Nigerian Currency Naira Falls To N1,025 Per $1; Forex Crisis Leads To Job Losses

Naira, the currency of Nigeria, fell at the parallel market between 1,005 and 1,025 per U.S. dollar on Tuesday. Its Monday rate was N1,008 per $1.

Nigeria Employers'​ Consultative Association (NECA), alongside owners of small-scale enterprises and manufacturers, said this forex crisis faced by the country is shutting down factories, causing people to lose their jobs.

Yusuf Kareem, a Bureau de Change (BDC) operator in Lagos who "bought for N1,005 per $1 and sold for N1,025 per $1 on Tuesday," said money remains "scarce," according to Punch.

"The value of the naira has been falling," he added.

More operators talked to the outlet about their experiences amid the forex crisis.

One of them, called Musa Yunus, shared that "naira was traded at 980 per $1 two weeks ago, but today, it is 1,020 per $1."

"We don't know what will happen tomorrow because it has not been coming down," the operator added.

Another operator who identified himself as Idris noted, "I am not sure you can buy up to $1,000 from me now because it is not available. We buy at the rate of 1,000 per $1, but I sell at 1,015 per $1."

Another BDC operator known as Babangida said, "I sell for N1,010 per $1 and buy at the rate of N1,000."

Muhammed Nera, assistant provost at the Association of Bureau De Change Operators in Abuja, said the rate closed at 1,015 per $1 on Tuesday.

"As of the close of business, we were buying at N1,010 per $1 and selling at N1,015 per $1. But I can't say what the rates would be tomorrow (Wednesday)," he said.

Solomon Aderoju, chairman of the Nigerian Association of Small and Medium Enterprises (SMEs), said this forex crisis will shut many industries.

"When the SMEs produce, they won't be able to sell because the purchasing power is eroding and people are not buying," Aderoju explained. "Some of us that have borrowed money from the bank will not be able to honor our obligation. It's a multiple problem."

"They will not be able to service the loans," the chairman added. "Some of us import our raw materials from other countries, which means the cost of raw materials will also be mounting. These problems will kill SMEs. As I speak, many businesses have closed shop because of these problems."

On top of this businesses are also struggling due to high fuel costs caused by the removal of the fuel subsidy, which was announced by President Bola Tinubu on May 29.

Earlier this week, the federal government denied reintroducing the said subsidy as many gas stations across Nigeria continued to shut down due to increased fuel prices.