Naira To Dollar Hits ₦1,900 At Black Market – Experts React

Despite the federal government’s crackdown on foreign exchange market speculators, Nigeria’s currency, the Naira, continued to decline against US Dollar at the parallel market on Tuesday.

Naija News understands that in an effort to curb the activities of speculators recently, Bureau De Change (BDC) hubs in Abuja, Lagos, and Kano were raided, resulting in the arrest of some operators.

However, these measures did not prevent the Naira from further depreciating, with the dollar being exchanged for 1,900 in Abuja and Kano and 1,800 in Lagos.

Additionally, the British Pound was valued at ₦2,250. On a positive note, the Naira experienced a slight improvement at the official market, closing at ₦1,551.24 compared to the earlier rate of ₦1,574.62, as reported by the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Need To Stabilize Foreign Exchange Market – Nuhu Ribadu

Earlier, the National Security Adviser, Nuhu Ribadu, directed operatives of the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service (NCS) and the Nigeria Financial Intelligence Unit (NFIU) to clamp down on forex market speculators.

He described this as a coordinated initiative to protect Nigeria’s foreign exchange market and counter the actions of local or international speculators who are utilizing different platforms.

Ribadu, as stated by the Head of Strategic Communications in the NSA’s Office, Zakari Mijinyawa, mentioned that intervention was necessary due to certain entities persistently undermining the Central Bank of Nigeria’s proactive measures to stabilize the foreign exchange market and boost economic growth.

However, some analysts who spoke to journalists on the happening criticized the decision, arguing that there are more effective approaches to tackle the instability.

The statement from Ribadu said, “The CBN’s proactive measures to stabilize the foreign exchange market and stimulate economic activities have been commendable.

“However, the effectiveness of these initiatives is being undermined by the activities of speculators, both domestic and international, operating through various channels, thereby exacerbating the depreciation of the Nigerian Naira and contributing to inflation and economic instability.

“To reduce the pressure on the Naira, the EFCC raised a 7,000-man special task force across its 14 zonal commands to clamp down on dollar racketeers.

“Yet, recent intelligence reports have highlighted continued illicit activities within the Nigerian foreign exchange market. The ONSA and CBN are, therefore, embarking on this collaborative approach to tackle these infractions.

“This partnership will involve a coordinated effort with key law enforcement agencies, including the Nigeria Police Force, the EFCC, the Nigeria Customs Service and the Nigeria Financial Intelligence Unit (NFIU).

“The primary objective of this alliance is to systematically identify, thoroughly investigate and appropriately penalize individuals and organizations involved in wrongful activities within the FX market,” the official said.

The government has enlisted the expertise of four security agencies to combat “malicious practices” and safeguard investors’ interests, as stated by the NSA. As a result, security operatives carried out operations in Lagos, Abuja, and Kano yesterday, targeting unlicensed BDC operators.

During the operation, which took place at the well-known Allen Avenue in Lagos at approximately 10 am, it was reported that around five BDC operators were apprehended by EFCC operatives.

Upon spotting the security operatives, numerous unlicensed operators conducting transactions on the roadside hastily fled the scene, Daily Trust reported.

“They came to our place today; they said we are the ones responsible for the hike in foreign exchange. All of us had to take to our heels for fear of arrest,” an operator who spoke with the media platform reportedly said.

According to him, another five of his colleagues were arrested during the raid. He said: “Many of us have run away now, and we are monitoring the situation.”

Naira To Dollar In Kano

Naija News learnt that the Naira exchanged at ₦1,870 against the US Dollar at the popular Wapa Bureau de Change market on Tuesday.

An operator, Ammar Aminu, told reporters that though no EFCC operative visited the market for a clampdown on forex speculators, the dollar price kept going up.

He said, “Today, the dollar has risen to ₦1,870 from ₦1,750 it was sold on Monday.”

However, normal trading activities were ongoing when reporters visited the area.