The Central Bank of Nigeria (CBN) has stated that in order to boost the economy’s foreign exchange supply, it will inject more dollars into authorized institutions.
According to senior CBN officials, the apex bank can manage all legitimate transactions that are routed via banks.
According to authorities, the black (parallel) market accounted for less than 1% of FX transactions and should never be used to determine Nigeria’s dollar exchange rate.
The apex bank met with ministries, agencies, and departments (MDAs), including airline operators, to discuss stopping the collection of foreign currency payments.
Officials also stated that anyone who collect rent in dollars would face legal action, and that those in need of dollars for international transactions should go to their banks.
CBN officials said, “There is no reason for anyone, who needs dollars to go to the black market as long as the person needs dollars for legitimate purposes.
“Anyone patronising the black market to buy dollars at such rates must be engaged in illegal business because he can get the same dollars from the banks, the CBN, investors and exporters’ window at much lesser rates.
“So, what is the reason they’re going to the black market? Let those going to black market illegally desist from doing so.
“Their banks will sell them dollars through any of the approved channels. If anyone is refused, he/she should come out openly to report the bank. We will deal with the bank.
“For instance, agencies like the Nigeria Ports Authority and others that request some customers to pay dollars have been asked to stop such forthwith.
“Also, agencies such as the Federal Airport Authority of Nigeria (FAAN) or airline operators involved in charters and international airlines tickets must all be done in naira, as long as they are in Nigeria.
“Traders who go to the black market will lose their capital as their replacement cost can never be matched in the black market because their import will always be too expensive so they had better look inward and begin local production.
“Manufacturers too should reduce their overdependence on imported raw materials in production as we build an economy, where most raw materials would be sourced locally.”