ENUGU, Nigeria (VOICE OF NAIJA)- On Tuesday, the Nigerian naira hit an unprecedented exchange rate of N1,000 to the United States dollar in the parallel market, highlighting the challenges in President Bola Tinubu’s attempts to manage the national currency in the face of persistent inflation.
While the central bank’s official rate had appeared relatively stable at N768 per dollar over the past week, the value of the naira has plummeted significantly in the parallel market, which is the primary platform for foreign exchange transactions in Nigeria.
According to Abokifx, a website that aggregates daily rates from parallel market sources, the dollar was trading at N1,000 on Tuesday morning.
Abokifx rose to prominence following the naira’s sharp decline in 2016, a period marked by former President Muhammadu Buhari’s assertive control over the central bank’s activities.
This approach deterred international investors and reduced foreign exchange inflow into Nigeria, even as domestic demand surged.
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In 2021, former Central Bank of Nigeria (CBN) Governor Godwin Emefiele accused Abokifx of manipulating exchange rates in the parallel market. Despite Abokifx’s shutdown in September 2021, the naira’s depreciation has continued unabated.
Critics argued that Emefiele’s focus should have been on stabilizing the naira rather than pursuing his 2023 presidential ambitions, which seemed to divert his attention from his role as Nigeria’s top banker.
The naira’s value has continued to erode significantly against the dollar, even as Tinubu attempted to allow the free market to determine its value.
When President Tinubu assumed office on 29 May, the naira was trading at around N650 per dollar.
Neither the presidency nor the central bank responded to requests from Peoples Gazette for comments regarding the historic fall of the naira on Tuesday.