Naira’s Value Plummets in Black Market Despite Government Crackdown

The Nigerian Naira has continued to decline in value against the US Dollar in the parallel market, despite the federal government’s efforts to curb foreign exchange market speculation.

On Tuesday, the Naira was exchanged for 1,900 in Abuja and Kano, and 1,800 in Lagos, while the British Pound was valued at N2,250.

In an attempt to stabilize the foreign exchange market and counter the actions of local and international speculators, National Security Adviser, Nuhu Ribadu, directed 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.

However, some analysts criticized the government’s approach, arguing that there are more effective ways to tackle the instability.

Despite these criticisms, 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, it was reported that around five BDC operators were apprehended by EFCC operatives.

In Kano, the Naira exchanged at N1,870 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.

The Naira experienced a slight improvement at the official market, closing at N1,551.24 compared to the earlier rate of N1,574.62, as reported by the Nigerian Autonomous Foreign Exchange Market (NAFEM).