Its an established trend that Fx rates in Nigeria’s black market go haywire in December of every year because diaspora Fx supply is rerouted ahead of home-coming and festive period spending. Pounds sterling was driven to £650 in days!
You’ve been hoodwinked to continue to hold the traditional view that Nigeria’s Forex black market is one Aboki saying “Dollar!, Dollars!” Looking at the Airport. Whereas the BDCs are heavily regulated, Nigerians are still held down in conspiracy theories CBN fund the black market.
The secret many don’t know is that Nigerians in diaspora hijacked the black market from Abokis and relocated it abroad, as far back as when Second-Tier Foreign Exchange Market (SFEM) ended. The Abokis you see hanging around the airport now take a cue for price from abroad, daily.
According to @cenbank, Nigeria received a whopping $17.57 billion in direct diaspora remittances in 2019, which represents a 56.4% jump in one year. I challenge experts in monetary economics here to convince us, Nigeria’s black market diaspora remittances aren’t twice this amount.
The counter-current of Pounds sterling to Naira exchange in the UK, within spheres my eyes can reach, just in three days of December alone is over £100,000! This doesn’t take into account what’s happening in the streets of Canada, US, the whole of Europe and other parts of the world!
I heard a move today, which sounded plausible, that left me dumb. A London kingpin got Naira loan of N80Million from a Nigerian bank at 14% in July and had used it to mop up pounds at N555/560. She has offloaded everything she bought at N640. That’s cool >N8Million in 4 months!
The multiplier effect of these sharp practices, globally, puts pressure on Naira. Except for oil companies and thieving govt officials, nobody earns N8Million, in 4 months in Nigeria. We deflect our roles in how we got the country to where it is because we know many here cant think.
If official diaspora remittances are $17Billion, diaspora Blackmarket remittances could be $30Billion! Our FX Reserve is $35Billion. We keep saying Aboki Fx is from his Fulani uncle in CBN, but when we receive Western Union, we don’t convert to Naira in d bank. Its Aboki straight!
Written by: Dr. Olusesan