Naira plunges to 1,025/$ amid forex crisis, factory shutdown looming

Tuesday saw a further decline in the value of the naira as it fluctuated between 1,005 and 1,025 to the dollar in the parallel market.

Small business owners, the Nigeria Employers’ Consultative Association, and manufacturers voiced alarm over the depreciating naira and warned that it would result in the closure of companies and the ensuing loss of jobs.

Since the Central Bank of Nigeria permitted the naira to freely fluctuate against the dollar and other major world currencies in June, the national currency has continued to decline.

As a result of this drop, manufacturers are now having a harder time obtaining raw materials, and more businesses are preparing to lay off workers or close down.

Manufacturers are forced to reduce production, employment, and raw material imports as a result of the weakening naira.

Naira rises to $1,025

Operators of the Bureau de Change reported that on Tuesday, the naira fluctuated between 1,005 and 1,025 to the dollar in the black market.

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Yusuf Kareem, a BDC operator in Lagos, told one of our reporters, “We bought for N1,005/$ and sold for N1,025/$ on Tuesday. Money is still in short supply. The naira’s value has been declining.

Musa Yunus, a different BDC operator in Lagos, stated: “The naira was traded at 980/$ two weeks ago, but it is now 1,020/$. Due to the fact that it hasn’t been falling, we are unsure of what will occur tomorrow.

Idris, a different BDC operator in Lagos, stated, “I am not sure you can buy up to $1,000 from me currently because it is not available. We purchase at a rate of $1,000 per dollar, but I sell at $1,015.

A second BDC in Lagos, Babangida, stated, “I sell for N1,010 per $ and buy at the rate of N1,000.”

The rate, according to Assistant Provost Muhammed Nera of the Association of Bureau De Change Operators in Zone 4, Wuse, Abuja, closed at 1,015/$ on Tuesday.