The naira last week appreciated slightly over the United States dollar at the Central  Bank of Nigeria (CBN) wholesale Dutch Auction System and the Inter-bank foreign exchange markets.

The appreciation, which saw the local currency exchanged for N148.41 to the dollar at the CBN’s WDAs segments, was attributed to the large inflow of $224m made available to traders at the Inter bank market.

According to the breakdown, the Nigerian National Petroleum Corporation sold $100m, Mobil $90, Chevron $19m and Agip Oil $15.67m.

Adeboye Adenuga managing director and chief executive officer Dambis BDC Limited said “Naira may appreciate further this week based on the CBN reform policies and the relative calm in the Niger Delta.

Another reason for the appreciation of the naira would not have been unconnected with last week muslim celebration where Nigerians in the diaspora sent in Forex to their relative for Salah. according to him the demand for the dollar has weakened considerably as many corporate organsiations are winding down their operations for the financial year. Other Forex traders noted that there were some dollar sales by a few oil multi-nationals last week which also helped to boost liquidity in the system and support the naira gain.”

However, Mr. Jelili Ajibola, Managing Director and chief executive officer Dambis BDC Limited said recently that the naira may further weaken if federal government implements the deregulation of the downstream petroleum sector of the economy.

According to him, Nigerians should forget about deregulation of the oil sector as it will worsen our economy and devalue the naira more.

He said there are lots of interests in this campaign adding that the same politicians that are calling for deregulation would hoard petroleum products to increase price in order to make abnormal profit when deregulation is finally implemented”.

He stated that with the relative stability in the Niger Delta, there is every tendency that oil production would increase thereby boosting the nation’s foreign reserves. He insisted that deregulation would further worsen the standard of living of the economically challenged Nigerians.

It would be recalled that the Association of Bureau De Change of Nigeria (Abcon) recently advised the Federal Government to embark on massive public enlightenment campaign on the gain of deregulation in the oil sector before implementing the policy.

Shehu Mahmud chairman, North Central Zone Abcon gave the advice at a congress in Abuja, where he noted that the planned deregulation of the oil sector was long overdue but government must educate Nigerians on its benefits and impact on the economy.

According to him, deregulation would force down the prices of petroleum products through competition.

Abcon is working with the CBN to sanitise the foreign exchange markets that would guarantee lower and stable exchange.