Many Nigerians are gnashing their teeth following the continuous free fall of the naira against the dollar which got to an all-time high of N400 to a dollar at the parallel market earlier this week. However, there are some people who are still making fortune from this economy woe.
Due to the country over-dependent on imported goods and services and no thanks to the free fall of crude oil in the international market that brought about scarcity of the greenback in the country. The situation is so bad that most Nigerians purchasing power have dwindled and there is now a renewed campaign for Nigerians to patronize made in Nigeria products, that is being championed by Senator Ben Murray-Bruce, as a way to savage the current dipping of naira.
However, in all these chaos, there are Nigerians that are making a killing and subtly praying for the naira to depreciate further.
Below are the list of people benefiting from the depreciation of the value of naira.
1. Bureaux De Change operators
BDCs operation is very lucrative at the moment
These set of people are making a killing with the continuous fall of the naira. Though, the official rate of the country’s currency has been pegged at N197-199 to one US dollar, but the operators speculate on the country’s currency by hoarding it in anticipation that it will fall further.
This attitude has made the Central Bank of Nigeria (CBN) on January 19 to stop allocating dollar to operators of the BDCs. The governor of the CBN, Godwin Emefiele, said that operators were wagging a relentless war on the naira.
He added that about 2,785 BDC owners were behind the war on naira in their bid to make the CBN rescind on its decision not to allocate dollars to BDCs.
Imagine, a situation where the BDCs buy dollar from CBN at N199 and sell at 300. That is over 200% return on investment. This kind of situation has made their operation very lucrative and they will do everything to continue in their business.
2. Commercial banks
The banks get the greenback from CBN at N199 and sell at their own price
An anonymous source has once said that if you want to steal from a community starts a business and if you want to steal from the whole country starts a bank. This explains the power of banks in a country.
Commercial banks in the country like Bureaux De Change Operators are making massive profit from the free fall of naira.
The banks get the greenback from CBN at N199 and sell at their own price, no bank as a fix price for exchange of dollars. Some banks even sell at the same price as that of parallel market.
For example, if today’s exchange rate is N360 to a dollar and one makes used of one’s debit card to buy something on a foreign site that is where it would be clear of the massive gains raked in by Nigeria banks.
Exporters are now gaining more for their exported products than ever before and would want this trend to continue.
Exporters will be working toward exporting more to cash in current slump of the country’s currency. The activities of exporter on the other hand could help to checkmate the fall of naira as more dollars earned will mean more of the currency in circulation leading to the appreciation of naira.
4. Nigerians in diasporas
Nigerians in diasporas
Nigerians working and living in the USA, the UK and other developed European countries will be making a lot of profit.
The fall of naira means more cash for them if they are repatriating their funds home and these set of people will be ever happy as the country’s currency continues to fall.
5. Friends of the CBN
Friends of the CBN are allegedly making fortunes
There are some people who are close to top echelon in the CBN and are putting their closeness into massive profit. These set of people will have unhindered access to dollar at a very cheap rate and change at the parallel market for massive gain.
There is no way they will want the naira to gain against the US dollar as such might mean a misfortune for them.
6. Online business owners
Internet business owners in Nigeria still feel comfortable
These are online content providers in Nigeria that monetized their sites with foreign advertising platforms like Google Adsense, Content.ad, PropellerAds Media, Amazon Assocaites and others.
These set of people will cash real-time on the fall of naira and some of them will be praying that naira continued to slide further.
Also, there are some Nigerians that are into big time business like forex trading, website development, etc, who will also get more local currency for the same jobs.