NewStats: 3,261,633 , 8,174,573 topics. Date: Thursday, 29 May 2025 at 08:49 PM 5t2k3i

Former President, Chartered Institute of Bankers of Nigeria, Prof Segun Ajibola, has said that the naira is still strong within the Nigerian economy, adding that an average Nigerian can still feed with N500.

The Professor of Economics at Babcock University spoke on Wednesday on NTA ‘Good Morning Nigeria’ breakfast show monitored by The PUNCH.

Ajibola said, “The national currency is a reflection of the state of any economy. It encapsulates the strengths and the weaknesses of that economy.

“Over the years, we have seen (a) slide in the value of our national currency. In the 70s and 80s, almost 2$/N1, today we are talking of over N500 (per dollar).”

He said despite the downward trend, “Our naira is still very strong locally. With N500, an average Nigerian can still feed himself or herself today but when we look at N500 in of a dollar or a pound sterling equivalent, you can’t do anything with one pound on the street of London, you cannot buy anything meaningful with one dollar on the street of New York.

“Therefore, there is (a) disconnect between what the real value of our naira commands in Nigeria vis-à-vis outside.

“In economic parlance, we talk about purchasing power parity, what is the real value of the currency compared with the value of currencies outside that jurisdiction? We discover that our local currency as naira is still in a position to command some value within the country but outside the country, we have a problem.”

For weeks, the naira had maintained its downward trend, selling at over N500/$ at the black market while the naira traded around N412/$ at the I&E forex window which is the only official rate recognised by the Central Bank of Nigeria.

Concerned, the CBN in July had stopped selling forex to Bureau De Change operators and asked legitimate travellers to approach the banks to access cheap forex but the banks have been inundated with fake demands.

The CBN Governor, Godwin Emefiele, had said that the BDCs defeated their purpose of existence to provide forex to retail s and had become wholesale and illegal dealers.

Also, Emefiele, last Friday, said that the Federal Government would track the owner of Aboki FX, an online platform that gathers and displays parallel market rates in Nigeria, and stop the operations of the website in the country.

The apex bank governor also accused the owner of the website, a London-based Nigerian, Oniwinde Adedotun, of “speculative activities on the naira”, adding that he has to explain how he obtains his rates.

This is based on the rate of the rise of the naira on the parallel market which is currently trading at over N570/dollar.

Aboxi FX subsequently said it would no longer provide daily updates on foreign exchange rates for now and hoped that the naira would stabilise.

Speaking on the activities of speculators on the naira, the CIBN former president said speculation is common in any market.

“The problem today is that our currency, the naira, is subject of speculation, here and there, and you have speculation in any kind of market when there is dichotomy between demand and supply,” he said.

Ajibola stated that the black market came into being because the official market is unable to meet the demands of Nigerians for forex

According to him, the demand for the naira has grown because Nigerians’ appetite to consume “anything imported is insatiable”.

He said, “Speculation is as old as mankind…We will always have speculators because the demand is even immeasurable”. He, however, urged the CBN to work and earn the trust of Nigerians and make citizens believe the apex bank’s rate –the I&E forex window– more than speculators.

“There is no authority that can meet up that kind of demand for the dollar but the authority has the power, has the firepower to simmer down the impact of the speculators.

“So, the disconnect we have now is: as a country, we have not been able to control the activities of the speculators such that foreign exchange s look up to the speculators for what is likely to be the ruling rate at any point in time compared with what should be the case; where the authority (CBN) should be trusted more and the s look up to the authority for what should be the value, the exchange rate of the naira at any point in time,” the CIBN ex-president said.

Ajibola further lamented that though Nigeria imports so much, the little produced in the country is not acceptable in the international market.

The don urged the Federal Government to strengthen non-oil exports through giving of incentives and enabling environment to those in the manufacturing and agricultural sectors, noting that the appreciation of the naira against the dollar could be achieved through a vibrant exportation industry.

https://punchng.com/forex-average-nigerian-can-feed-with-n500-naira-still-strong-cibn-ex-president/

I stopped reading after the trashy first paragraph.

Our intellectuals are soo disconnected from reality. If naira is strong because people can eat with 500 naira. What of the 27.4 million Nigerians that earn less than 100,000 per annum? It means this category of people can only spend there money on food and will only eat once every two days....You see, even the local value of naira is very week. If the president of Charters Institute of Bankers can talk like this, then we get big problem.

ijustdey:








https://punchng.com/forex-average-nigerian-can-feed-with-n500-naira-still-strong-cibn-ex-president/



Lalasticlala

Onye ofe mmanu. I cannot be shocked. It's you people.

Some people go school to get confused on the already confused brain.

Certificate doesn't cure foolishness

mcbreeze:
Some people go school to get confused on the already confused brain.

Certificate doesn't cure foolishness

Aswear.

500 naira food for buka no belleful again o lol

May ₦500 be their surplus.

Professors without inventions.......

Bunch of confusionists

Parasites
Sadists
Witches

Seems most people commenting did not read to understand that he is giving the true reality on ground and giving an intellectual angle for this unusual scenario. For example, few days ago, a Nairalander bought eggs, plantain, carrots, vegetables etc yet he spent barely N1000 or less than N1000,
https://nairaland.unblockandhide.com/6755350/see-foodstuffs-bought-950-naira
that same quantity of food in US cost way more than $1.50 so it means locally the purchasing power of the naira is still strong .

The man just raised an intellectual poser and it is the reality that require more research.

My guess is that the intervention by CBN in agriculture really helped and the pressure on the naira could be because of speculators, cryptocurrency and rationing of forex by CBN.

I appreciate Punch for dropping their bigotry and hatred against PMB and for being honest enough to report such a fresh perspective on the forex and naira value issue.



If you need free book on business ideas and money sources directory , check here https://nairaland.unblockandhide.com/6666800/looking-business-ideas-money-fund

Even if your children live abroad, one day this country the elites are destroying will destroy their generation, God no dey sleep

FreeStuffsNG:
Seems most people commenting did not read.
The man just raised an intellectual poser and it is the reality that require more research.
My guess is that the intervention by CBN in agriculture really helped and the pressure on the naira could be because of speculators, cryptocurrency and rationing of forex by CBN.
I appreciate Punch for being honest enough to report such a fresh perspective on the forex issue.

Of what use is a silly "fresh perspective" from a dunderhead academic when everyone can see and feel the reality?

Imagine what a whole professor and former CIB president is saying because he is onboard a Lai Mohammed controlled government media-NTA.Even if he must be sycophantic, always speak the truth to those in government.

AntonVince:


Of what use is a silly "fresh perspective" from a dunderhead academic when everyone can see and feel the reality?

You just made me miss the days of yore when Nairaland used to have who give intellectual perspectives to issues of nation building. Now, it's mostly uncouth and intolerant responses.
Only if you know that it doesn't cost you anything to be civil and that it actually builds up your character in life whether offline or online.

Upworkwriter007:
Our intellectuals are soo disconnected from reality. If naira is strong because people can eat with 500 naira. What of the 27.4 million Nigerians that earn less than 100,000 per annum? It means this category of people can only spend there money on food and will only eat once every two days....You see, even the local value of naira is very week. If the president of Charters Institute of Bankers can talk like this, then we get big problem.

To send the idiot an E-slap they hungry me. Statements like this shows how narrow minded and disconnected from reality our elites are. It’s a shame

ijustdey:



https://punchng.com/forex-average-nigerian-can-feed-with-n500-naira-still-strong-cibn-ex-president/

Clown

Nigerians are coming for you sir. You'll need to explain more.

Destruction go follow you idiot

That's expensive. Back in the days, before the millennium, we used to feed well with N100

Bread: N50
Beans: N30
Pọnmọ: N20

That's what they told him to say or they will disgrace him out of office.

Apart from food, what else is local?..

Crazy man.

Shameless idiot

Feed on $1 rubbish

ijustdey:



https://punchng.com/forex-average-nigerian-can-feed-with-n500-naira-still-strong-cibn-ex-president/

How did he become prof?
With his nonsense explanation, minimum wage of #30k per month and #500 per meal translating to #45000 for 3 meals per day means that minimum mage of #30k cannot sustain our economy.
Minimum wage of #100k can make his arguement reasonable to some extent.

I guess 500 NGN notes fall from the sky the last time I checked.

The guy is saying the truth from an intelligent angle
Most commenter here won't understand because they are OND holder

Intellectually bankrupt banker !!
Our intellectuals are soo disconnected from reality. If naira is strong because people can eat with 500 naira. What of the 27.4 million Nigerians that earn less than 100,000 per annum? It means this category of people can only spend there money on food and will only eat once every two days....You see, even the local value of naira is very week. If the president of Charters Institute of Bankers can talk like this, then we get big problem. [/quote]

FreeStuffsNG:
Seems most people commenting did not read to understand that he is giving the true reality on ground and giving an intellectual angle for this unusual scenario. For example, few days ago, a Nairalander bought eggs, plantain, carrots, vegetables etc yet he spent barely N1000 or less than N1000,
https://nairaland.unblockandhide.com/6755350/see-foodstuffs-bought-950-naira
that same quantity of food in US cost way more than $1.50 so it means locally the purchasing power of the naira is still strong .

The man just raised an intellectual poser and it is the reality that require more research.

My guess is that the intervention by CBN in agriculture really helped and the pressure on the naira could be because of speculators, cryptocurrency and rationing of forex by CBN.

I appreciate Punch for dropping their bigotry and hatred against PMB and for being honest enough to report such a fresh perspective on the forex and naira value issue.

How balanced is the prof.'s perspective on the true picture of the value of Naira both internally and externally?

On a scale of 10, what will you rate him?

This prof should rather talk about what #500 can do as against $500 and what $1 can do as against what #1 can do

$1 dollar equalling #500 means our currency is going valueless

Abi sey 500 and 1 are the same ?

Why is he talking about what 500# can do in Nigeria and when he gets to USA he mentioned $1??

All these people are slow pokes

So if $1 equivalent #3000 at the end of 2023 but because people might still be able to feed well with 3k naira , it still means naira is strong � �

[quote author=Upworkwriter007 post=106080029]Our intellectuals are soo disconnected from reality. If naira is strong because people can eat with 500 naira. What of the 27.4 million Nigerians that earn less than 100,000 per annum? It means this category of people can only spend there money on food and will only eat once every two days....You see, even the local value of naira is very week. If the president of Charters Institute of Bankers can talk like this, then we get big problem. [/quot. Thank you .what quality of food can 500 naira buy ? Besides ,how about those who have children .? And where is even the 500 naira to buy the food ? For instance now ,I have three children to feed and school fees to pay and looking for job .I left my last place of job because the employer is always owing salary .Imagine at the interviews ,some prospective employer will want to pay 45k per month .The highest I had negotiated recently was 60k per month .Tell me ,how will I get 500 naira to feed at once when my daily transport fare will cost more than 1k ? A graduate of many years with Masters degree !

descarado:
That's what they told him to say or they will disgrace him out of office.

He's speaking from a platform provided by NTA for crying out loud....what would any sane minded Nigerian have expected?