from Ghana to power its airplane carrying Nigerian passengers to the United Kingdom.

Air France last week announced that from 2017, it would commence three weekly flights to Accra in Ghana from Paris-Charles de Gaulle. These flights will be operated by Airbus A330 with a capacity of 208 seats until 27 March 2017, then by Boeing 777-200 with 312 seats.

Read more at http://guardian.ng/news/revenue-plunges-as-nigeria-loses-aviation-hub-to-ghana/

Banks’ sanction deals heavy blow on Naira – Today.ng

The Naira on Wednesday dipped further against the dollar at the parallel market, the News Agency of Nigeria reports.

The Nigerian currency exchanged at about N400 on Wednesday afternoon, from N397 it closed on Tuesday.

It traded against the Pound Sterling and the Euro at N515 and N450 respectively.

At the Bureau De Change segment of the market, the naira traded at N397, N513 and N443 against the dollar, Pound Sterling and the Euro respectively.

At the interbank segment of the market, the naira appreciated against the dollar as it closed at N315.93 from N335.25 posted on Tuesday.

Traders at the market said the ban of nine banks from the sale of Forex by the Central Bank of Nigeria was already deepening the scarcity of Forex at the market.

A financial expert, Harrison Owoh, while corroborating the views above, expressed the hope that the situation would improve as the Central Bank of Nigeria was handling the matter with all the seriousness it deserved.

Owoh explained that the news of the ban of nine banks from Forex sales had stifled the flow of Forex at the market.

NAN reports that the CBN had wielded its hammers on the banks for failing to remit $2.274 billion funds of the Nigerian National Petroleum Corporation to the Treasury Single Account.