Despite Clampdown On Speculators, Naira Falls Massively, Hits N1900 To Dollar
Nigeria’s economic situation continues to worsen as its legal tender, naira tumbled at the parallel market in spite of the clampdown the federal government ordered on foreign exchange market speculators.
On Tuesday, the naira slid further with one dollar exchanging for 1,900 in Abuja and Kano, and N1,800 in Lagos; while the British Pound was exchanged for N2,250.
It was reported that Nigeria’s anti-corruption agency, the Economic and Financial Crimes Commission (EFCC) has been raiding Bureau De Change (BDC) hubs in Abuja, Port-Harcourt, Lagos and Kano. Some operators were also arrested, yet naira continues to slide badly.
At the official market, the naira recorded a marginal gain closing at N1,551.24 as against the earlier N1,574.62, according to the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The National Security Adviser, Nuhu Ribadu, according to Daily Trust report, had earlier on Tuesday, directed operatives of the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service (NCS) and the Nigeria Financial Intelligence Unit (NFIU) to go after forex market speculators as part of measures to stems volatility in the foreign exchange market.
Ribadu, in a statement by Zakari Mijinyawa, Head, Strategic Communications in the Office of the NSA, said the office had to wade in at this time because some individuals and organisations had continued to undermine proactive measures of the Central Bank of Nigeria to stabilise the foreign exchange market and stimulate economic activities.
Acting on the NSA’s directive, the security operatives swooped on the streets of Lagos, Abuja and Kano yesterday to raid unlicensed BDC operators.
At the popular Allen Avenue in Lagos, about five BDC operators were reportedly arrested when the EFCC operatives stormed the area around 10am.
Many of the unlicensed operators transacting by the road fled on sighting the security operatives.
An operator said: “They came to our place today; they said we are the ones responsible for the hike in foreign exchange. All of us had to take to our heels for fear of arrest.”
Another said five of his colleagues were arrested during the raid, adding, “Many of us have run away now and we are monitoring the situation.”
A dollar was exchanged for N1,870 at the popular Wapa Bureau de Change market in Kano on Tuesday.
An operator, Ammar Aminu, said though no EFCC operative visited the market for a clampdown on forex speculators, the price of the dollar kept going up.
He said, “Today, the dollar has risen to N1,870 from N1,750 it was sold on Monday.”
Normal trading activities were ongoing when our correspondent visited the area.
Bureau De Change operators in Abuja confirmed that EFCC operatives raided the popular Zone 4 business area.
Some of the operators, who spoke to Daily Trust, said the operatives came in their numbers on Monday.
A BDC operator, Gidado Muktar, said: “We were just on our own when we saw operatives of the EFCC in their numbers in over three Hilux vans storm our vicinity at Zone 4 and the next thing we saw was that they started arresting some of our members. They put them in their vans and drove off.
“What I was told later was that they were acting on a tipoff that some people were hoarding dollars and that was why they came and effected arrests.”
Another operator, Mustapha Ibrahim said: “The way and manner the EFCC came was shocking; as if the BDCs were the ones responsible for the naira’s fall.
