In a tumultuous week for Nigeria’s currency, the naira saw a further decline, trading at a staggering N1,825 to a dollar on Tuesday. This downward spiral persisted despite aggressive measures by the Economic Financial Crimes Commission (EFCC) targeting currency manipulators and speculators.

Just a day prior, the EFCC’s dramatic raid on the Abuja Zone 4 market, aimed at curtailing the naira’s rapid decline, proved ineffective as the currency continued its freefall. The naira’s value plummeted from N1,700 to N1,825 against the dollar within a mere 24-hour period.

These developments mark a historic low for the naira, with the currency hitting its weakest point against both the dollar and pound sterling in Nigeria’s history. Despite concerted efforts by the Central Bank of Nigeria, including recent interventions, the naira’s decline remains unabated.

The root causes of this ongoing crisis can be traced back to the implementation of President Bola Tinubu’s economic policies, notably the decision to float the currency. According to reports by Price Water Coopers, these policies led to a staggering 98% devaluation of the naira, severely impacting its purchasing power and stability.

Furthermore, the scrapping of fuel subsidies and consolidation of foreign exchange markets into a single window have compounded the naira’s woes, with significant implications for inflation and economic growth.

Despite mounting challenges and public concerns, President Tinubu’s administration insists on the necessity of these measures, citing the need for a more market-driven economy and reduced government financial burden. However, the efficacy of these policies remains a subject of debate amidst the ongoing currency crisis.

Credit: Peoples Gazette