By Milcah Tanimu
The Office of the National Security Adviser (ONSA) has raised concerns over the activities of speculators, both domestic and international, which it claims are undermining the proactive measures implemented by the Central Bank of Nigeria (CBN) to stabilize the foreign exchange market and stimulate economic activities in the country.
According to ONSA, these unpatriotic actions are exacerbating the depreciation of the Nigerian Naira and contributing to inflation and economic instability through various channels.
In response to these challenges, ONSA announced a collaborative effort with the CBN to address the crisis and combat speculative activities affecting the foreign exchange market.
Mr. Zakari Mijinyawa, Head of Strategic Communication at ONSA, emphasized the need for joint action to safeguard Nigeria’s foreign exchange market and combat speculative activities. He highlighted the commendable efforts of the CBN in stabilizing the market but noted that their effectiveness is being hindered by speculators.
To tackle exchange rate volatility, the CBN has implemented various strategies, including enhancing liquidity in the forex market, unifying FX market segments, clearing outstanding FX obligations, and introducing new operational mechanisms for Bureau De Change operators.
Additionally, the Economic and Financial Crimes Commission (EFCC) has deployed a 7,000-man special task force across its 14 zonal commands to crack down on dollar racketeers, aiming to reduce pressure on the naira.
Despite these measures, recent intelligence reports indicate ongoing illicit activities within the foreign exchange market, prompting ONSA and CBN to collaborate further to address these infractions.
The alliance aims to systematically identify, investigate, and penalize individuals and organizations involved in wrongful activities within the FX market. It underscores the commitment of the Nigerian government to enhancing its Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) framework and exiting the grey list of the Financial Action Task Force.
This joint effort seeks to promote a stable and transparent foreign exchange market, enhance investor confidence, and advance Nigeria’s economic well-being.