The naira continued its decline on Tuesday at the parallel market, defying the crackdown ordered by the federal government on foreign exchange market speculators.
Bureau De Change (BDC) hubs in Abuja, Lagos, and Kano were raided, leading to the arrest of some operators.
However, despite the raids, the naira plunged further, with a dollar exchanging for N1,900 in Abuja and Kano, and N1,800 in Lagos. The British Pound was exchanged for N2,250.
In contrast, at the official market, the naira recorded a marginal gain, closing at N1,551.24 compared to the previous rate of N1,574.62, according to the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The National Security Adviser, Nuhu Ribadu, had earlier directed operatives of the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service (NCS), and the Nigeria Financial Intelligence Unit (NFIU) to clamp down on forex market speculators. Ribadu emphasized the need to safeguard Nigeria's foreign exchange market and combat the activities of speculators, both domestic and international, operating through various channels.
However, some experts criticized the crackdown, suggesting that there are better ways to address the volatility. They noted that while the Central Bank of Nigeria's initiatives to stabilize the foreign exchange market and stimulate economic activities are commendable, the effectiveness of these measures is being undermined by the activities of speculators, contributing to the depreciation of the Nigerian Naira and economic instability.
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