The Nigerian currency, the naira, has shown signs of improvement against the United States dollar, rising by N125 to reach N1,275/$1 over the weekend. This marks a significant increase of 9.8 percent compared to the previous rate of N1,400 to a dollar at the close of trading on Friday.
The Senate’s Committee on Finance has called for unified efforts from all stakeholders to stabilize and maintain the naira’s value. Expressing concern over the currency’s instability and continuous depreciation, the committee emphasized the need for immediate action.
Currency traders at the Wuse Zone 4 market attributed the fluctuations in the exchange rate to market uncertainty. They highlighted the government’s role in either increasing the value of the naira or allowing it to depreciate for market stability.
Malam Yahu Ibrahim, a trader, expressed the challenges faced by operators due to the naira’s instability, stating, “If the government wants to bring down the dollar totally, they should do it or if they want the naira to fall, they should do it and not allow it to fluctuate. It is killing businesses.”
The recent uptick in the naira’s value aligns with the Association of Bureaux De Change Operators of Nigeria’s plan to unify the retail end of the foreign currency market. ABCON President, Aminu Gwadabe, emphasized measures to enhance market stability and regulatory compliance.
Prior to this improvement, the naira had experienced a 26.2 percent decline over two weeks. However, last Monday, the Central Bank of Nigeria allocated $15.83 million to enhance liquidity in the unofficial market.
Meanwhile, at the official foreign exchange window, the naira continued its downward trend, closing at N1,339/$ on Friday. This represented a 2.24 percent depreciation compared to the previous day.
Senator Sani Musa, Chairman of the Senate Committee on Finance, emphasized the need for proactive measures to safeguard the currency’s stability amidst internal and external challenges.
“Despite efforts to stabilize and bolster economic growth, the numerous initiatives and bold but necessary steps and policy decisions taken by President Bola Tinubu, the persistent depreciation of the Naira against major foreign currencies has become a pressing concern.”
“The recent depreciation of the Naira underscores the need for proactive measures to safeguard the stability and resilience of our currency,” the Senate finance chairman lamented.
Senator Musa added, “The Senate Committee on Finance is closely monitoring the situation and is committed to working collaboratively with relevant stakeholders to implement effective policies and strategies.
“It is imperative that we address the root causes of Naira depreciation, including but not limited to fluctuations in global oil prices, fiscal deficits, and structural imbalances in the economy.
“The Senate Committee on Finance is exploring a range of policy options to mitigate the impact of Naira depreciation and foster economic stability.”
“This includes robust oversight of fiscal policies, engagement with key stakeholders, and the formulation of targeted interventions to support key sectors of the economy.
“It is also the hope of the committee that our economic managers will adhere strictly to the norms and standards set by this administration to ensure that we achieve the desired outcomes in taking Nigeria to its economic growth and prosperity.
“As we navigate these uncertain times, I urge all Nigerians to remain vigilant and resilient. Together, we can overcome the challenges facing our economy and chart a path towards prosperity for all”