Dollar demand declines as the Naira appreciates on the parallel market

Save naira now, Southern, Middle Belt leaders warn FG. • Exchanges for N1,113/Dollar.

In the parallel market on Friday afternoon, the value of the naira increased by N166 relative to the US dollar as currency traders revised their plans.

The naira, which reached its highest point on Thursday night at N1,279/$1, according to some dealers in Lagos, settled at N1,113/$1 at the time this article was submitted on Friday.

The gains could be the result of a paucity of buyers, as many declined to pay about N1,300/$1, anticipating that the local currency might strengthen. This is according to reports from the markets.

This may or may not be related to the news that the Federal Government of Nigeria has chosen to turn around $7 billion in profits from Nigerian Liquefied Natural Gas (NLNG) into a loan in order to bolster the country’s struggling foreign exchange market and increase foreign currency liquidity in the Nigerian economy.

According to a top government official reported on Thursday, the Federal Government was anticipating roughly $7 billion from a consortium headed by Standard Chartered Bank at the same time as it was moving quickly to securitize the NLNG earnings.

In the meantime, the nation is expected to receive $10 billion in foreign currency inflows over the next few weeks, according to Finance Minister Wale Edun. This is intended to help boost liquidity in the foreign exchange market, which has impeded growth in the largest economy in Africa.

Furthermore, Edun stated that President Bola Tinubu issued two executive orders allowing the transfer of all funds outside the banking system into banks and the issuance of domestic financial instruments denominated in foreign currencies.

Traders and speculators were led to believe that the exchange rate may appreciate in relation to the US dollar in the days ahead.

The minister’s comments came shortly after President Tinubu pledged to reduce the backlog and said he had taken steps to improve foreign exchange market liquidity.

He continued by saying that every transaction in the foreign exchange market will be strictly monitored, with those who violated the rules being discovered and dealt with. This included transactions made by officials as well as money changers, where significant sums of arbitrage have frequently occurred.

The naira traded at N837/$1 on Thursday, slightly higher than the N802/$1 traded on Wednesday, according to FMDQ.

The Federal Government has been ordered by leaders and elders in the South East, South West, South South, and Middle Belt to act quickly to save the rapidly declining value of the naira and stop the decline in the standard of living for Nigerians.

READ ALSO: Naira increases 6.5% versus the US dollar

Following their meeting in Abuja under the auspices of the Southern, Middle Belt Leadership Forum (SMBLF), which was also attended by the Middle Belt Forum, Afenifere, Ohanaeze Ndigbo Worldwide, and the Pan Niger Delta Forum (PANDEF), the regional leaders urged the government to take decisive action against those attempting to seize control of the Federal Capital Territory (FCT) at the expense of other Nigerians.

The SMBLF leaders said in a statement released on Friday that they discussed the state of the country during the meeting, which was presided over by their leader, Chief Edwin Clark, and that they came to the urgent and important decision that the government should work to restructure the nation and enshrine true federalism as it was originally envisioned in the 1960 and 1963 constitutions.

As a result, the meeting decided to form a committee for restructuring and declared its willingness to communicate with the National Assembly, the Federal Government, and all other interested parties regarding the issues raised.

The communiqué expressed regret over what they perceive to be the marginalisation of Nigerians from various regions in appointments, but also pointed out that Nigeria’s and democracy’s futures will remain dire in the absence of restructuring.

The pattern of persistent marginalisation of certain regions of the country in terms of the number of states, local governments, and even appointments to the Federal Executive Council was addressed with worry and rejection by the leaders.

In particular, they asked that, like other geopolitical zones, the South East be fairly represented in the Federal Executive Council.

They said that Nigeria must continue to be a place where all people, regardless of background, have a complete sense of equality and belonging.

Since the nation’s capital continues to be the national patrimony of all Nigerians, the leaders encouraged the government to take tough measures against anyone who want to appropriate the Federal Capital Territory (FCT) for their area and religion at the expense of others from its governance.

The press release applauded the political class—particularly the front-runners in the 2023 presidential contest—for using constitutional channels to address their complaints.

Additionally, it encouraged the government to act quickly to free Nnamdi Kanu, the leader of the Indigenous Peoples of Biafra (IPOB), as directed by a court with appropriate jurisdiction.

They stated, “We think that doing so will promote peace and security in the South East.”

The leaders advised President Tinubu to review the 2014 national conference report right now.

Clark, Dr. Pogu Bitrus, the President of the Middle Belt Forum, Chief Emmanuel Ibok-Essien, the National Chairman of PANDEF, General Zamani Lekwot, Retd., Chief Emmanuel Iwuanyanwu, the President-General of Ohanaeze Ndigbo Worldwide, and Leader Ayo Adebanjo of Afenifere all signed the communiqué.