Amid a continuous decline, the Nigerian Naira was traded at rates between N405 and N420 to a dollar in some Bureau De Change facilities on March 12, 2024.
The President of Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe attributed the situation to the plummeting price of crude oil.
Meanwhile, the Central Bank of Nigeria blamed forex market stakeholders for causing panic by hoarding dollars due to speculation about a potential devaluation of the naira. In a statement, the apex bank said:
“These rumors are false, unwarranted and calculated to serve their dubious and selfish ends. We have begun a robust and coordinated investigation in collaboration with the Nigerian Financial Intelligence Unit and related agencies to uncover the unscrupulous persons and FX dealers who are creating this panic, and the full weight of our rules and regulations will be meted out to them, including, but not limited to, being charged for economic sabotage.”
Earlier, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, warned that Nigeria could potentially exit the crude oil business if the price, currently plummeting, drops to $22. He also cautioned that even if the international market price of crude oil increases to over $50 from the current $30/barrel, tough times lie ahead for Nigerians. Kyari attributed the declining crude oil price to the global coronavirus pandemic, which led to the stranding of 12 Liquefied Natural Gas (LNG) cargoes worldwide due to a sharp collapse in demand.
Twitter has been abuzz with reactions from Nigerians regarding the new exchange rate.
