Dwindling Oil Price: CBN devalues naira, raises lending rate

Godwin Emefiele, CBN governor

The Central Bank of Nigeria, CBN, has announced a new official naira-to-dollar exchange rate, forcing down the Nigerian currency by 13 naira, as the country struggles to reshape its fiscal policies in response to dwindling oil price.

The bank devalued the naira at its monetary policy committee, MPC, meeting on Tuesday in Abuja, where it also reviewed Nigeria’s monetary policy rate from 12 per cent to 13 per cent.

The monetary policy rate highlights lending rate for the country’s economy.

The naira will now exchange officially at N168 to a dollar, and no longer N155, the bank said.

The bank also moved the private cash reserve ratio from 15 per cent to 20 per cent, while retaining public sector cash reserve ratio at 75 percent.

The CBN said the decision to lower the value of naira against the dollar is to strengthen the currency.

Mr. Emefiele noted the continued drop in global crude oil prices and reiterated the call on the government and the National Assembly to speed up the process towards the immediate passage of the Petroleum Industry Bill, PIB, which has been pending passage for the past two years.

The committee urged the government to take advantage of the declining oil prices to cut down on subsidies on supply of petroleum products in the 2015 budget, while states and Local Government should step up efforts to boost their internally generated revenue and reduce reliance on revenues from the federation account.

The CBN governor assured that the bank remained committed to maintain financial system stability, while warning against speculative activities that drive inflation.

More later…


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  • Giganto

    Hahaha….another big achievement of the “God-sent best president” Nigeria ever had, HE President Gbadluck Ebola Jonothing!!!

    • Emeka

      I doubt that this has anything to do with the president…you would know if you have been following the trend of the global financial economy.

      • amazing2012

        Emeka, everything has nothing to with president ! So what is he ? Head of no control country ? Who appoint them ? Is Nigeria their house where they can put any policy. Read my comment below, please.

    • Otile

      Today it is all about the oil in Jonathan’s backyard. Why are you not commenting on those 2 women suicide bombers in Maidugiri? Can you help us to abolish hijab? Shame on Islamic APC.

      • Ade

        Otile, you have really gone mad. Your comment has nothing to do with the issue under consideration. Go see a psychia bèfore it is too late.

      • King Carlos

        Ode… keep phooling yourself around because of 2oo naira recharge card handed to you by PDPigs.

  • Ashibogu

    Gbam! E don happen! We said it, they called us alarmists. Now, we have been proved right. Our politicians were eating with two hands, now oil prices are falling and they are crying. Yeye dey smell! They did nothing during seven years of abundance, just hoping we will not have seven years of lack.

  • amazing2012

    Nigeria at the hand of competent southerners !
    Immediately you become CBN governor , the first welcome gifts for the poor is to introduce ATM charges and increase the registration/deposits of Bereau de change, now devaluing your own currency. This means US dollar will go higher than Nigeria Naira and Nigerians will be at lost in any transaction quantified with global currency ( $). For instance the price of goods imported to Nigeria will go higher at the same or more percentage to equates the dollar rate. It is a direct introduction of inflation. With absence of subsidy, corruption at all level, cost of living and insecurity, your decision and economic predictions without consideration of social factors will make life hell to Nigerians and other west Africans. Remember, already many business peopel don’t import goods through our ports because of taxes, open corruption by port officials, and insecurity. Now with your new policies, government will lose more revenue and publicity.
    You apply Economic theorists made in the west and for the west, which will never work in our environment. Despite experts like Aunty Ngozie who was praised for experience and international world bank recognition still we plunge into economic problems. A good theory is the one that solve a problem not deceptive title, useless names, Akra papers that has more value then their certificates. Your experience and certificates has no value if all they can do to Nigerians is to bring economic hardship .!

    • Akin Olamide

      That’s the gift from the “best president since 1960”.

      All the reserves ex president Obasanjo accrued have been frittered by these people. It is a government of hare brained experts. They have been window dressing our economic situations and here comes the reality.

    • Otile

      Wherefore are you not commenting on those 2 women suicide bombers in Maidugiri? Can you help us to abolish hijab? Shame on Islamic APC.

      • amazing2012

        Though not the topic, but to enlight you Hijab is not the problem of insurgency rather the incompetency of sick administration.
        1. Christian knight Anders Brievik of Norway killed 85 Christians without using Hijab.
        2. Rwandan genocide: Christians vs christians same church same faith never wear Hijab.
        3. Rev. King murdered a member of his church by putting petrol and fire on her. Never use Hijab!
        4. The helicopters that went to drop supplies to BH never wore Hijab.
        5. The Released of the master mind of nyanya bombing suspects by those who never use Hijab.
        6. First October bombings by Christians, Okah and co never put Hijab.
        7. Importation of 85,000 guns and 3.5million bullets by Gary Hyde a Briton to Nigeria- never put Hijab.
        8. Stealing of 35,000 AK 47 & thousands of other assorted weapons and undisclosed number of ammunitions by late General Azazi from military ordinance in Kaduna- never put Hijab.
        9. The seven Christians caught in Gombe trying to bomb COCIN Church. Never put Hijab.
        10. The arrest of a Christian wearing turban trying to put fire in a church in Bayelsa, never put Hijab.
        11. Mary mother of Jesus never go naked, she is always in Hijab.
        12. Jesus says in Matthew 5:28 ” but I say unto you, that whosoever lookers on a woman to lust after her hath committed adultery with her already in his heart. Rev. Njoh asked ladies members of his church to r

      • amazing2012

        12. Rev Njoh of Kenyan church asked ladies to removed their pants so that Jesus will enter them.
        13. Lack of Jihab made a pastor in Enugu to impregnates 25members of his church.
        14. Due to disobedience to Bible sex, rape and lust become the reason why most of christians go to church.
        If money contribution, mixing men and women in a lust dresses and music will be restricted as God arranged many Christians will stop going to church.
        If outside , cheating will be define, eating will be stop as God command not to even touch it, as unclean animal, alcoholism and open sex even during vigil. Christianity will collapsed. Chrsitianity is a religion of people who want a lusts any control or define life. No rules and no regulations, every body can bring what he thinks can satisfy his lists.
        For instance night vigil is mentioned one time in the bible when God spoke to Moses on how they will plan the escape from Pharo but later chrsitians turn it to prayer night. In the original night described by the bible historians Moses and Isrealites hides themsleves and sneak out of Egypt not shout throughout the night. By changing the meaning and objective of the text the result of disobeying to God is prostitution, sex in the church, robbery, sleepless night and stealing members money by the church when they are unconcious by shouting.
        To font:

  • Can somebody please beg the people involved to return our USD$20billion immediately.Till date, the Forensic Accountants are yet to release their packaged reports. Madam Diezani, over to you.Return our money to save the poor from dying from the impending meltdown.

  • Ken

    The Gov has to react to the realities. Even SLS did the same. When he came the naira was exchanging for about 118; but he pushed it to 155 which is 37. Godwin Emefiele just pushed it by 13. This is so because the price of crude has gone down. It is a global thing. We have to adjust our lives.

    • T

      its not about the Governor, he has no fault what so ever, he cant create money. the problem is the politicians knew this was coming because it was apparent for the past 12months but didnt bother to save or invest and everyone will now have to pay the heavy price. inflation wouldnt recognize your region or religion, very funny

    • Ade

      This one na lie na. Depreciation occurred during Soludo’s time. Even at that, the issue was not about Soludo and Sanusi. The issue was about the structure of the economy. The only problem with this depreciation is that SLS was demonized because he sought to prevent events such as this!

    • abdulhadi

      stop saying what u do not know, the depreciation of the naira from 118 to 176 b4 coming down to 155 happen went soludo implemented a new policy on bureau de exchange, which make all bureau de exchange firms to collect their money through the commercial banks not CBN

      • Joe

        The truth is that you do not need harvard economist to make the economy of a country like Nigeria buoyant. If Nigeria can refine crude oil locally, and export the refined product even to African countries, i think we could have withstand the storm that is coming. Our leaders are very greedy and selfish. The problem will consume the greedy politicians, the fuel importers and their collaborators soon.

  • Akin Olamide

    Crude sold for over $100 for several years against a dollar benchmark of less than $80. And just one month of drop in price of crude oil, the whole FG led by PDP started panicking up to the point of devaluing the currency.

    And this woman wanted to be World Bank president sometime back.

    The people at the helms of our affairs are just incompetent.

    • Del Roy

      “The naira is being overwhelmed by a drop in prices for oil,
      the biggest foreign-exchange earner, with the currency weakened to a record low
      of 178 per dollar on Nov. 24. While the central bank has stepped in to defend
      the currency, selling dollars outside its twice-weekly auctions, the
      interventions have reduced foreign reserves to a five-month low of $37.2


      [November 25, 2014]

  • T

    in the next three month the dollar will be N200 in blacmarket, the circle of 1979 and 1989 is back, Vote Jona for President! pls do not change your mind

  • True Nigerian

    Ewoo ooh! Aunty Ngozi repeatedly said that “the fundamentals of our economy are very strong”. She even announced as recently as few weeks ago that she and Pastor Jona will roll out Nigeria’s welfare system soon. Odi egwu o! I asked my aunty, with which money you want take do am? Aunty, I ji kwa ego? 🙂 No answer.

    Pastor Ngozi, well done o! When I grow up, I will get a finance minister from Oko Polytechnic, not Harvard and MIT professor who is tired of answering questions about Chibok Girls, despite the fact that 2000 troops were deployed to find just ya papa when Pastor Jona’s army of kidnappers in the South-East and Delta collected our brother from Ogwashi.

    Good for America, bad for Nigeria!

  • Amir

    This man Jonathan will definitely bankrupt Nigeria. Lord have mercy. For 6 years oil sold at above $100 while the budget benchmark was always less than $80. What happened to the difference for a total of 6 years, and the $67 billion saved and handed over to this administration by Obasanjo? Even this year an administration lacking foresight budgeted for (non existent) presidential zoo animals and more aircrafts against the warnings of many patriotic Nigerians to stop the wastage of public funds. An economy its voodoo managers and statisticians claimed was growing at the rate of 7% cannot meet its basic obligations in less than one month of oil price drop. Where else can this happen except in incompetence enclave called Nigeria. The same man that brought this economy on its knees still wants to continue bleeding it till death?
    A senate president who never wished Nigerians access to telephone when he was Minister of Communications will hasten up to rubber stamp this austerity for the impoverished masses. Cycle of Doom!!!

    • Taster

      Like since obasanjo era, you slept and just woke up today to discover your voodoo statistics is no longer in vogue.
      Ever heard of excess crude account or fund? that`s your difference, and please, when next you visit your home-state ask your governor what he has been doing with all the funds and save your breath for another day.

      • Amir

        Half education is equally as dangerous as complete illiteracy. Excess crude account was $25 billion when this administration came to power. They shared the savings and saved none! A wasteful federal government whose priority is more aircrafts they cannot manufacture retained 56% of the shared money? Your knowledge is only limited to propaganda. What did your paymaster achieve with his allocation as Governor of Bayelsa?

        • Jay

          These TAN agents see nothing wrong with their paymaster even when he covets their wives. Jonathan is as clueless as the next child in my wife’s womb and the economics hawks around him know so they take full advantage of him. I seriously believe he was given his Phd on the sentiments of no-shoe. Nigeria will be worse than Somalia by 2019 if this man get another term.

          • King Carlos

            What do u expect from a Phd holder in zoology? Animal behaviour!

        • King Carlos

          Nice one

        • Taster

          You must be a voodoo mathematician to believe in your summation as facts – you showcased your confusion to the public n was given a free ride, n turning around to lay claim to the guide you were freely given made a nonsense of your claims.
          Expect you grow up. kid.

      • Chyboose

        Seriously, I like your comments. Really don’t why some human beings has refused to wake up to realities and they keep laying blames.

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  • tundemash

    so does that mean PDP won’t be distributing rice & chicken this xmas to the e-rats ?

  • vichonx

    the truth is that, we have bad leaders. if oil can be refined properly in Nigeria and we do exports to even if only African countries, we would have withstood this wave of wild wind.

  • Atom Ant

    Must we keep our foreign reserves in dollars? Is it a crime for us as a nation to ask that our crude and other exports be paid for in Naira? Why don’t we keep our foreign reserves in the Chinese currency(Yuan) after all 9 out of every 10 items in most households in Nigeria are made in China and not America or Britain?

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  • King Carlos

    I hope this will serve as a wake-up call to all Nigerians. The impending austerity knows no tribe or religion. If you’re ibo, hausa, ijaw, the government has failed you. Shine your eye and face reality.

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  • Stephen

    Nigerians are such HYPOCRITES. More like the Isrealites in the time of Moses.

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