The Nigerian naira recorded its steepest depreciation in recent weeks on Thursday, following a tariff announcement by United States President Donald Trump that rattled global markets.
Data from the Central Bank of Nigeria (CBN) revealed that the naira fell to N1,552.53 per dollar at the official foreign exchange market, down from N1,531.25 on Wednesday. This marks a single-day depreciation of N21.28, the sharpest decline since March 22, when the currency dropped by N18.96.
The parallel market reflected a similar trend, with the naira weakening by N5 to exchange at N1,560 per dollar, compared to N1,555 the previous day.
The downturn in the naira comes despite a boost in Nigeria’s foreign exchange reserves. According to the CBN, the country’s Net Foreign Exchange Reserves (NFER) stood at $23.11 billion as of the end of 2024 — the highest in over three years.
Analysts link the naira’s sudden drop to President Trump’s newly announced 10 percent baseline tariffs, which have drawn criticism globally and are expected to impact US-Nigeria trade relations valued at $10 billion.
Speaking on the development, Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), warned that the tariffs could significantly affect Nigeria’s economy.
“The termination of the African Growth and Opportunity Act (AGOA) under Trump’s new policy could have serious implications for the naira exchange rate,” Yusuf stated.
The economic ripple effects of Trump’s tariff move are already being felt, and market watchers fear further volatility in Nigeria’s currency if the global trade tensions persist.
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