A Call To The Government To Address The Alarming Rate Of Dollars To Naira Exchange Rate

It’s a few days to the festive period and the majority of Nigerians are currently clueless about what the coming weeks will bring. With the naira to dollar exchange value increasing at an alarming rate, Nigerians appear to have had enough.

We call on the government to address the issue. Business owners and all locals are feeling the pain. The Naira volatility is the single largest contributor to the surge in inflation which is ravaging the economy, taking prices of virtually everything to the top and causing considerable concern ahead of the year-end festivities.

A bag of Rice now cost N42,000 in the popular Iddo market in Lagos while retailers sell between 45,000 to 50,000 per bag. Flight ticket fares are now well out of the reach of most people. Nigeria’s central bank rations dollars at the official rate, cutting off access to many businesses and individuals, which in turn drives demand to the unauthorized black market.

A few hours after the Central bank of Nigeria announced the decision to redesign the N200, N500, and N1,000 denominations, the dollar increased. All those who have hoarded lots of nairas illegally rush to change it to dollars.

According to the information recorded in the monthly economic reports on foreign exchange market trends published by the banking regulator, the Central Bank of Nigeria poured $7.6 billion into the economy in just the first five months of this year to stabilize the value of the naira.

Yet, the Nigerian currency’s value is drastically declining, particularly in the parallel market, on dwindling dollar liquidity. The exchange rate between the naira and the dollar has continued to elicit reactions from many citizens. In the black market, the naira is exchanging at N855 per dollar as of November 4, as compared to the official bank rate which is N439.38 per dollar.

We call on the government to address the alarming rate of dollars to naira exchange rate, it becomes a threat to the economy and the poor masses who struggle to make ends meet.

As of today, the official rate of 1 naira to 1 dollar is 441 but the black market rate is 730. Nigeria’s central bank rations dollars at the official rate, cutting off access to many businesses and individuals, who have no other choice than to patronize the unauthorized black market; Bureau De Change (BDC).

The government should look into the activities. All foreign currency transactions should be on electronic platforms and banks.