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Naira now worst performing currency in the world – Report

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Naira now worst performing currency in the world – Report
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Nigeria’s naira has experienced a reversal in its recent gains, emerging as the world’s worst-performing currency over the last month, according to a new Bloomberg report.

The Friday report emphasised that this development places increased pressure on the Central Bank of Nigeria to continue raising interest rates.

The naira has depreciated to 1,466.31 against the dollar, marking its weakest level since March 20.

This decline is attributed to the local scarcity of the US currency, with only $84 million available on Thursday, half of the previous day’s supply.

CBN governor, Yemi Cardoso, had previously hailed the naira as the best-performing currency globally as of April 2024.

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The naira faced challenges in March, plummeting to as low as N1,600/$1 on the official market and N1800/$1 on the parallel market.

Cardoso attributed this achievement to a series of foreign exchange market reforms and positive sentiment from leading international investment institutions.

Speaking with Bloomberg, the Chief Economist for Africa and the Middle East at Standard Chartered, Razia Khan, estimates that $1.3 billion in naira futures will mature at the end of this month, potentially dampening market sentiment.

“The belief is that this will create more demand for dollars.

“When the currency appreciated very fast, there had been a bout of profit-taking by offshore investors, and this meant that the dollar-naira exchange rate backed up again.

“This is completely in line with the functioning market,” she said

The report further highlights that the decline in the naira’s performance is expected to intensify pressure on the CBN to implement another rate hike after its upcoming policy meeting on May 21.

In February and March, the Central Bank increased rates by a total of 600 basis points. This move aided the naira in rebounding from its low of 1,627 naira on March 8 to 1,072 in mid-April, as investors sought out higher-yielding local assets.

Naira weakness was also seen on the unofficial market, where it slipped 0.9% to 1,468 naira a dollar on Friday owing to increased demand from individuals and small businesses, said Abubakar Muhammed, chief executive of Forward Marketing Bureau de Change Ltd., which tracks the data in the commercial capital, Lagos.

The weakness of the naira was also evident in the unofficial market, where it depreciated by 0.9% to 1,468 naira against the dollar on Friday.

According to the report, the chief executive of Forward Marketing Bureau de Change Ltd., Abubakar Muhammed, which monitors data in Lagos, attributed this decline to heightened demand from individuals and small businesses.

Two other African countries rank among the four worst-performing currencies in the last month.

The Zambian kwacha hit a record low of 27.3969 per dollar on Friday. Meanwhile, Ghana’s cedi weakened to 13.99 against the dollar on the same day, marking its lowest level since 2022. Both countries are currently undergoing debt restructuring processes.

“For Ghana and Zambia, the delays with reaching a debt restructuring agreement with private creditors is likely weighing on capital flows,” chief investment officer for UK-based Emerging Markets Investment Management Ltd., Ayodele Salami, told Bloomberg.

“Both countries are unlikely to attract fresh capital inflows until the ongoing debt restructuring negotiations are concluded,” Salami said.

Salami added that the naira, along with other African currencies, is facing pressure due to increased domestic demand for dollars, particularly to cover the costs of importing raw materials and commodities, including oil.

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AFRAA welcomes Enugu Air, strengthens Nigeria’s Domestic Aviation growth

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Enugu Air
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The African Airlines Association (AFRAA) has admitted Enugu Air as Member, extending the Association’s membership base in Nigeria’s fast-growing domestic aviation market and reaffirming AFRAA’s commitment to supporting the continued development of African carriers across the continent.

This was announced by AFRAA in Nairobi on Wednesday, making Enugu Air the 50th Member of the association, joining the AFRAA airline fraternity, collectively representing more than 85 per cent of total international traffic carried by African airlines.

Speaking on the occasion, AFRAA Secretary General, Mr. Abdérahmane Berthé, said, “We are delighted to welcome Enugu Air into the AFRAA fraternity.

“As a state-backed carrier serving Nigeria’s rapidly expanding domestic market, Enugu Air represents the kind of homegrown investment that is vital to building resilient air connectivity across our continent.

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“We look forward to supporting the airline through the IOSA certification process and to its continued growth within the AFRAA membership, as we work together to advance the cause of unified African skies.”

Reacting to the development, the CEO of Enugu, Capt Tolu Ita, described the admission into AFRAA as a major milestone in the airline’s short history.

“We are honoured to join the AFRAA fraternity. This membership underscores Enugu Air’s commitment to safe, reliable, and affordable air travel for Nigerians while contributing to the vision of a unified African aviation market.

“We look forward to collaborating with fellow AFRAA members and leveraging the association’s support as we grow our network and pursue IOSA certification,” Tolu stated.

Founded on July 7, 2025, Enugu Air commenced commercial operations with a fleet of Embraer E170/E190/E195 aircraft.

The airline, which has its headquarters in Enugu and operates from the Akanu Ibiam International Airport, currently serves nine domestic destinations including Enugu, Abuja, Lagos, Port Harcourt, Kano and Benin City.

As part of the airline’s growth strategy, Enugu Air plans to expand further across Nigeria and, in subsequent phases, to launch regional and international routes across Africa, Europe, and beyond.

As part of its growth strategy, Enugu Air plans to expand further across Nigeria and, in subsequent phases, to launch regional and international routes across Africa, Europe, and beyond.

The admission of Enugu Air aligns with AFRAA’s strategic priorities and strengthens the voice of the association. Nigeria, as Africa’s most populous nation and one of its fastest-growing economies, remains central to the realization of a truly integrated African aviation market.

Meanwhile, founded in Accra, Ghana, in April 1968, and headquartered in Nairobi, Kenya, AFRAA’s mission is to promote, serve African Airlines and champion Africa’s aviation industry.

The association envisions a sustainable, interconnected and affordable air transport industry in Africa, where African airlines become key players and drivers of African economic development.

AFRAA membership cuts across the entire continent and includes all the major intercontinental African operators.

The association’s members represent over 85% of total international traffic carried by African airlines.

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NRS releases guidelines on Cryptocurrency, virtual assets taxation

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Chairman of the Nigeria Revenue Service, Zacch Adedeji
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The Nigeria Revenue Service has issued comprehensive guidelines on the taxation of virtual assets, providing a regulatory framework for the taxation of cryptocurrency and other digital asset transactions in line with the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025.
The new guidelines are aimed at taxpayers, Virtual Asset Service Providers, Peer-to-Peer marketplace operators, tax practitioners and individuals engaged in virtual asset activities, as the Federal Government intensifies efforts to expand the country’s tax base and strengthen compliance within the rapidly growing digital economy.

 

In a public notice issued on Monday, the NRS said it had formally released the Guidelines on the Taxation of Virtual Assets.

According to the agency, the document establishes a clear administrative framework governing tax obligations for virtual asset transactions in Nigeria.

“The Nigeria Revenue Service (NRS) wishes to inform taxpayers, Virtual Asset Service Providers (VASPs), Peer-to-Peer (P2P) marketplace operators, tax practitioners, and all persons engaged in virtual asset activities that it has issued the Guidelines on the Taxation of Virtual Assets.

“The Guidelines provide a clear administrative framework for the taxation of virtual assets in Nigeria. They set out the applicable tax obligations including registration, reporting and record-keeping obligations, valuation principles, and the tax treatment of virtual asset transactions in accordance with the provisions of the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025.”

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The NRS said the initiative forms part of broader reforms designed to improve certainty in tax administration as digital assets become increasingly integrated into the country’s financial system.

“The issuance of these Guidelines is part of the Service’s commitment to providing clarity, certainty, and consistency in the administration of Nigeria’s tax laws as they relate to the rapidly evolving virtual asset ecosystem. The Guidelines are intended to promote voluntary compliance, enhance transparency, and support the development of a fair and efficient tax framework for digital asset transactions.”

The agency urged all affected stakeholders to study the new provisions and ensure full compliance with their tax obligations.

“All affected taxpayers and stakeholders are encouraged to familiarise themselves with the provisions of the Guidelines and ensure full compliance with the applicable tax obligations.”

It added that the guidelines are available for download on its official website.

The release of the guidelines marks another step in Nigeria’s evolving regulatory approach to digital assets. In recent years, Nigerian authorities have moved from largely restricting cryptocurrency-related activities to establishing clearer legal and tax frameworks for the sector.

The guidelines also follow the enactment of the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025, which introduced sweeping reforms to the country’s tax system, including provisions covering emerging sectors such as virtual assets.

The reforms are expected to improve tax administration, increase government revenue and provide greater regulatory certainty for businesses and investors operating in Nigeria’s digital economy.

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Court dismisses suit by Bayelsa traditional ruler challenging Shell’s divestment,pollution

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The Yenagoa Division of the Federal High Court on Friday dismissed a suit challenging the divestment of Shell from onshore assets.

The suit filed by King Bubaraiye Dakolo, traditional ruler of Ekpetiama in Yenagoa Local Government Area of Bayelsa also sought redress and remediation of cumulative pollution of Dakolo’s domain for 40 years.

Dakolo alleged that the divestment by Shell did not follow the stipulated guidelines in the Petroleum Industry Act (PIA) 2021.

However, presiding judge, Justice Ayo Emmanuel in a ruling dismissed the case for being filed out of time adding that under the statute, any objections to divestment on guy to be filed within three months.

Emmanuel also held that the traditional ruler lacked the ‘locus standi’ to institute the case as he had no role in the divestment.

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The judge further stated that the plaintiff failed to explore and exhaust the conflict resolution mechanism mechanisms by the Nigerian Upstream Petroleum Regulatory Commission,

The judge noted that the failure according to the Petroleum Industry Act (PIA)asked the suit invalid.

“Plaintiff’s failure to satisfy the mandatory statutory conditions precedent under the Petroleum Industry Act (PIA) strips this Court of jurisdiction.

“The Plaintiff further contended that the injuries complained of constitute a “continuing injury, thereby creating a continuous cause of action that escapes the limitation periods.

“However, looking closely at the pleadings, the Plaintiff joins historical grievances stretching back decades with specific events that allegedly took place around 2024. A continuous injury means a recurrence of the legally wrongful act itself, not the continuous persistence of the injurious effects of a singular past act.

“From the facts presented, the alleged causes of action against the public officers (the 4th, 5th, and 6th Defendants) arose well outside the mandated 3-month period prescribed by POPA.

“Furthermore, the claims touching on tortious liability are caught by the 5-year limitation threshold under Section 16 of the Limitation Law of Bayelsa State,” Emmanuel ruled.

Reacting, Counsel to the Minister of Petroleum Resources, Lawrence Edet who spoke for the defendants thanked the court for dispensing justice to their favour.

Counsel to Dakolo said that they will pursue the case beyond the trial court and will be heading to the court of appeal.

Environmental justice group, Social Action in its reaction to the judgement expressed regret that the court had to ignore the quest for environmental justice and technicalities.

Dr Prince Edegbuo
Resource Justice Manager at Social Action said: “It is very very unfortunate that a matter as important as this that is gaining international traction in home countries where these international companies come from and the activities being condemned but our legal system finds it convenient to discard a case that has caused so much hardship and suffering on the people.

“The pollution had devastated the environment and denied people of their livelihoods and even affected the reproductive health of the people, it is heartbreaking that the Federal High Court struck out this case.

“We will meet at the Appeal Court, we will not relent, we shall continue to support the Ekpetiama people in this litigation, this is just the court of first instance,” he said.

Ekpetiama community is in the neighbourhood and part of host communities to the Gbarain-Ubie gas plant and Gbarain oilfields.

Listed as defendants in the suit No. FHC/YNG/CS/81/2025, are Shell Petroleum Development Company of Nigeria, Shell Petroleum N.V, Shell UK PLC.

Others are Attorney General of the Federation, The Nigerian Upstream Petroleum Regulatory Commission, Minister of Petroleum Resources and Renaissance Energy Africa Ltd.

It will be recalled that Renaissance Energy Africa, a consortium of indigenous oil firms in March 2025 acquired the onshore and shallow waters oil and gas assets hitherto operated by SPDC, following the divestments by Shell UK PLC, the parent company to SPDC.

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