Ilorin businessmen laments Naira instability
- Oyiza Ishaq
- Aug 9, 2015
- 2 min read
The rise and fall of the US dollar against Naira in the parallel market has continued to generate reactions, especially from the stakeholders in the nation's economy.
The inconsistent witnessed in the exchange rate, according to some stakeholders in Ilorin, the Kwara State capital, was largely due to the Central Bank of Nigeria (CBN) directive ordering commercial banks to reject dollar deposit by their customers.
It would be recalled that the Senate last week Thursday invited the CBN Governor, Godwin Emefiele to provide explanations on the recent instability of Naira against the dollar and its implication on Nigeria economy.
The inconsistency, as gathered by Pilot Business has continuously affected several business owners, and traders including the Bureau de Change operators.
The Naira as at two weeks ago was as low as N205 against one dollar but the exchange rate suddenly rise in the space of one week to N215 and subsequently increased to N230, N235 respectively.
According to a Bureau de Change Trader at Kwara Hotels, Alhaji Yusuf Akeem, dollar is a versatile currency that its value especially to naira changes from time to time, but its recent consistent change was due to the bank rejection of dollar deposit.
Akeem lamented that the development has greatly affected their business as majority of their customers now run to the nation's neighbouring countries for their transactions.
“If the situation continues like this it will spell doom for us because most of our customers now prefer to go to the neighbouring countries for their transactions”, he said.
Also speaking, the Chief Executive Officer, Maxicom Textiles, GRA Ilorin, Mrs Halimat Adio lamented that hoarding the dollar when it was high was a huge mistake and a setback for her business, saying that she thought it would be an advantage to her with the constant rise at the market but it is now an enormous loss for her.
Adio lamented, "Upon the directive of the Apex bank, I hoarded the dollar because I know it will be to my advantage if I want to resell. But unfortunately the exchange rate against naira continues to drop and I quickly dispose the dollar in my possession.Not long after I had disposed the currency when the exchange rate of dollar to naira suddenly increased.
Also, an Importer and Exporter who specializes in metal, Mr. Ajayi Alao expressed his dissatisfaction on the issue, calling on the central bank to urgently act on the matter with a view to address the naira instability.
He said, "The situation is worrisome for the stakeholders because it portrays negative effect on our businesses. However, now that the senate had called upon CBN officials for how to tackle the situation, we are hoping for a good change".
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