The Nigerian Naira has continued its downward slide, hitting ₦1,750 per dollar in the parallel market on Friday, marking a ₦5 drop from Thursday’s rate of ₦1,745 per dollar.
This significant development reflects the ongoing challenges facing the country’s currency stability.
In contrast, the Naira gained ground in the Nigerian Autonomous Foreign Exchange Market (NAFEM), appreciating to ₦1,652.62 per dollar from ₦1,658.67 per dollar on Thursday.
This represents a ₦6.05 gain within a day.
Sharp Contrasts in Exchange Rates
Data from FMDQ revealed mixed signals in the forex market.
NAFEM recorded an intraday high of ₦1,703 per dollar and a low of ₦1,640 per dollar, showcasing fluctuating rates within the official trading platform.
Turnover in the market surged significantly, with $243.05 million traded on Friday—a 48.5% increase compared to $163.66 million on Thursday.
However, the disparity between the parallel market and NAFEM rates widened further.
The gap grew from ₦86.33 per dollar on Thursday to ₦97.38 per dollar on Friday, intensifying concerns about market distortions.
Economists Sound Alarm
Experts warn that the continued depreciation of the Naira in the parallel market could spell trouble for Nigeria’s economy.
Dr. Funmi Akande, a financial analyst, described the situation as “a reflection of weak policy implementation.”
She said, “The government must urgently address the root causes of these exchange rate disparities. Without concrete steps, the ripple effects on inflation and import costs will deepen.”
“Policy Gaps are Hurting the Economy,” Says Adebayo
Prince Adewole Adebayo, the 2023 presidential candidate of the Social Democratic Party (SDP), has criticized the current administration for its handling of economic policies.
In a recent interview, he accused ministers of lacking the capacity to engage meaningfully with their mandates.
“Most of them only know the routes to their offices,” Adebayo said bluntly.
He added that Federal Executive Council (FEC) meetings have been reduced to “mere contract approvals” rather than policy discussions.
IMF Criticism Sparks Debate
Adding to the pressure, the International Monetary Fund (IMF) recently criticized Nigeria’s economic policies.
The IMF described the nation as “resource-intensive” and urged for deeper reforms.
However, Adebayo dismissed the IMF’s suggestions, claiming they fail to address Nigeria’s unique challenges.
“If we keep amplifying what the IMF says and push the government to meet their standards, things will only worsen,” he argued.
Adebayo emphasized the need for homegrown policies that prioritize food security, employment, and economic productivity.
“Security and Economy are Linked,” Adebayo Declares
Adebayo stressed that economic growth cannot happen without national security.
He called for increased agricultural production and land management as critical steps toward reducing inflation and ensuring food security.
“You can’t fix the economy without addressing insecurity. People need to feel safe to work, farm, and trade,” he said.
He also criticized the federal government for failing to fully utilize funds like the Universal Basic Education Commission (UBEC) funds, which could create jobs and improve education.
“About ₦123 billion is sitting idle while children are out of school. That’s unacceptable,” Adebayo lamented.
