Nigeria’s leading independent oil and gas company, Seplat Petroleum Development Company has announced that an exchange rate of N410.24/$ will be applicable in the determination of its proposed final dividend of $0.05.
The company made this known in an announcement published on the Nigerian Stock Exchange “NGX” website, stating that the rates will be applicable to any shareholder that qualifies for and has elected to receive the dividend payment in Naira or GBP.
Since Seplat is listed on both the Nigerian Exchange Limited and London Stock Exchange, the exchange rates for the naira and the pound sterling amounts payable to shareholders were respectively determined with specific reference to the dollar.
- 1 USD = 410.24 Naira
- 1 USD = 0.7197 GBP
What you should know
The CBN official exchange rate currently stands at N379/$. Checks at the time of drafting this report revealed that the Naira rate adopted by Seplat for the payment of its final dividend is the official rate for foreign exchange spot operations in the Investors and Exporters FX Window (NAFEX).
The recent exchange rate disclosed by the oil company speaks volume about the persistent fall in the value of the naira which is down by 6.34% when compared with the N385.78/$ rate the company fixed for the payment of its interim dividend six months ago.
What this means
The exchange rate proposed by the company seems fair as it holds a fairly robust premium of N31.24/$ when compared with the CBN rate of N379/$.
However, the Seplat rate is -15.41% or -₦74.76/$ low when compared with the parallel market rate of N485/$1.