Naira falls 34% to N710, Senate summons Emefiele

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Naira has weakened by 34% in 10 months, closing at N710 to a dollar on Wednesday in the parallel market, with a margin of N280 from the official rate.
This is a pounding headache for manufacturers who are no longer able to get dollars from the official market to import their raw and packaging materials. At the Investor & Exporter forex window, the naira hit a high of N444 before closing to the dollar at N430. The I&E market recorded a total turnover of $126.69m on Wednesday.The President, Association of Bureaux de Change Operators of Nigeria, Alhaji Aminu Gwadabe, told The Punch on Wednesday evening that, “the rate closed at N710/$.”Some Bureau de Change operators who spoke to one of our correspondents from Ikeja, Lagos, said a dollar was bought and sold for N700 and N710 respectively.At Zone 4 in the Federal Capital Territory, Abuja, a dollar hovered between N705 and N710 between 11am and 4pm yesterday.
“Dollar is really very scarce today. You cannot find it anywhere,” said Abu Sani, one of the BDCs operating at the Abuja International Airport.According to the head of BDCs, Gwadabe said over $20bn dollars was expected to come into the economy from the diaspora this year, with a large part of such funds coming in through unofficial channels because of the control by International Money Transfer Operators and other favored operators.He noted that the BDC operators had established channels and should be allowed to access funds from the diaspora to add to Nigeria’s dollar liquidity and strengthen the local currency.
Nigeria has failed to leverage oil windfall to drive huge dollar inflows into the economy due to an opaque petrol subsidy regime, oil theft and lack of gas infrastructure. Its non-oil exports last year was merely $10bn, four times less than Vietnam’s $38bn earnings from garments in 2021 and nearly five times less than what the country received for exporting phones ($57.54 bn).

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