There is no respite yet for Nigeria’s currency as naira continues to fall against the US dollar, exchanging at N1,355 at the black market on Thursday, checks by Daily Trust have shown. This was coming five months after the dollar first crossed N1,000 in the black market. While the dollar maintained its momentum up till press time last night, it slightly appreciated to close at N902 from N931.23 to a dollar at the close of business, based on data from NAFEM, where forex is officially traded.
The poor value of the naira has also continued to tell on the cost of living for Nigerians.
Despite receiving a $2.25bn foreign exchange support from the AfreximBank last week and the claim that the Central Bank of Nigeria (CBN) had improved clearing of forex obligations aimed at bolstering the market, depreciation of the naira has continued to worsen. Our correspondents report that the rate hovered between N1,170 to N1,200 between the end of December, 2023, and the first week of January 2024. This was at a time when government officials were saying the naira will rebound considering the measures put in place. But in the last few days, the pressure on the currency increased with the naira crossing N1,300 to a dollar at the black market. In Lagos and Abuja, the dollar yesterday exchanged for N1, 350 and N1,355.
A Bureau de Change operator in the FCT, Gidado Ibrahim said, “I don’t know what is happening again, because you can imagine for some time now, it was exchanging between N1, 200 to N1, 250 to the dollar and just from yesterday it has gone to N1, 355 and even more.
“To worsen the situation, the dollar is just going up against the naira and it doesn’t look like the naira will recover anytime soon. The government needs to sit up,” He said.
Also speaking, another BDC operator, Ali Musa told Daily Trust that, “Dollar is even difficult to get. Anyone that wants to buy up to $1,000, we have to source from colleagues.
“I think the scarcity is what is causing it (US dollar) to be going up and it is unfortunate because it will reach a point where people will no longer be interested in buying. Even myself, I am angry because the dollar should not be this high against the naira,” he lamented.
Another BDC operator in Lagos, Mr Abu Dollar said it was sold for N1, 350 yesterday.
He said the price increase might continue because of the acute shortage of dollars in the market.
“As I am talking to you, many people are unable to get the dollars. I think it is because of people travelling. Some of them came for the holiday and they want to return. This I believe is one of the reasons for the hike in rate.”
Traders decry poor access foreign currency
Daily trust findings revealed that some importers have stopped trading over their inability to access foreign currency and the recent hike in import duty rates.
A former vice president of the Association of Nigerian Licensed Customs Agents, Mr Kayode Farinto expressed his concern about the dwindling level of importation, stating that most imports in recent times have been raw materials for the production of other goods.
To encourage importers and traders to continue their businesses, Farinto called on the federal government to introduce measures that would provide incentives.
He stated that monetary policy in Nigeria has been negatively influenced by preferential treatments and regulatory laxity.
Abdullahi Hussaini, a trader in Kano said they have been affected by the spike. Daily Trust
