I read economics about a decade ago
So i know a bit of demand and supply. My lecturer defined economics as the application of common sense. True or False?

About nine years ago, there was a term known as round tripping.
In Nigeria, its means buying foreign currencies by deception or legitimately from the CBN at OFFICIAL RATE (significantly lower than black market rates)
then selling it through dubious means back to the black market.
As at today the pound sterling is 211 Naira  = £1 @ official rate.
Black market is 255 Naira = £1.
The difference is N44.
It means for every £1,000  bought officially. There is that potential to make N44,000 ( easy money).
This is happening again.

Where is Soludo?

If i were Soludo, I will  match the black market price. Meaning I will sell the pounds  and dollars the same rate as the abokis ( Stereotyped Hausa forex exchanger)

The reason is that. If i am coming to Nigeria, sincerely i won't go to the bank to change my money. Its definitely aboki.

If the official rate is the same as the black market. Ordinarily i will walk to my BANK to change my forex  and probably my account would be credited.
I need not worry about carring alot of cash.

The black market is getting their supply because they can pay more for foreign currency. That needs to stop. Yes, If i were soludo i will stop that supply.

I believe the black market controls about 70% or more of the Nigerian retail foreign exchange market at the moment. If you calculate individuals, small busineeses. They are in their millions. We all go to the abokis.

Some Junk banker told me that if the CBN rate = Black Market rate the economy will crumble. Because its going to lead to inflation.
I don't think so. Its because the so called corporate organisations can make more noise than the average man.
Meanwhile the average men and their businesses are 10 times more than the so called corporate organisations.

The CBN do not have an  accurate statistics to base their arguement on. The black market is bigger than they think

Its a multi billion dollar industry. If i were Soludo, I will compete with these bunch of economic saboteurs.
I will match their rates and cut their supply, yes their supply will fade away.

Gradually, we all get used to going to the bank to change our money. This means all the billions of dollars and pounds going to the black market
would be ploughed back into the system.

This fear that our foreign reserve would be depleted will be a thing ot the past.

If a governor steals money, where does he go to.?
Minister, DG, Police commisioner, Judge, Contractor. Where do these guys go to? Aboki

So Prof. Soludo. I heard you hands are tied. If so, resign honourably. Run to America, South Africa, UK and write your memoirs. Say it as you have seen it.
Stop complaining and act. Our crippled economy is dying but you can do something.

Pardon me, I heard to buy @ official rates you will need to supply more information and documents.

It will never work, Its a wrong step. Its going to fail because it is going to fuel the black market even more.
With Garuba, to buy or sell you need not fill in any form.

If i were Soludo, I will make the purchase of forex as easy as possible with limited bureacracy.

Your proposed solution sounds like OBJs justification of increased local fuel price to discourage smuggling.
The first move should be to regulate the market by licensing the practice, and criminalizing noncompliance.

If I have $10 and you have 1600 naira and need the dollars, why does the government have to be involved? Regulation of the forex market only serves the interest of anticompetitive forex operators and over-ambitious administrators who want to maintain their illusion of control over forex rates. Markets are controlled by demand and supply, nothing can ever change that, not really.

I wish you can tell us an alternative way.

The market is regulated and it is a criminal offence to sell at the black market at the moment.
And of course the banks and bureau de cahnge are regulated.

There is no enforcement. There might never be (NPF, EFCC) all lame ducks
Remember i mentioned Demand and Supply.

$10 = N1,600 is still demand and supply.

The fact is, the black market is seen as a petty business.
Wake up guys, this is a multi billion dollar industry.

Its crippling our economy. Why is that we are so much used to suffering and smiling ( conditioning).

@ Seun. One of the responsiblities of the CBN governor is to manage the money markets.
So the government must be involved.

Its called the black market for a reason. How can a market be bigger than the national market.?

By matching the rates, the government would be responding to the rules of demand and supply.

As Nigerians,  we always abuse any system requiring us to bring documentation.
We have perfected the art of forgery.

Foremaple, you can buy Personal Travel Allowance at Officical rates.
Any Banker in the house? Fake tickets and non confirmed tickets is not strange.
Even the banks are invloved? Its called round tripping. If you are a branch manager it is one of the easiest way to
meet your target. Easy money.

For as long as you have so much disparity between the official rate and the black market rates.
The Black market will continue to grow.

ADEOMOLE:

I wish you can tell us an alternative way.

The market is regulated and it is a criminal offence to sell at the black market at the moment.
And of course the banks and bureau de cahnge are regulated.

There is no enforcement. There might never be (NPF, EFCC) all lame ducks
Remember i mentioned Demand and Supply.

$10 = N1,600 is still demand and supply.

The fact is, the black market is seen as a petty business.
Wake up guys, this is a multi billion dollar industry.

Its crippling our economy. Why is that we are so much used to suffering and smiling ( conditioning).

@ Seun. One of the responsiblities of the CBN governor is to manage the money markets.
So the government must be involved.

Its called the black market for a reason. How can a market be bigger than the national market.?

By matching the rates, the government would be responding to the rules of demand and supply.

As Nigerians,  we always abuse any system requiring us to bring documentation.
We have perfected the art of forgery.

Foremaple, you can buy Personal Travel Allowance at Officical rates.
Any Banker in the house? Fake tickets and non confirmed tickets is not strange.
Even the banks are invloved? Its called round tripping. If you are a branch manager it is one of the easiest way to
meet your target. Easy money.

For as long as you have so much disparity between the official rate and the black market rates.
The Black market will continue to grow.

Welcome to Nigeria. The fact of the matter - black market in any viable society is illegal . In modern societies the underground economy covers a vast array of activities. It is generally smallest in countries where economic freedom is greatest, and becomes progressively larger in those areas where corruption, regulation, or legal monopolies restrict legitimate economic activity.

adeomole

I see what you are saying. Would lead to some  short-term (hopefully) suffering in order to have long term gains. Unfortunately, for your idea to work, absolute commitment would be needed and that's the challenge. The thieves like the lack of scrutiny and documentation that goes on in the black market, it's to their complete benefit - no a/c numbers, no names, NO TRAIL. It's difficult to foresee them giving that up via a destruction of the black market.