The economic recession in the country, coupled with the soaring rate of the Dollar against the Naira, there are strong indications that the Francophone currency (the CFA) may also be gaining an edge over the Nigerian Naira. This is owing to the high volume of vehicles shipped and sold from Benin Republic into Nigeria, Shipping Position Daily findings have revealed.
Although, the United States Dollar is still higher in value than most other currencies involved in importation of used vehicles, investigations conducted by our correspondent further revealed that at the moment ,Cfa1000 goes for about N800; a situation Nigerian car dealers describe as unbearably high.
The high volume of cars sold to Nigerian dealers by Lebanese based in Benin Republic has made Cfa to become stronger by the day, in exchange for Naira.
Auto Port Weekly gathered that between January and May 2016, Cfa1000 was sold for, but at the moment, it is Cfa1000 to N800.
Our correspondent also confirmed that Nigerian automobile markets are the major target by Lebanese car dealers in Cotonou, Benin Republic, but apparently determined to boost the nation's economy, car dealers have reiterated their commitment to patronise Nigerian seaports considering the unfavourable balance of trade in neighbouring countries like Republic of Benin and the car merchants.
Confirming the situation to Auto Port Weekly on Wednesday in Lagos , Chairman, Popson Park a sublet of Berger International Automobile Market ,Comrade Moses Ilima lamented that the current policy on import has forced Nigerian dealers to patronise neighbouring West African seaports but at the moment the situation has taken another dimension.
Ilima said most neighbouring countries whose currencies cannot compete with the Naira are almost at same exchange rate saying that the policy on foreign exchange has made Nigerian currency worthless; especially against the Cfa.
Highlighting reasons for wanting to jettison Cotonou port for Nigeria seaports, the foremost dealer disclosed that apart from the exchange rate of Cfa and Naira; issue of double duty payment is a disadvantage to Nigerian merchants.
The dealer said the hike in Cfa poses serious threat to people who buy cars from Cotonou, adding that the value of the currency is fast rising.
He said that "instead of going to Cotonou, we buy from importers who ship their vehicles through Nigerian ports despite the situation on ground"
"We change Naira to Cfa and Cfa at the moment is even the problem now because it is fast rising ,and that is why some of us have resolved to stop buying from Cotonou market"
"About 95% of dealers in Berger no longer go to Cotonou to buy cars because their own exchange rate is something else at the moment".
To further confirm the exchange rate between both nations, a Bureau de Change dealer, at Okota in Lagos Mr. Danladi Bako told our correspondent that the Cfa is gradually competing favourable with the Naira.
According to him, Cfa is in high demand and it appears that the exchange rate would further increase soon, considering the present rate.
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