The Nigerian naira experienced its most significant drop against the US dollar this week, triggered by President Donald Trump’s recent announcement of a new tariff policy.
Based on official figures from the Central Bank of Nigeria (CBN), the naira declined to N1,552.53 per dollar on Thursday, falling from N1,531.25 on Wednesday, reflecting a daily decrease of N21.28. This marks the naira’s most substantial single-day loss since March 22, when the currency shed N18.96 in value.
In the unofficial parallel market, the naira also saw a modest decline, slipping by N5 to reach N1,560 per dollar, down from N1,555 on Wednesday.
This downturn occurred despite a recent CBN report indicating that Nigeria’s Net Foreign Exchange Reserves reached $23.11 billion by the end of 2024—the highest level recorded in more than three years.
The currency’s decline followed President Trump’s tariff proclamation on Wednesday, which elicited widespread international responses. His administration introduced a 10 percent baseline tariff on certain imports, a decision that experts caution could substantially alter US-Nigeria trade relations—presently valued at $10 billion.
Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), voiced apprehension that the tariffs might adversely influence Nigeria’s economic prospects, particularly by suggesting the potential termination of benefits under the African Growth and Opportunity Act (AGOA).
“This could have implications for the naira exchange rate,” Dr. Yusuf remarked in a statement.
As worldwide markets respond to Trump’s economic strategies, analysts are keenly observing the naira’s path in the weeks ahead.
A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.
Nnamdi Okoli
