Since President Bola Tinubu's inauguration on May 29, 2023, the Nigerian Naira has experienced a sharp and persistent decline in value. At the time of Tinubu's assumption of office, the official exchange rate stood around N465/$. However, after the decision to float the Naira and unify Nigeria’s multiple exchange rates, the currency has depreciated dramatically, losing over 70% of its value. As of recent, the Naira traded at about N1,700/$ in the parallel market, marking a massive devaluation that has exacerbated Nigeria's inflationary pressures and living costs.

Several factors have contributed to this devaluation, with the following issues making it clear that the Naira will not appreciate in value in the near future.

1. Dependence on Crude Oil and Declining Output

Nigeria’s economy is heavily dependent on crude oil exports, which make up the bulk of the country’s foreign exchange earnings. However, Nigeria’s oil production has been hampered by significant challenges, especially massive oil theft in the Niger Delta region. While Nigeria once produced up to 2.4 million barrels per day (bpd), current estimates show the country’s output now hovers around 1.5 million bpd. This reduction severely limits Nigeria’s capacity to generate foreign exchange through oil exports.

Additionally, a significant portion of Nigeria’s future oil output is already committed to servicing loans, such as the recent $3.2 billion loan from the African Export-Import Bank (Afreximbank). The use of oil receipts to offset debts reduces the foreign exchange available to support the Naira.

2. Dangote Refinery and the Opportunity Cost of Local Refining

The much-anticipated Dangote Refinery, which promises to reduce Nigeria’s dependence on imported refined petroleum products, is often cited as a possible solution to the Naira’s challenges. The refinery is expected to conserve about 35% of foreign exchange that Nigeria currently spends on fuel imports.

However, this gain comes with a significant trade-off. Instead of exporting crude oil to earn foreign currency, the government will have to sell crude oil to the refinery in Naira, thus missing out on potential foreign exchange earnings. This opportunity cost diminishes the potential benefit of local refining, further complicating efforts to stabilize or improve the value of the Naira.

3. Challenges in the Manufacturing Sector

Nigeria’s manufacturing sector has been severely constrained by the scarcity of foreign exchange and rising energy costs. Manufacturers who previously produced goods for export to the broader West African market are now struggling to stay afloat, as they face difficulties in obtaining the necessary foreign currency to import machinery, raw materials, and energy supplies.

The continued shutdown of manufacturing concerns means fewer foreign exchange inflows from non-oil exports, further weakening Nigeria's ability to accumulate foreign reserves and support the Naira. This sectoral decline contributes to the shortage of foreign exchange that is essential for stabilizing the currency.

4. Weak Foreign Investment Inflows

The floating of the Naira and exchange rate unification were intended to attract foreign investment by aligning the official and parallel market rates. However, the desired influx of foreign capital has not materialized at the scale needed to stabilize the currency. Foreign investors remain cautious, given Nigeria’s economic uncertainties, policy instability, and security risks.

Additionally, Nigeria’s high inflation rate, currently well above 30%, coupled with rising interest rates in developed economies, has made it less attractive for investors seeking stable returns. This is exacerbated by foreign exchange controls and difficulties in repatriating profits, making Nigeria a less appealing investment destination.

5. Inflation and Monetary Policy Limitations

The Central Bank of Nigeria (CBN) has faced challenges in managing inflation, which has been driven by both currency depreciation and supply-side factors, such as fuel and food price increases. The CBN's efforts to stabilize the Naira through higher interest rates and intervention in the foreign exchange market have so far been insufficient to counteract the broader forces driving the Naira’s depreciation.

Moreover, the float of the Naira, while theoretically designed to attract investment, has led to increased speculation and instability in the foreign exchange market, contributing to further depreciation. The divergence between the official rate and the parallel market rate has also created uncertainty, making it difficult for the CBN to exert effective control over the currency.

6. Global Economic Conditions

Global economic conditions, such as the increasing strength of the U.S. dollar due to rising interest rates by the Federal Reserve (until the first rate cut 2 weeks ago) have made it more expensive for countries like Nigeria to service foreign debt and acquire essential imports. As the U.S. dollar appreciates against other currencies, the Naira, already under pressure from domestic factors, has depreciated further.

The higher cost of servicing foreign debt means Nigeria must allocate more of its dwindling foreign reserves toward debt repayment, further reducing the amount of foreign exchange available to support the Naira.

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Controversial Nigerian singer, Habeeb Okikiola, better known as Portable, has reacted to the ongoing feud between his colleagues Davido and Wizkid.

Naija News earlier reported that Wizkid reignited the long-standing beef with Davidoon his X page, marking their second major online spat in 2024.

Wizkid, who labelled Davido ‘wack with no talent,’ also threw tantrums at the singer’s family, including his uncle, Governor Ademola Adeleke.

In a series of Instagram posts on Wednesday evening, Portable criticized both artistes, claiming their songs no longer sell and are using controversy for music promotion.

The ‘Zazzu Zeh’ hitmaker also said he is now more relevant and celebrated than Davido and Wizkid. However, the claims starkly contrast with the current happenings in the music scene.

He wrote: “Don’t use your brother to shine—shine by yourself. Your (Wizkid and Davido) songs are no longer in the market; now you’re (Davido and Wizkid) using fights for promotion.

“Let’s forget the fake promotion and focus on making hit songs. Portable is bigger than them (Wizkid and Davido)—who is big is big. We’re not on the same level; it’s only me and God. Omolalomi, the chosen one.”

Portable added that he does not support Davido or Wizkid’s ongoing online disputes.

He wrote, “I’m not here for Davido. I’m not here for Wizkid. I’m here for myself, which is why I support those who support me. Chosen one.”

A former chieftain of the All Progressives Congress (APC), George Moghalu, has dumped the party for the Labour Party (LP).

There are indications that Moghalu joined LP in a bid to contest for the governor­ship election in Anambra State, which would take place in about 15 months’ time.

Moghalu was the pioneer audi­tor of the APC and the immediate past Managing Director of Nation­al Inland Waterways Authority (NIWA).

The former APC chieftain joined the LP on Tues­day at his ward in Uruagu, Nnewi, Anambra State.

Moghalu, who had resigned from the APC, on August 26, 2024, was received by the ward chairman, executive members and local government chairman of Labour Party chap­ter in Uruagu, Nnewi.

He was presented a Labour Party membership card by the ward chairman, Chijioke Okeke, who had earlier issued him a membership form, which he filled out and returned to the party leaders during the visit.

Speaking at the event, Okeke described Moghalu as a patriotic technocrat, and a down-to-earth man, saying that he was excited to welcome him into the party as he had over the years shown him­self to be a creative, prudent and resourceful administrator.

Okeke was hopeful that Mogh­alu’s presence in the party would boost its chances of winning major elections going forward, especially with the upcoming Anambra South Senatorial elec­tion, which the party has to show the capacity to win.

In his remarks, Moghalu said he had resolved to join the LP after a thorough evaluation and careful consultation of the members of his family, community, supporters and other criticalstakeholdersof thestate.

He said, “And, I have come to the conclusion that the Labour Party is better suited to champi­on my ideals and principles as the party aligns with my core values and commitment, as well as mul­tifaceted perspective, with a pro­found dedication to the welfare of citizens.”

Moghalu pledged to work har­moniously with the leaders and chieftains of the party in forg­ing a better political culture that unites, inspires, and serves the greater good.

The event was witnessed by Uruagu, Nnewi ward 1 chair­man; executives, Nnewi North lo­cal government party chairman, 2023 Nnewi North Labour Party House of Assembly candidate, some stakeholders of the party, friends and political associates who were present to welcome Moghalu to the LP.

e U.S. government in September arrested and arraigned 43-year-old Nigerian socialite, for allegedly stealing the identities of about 91 American citizens to scam them of their COVID-19 and disability benefits. 

He was arrested around 9:30 a.m. on September 20, just hours before he was scheduled to fly on a one-way ticket to Dubai in the United Arab Emirates, where U.S. security agents believed he planned to hibernate, away from America’s crime radar.

A criminal complaint filed in the U.S. District Court for the Central District of California on September 19 detailed Mr Quadri’s alleged fraudulent scheme, particularly how he stole the Personal Identifying information (PII), including Social Security Numbers (SSNs) of about 91 Americans to collect their disability, unemployment and COVID-19 benefits between 2020 and 2024.

Given the California Employment Development Department (EDD) gave debit cards to eligible unemployed and disabled citizens, Mr Quadri applied for benefits using their names and falsified certifications from real doctors, whose information he also stole.

The EDD mailed loaded debit cards with unlimited withdrawals to claimants. The cards carried a sticker that contained the activation details. The recipient had to call a number to provide their SSN to activate it.

The card, valid for three years, was registered with the Bank of America, and the EDD  funded it for beneficiaries. It had no limit on daily purchases and withdrawals.

An investigator with the EDD found that Mr Quadri defrauded 19 disabled Americans whose identities he stole to claim the funds of over $200,000.

“EDD Investigator Ivant Romo reviewed approximately 19 DI (Disability Insurance) claims filed online under approximately 19 different identities for an approximate actual loss of $210,156 and a potential loss of approximately $436,488,” the criminal complaint stated.

Mr Romo found it suspicious that the claimants’ occupation “was often the same, among other commonalities.” 

Having reviewed 72 UI (Unemployment Insurance) claims, the investigator discovered that Mr Quadri had scammed the U.S. government of $881,192 using stolen identities of 72 unemployed Americans. 

Some of the footage of the withdrawals were examined, and the videos confirmed that Mr Quadri, on several occasions, was the same individual who withdrew cash using debit cards of different EDD beneficiaries.

Bank of America —where the EDD benefits were domiciled— supplied surveillance footage that showed Mr Quadri used the EDD debit cards to withdraw “under different accounts for different persons.”

Investigators found that the pictures of the individuals who were issued the EDD debit cards did not match the image of the person who withdrew the money.

Mr Romo identified Mr Quadri as the person who withdrew EDD funds from at least 38 accounts, including Michelle Davey, Ronald Tung, and Douglas Cost.

Pictures from Mr Quadri’s social media pages showed him wearing some of the clothes that he wore to withdraw the cash.  

Mr Romo further observed Mr Quadri on the streets and placed him to be the same guy “conducting many fraudulent withdrawals.

Doctor Lai, a medical practitioner who supposedly certified some of the documents Mr Quadri used to scam his victims, told investigators that he did not certify any of the claims that carried his signature. 

Mr Romo approached Ms Davey, a victim of the scam, who said she had never applied for a disability insurance benefit even though Mr Quadri had received $7,366 in her name. She also disclosed that the Nigerian fraudster got her actual date of birth and SSN correctly.

Mr Quadri withdrew $19500 using Mr Cost’s name. The victim told authorities that he had never filed an unemployment insurance benefit and did not give anyone consent to do so on his behalf.

The U.S. government identified Roland Iwhiwhu Otega as Mr Quadri’s co-conspirator. But five days after investigators searched his apartment in August 2023, Mr Otega boarded a ticket to Lagos, Nigeria and fled the U.S.

Incriminating materials of identity theft were found in his apartment, and investigators established a connection between him and Mr Quadri, given they shared at least one victim, Rosaly Ferrer.

Mr Quadri’s bank records with JP Morgan revealed that he had wired over $500,000 to four Chinese companies: Prinx Chengshan Shandong Tire Co Ltd (Agricultural Bank of China), Eping City Hengxin Trading Co Ltd (Industrial and Commercial Bank of China), Prachi Exports (Yes Bank Ltd) and Shouguang Firemax Tyre Co Ltd (Jinan Rural Commercial Bank Co., Ltd). 

Given that he is only a permanent alien resident and not a full-fledged U.S. citizen, Mr Quadri will be deported from the U.S. as soon as he is convicted.

Since he had no family in the United States and had purchased property in Nigeria, authorities worried that his chances of fleeing were extremely high, especially since his co-conspirator had already absconded. 

That the scam exceeded $10,000 will cause his offence to be considered an aggravated felony, which attracts stiff penalties that include the loss of his immigration status.

He was currently being remanded by the U.S. Marshal Service and would remain there until October 29, when he was scheduled to be arraigned before Judge Jean P. Rosenbluth on October 29.

Mr Quadri’s charges bordered on aggravated identity theft and bank and wire fraud.