Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Naira slips further to N352/dollar

17 February 2016, 15:01

Abuja - The acute scarcity of foreign exchange, especially the United States dollar, made the naira to fall further on Tuesday to 352 against the greenback at the parallel market.

The increasing pressure on the naira is caused by high demand for the dollar by importers and speculators, foreign exchange dealers said.

The local currency had weakened to 345 at the parallel market on Monday, having hit 338 last Friday as importers scrambled for the dollar to meet overseas obligations

The central bank has left its official rate unchanged at N197 to the dollar on its interbank window.

Also read: Naira hits record low at N345/dollar

“Most individuals who sell (dollars) to us are no longer willing, but demand is piling up,” the acting President, Association of Bureau De Change Operators, Aminu Gwadabe, told Reuters on Tuesday.

Last month, the Central Bank of Nigeria banned dollar sales to BDC operators, sending the naira to record lows at the black market, and later stopped daily sales to the interbank market, in an effort to conserve the external reserves, now at their lowest in more than 11 years.

The nation earns around 90 per cent of its foreign exchange earnings from crude oil exports. The foreign exchange reserves fell to $27.83bn as of February 12, data from the CBN website showed.

Some retail currency operators have few dollars in their vaults and depend on other members to fill orders when they have excess demand, fuelling the weakness in the currency, Reuters reported quoting forex traders.

The naira has depreciated by over 13 per cent in less than two weeks.

The currency hit a then record low of 338 against the greenback on Friday, a day after the Bankers’ Committee announced that it might stop providing foreign exchange for school fees and medical bills payment.

Also read: CBN rejects Naira devaluation

The naira, which has been on a free fall in the past few weeks, depreciated steadily from 310 last week Monday to 335 on Thursday at the parallel market.

“The current naira-dollar exchange rate is artificial; it is as a result of the negative perception about the naira and the fear that it may be devalued,” Gwadabe said.

President Muhammadu Buhari is concerned that further depreciation will hurt poor Nigerians, but the CBN’s refusal to revise the pegged exchange rate has widened a chasm between official rate and the parallel market.

The Chief Executive Officer, Economic Associates, Dr. Ayo Teriba, said there were several ways the Federal Government could attract forex into the country to stabilise the naira, stressing that the currency needed not be allowed to depreciate to the current level.

Teriba said, “Saudi Arabia has started attracting foreign investments. The country opened an Initial Public Offer that banks were falling on one another to buy. Nigeria seems not to be doing something. I don’t think that Nigeria needs to allow the naira to be this weak; we are not helpless, we can do something.

“This is 2016 and not 1986, 1992 or 1995; the conditions are not the same. The global environment has liquidity now that Nigeria can attract. The situation is not like 1986 when the global environment was tight.

“Nigeria has investment opportunities; we have the largest population in Africa, we are the biggest oil exporter in Africa. I have told you that I don’t think that we need to borrow to build infrastructure. We can open critical sectors like rail and power, among others, and you will see the huge forex that will come into the country.”

- News 24

Tags nigeria

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...