The Nigerian naira has suffered its steepest drop against the U.S. dollar in the official foreign exchange market, coinciding with a tariff announcement by former U.S. President Donald Trump.
Data from the Central Bank of Nigeria (CBN) shows that the naira fell to N1,552.53 per dollar on Thursday, down from N1,531.25 on Wednesday, marking a N21.28 drop in just one day. This is the most significant single-day depreciation since March 22, when the currency lost N18.96 in value.
Similarly, in the black market, the naira weakened further, exchanging at N1,560 per dollar on Thursday, compared to N1,555 on Wednesday—a loss of N5 within 24 hours.
This decline comes despite the CBN’s recent disclosure that Nigeria’s Net Foreign Exchange Reserve (NFER) reached $23.11 billion by the end of 2024, marking its highest level in over three years.
The weakening of the naira follows Trump’s tariff announcement on Wednesday, which triggered concerns in global markets. Economic analysts believe the 10 percent baseline tariff imposed by Trump will significantly impact trade between the United States and Nigeria, which is valued at around $10 billion.
Dr. Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), noted that Trump’s tariff decision could have far-reaching consequences for the Nigerian economy, particularly by affecting the African Growth and Opportunity Act (AGOA), which has supported trade between the two nations.
“This could have implications for the naira exchange rate,” Dr. Yusuf stated in a press release on Thursday.
