The Nigerian presidency expresses optimism regarding the future of the naira and urges currency speculators to divest their holdings of dollars.
In recent times, Nigeria’s naira has experienced a decline against major currencies like the dollar, with its value reaching $1 to N1,500 in the parallel market.
However, the Central Bank of Nigeria (CBN) has recently addressed the country’s foreign exchange (FX) backlog inherited from the previous administration. This move, according to Bayo Onanuga, a Special Adviser to President Bola Tinubu on Media and Strategy, is expected to result in the appreciation of the naira.
Onanuga emphasized the urgency for currency speculators to offload their dollar reserves to avoid potential losses. His statement comes in the wake of the CBN’s announcement of clearing $7 billion in foreign exchange backlog.
Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, highlighted that an independent auditing firm, Deloitte Consulting, was engaged to assess these transactions, ensuring the legitimacy of claims. Any suspicious transactions were promptly referred to relevant authorities for further investigation.
Nigerian authorities have intensified efforts to curb forex speculation and activities of Bureau de Change operators to stabilize the naira. Last year, the CBN announced the cessation of forex market segmentation, consolidating transactions into a single “Investors and Exporters” category.
Moreover, the naira will now be traded based on a “willing buyer, willing seller” market principle rather than regulated rates against the US dollar and other currencies. This decision aims to streamline forex operations and foster transparency in the market.
These forex reforms are part of President Bola Tinubu’s broader agenda to revitalize Nigeria’s economy, as he pledged to implement various measures to spur economic growth in Africa’s most populous nation.
