Naira Gains 0.7% at NAFEX as Workers’ Strike Slows Business Activities

By Adedapo Adesanya

The Naira appreciated against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday despite the disruption to business activities caused by an industrial action by Nigerian workers.

The local currency improved against the greenback during the session by 0.7 per cent or N28.34 to exchange at N1,476.12 /$1 compared with the N1,485.99/$1 it was transacted last Friday.

Across the nation, workers ceased working as the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) commenced their industrial action in response to the increase in electricity tariff and the absence of a consensus on a new minimum wage. Businesses, schools, airports, hospitals, and power supply were all impacted.

Data showed a decline in the supply of forex into the spot market yesterday by 42.9 per cent or $91.55 million to $121.87 million from the $213.52 million recorded in the last trading session.

The domestic currency, however, closed flat against the Pound Sterling in the official market on Monday at N1,877.92/£1 but appreciated against the Euro by N14.48 to trade at N1,613.44/€1 versus N1,598.96/€1.

But the Nigerian Naira weakened against the American Dollar during the trading session by N10 to sell for N1,500/$1 compared with the preceding trading day’s N1,490/$1.

Meanwhile, the cryptocurrency market was positive yesterday, with US unemployment figures — recently a catalyst for risk-asset volatility — due at the end of the week.

Binance Coin (BNB) went up by 4.1 per cent to trade at $624.39, Cardano (ADA) appreciated by 3.4 per cent to $0.4607, Bitcoin (BTC) gained 1.9 per cent to finish at $69,152.78, and Ripple (XRP) added 1.8 per cent in value to trade at $0.5377.

In addition, Solana (SOL) jumped by 1.6 per cent to $165.84, Dogecoin (DOGE) recorded a 1.5 per cent rise to sell at $0.1591, and Litecoin (LTC) made a 0.3 per cent rise to quote at $83.18, while Ethereum (ETH) slumped by 0.3 per cent to $3,775.63, with the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closing flat at $1.00 each.