An Analysis and Evaluation of the Economic Implications of the CBN’s Ban on Foreign Currency Collaterals for Naira Loans
On Monday, April 8, 2024, the Central Bank of Nigeria (CBN) unveiled a circular prohibiting the practice of obtaining Naira loans using foreign currency-denominated collaterals. This circular, issued to banks, discontinues the practice of accepting foreign currencies as collateral for loans denominated in Naira. This directive can be regarded as a substantial step intended to […]
Implications of the Directive to Banks to Deduct Electronic Money Transfer Levy (EMTL) on Foreign Currency Transactions
Hedging Strategies for Nigeria’s Oil & Gas Firms
The Nigerian oil and gas sector heavily relies on international transactions, making it highly susceptible to foreign exchange fluctuations. Fluctuations in exchange rates can significantly impact the sector’s revenue and costs, leading to currency depreciation, inflated import prices, and fluctuations in export revenue. Since Nigeria’s economy depends heavily on oil exports, this volatility directly affects […]
