Forex restriction responsible for fall in value of Naira

Senator Ben Murray-Bruce representing Bayelsa East constituency has asserted that the restriction on usage of debit card abroad has led to a depreciation in the Naira.

He stated this in his published article titled ‘Wailing on the Economy’, stating that the fall of the Naira should not be attributed to a decline in crude oil price, rather it is due to the current forex restriction.

Bruce further noted that this has encouraged Nigerians to activate new bank accounts in countries such as Benin Republic and Ghana, who haven’t adopted the restrictive access being employed by Nigeria on foreign transactions.

Although according to the Chairman, Alsana-Sala Soadua Limited, Benin Republic, Alhaji Nasiru Salami, it is possible that the safe haven found by Nigerians might rather be short lived, as a country like Benin Republic could soon initiate restrictions on the use of ATMs abroad if it begins to bear the brunt of Nigeria’s forex policy.

Mr. Emmanuel Cobham, Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture also commented by saying that the situation might play to the advantage of the countries involved if the demand did not exceed the supply.

He is quoted as saying ‘It is a pointer to the Nigerian policy makers to look inwards and see that this is the consequence of that forex policy and that they need to tailor solutions to cushion it.’