The Central Bank of Nigeria’s (CBN) Retail Dutch Auction System saw the real sector emerge as the top beneficiary, with 3,347 firms accessing $876.26m via 26 banks at a cut-off rate of N1,495 per dollar.
According to the sales report published by the CBN, businesses in the manufacturing sector benefited from the auction, securing dollars to import raw materials, machinery, and equipment.
Prominent companies like Dangote Industries and BUA Group also accessed significant amounts of foreign exchange to facilitate loan repayments and import critical inputs.
The auction, initiated to mitigate demand pressures in the foreign exchange market and promote price discovery, saw total bids valued at $1.19bn, with a successful bid of $815.36m.
The CBN’s intervention marks one of the most significant FX interventions under Governor Yemi Cardoso’s leadership, aimed at stabilizing the naira and addressing volatility in the FX market.
However, analysts at Afrinvest argue that the CBN’s financial war chest may not be sufficient to meet average FX demand for an extended period, highlighting the need for strategic fiscal policies to boost economic productivity.
