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Naira Appreciates Against Dollar at Official Market

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…Steadies at Parallel Markets

The naira has recovered significantly against the United States dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the country’s official exchange rate window for the first time this week.

The naira recovered to N831.47/$1, after a two-day slump in the official market.

According to Data from FMDQ Securities Exchange, a platform that oversees foreign exchange (FX) trading in Nigeria, the rate recovered from the N881.88 it recorded on Tuesday.

The naira opened at N805.83/$1 and closed at N831.47/$1.

However, according to Aboki FX, the parallel market steadied again at N1, 160 /$1. On Monday and Tuesday, the US dollar at the parallel market sold for N1,160.

This was against the backdrop of President Bola Tinubu’s presentation of the 2024 appropriation bill to the National Assembly which he called the ‘Budget of Renewed Hope.’

The President also said during the presentation that he projected that the economy would grow by an impressive 3.76 percent in the 2024 fiscal year.

The recurrent expenditure in the bill is set to gulp N9.92 trillion while capital expenditure is N8.7 trillion.

“Accordingly, an aggregate expenditure of N27.5 trillion is proposed for the Federal Government in 2024, of which the non-debt recurrent expenditure is N9.92 trillion while debt service is projected to be N8.25 trillion and capital expenditure is N8.7 trillion. Nigeria remains committed to meeting its debt obligations as the projected debt service is 45 percent of the expected total revenue.

“The budget deficit is projected at N9.18 trillion in 2024 or 3.88 percent of GDP. This is lower than the N13.78 trillion deficit recorded in 2023, which represents 6.11 percent of GDP. The deficit will be financed by new borrowings totalling N7.83 trillion, N298.49 billion from privatisation proceeds, and N1.05 trillion drawn down on multilateral and bilateral loans secured for specific development projects,” the President said.

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