Naira Continues To Weaken Against Dollar In Official And Parallel Markets

This represents a ₦40 increase from Thursday’s rate of ₦1,426 per dollar. Recent reports indicate that the Naira’s previous gains against the dollar have been eroded, with the exchange rate now surpassing ₦1000, raising concerns for both businesses and the government.

In response to this, the Central Bank of Nigeria (CBN) has implemented a series of reforms and interventions aimed at stabilizing the exchange rate market. Additionally, the CBN has increased the supply of dollars to Bureau De Change (BDC) operators to boost liquidity in the market.

Despite these efforts, the dollar experienced further depreciation at the parallel market, where it was traded for ₦1,510, compared to ₦1,466.31 at the official market. Initially priced at ₦1,450 on Friday morning, the dollar closed the day at ₦1,510 at the street market, commonly referred to as the black market.

In another development, the Economic and Financial Crimes Commission (EFCC) has issued a stern warning to foreign missions operating in Nigeria, prohibiting them from conducting transactions in foreign currencies and mandating the use of the Naira for their financial activities. The EFCC emphasized the need to combat the dollarization of the Nigerian economy and the devaluation of the Naira.

In an advisory titled “EFCC Advisory to Foreign Missions against Invoicing in US Dollar,” addressed to the Minister of Foreign Affairs, Ambassador Yusuf Tuggar, the EFCC expressed dissatisfaction with the invoicing of consular services to Nigerians and other foreign nationals in the country using the United States dollar. The EFCC cited Section 20(1) of the Central Bank of Nigeria Act, 2007, which designates currencies issued by the central bank as the only legal tender in Nigeria, making transactions in currencies other than the Naira illegal.