Following the emergence of General Muhammadu Buhari as Nigeria’s president-elect, the naira has kept rising against the dollar in the black market.
As at Sunday, the naira was N190 to $1.
Before the election, the naira sold for as high as N226 to $1.
In some markets, it went as high as N230 to $1.
However, by Thursday, two days after the announcement of Buhari as president-elect, the dollar plummeted to $1 to N205.
Activities at the Nigerian Stock Exchange also recorded an unprecedented height on Thursday.
The Nigerian stock market recorded a gain of N906 billion.
It was put as the biggest gain of the market in 50 years.
However, beyond the euphoria of Buhari’s emergence, other reasons have been adduced for the rise of the naira against the dollar and other currencies.
One was that the dollar pumped out by the Presidency in the countdown to the presidential election is now being put into the market by the beneficiaries.
A report shortly before the election had it that over $300 million was deployed by the Presidency and the Peoples Democratic Party for the last phase of the elections campaigns.
In the South West, some monarchs were given as much as $50,000 when outgoing President Goodluck Jonathan visited them.
Some clerics – Both Muslim and Christian – were also given “public relations” gift in cash in dollars.
Some were said to have received as much as $45,000.
Sources said it is this fund that has now been pumped into the market, thus forcing down the value of the dollar since it is now available in excess in the market.
A black market operator told The Eagle Online on Sunday: “Before the election and during the election, we were struggling to get dollars.
“Now, we have dollars in excess.
“So, there is no way the naira will not rise.”
The official market is expected to come alive on Tuesday when work resumes after the Easter holidays.”
The Central Bank of Nigeria is expected to announce the official rate then.