The exchange rate in Nigeria experienced a decline in both the official and parallel markets on the day the Supreme Court affirmed Bola Ahmed Tinubu’s victory in the presidential election.
According to information sourced from traders in the parallel market, the exchange rate between the naira and the dollar plummeted to an unprecedented low of N1,300 to the dollar.
This is indicative of a concerning trend in Nigeria’s unofficial foreign exchange market.
On the official NAFEX market, where the exchange rate is officially determined, the naira-to-dollar rate dropped to N837.49, down from N801.1 just a day earlier.
This rate marks the fourth-lowest level since the unification of the exchange rate windows. Intra-day highs and lows were recorded at N891/$1 and N701/$1 respectively, with a total turnover of $113.2 million— the highest in approximately six trading days.
Concurrently, Nigerian equities experienced a 0.18% decline, registering back-to-back losses as stockbrokers evaluated third-quarter earnings results from various companies.
Supreme Court Ruling
Earlier in the day, the Supreme Court rejected an application from Atiku Abubakar and the Peoples Democratic Party (PDP) to submit new evidence concerning President Bola Tinubu’s diploma from Chicago State University (CSU).
- Justice Inyang Okoro, who delivered the verdict, stated that the time for introducing fresh evidence at the Court of Appeal had passed, making it ineligible for consideration at the Supreme Court level.
- The apex court also dismissed an appeal filed by Peter Obi, the presidential candidate of the Labour Party.
- The seven-man panel, led by Justice Inyang Okoro, ruled that the appeal lacked sufficient merit and was consequently dismissed. Obi had sought to reverse the Presidential Election Tribunal Court’s (PEPT) September 6th decision, which upheld President Tinubu’s win.
What this means: The Supreme Court’s ruling did not seem to buoy either the capital or forex markets.
- TheTimes suggests that this could be because market participants had already priced in a legal victory for the president, rendering the court’s decision relatively inconsequential in terms of market impact.
- There is also a possibility that the market would have responded more dramatically—either positively or negatively—had the Supreme Court’s ruling been different.
- With the legal challenges now behind him, most analysts anticipate that the president and his administration will shift their full attention to economic recovery and stability.