Multinational Oil companies are refining ever-increasing quantities of oil, to keep pace with burgeoning demand. Nowhere is this more evident than in Nigeria, where oil companies are earning extraordinary profits on extraordinary sales. Many of these firms are American, and thus are responsible for paying USD dividends to their American shareholders. For this reason, and for the added stability of the USD, many firms exchange their foreign profits for USD. Record profits have resulted in record volume on Nigeria’s foreign exchange. To preempt a potential depreciation of the Naira, Nigeria is diverting much of the exchange volume through its banks. This is easier said than done, as All Africa News reports: 

[Unfortunately] most of the oil firms became racketeers, selling forex to a select few banks above the prevailing rates at the DAS (official market).

Read More: Oil Firms Inject $48.2m in Forex Market