What has changed?
Very recently, the Nigerian government has implemented several policies and measures in an attempt to float the Naira and address the challenges of multiple exchange rates. Historically, Nigeria had a fixed exchange rate regime where the Central Bank of Nigeria (CBN) controlled the value of the Naira against other currencies. However, this system led to distortions in the foreign exchange market and limited access to foreign currencies, which negatively impacted the economy.
What does this mean?
Floating the Naira involves transitioning to a more flexible exchange rate system where the value of the currency is determined by market forces. This move is intended to promote transparency, attract foreign investment, enhance economic stability, and align the official and parallel exchange rates. It aims to improve liquidity in the foreign exchange market and reduce the pressure on the Naira.
By floating the naira, the CBN has unified the multiple exchange rates by converging the official exchange rate with other parallel market rates.
How are our prices impacted?
The USD price offered to Nigerians has remained the same. We have, in the past, tried to keep our price in Nigerian Naira as close to the official rate as possible. The same is still true, however, due to the fact that market rates and official rates have now converged, we regrettably have had to increase our price in Naira to reflect this change.
How did we arrive at a fixed price?
Since the situation may result in volatility of the Naira in the short-term, we are reviewing the market rates and our prices at regular intervals in order to reduce the uncertainty about the cost of our programs for our users. There may be further fluctuations until such a date that the situation stabilises.
It is important to note that our prices are our USD prices will remain fixed, and only the naira equivalent of this has changed.
We understand that this change may generate questions and feedback, and we are prepared to address them as best as we can. Please feel free to reach out to us at [email protected] if you have any further inquiries.