Experiencing a continuous decrease in value in the parallel market, the Nigerian Naira has been trading between N405 and N420 to a dollar in some Bureau De Change facilities.
Aminu Gwadabe, the President of the Association of Bureaux De Change Operators of Nigeria (ABCON), attributed the downward trend to the crash in crude oil prices.
The Central Bank of Nigeria, in response, accused stakeholders in the foreign exchange market of causing panic by hoarding dollars in anticipation of a potential devaluation of the naira. The apex bank stated:
“These rumors are baseless, unnecessary, and motivated by selfish interests. A comprehensive investigation, in collaboration with the Nigerian Financial Intelligence Unit and relevant agencies, has been initiated to expose those unscrupulous individuals and FX dealers engaged in sowing panic. They will face severe penalties, including charges for economic sabotage.”
Earlier reports from LIB revealed the concern expressed by Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), regarding Nigeria’s potential exit from the crude oil market if the current price, which hovers around $30 per barrel, drops to $22.
Explaining the reasons behind the oil price crash, Kyari highlighted the global stranding of 12 Liquefied Natural Gas (LNG) cargoes due to the sharp decline in demand caused specifically by the coronavirus outbreak.
Meanwhile, Nigerians have taken to Twitter to share their reactions to the new exchange rate. Below are some examples:
