Forex Crisis: Bizman raises alarm over looming job losses

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A Kano based business mogul, Alhaji Alhassan Adam Muhammad has raised alarm over increasing fall in the value of naira and the scarcity of foreign exchange which is critical to survival of most merchandise businesses.

Solacebase reports that the Chief Executive Officer of Sample Text merchandise company Ltd, Alhaji Alhassan Adam Muhammad lamented the situation at a news conference on Sunday in Kano.

He said the current spate of dollar scarcity is posing a daily threat to the livelihood of many people in the market.

” The situation has reached a tipping point whereby those with huge capital are skeptical to invests, while the small ones are grounded idly by the daily effect of rising prices of the dollar, ‘’he added.

Solacebase reports that the Central Bank of Nigeria stopped sale of foreign exchange to Bureaux de Change (BDCs) operators by not renewing their operating licenses, on July 27th, 2021 as a measure to check the fall of the naira and scarcity of dollars.

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However, as at close of business last Friday, at the black market, a dollar exchanged for N575

He said the Kwari market is a shadow of itself as most businessmen cannot presently reinvest in their trade as the value of their capital have depreciated significantly.

“The hustle and bustle which the Kwari market was known for is fading. The market has now become a shadow of itself. Traders are jittery of how the prices of the dollar might emerge the next day” he added.

”The CBN said we should go to the commercial banks to get the forex, as it has stopped selling to the BDCs, but many of us are forced to be patronizing the black market as we hardly get the needed foreign exchange from the banks.”

Alhaji Adam said the free fall of naira and the attendant forex scarcity had worsened Nigeria’s harsh business environment in the past two months.

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The business mogul said  many were reducing their staff strength, warning that there would be massive job losses if Forex scarcity continued.

Alh. Adam proffered solution, noting that, the option and way out in solving the problem is for the federal government through the CBN to wade in by flooding the exchange market with  sufficient supply of the hard currency as the only way to resuscitates business, particularly in the Kwari market.

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He urged Kano state government to fashion out a way to support and bail out the traders so as not to increase the unemployment level.

He appealed to well-established businessmen in the market, to extend the hand of benevolence to redeem the traders badly affected by the spate of redundancy as a result of the multiplier effects of shortages of dollar.

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