Naira may exchange for N1,000, rep warns of recession

Naira may exchange for N1,000, rep warns of recession

The naira on Wednesday, July 26, closed at N740.08 per dollar at the investors and exporters (I&E) window. But it was N860-N865 per dollar in Lagos on the parallel/black market.
This came as a member of the House of Representatives, Beni Lar, representing Langtang North/Lantang South Federal Constituency of Plateau State, said on the floor of the House on Wednesday that N1,000 might exchange to a dollar if nothing was done to stabilise the exchange rate.
Lar said, “In July 1980, the exchange rate was $1 to 0.80K; in July 2022, the rate was $1 to N670, while in July 2023, the exchange rate is now $1 to N815 , shortly after the new administration had promised during the campaigns and upon inauguration to stabilise Nigeria’s exchange rate at N200 to $1.
“In the 1980s, most of the food and products consumed were grown or produced in Nigeria. Today, the Nigerian economy is mainly dependent on importation and there lies the source of the terrible exchange rate we are now experiencing.
“The importation of vehicles and other commodities has dropped since the floating of the naira by the single exchange rate.
“The impact of the unified exchange rates has made Nigerian students abroad suffer tuition fees increase by over 60 per cent, making the money in their bank accounts insufficient to pay school fees due to devaluation of the naira.”

She also said, “If this is not reversed, $1 could be exchanged for N1,000 by December 2023 and the current economic situation may trigger an inflationary spiral that may throw Nigeria into economic recession and depression.”