OGUN, Nigeria (VOICE OF NAIJA) –The naira is steadily gaining strength against the dollar as it now sells at N786.02/$1 at the official market.
The naira has been strengthening over the last few days, both on the official and black markets alike having dropped to an all-time low in previous weeks.
According to information obtained, on Wednesday, 1 November, 2023, the value of the naira increased to N786.02/$1 from N815.32/$1 on Tuesday, 31 October, 2023. The naira appreciation represents 3.73% increase from the N815.32/$1 recorded on the previous day.
According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $105.98 million, representing a 41.82% decrease compared to the previous day. On the black market where forex is sold unofficially, the exchange rate appreciated by 0.85%, quoted at N1170/$1, while peer-to-peer traders quoted around N1180/$1.
However, the FG in a drastic move to halt the decline of naira is considering beginning the imposition of excise tax penalties on foreign exchange transactions done outside the official market window as part of the moves to discourage multiple exchange rates in the country.
The Federal Government of Nigeria has announced that it will no longer be paying taxes in dollars. This information was provided by Taiwo Oyedele, the head of the Presidential Committee on Fiscal Policy and Tax Reforms.
Oyedele said Nigerian companies or individuals who do businesses in naira should pay their taxes in local currency.
According to him, the demand for FX to pay taxes is putting more pressure on the demand for foreign exchange in the country.
“This whole idea of paying levies taxes in foreign currency will stop before the end of this year,” he said.
“If you are a Nigerian company or individual who does business in naira, why should we pay taxes in dollars? We shouldn’t be creating demand against our currency,” Oyedele added.
“These recommendations aim to tackle urgent economic concerns, such as exchange rate management, the consequences of removing fuel subsidies, controlling inflation, and promoting economic growth.”