The Central Bank of Nigeria (CBN) has devalued the Naira at the Importers and Exporters (I&E) window to N631 to the United States dollars from N461.60.
Daily Trust reported on Thursday that its investigation after the meeting between President Tinubu and the CBN Governor Emefiele, revealed that at the resumption of the weekly bidding for foreign exchange, the apex bank sold the spot rate to banks on behalf of their customers at N631 to a dollar and most bidders got the full amount they requested.
The report quoted one of the CBN customers as saying that they applied and that their request was fully granted at N631 as against N461.60, which was the value sold the previous day.
The devaluation is coming 48 hours after President Bola Ahmed Tinubu announced in his inaugural speech that the Federal Government would move to unify the country’s exchange rate to stimulate the economy.
“Monetary policy needs a thorough house cleaning. The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy,” – President Tinubu.
There has been a wide margin between the I&E window and the parallel market, a situation that experts say encouraged round-tripping with Bureau de Change operators.
On Wednesday, while the exchange rate was N461.60 to the US$ on the I&E window, it was exchanging as high as N750.00 in the parallel market, popularly known as the black market.
The President had met with the top echelon of strategic institutions including the CBN Governor, Godwin Emefiele, at the presidential villa on Tuesday.
The outcome of the meeting was not disclosed, but it understood that the issue of the exchange rate was discussed at the meeting.
The President also met with the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari. The removal of petrol subsidy was discussed, it was gathered.
Investogist reported on Wednesday that the NNPC Limited released a statement notified its customers that it has adjusted pump prices of Premium Motor Spirit (PMS), commonly referred to as Fuel, across its retail outlets, in line with current market realities.
NNPC in its statement did not indicate the current prices of fuel at its retail outlets. A table circulating online showed new pump prices as per 31st May, 2023 ranging from N488 in the city of Lagos, which is the lowest to N557 in Maidugiri and Damaturu which is the highest.
The table showed that prices in Abuja, Enugu, Port Harcourt, Ibadan, and Kaduna to be N537, N520, N500, and N540 respectively.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur