6 January 2016

Nigeria: Forex Restrictions - Nigerians Throng Ghana, Togo, Benin to Source Dollars

Photo: Premium Times
Central Bank of Nigeria.

Following the various restrictions in the Nigerian foreign exchange market as well as the ban on the usage of naira denominated cards outside the country, some Nigerians have resorted to buying dollars from neighboring countries to be able to pay school fees of their wards schooling outside the country.

LEADERSHIP investigations revealed that to circumvent the ban on the usage of naira cards outside the country, some people go to Togo, Benin Republic and Ghana, among others to source dollars to send via courier or other means abroad.

Also, investigations show that speculators taking advantage of the high demand for dollars in Nigeria buy the greenback from outside the country to sell it in Nigeria. The value of the naira had dropped to an all time low of N283 to the dollar last year but has remained stable since last week at N265.

The Central Bank of Nigeria had placed various restrictions on the foreign exchange market, having removed 41 items from the eligible for forex list and reduced the annual and daily spending limits.

It had also backed the move by banks to stop accepting foreign currency deposits as well as the recent ban on the usage of naira denominated cards abroad, a move that has been condemned by many Nigerians especially students living abroad.

Confirming this, the acting president of the Association of Bureau de Change Operators of Nigerian (ABCON), Aminu Gwadabe said "there are people that now buy euro in Nigeria and convert it to dollar and bring it back to sell. The people doing this are traders that make it their business and not BDCs"

He noted that the speculators who follow international exchange rates take advantage of the high demand of dollar in Nigeria. This he said may spike activities at the parallel market affecting the value of the dollar.

Meanwhile he noted that there may not be dollar sales to BDCs today as they are yet tot receive any notification from the CBN. According to him, "Normally by Monday, the CBN would have told us what they will be giving us and the bank would have deducted it from our accounts by Monday evening. We are confused now and some. Banks as deducting $10,000 others are deducting $30,000, but we are yet to get any notification from the CBN."

More on This

CBN - Restriction On Use of Bank Cards Abroad to Remain

The Central Bank of Nigeria (CBN) has said that the recent restriction placed on the use of bank cards abroad will… Read more »

Copyright © 2016 Leadership. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 900 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.