Supreme Court Verdict and Naira’s Resurgence
By Zekeri Idakwo
The Supreme Court’s judgement on Thursday had a positive impact on the Naira, which had been under pressure from inflation, insecurity, and foreign exchange scarcity. The Naira appreciated against the US dollar and other major currencies on Friday, as investors regained confidence in President Bola Tinubu’s economic agenda.
The Naira traded at 769.23 per dollar on Friday in the official market, compared to 780 on Thursday. The Naira also gained against the British pound, trading at 970.87 per pound on Friday, compared to 980 on Thursday.
According to analysts, the Naira was responding to the Supreme Court’s validation of Tinubu’s mandate, which removed the uncertainty and risk that had plagued the market.
They also noted that Tinubu’s pronouncements on diversification, boosting domestic production and attracting foreign investments, floating of the national currency etc also contributed to the modest gains recorded in 48 hours.
While calling for sustainability, consistency and continuity in policies, the experts expressed optimism that the Naira will continue to record gains against its rival currencies in the last quarter of 2023 and these gains will peak in the first quarter of 2024.
Recall that the Supreme Court had on Thursday affirmed the election of President Tinubu, ending the legal challenges that had cast a shadow over his legitimacy and economic policies. The court unanimously dismissed the appeals filed by the opposition parties, who had alleged electoral fraud and violations of the constitution. The court also upheld that Tinubu had met the required threshold of securing 25 percent of the vote in two-thirds of all 36 states and the federal capital, Abuja.
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