On Tuesday, the retail Dutch Auction System conducted by the Central Bank of Nigeria saw significant participation from players in the real sector. The auction aimed to address the increasing demand pressures in the foreign exchange market while facilitating price discovery.
According to the sales report released by the apex bank on Friday, a total of 3,347 firms accessed dollars through 26 qualifying banks, with a cut-off rate set at N1,495 per dollar. The total amount sold during this auction reached approximately $876.26 million.
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The sales report indicated that businesses in the manufacturing sector were among the primary beneficiaries, securing dollars to import essential items such as machinery spare parts, industrial raw materials, plain paper in sheets, and pharmaceutical products. Additionally, they obtained funds for brewery equipment and other critical raw materials.
Other industries also accessed foreign exchange for various needs, including tobacco rolling paper, spare parts for low loaders and cranes, and frozen fish. Notably, Promasidor Nigeria Limited received around $59.772 million for Cowbell Instant dairy creamer, while Sumal Foods Limited acquired dollars for glucose syrup, hydrogenated vegetable fat, and dextrose monohydrate.
This auction represents one of the most significant foreign exchange interventions by the CBN under Governor Yemi Cardoso, who has been actively working to stabilize the naira and tackle ongoing volatility in the FX market. The efforts reflect a commitment to improving the economic landscape.
Companies associated with Dangote Industries successfully bid for approximately $105.33 million through banks including Zenith Bank, Access Bank, Providus Bank, Union Bank, and Sterling Bank. The subsidiaries benefiting from this include Dangote Sugar Refinery, Dangote Cement, Dangote Oil & Gas Company, Dangote Agro Sacks, and Dangote Coal Mines.
Furthermore, companies within the BUA Group, such as BUA Cement, BUA Foods, and BUA Sugar Refinery, also accessed dollars through Access Bank, demonstrating the broader impact of this auction on various sectors of the economy.
