The Nigerian Naira plunged to an unprecedented low on Friday, closing at N927.19/$1 in the official market and hitting N1165/$1 in the parallel market.
Financial analysts expressed growing concerns as the domestic currency witnessed an 11.39% depreciation within a day, marking a loss compared to its previous value.
Highlighting the dire situation, financial data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) revealed the alarming decline.
“The naira’s free fall is a cause for immediate action,” remarked Dr. Biodun Adedipe, the founder of B. Adedipe Associates Limited (BAA Consult).
He urged the Central Bank of Nigeria (CBN) to take steps toward de-dollarizing the economy, suggesting stringent measures to curtail transactions in US dollars within the local market.
“In order to restore the naira’s strength, the CBN must prohibit local transactions in US dollars, including the sale of assets, rent/leases, and various services such as school fees and medical bills,” stated Adedipe.
He further recommended transitioning the sale of crude oil to local refineries to be conducted in Naira rather than the dollar, emphasizing the need for a fundamental shift in policy.
Moreover, Adedipe called for a direct engagement between President Bola Tinubu and bank CEOs to formulate strategies and garner support for market reforms.
He stressed the necessity for a realistic approach, citing unified exchange rates as a poor policy choice for Nigeria’s structurally deficient and fragile economy.
The call for urgent intervention comes as the forex turnover at the official NAFEM window witnessed a 4.57% decrease, settling at $110.14 million by the day’s end.
Meanwhile, in the parallel market, the naira continued to weaken, reaching N1165/$1, prompting concerns over the widening gap between official and unofficial exchange rates.
The current situation demands immediate action and concerted efforts to stabilize the Naira’s value and restore confidence in the Nigerian economy.