However, with the recession now officially proclaimed ended, an end may be near. Nigeria’s GDP still ranks as one of the continent’s largest economies, but our dismal performance overseas, combined with the collapse of oil prices, has left the Nigerian economy in freefall.Ī weak economy always results in a weak currency. Regrettably, Nigeria’s economy, which was once the finest in Africa and among the best globally, has been reduced to chaos due to our overreliance on oil. The naira can only appreciate if the nation invests in exporting completed goods rather than raw materials. Guess what? Numerous refineries in our country are barely operational. Nigeria continues to export crude oil and buy Premium Motor Spirit (petrol), gasoline, kerosene, and other crude oil components that could have been processed domestically. Nonetheless, the Federal Government has mainly ignored these export opportunities in favor of crude oil, whose value is rapidly decreasing. The nation is endowed with enormous natural reserves, people resources, and many tourist attractions. Nigeria is a wonderful country! You are welcome to take my word for it. Thus, as the currencies of the countries that exports all of these goods rise, the currency of Nigeria falls in comparison. Nigerians import items such as rice, plantain, fish, toothpicks, spoons, etc., daily.Ī country that imports heavily nearly always has a declining currency.Īs a consequence of these exorbitant imports, more money leaves Nigeria’s borders than enters. Nigeria is highly dependent on imported commodities and manufactured goods. As long as we continue to borrow from the IMF and World Bank, we continue to depreciate the Nigerian Naira. However, borrowing is subject to certain conditions, one of which is the depreciation of a country’s currency. Nigerian administrations have attempted to borrow money from the IMF and World Bank at various points to help salvage the situation. However, in the early 1980s, the price of oil on the international market plummeted.Īs a result, Nigeria found itself in financial difficulties and difficulties due to our reliance on oil income for virtually all of our foreign currency requirements. Nigeria’s economy was thriving at the time. This was when Nigeria’s then-military head of state, General Murtala Mohamed, said that “the country’s issue is not money, but what to do with it.” Nigeria became one of the wealthiest nations in the world during the 1970s oil boom. Why has the Nigerian naira depreciated so dramatically versus the US dollar? Several of the primary causes are discussed below: Indeed, between 19, 79kobo was equivalent to one dollar. However, it is worth noting that less than 40 years ago, the naira was valued as much as the dollar. The dollar stands as the standard exchange rate. Why is the Nigerian naira depreciating so much against the US dollar? Reasons Why The Naira Is So Poor Against The Dollar Exchange Rate (Dollar To Naira) In Black Market History Additionally, consider the plight of Nigerians who must pay for medical and educational expenses in this foreign currency. This increase in the exchange rate equates to a 7.82 percent increase in the dollar’s value versus the naira.Īlthough these prices are susceptible to unexpected fluctuations due to the currency market’s volatility, they are, to put it mildly, excessively high.Īs a consequence of the dollar’s high exchange rate, Nigerians pay a lot to purchase a little, particularly on foreign or imported products. However, at the beginning of last month, the initial US Dollar rate was recorded as ₦524. Today’s US Dollar to Naira conversion rate in Nigeria is ₦565. However, our focus here is on currency transactions on the illicit market. Numerous items are offered on the black market. Traders in the black market are always willing to sell at a discount to the regular market price. However, individuals sometimes choose to utilize the black market due to the affordable services they offer.
If the rule specifies the set of products and services that are unlawful to produce or distribute, non-compliance with the rule creates a black market transaction since the transaction itself is illegal.
#Dollar to naira black market today series#
The black market is a secret market or series of transactions that are unlawful or marked by non-compliance with an institutional set of norms. 6 Quick Facts To Know About The US Dollarĭollar to Naira Calculator What is Black Market?.
5.1 Devaluation Of The Nigerian Currency.5 Reasons Why The Naira Is So Poor Against The Dollar.4 Exchange Rate (Dollar To Naira) In Black Market History.0.1 Dollar to naira exchange rate today.
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