Nigerian Naira Crisis.

What is happening in the parallel market?

I recently did a series of small podcasts highlighting what was going on in the Nigerian parallel market. For the 1st time in Nigeria, the parallel market rate for the Nigerian Naira against the US Dollar was 100% more than the official rate.

Nigeria Economic Background

Nigeria is a country located in West Africa. Africa's largest economy has a diverse range of industries, including oil and gas, telecommunications, banking, and agriculture. The Nigerian economy has experienced various ups and downs over the years, with periods of strong growth followed by economic downturns.

During the 1960s and 1970s, Nigeria experienced economic growth, fueled partly by the country’s oil and gas industry. However, this period was also marked by political instability and corruption, hindering economic development. In the 1980s, Nigeria was hit hard by the global oil crisis, leading to a sharp decline in its GDP and worsening its fragile political situation.

In the 1990s, Nigeria tried to diversify its economy and improve its infrastructure. However, these efforts were stymied by continued political instability and corruption. In the early 2000s, the country was hit by economic shocks, including a devaluation of its currency and a sharp drop in oil prices. This led to a period of economic stagnation and high inflation.

Nigeria has made some progress in improving its economic situation in recent years. The government has implemented several economic reforms to reduce corruption and improve the country’s business environment. Despite these efforts, the Nigerian economy faces challenges, including high unemployment and inequality.

When the Naira crossed 900

Why the parallel market exists?

Faisal Khan, CEO of Faisal Khan LLC. Please find out more about our services for Money, Banking, Payments, Licensing, and Cryptocurrency on our website.