We’re back with your favourite Market Roundup for Week 20! Here’s everything you need to know about key market events for the previous week, starting with how CBN adopts Nafex Rate!


The Central Bank of Nigeria (CBN) has adopted the exchange rate NAFEX / I & E Window on its website, abandoning multi-contract use of the exchange rate set by the government. CBN reported an official exchange rate of $ 1 / N410.25 and named it “NAFEX Exch, Rate (USD) effective Monday, May 24, 2021” on its website.

It was initially reported on May 14 that the CBN had removed the N379 / $ 1 exchange rate from its website home page in accordance with the bank’s policy that the NAFEX is now the standard exchange rate. Negligence in official and legitimate transactions. The central bank has now exchanged it for the NAFEX rate. Since the central bank last adjusted the exchange rate in August 2020, it has kept the N379 / $ 1 exchange rate on the home page of its website, which in the past was the official exchange rate. Historically, the exchange rate displayed on the website has been referred to as the country’s official exchange rate.

However, all government transactions since 2021 have been converted using the prevailing exchange rate in the official NAFEX window, confirming that the previous official exchange rate of 379 N / $ 1 is dead. NAFEX’s accreditation by CBN confirms on its website that this is Nigeria’s now official exchange rate.

All public and private exchange rate transactions will now refer to the NAFEX current exchange rate as the official exchange rate.


The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), has voted unanimously to retain the Monetary Policy Rate (MPR) at 11.5%.

This was disclosed by the CBN Governor, Godwin Emefiele while reading the communique at the end of the MPC meeting on Tuesday 25th May 2021.

Highlights of the Committee’s decision

  • MPR retained at 11.50%
  • The asymmetric corridor of +100/-700 basis points around the MPR
  • CRR was retained at 27.5%
  • While Liquidity Ratio was also kept at 30%


Oil began a bullish week with investor sentiment supported by signs of economic recovery from the COVID-19 pandemic in the United States and an improved outlook for fuel demand. Investors are also watching the progress of talks to reactivate the 2015 Iran nuclear deal, which is likely to increase global crude supplies.

Brent crude futures rose 0.63% to $ 66.77, and WTI futures rose 0.63% to $ 63.98 at the start of the Asian trading session.

Iranian President Hassan Rouhani said last week that the United States was “ready” to lift sanctions on the country’s oil, banking, and offshore sectors, causing oil prices to plummet. “Iranian oil production has increased in recent months, perhaps in anticipation of the sanctions being lifted,” ANZ analysts said in a note.

In the United States, the spread of COVID-19 continues to slow, as the country ended its first week since June 2020 with no days in which infections exceeded 30,000. Death rates continue to decline in France and Italy, further improving the outlook for fuel demand.

Asia in the fight against the COVID-19 outbreak. In India, for example, the country has seen a total of 303,720 COVID-19 deaths as of May 24, according to data from Johns Hopkins University.

***All Currency Rates, Fixings, Prices, and Indices were obtained as of Value date, Monday, May 18, 2021.

***BDC Rates: (Bureau De Change)This refers to the FX rates obtainable for valid transactions at the Parallel market i.e Black Market or local Licensed BDC operators in Nigeria

I & E Rates: The Investors’ & Exporters’ FX Window (I&E FX Window) is the market trading segment for Investors, Exporters, and End-users that allows for FX trades to be made at exchange rates determined based on prevailing market circumstances, thus ensuring efficient and effective price discovery in the Nigerian FX market. The I&E FX Window was established by the Central Bank of Nigeria (CBN) via a circular dated April 21, 2017

NAFEX – (The Nigerian Autonomous Foreign Exchange Fixing) is the reference rate for Spot FX operations in the Autonomous FX Market which comprises recognized FX trading segments, including but not limited to the Inter-bank market, the I&E FX Window and any such approved and recognized trading segment as may be defined from time to time. NAFEX is used in the daily valuation and settlement of the OTC FX Futures Contracts.

CBN Official Rate: This is the official rate at which direct transactions can be carried out with the CBN. This rate can only be obtained when direct deals or FX trades are done directly with the CBN

Sources: FMDQ, Flutterwave Treasury Team, Abokifx, Proshare,.Bloomberg.com, Reuters, Nairametrics, FMDQ, Guardian

Disclaimer- This report is based on information obtained from various sources believed to be reliable and no representation is made that it is accurate or complete. Therefore, all rates shown here are mark-to-market rates being published for guidance purposes only. Reasonable care has been taken in preparing this document. Flutterwave Technology Solutions Ltd shall not accept responsibility or liability for errors of fact or any opinion expressed herein. This document is for information purposes and private circulation only and may not be reproduced, distributed, or published by any recipient for any purpose without the prior written consent of Flutterwave Technology Solutions Ltd. 

Published by Ifeoluwa Oyeleke

Senior Treasury Analyst