Naira continues downward trend, nears 2,000 against US dollar despite clampdown
The naira continues its decline against the US dollar at the parallel market in spite of the move by the Nigerian government to descend heavily on foreign exchange market speculators across the country.
Officials clamped down on Bureau De Change (BDC) hubs in Abuja, Lagos and Kano and some operators were arrested.
The Naira slipped further with a dollar exchanging for 1,900 in Abuja and Kano, and N1,800 in Lagos; while the British Pound was exchanged for N2,250.
Recall that the National Security Adviser, Nuhu Ribadu, had instructed 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.
Ribadu, in a statement by Zakari Mijinyawa, Head, Strategic Communications in the Office of the NSA 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.
Meanwhile, the President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Kelvin Oye, in separate letters to the CBN Governor, Olayemi Cardoso and the Minister of Industry, Trade and Investment, Doris Nkiruka Uzoka-Anite, urged that the dollar exchange be pegged at between N750 and N850 from March 21.
“The government should consistently communicate its policy intentions and economic measures to the public to strengthen confidence in the nation’s economic management.
“All government agencies, at every level, should be mandated to conduct their transactions at the official rate, and severe penalties should be imposed for violations,” he said.
