HAMDALA: STRATEGIC RESPONSE TO EXCHANGE RATE DYNAMICS IN CONTEMPORARY NIGERIA

Abstract

This work highlights the transmutation of `an arbitrary way of life into the legitimate way of life'. The informal sector, also known as the underground, second, parallel, irregular, unofficial, or black economy, constitutes a significant part of the economies of African countries. The Nigerian fiscal and monetary processes since independence in 1960 had been characterized by frequent policy shifts that alternated between excessive government maneuvering, sharp practices, and government financial recklessness. For Nigeria at the inception of SAP, a major strategic importance in the nexus of the exchange rate policy was the reduction of the parallel market premium given the existence of the market side by side the official markets. The Hamdala, a group of Hausa `currency sellers' came into existence as a reaction to the need to act together and converge into a group capable of collective action and targets. The ability of Hamdala to quickly respond to market needs has opened for it windows of opportunities in Yoruba land. A large section of the society began to see inherent merits in the services it rendered. Not only has it provided easy access to business opportunities, it is of significant importance both as an employer of labour and as a study in resilience and self-reliance.


(Humanities Review: 2001 1(2): 23-30)