The Nigerian naira suffered its highest single-day depreciation against the dollar this week at the official foreign exchange market, following a tariff announcement by former United States President Donald Trump.
According to data from the Central Bank of Nigeria (CBN), the naira fell to N1,552.53 per dollar on Thursday, a significant drop from the N1,531.25 traded on Wednesday.
This marks a decline of N21.28 in a single day, the largest depreciation since March 22, when the currency fell by N18.96 in a week at the official market.
The currency’s decline was also evident at the parallel market, where the naira weakened by N5 to trade at N1,560 per dollar on Thursday, compared to N1,555 exchanged on Wednesday.
Despite CBN’s recent announcement that Nigeria’s Net Foreign Exchange Reserve (NFER) stood at $23.11 billion at the end of 2024—the highest level in over three years—the naira continues to struggle.
Economic analysts attribute the drop to Trump’s 10 percent baseline tariffs, which were announced on Wednesday and have triggered global backlash.
The tariffs are expected to impact US-Nigeria trade worth $10 billion, according to experts.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, noted that Trump’s decision would impact negatively on Nigeria’s economy.
“This could have implications for the naira exchange rate,” Dr. Yusuf said in a statement on Thursday.
The naira’s performance at both the official and parallel markets underscores growing concerns about Nigeria’s economic resilience amid shifting global trade policies.
