Nigeria’s naira currency has seen a recent decline against major currencies like the dollar, plummeting from $1 to N1,500 in the parallel market.
Despite this, the Central Bank of Nigeria (CBN) has taken significant strides to address the issue, including clearing the country’s FX backlog inherited from the previous administration.
In response to these developments, presidential aide, Bayo Onanuga expressed optimism about the naira’s prospects, emphasising that the resolution of the backlog will pave the way for further appreciation.
“With backlog FX settled, Naira is set to appreciate further, faster. Currency speculators should quickly dump their stock of dollars to avoid sorrows and tears,” Onanuga stated via his X handle late Wednesday.
Onanuga’s statement echoes sentiments following the CBN’s announcement of clearing $7 billion in foreign exchange backlog.
According to the CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, an independent auditing firm, Deloitte Consulting, was engaged to assess the transactions, ensuring that only legitimate claims were honored.
“Any invalid transactions were referred to the relevant authorities for further investigation,” she clarified.
The Nigerian government has intensified efforts to stabilise the forex market, cracking down on forex speculators and Bureau de Change operators in recent months. Last year, the CBN announced the cessation of the “segmentation” of forex markets, consolidating transactions into the “Investors and Exporters” category.
Also, the naira’s trading mechanism has undergone a shift towards a “willing buyer, willing seller” market rate, abolishing regulated rates against the US dollar and other currencies.
“All segments are now collapsed into the Investors and Exporters window,” the CBN statement posted on its website highlighted.
These reforms are part of a broader agenda led by President Bola Tinubu, aimed at revitalising Nigeria’s economy, Africa’s most populous nation.
Tiinubu’s administration has promised comprehensive reforms to stimulate economic growth and stability, signaling a proactive approach to address currency challenges and promote investor confidence.
