Market News

BY  Zuhumnan Dapel 

Since the unification of forex windows by the new government mid 2023, the dollar-naira rate doubled, moving from around N700/$1 to an all-time high of over N1,500/$1. 

The Office of the National Security Adviser (NSA), Nuhu Ribadu; and the Central Bank of Nigeria (CBN) have joined forces to deal with forex speculators in the country and address challenges impacting the nation’s economic stability.

In a statement on Tuesday, a spokesperson for Ribadu’s office, Zakari Mijinyawa, said the activities of speculators, both domestic and international, operating through various channels, have exacerbated the depreciation of the naira, contributed to inflation and economic instability in Nigeria.

Mijinyawa said to reduce the pressure on the naira, the Economic and Financial Crimes Commission (EFCC) had raised a 7,000-man special task force across its 14 zonal commands to clamp down on dollar racketeers.

“Yet, recent intelligence reports have highlighted continued illicit activities within the Nigerian foreign exchange market, the ONSA and CBN are therefore embarking on this collaborative approach to tackle these infractions,” the statement partly read.

“This partnership will involve a coordinated effort with key law enforcement agencies, including the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service and the Nigeria Financial Intelligence Unit (NFIU).

“The primary objective of this alliance is to systematically identify, thoroughly investigate and appropriately penalise individuals and organizations involved in wrongful activities within the FX market. By leveraging the expertise of these agencies, we aim to deter malicious practices, protect investor interests, and promote sustainable economic growth.”

Mijinyawa said the joint effort underscored the commitment of the Federal Government to improving its Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) framework and exiting the grey list of the Financial Action Task Force.

In addition, the efforts will make progress in ensuring a stable and transparent foreign exchange market, fostering investor confidence, and advancing the nation’s economic well-being.