Economy
Access to forex major challenge to marketers – DAPPMAN
Petroleum Products and Deposits Traders Association of Nigeria says accessing foreign exchange at the official rate is a serious challenge for traders. Ms. Winifred Akpani, President of DAPPMAN, said this at a press conference in Lagos on Tuesday. Akpani urged the federal government to provide oil traders with access to foreign exchange at the official rate of the Central Bank of Nigeria to improve the supply and distribution of Premium Motor Spirits, also known as gasoline, throughout the world. country. She said that accessing foreign exchange at the official rate would boost fuel supply across the country. He added that the burden of obtaining foreign exchange through the parallel market for transactions domiciled in Nigeria had left oil traders in dire straits.
“Accessing dollars for our operations has been an insurmountable obstacle for oil traders. The difference between the CBN exchange rate and the parallel market exchange rate continues to widen,” he said. Akpani pointed out that, in addition to basic operating expenses denominated in dollars, oil traders were also faced with obtaining funds from the parallel market to pay tariffs and levies, some unauthorised, also charged in dollars. For example, to rent a ship to transport 20,000 metric tons of gasoline within Nigeria for 10 days, the shipping costs are denominated in dollars, which is equivalent to about 220 million naira at the official exchange rate of 440 naira. And a whopping N440 million for oil traders who have to get foreign exchange from the parallel market at N880. This implies an additional cost of N11 per liter for this transaction due to the official and parallel forex market spread,” he said.
According to her, for the same transaction, the pier fees, also charged in dollars, amount to 15.4 million naira at the official exchange rate and 30.8 million naira for oil traders who are supplied in the parallel market. “In addition, Jetty Berth is charged in dollars and amounts to N2.2 million at the official exchange rate and N4.4 million at the parallel market exchange rate. While port fees, collected in dollars by the Port Authority and the Nigerian Maritime Administration and Safety Agency, come to N71.51 million at the official exchange rate and N142.796 million for sellers that obtain foreign currency from the parallel market. DAPPMAN here the government to establish a level playing field in the access of traders in the sector to foreign exchange at the CBN exchange rate for their operations,” he said. Akpani said that accessing foreign exchange through the CBN window would improve capacity and facilitate the continuous supply of gasoline and bring forth a regime of sustainability in terms of storage, distribution and supply throughout the country.
“The Nigerian National Oil Company Ltd., which historically acted as a provider of last resort, is now the leading oil company in Nigeria with the acquisition of OVH and has full access to dollars at official CBN rates. The NNPC also has access to products through exchange agreements,” he said. Akpani denounced the absence of a level playing field that guarantees access to dollars for all marketers at official rates, and that having the NNPC as the sole importer of gasoline was not sustainable, considering the enormous consumption of the product. According to her, strategic decisions must be made in the industry to ensure that Nigeria takes full advantage of the expected growth in demand for oil products in Africa. “For us in Nigeria, this will include full deregulation of the sector and a deliberate strategy to create an enabling environment for all oil traders to add value, together with the NNPC,” he said. Akpani said DAPPMAN viewed the government’s plan to remove the subsidy by 2023 as the right decision that would reposition the sector for sustainable growth and development.
He said removing the subsidy would free up funds to bolster the capacity needed to transform the health, education, defence and transportation sectors, among others. “As we approach Christmas and transition to the 2023 election year, the nation needs the full engagement of all carriers to bolster capacity and ensure product availability with excellent service levels. While there may be fears about potential gasoline shortages, DAPPMAN assures Nigerians of its ability and willingness to work assiduously to increase supply as the government addresses foreign exchange availability challenges in the sector,” he said. The DAPPMAN chief praised the Federal Government and the Nigerian Midstream and Downstream Regulatory Authority for emerging gains in the sector, especially after the introduction of the Petroleum Industry Act. “There have been important meetings aimed at outlining a sustainable future for the sector. These must continue, as the success of the sector in the face of the looming global energy crisis depends on collaboration and consideration of how operators can shore up capacity based on market-friendly policies and a level playing field.” Akpani pointed out.
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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