Naira’s decline linked to heavy reliance on cryptocurrency platforms — Ex-presidential aide

The steady decline of the Nigerian naira in the foreign exchange market has been attributed to Nigerians’ heavy reliance on cryptocurrency platforms, according to former presidential aide Bashir Ahmad.

Ahmad expressed concern over the fact that many Nigerians are depending on crypto platforms that are not responsible for regulating currencies in the country.

In a post on his official X (formerly Twitter) account on Wednesday, Ahmad emphasised the urgent need to address the situation. He stated that the crypto exchange platforms are causing more harm than good to the Nigerian system.

Ahmad pointed out that when the exchange rates increase on these platforms, it automatically leads to an increase in the Bureau De Change rates as well.

“To be honest, the crypto exchange platforms are causing more harm than good to our system. Many people are relying on these platforms that have no business being our forex regulator to get their exchange rates. When the rate goes up on these platforms, it automatically goes up in the Bureau De Change. It should be fixed!” Ahmad wrote.

Recall that the major players were buying a dollar for N1,800 and selling at N1825 on Tuesday 20th February 2024.

The continuous decline in the value of the naira has made life difficult for Nigerians, as commodity prices continue to rise.

Recall that the Chief Executive Officer of Nigerian Breweries Plc, Hans Essaadi, stated that due to the current economic situation in Nigeria, citizens are finding it difficult to afford beer.

Bloomberg reports that NB suffered a foreign exchange loss of N153 billion due to the devaluation of the naira in the fiscal year ending December 2023. To counter the ongoing rise in input costs, NB raised the prices of its products in August 2023.

NB’s portfolio includes various alcoholic beverages such as Star Lager, Gulder, Legend Extra Stout, Heineken, Goldberg, Life, and Star Radler.