As of October 2, 2024, the black market exchange rate for the US dollar to the Nigerian naira has been reported at a buying rate of N1695 and a selling rate of N1700. This information was shared by sources within the Bureau De Change (BDC) and reflects rates as of October 1.
The Central Bank of Nigeria (CBN) continues to distance itself from the parallel market, advising individuals seeking to engage in foreign exchange transactions to use their respective banks. In contrast, the official CBN rate for the dollar stands at a buying rate of N1600 and a selling rate of N1601.
In related news, the Manufacturers Association of Nigeria (MAN) has voiced strong concerns regarding the recent increase in the Monetary Policy Rate (MPR) from 26.75% to 27.25%. The association’s Director General, Segun Ajayi-Kadir, emphasized that this hike in interest rates will exacerbate production costs and lead to higher prices for finished goods.
Ajayi-Kadir highlighted that manufacturers now face borrowing costs exceeding 35% on credit facilities, which will significantly hinder their competitiveness and ability to expand production capacity. He pointed out that the continuous rise in interest rates has already resulted in over N730 billion in capital expenses for manufacturers during the first half of the year, stifling innovation and growth within the sector.
