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CBN Stops Banks From Utilising Naira Devaluation Gains

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The Central Bank of Nigeria (CBN) has directed deposit money banks (DMBs) not to use profits from naira revaluation to pay dividends or finance operations.

According to the CBN, an evaluation of the foreign exchange (FX) regime shift revealed that banks stand to benefit from the policy because it has the potential to significantly raise the naira value of banks’ foreign currency (FCY) holdings and liabilities.

The apex bank gave the directive in a letter, titled: ‘Impact of Recent FX Policy Reforms: Prudential Guidance to the Banking Sector’, which was dated September 11, 2023, and signed by Haruna Mustafa, CBN’s director of the banking supervision department.

A revaluation of a currency occurs when the value of a currency is increased relative to another currency in a fixed exchange rate regime.

On June 14, the CBN officially unified the multiple FX rate systems, collapsing all FX windows into the investors’ and exporters’ (I&E) window.

The policy resulted in the depreciation of the local currency by about 63 percent, causing significant levels of volatility in the FX market.

In the letter, the financial regulator said the transition from the multiple exchange rates regime to a single rate could result in varying levels of FX revaluation gains.

The apex bank, however, said the policy could also lead to losses across the industry.

“Additional implications of the FX policy reforms may include breaches of single obligor and net open position limits, possible increase in asset quality risks, and pressure on industry capital adequacy,” the statement reads.

The CBN also issued guidelines on how banks can manage the impact of FX reform.

“Treatment of FX Revaluation Gains: Banks are required to exercise utmost prudence and set aside the FCY revaluation gains as a counter-cyclical buffer to cushion any future adverse movements in the FX rate. In this regard, banks shall not utilize such FX revaluation gains to pay dividends or meet operating expenses,” the CBN said.

“Single Obligor Limit (SOL): Banks that inadvertently breach the Single Obligor – Limit (SOL) due to the FX policy will be granted forbearance upon application to the CB. The forbearance shall apply only to existing facilities as at the effective date of this policy. Such banks shall be exempted from the regulatory deductions on the excess above the SOL limit in their CAR computation.

“Net Open Position (NOP) Limit: Banks that exceed the NOP prudential limits due to the FX revaluation shall be granted forbearance for the breach upon application to the CBN.

“Existing prudential regulations on capital adequacy, dividend payments, and FCY borrowing limits shall continue to apply.”

The apex also directed banks to immediately implement the measures.

BIG STORY

BREAKING: Fubara Arrives Port Harcourt Airport

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Rivers State Governor, Siminalayi Fubara, returned to Port Harcourt on Friday, touching down at the Port Harcourt International Airport, Omagwa, just two days after President Bola Tinubu lifted the emergency rule on the state and directed his reinstatement.

The governor’s aircraft landed at exactly 11:50 a.m.

He was welcomed by a large crowd of supporters and political allies, including former Information and Communications Commissioner, Barr. Emma Okah; ex-Health Commissioner, Dr. Adaeze Oreh; former Nigerian Ambassador to the Netherlands, Oji Ngofa; ex-Environment Commissioner, Sydney Gbara; and Victor Oko-Jumbo, former factional Speaker of the state assembly.

Others at the airport included former Youth Commissioner, Chisom Gbali; ex-Physical Planning Commissioner, Evans Bipi; former NUPENG President, Igwe Achese; ex-Education Commissioner, Dr. Tamunosisi Gogo-Jaja; as well as past chairmen of Port Harcourt City and Obio/Akpor councils, Ezebunwo Ichemati and others.

 

More to come…

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BIG STORY

JUST IN: Dangote Refinery Stops Sales To Unregistered Marketers

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The Dangote Petroleum Refinery and Petrochemicals Limited has halted self-collection gantry sales of petroleum products at its plant, effective Thursday, September 18, 2025.

This was disclosed in an internal mail obtained by our correspondent on Friday, signed by the refinery’s Group Commercial Operations Department.

According to the directive, the decision is aimed at encouraging broader use of the refinery’s free delivery scheme for retail stations and blocking unregistered marketers from accessing supplies either directly or through third parties.

The company described the measure as an operational adjustment to enhance efficiency and advised marketers to embrace its Free Delivery Scheme, which allows direct shipments to outlets.

It further cautioned that any payments made after the cut-off date would not be recognised.

The message to marketing partners partly stated: “We wish to inform you that, effective 18th September 2025, Dangote Petroleum Refinery and Petrochemicals FZE has placed all self-collection gantry sales on hold until further notice. In light of this development, we kindly request that all payments related to active PFIs for self-collection are also placed on hold until further notice. Please note that any payment made after this date will not be honoured.”

However, the refinery clarified that its Free Delivery Scheme remains active for both existing and new customers.

“We encourage all active and newly onboarded customers to register for the DPRP Free Delivery Scheme, which remains fully operational and offers a seamless delivery experience to your station,” the mail added.

The management also apologised for any inconvenience, assuring stakeholders that the move was necessary to improve operations.

The suspension comes amid an ongoing dispute involving the refinery, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

While NUPENG has accused the company of blocking unionisation among its truck drivers despite government intervention, DAPPMAN has criticised the “free delivery scheme,” alleging it forces marketers to depend on Dangote’s fleet at commercial costs.

Dangote Refinery, on the other hand, insists the delivery model is designed to ensure stable supply and reduce costs, accusing marketers of pushing for subsidies and diversion of products. The standoff has fueled concerns around pricing, workers’ rights, and market competition.

The new policy could affect independent marketers and retail operators who have not registered for the scheme and previously relied on direct self-collection at the gantry.

Earlier report had it that Dangote reaffirmed its stance in the face of DAPPMAN’s demands, stressing it would not absorb transportation costs that marketers want classified as subsidies.

This latest clash between Dangote and DAPPMAN comes at a time of rising anxiety over fuel costs and supply logistics nationwide.

DAPPMAN, whose members own most privately run depots in Nigeria, argues that moving products from the refinery’s Lagos base to other regions involves substantial logistics and coastal shipping expenses.

In a statement issued via Dangote Group’s official X account, titled “We Stand By Our Statement on DAPPMAN … Marketers’ ₦1.505trn Subsidy Demand”, the refinery reiterated its right to protect its operations from “misleading reports.”

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Fubara’s Supporters Throng Port Harcourt Airport To Welcome Him [PHOTOS]

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Supporters of Rivers State governor, Siminalayi Fubara, gathered at the Port Harcourt International Airport on Friday morning to await his return.

It was gathered that the governor, who had been on a trip to the United Kingdom, was expected back in the country.

Crowds of his loyalists, including former members of his cabinet, sang and danced both around the airport premises and on the steps leading to the arrival hall.

A day earlier, a similar group had converged in front of the Rivers State Government House in Port Harcourt, hoping to receive Fubara following his reinstatement.

However, the governor did not appear at the government house, sparking speculation over his whereabouts.

Fubara has not officially resumed duties since the end of emergency rule in the state.

Reacting to criticism over his absence, Nyesom Wike, minister of the federal capital territory (FCT), argued that no law compels the governor to return to his office immediately.

According to Wike, governance is not restricted to physical presence in an office.

On Wednesday, President Bola Tinubu lifted the six-month emergency rule imposed on Rivers State due to a prolonged political crisis.

The president directed Fubara, his deputy Ngozi Odu, and members of the state assembly to resume duties on Thursday, September 18.

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