Naira Strengthens As Politicians Pump ‘Election Dollars’ Into Nigeria’s Economy

Naira Strengthens As Politicians Pump ‘Election Dollars’ Into Nigeria’s Economy

The Nigerian currency naira is reported to have strengthened in recent days as politicians pumped stockpiled dollars into the economy for campaigns ahead of the 2019 general elections.

The Nation reports on October 1, that the naira, which exchanging at N361 to dollar early last week, firmed at N357 in the parallel market at the weekend, as politicians flooded the market with the greenback in the wake of the ongoing governorship primaries.

Speaking on the development, President, Association of Bureaux De Change Operators of Nigeria (ABCON) President Aminu Gwadabe said “several customers were seen at the weekend, flooding the market with dollars possibly for primary elections and screening across party lines”.

He said the Bureau de Change (BDC) operators were taking advantage of the development to earn commissions from naira exchanges for the dollars, adding that the naira has made considerable gains in the last few days.

The primary season and pre-election spending have been building up since the beginning of September and will continue till early next year when elections will take place.

Other analysts said the naira was fast appreciating following renewed confidence and increase in dollar supply in the parallel market.