The naira suffered its steepest depreciation against the US dollar this week at the official foreign exchange market, amid global reactions to US President Donald Trump’s recent tariff announcement.
Data from the Central Bank of Nigeria (CBN) revealed that the naira dropped to N1,552.53 per dollar on Thursday, down from N1,531.25 traded on Wednesday.
This represents a daily loss of N21.28 — the largest single-day decline since March 22, when the currency dropped by N18.96.
In the parallel market, the naira also weakened, trading at N1,560 per dollar on Thursday, compared to N1,555 the previous day — a N5 depreciation.
The depreciation comes despite the CBN’s recent disclosure that Nigeria’s net foreign exchange reserves rose to $23.11 billion as of the end of 2024 — the highest level in over three years.
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Analysts have linked the naira’s sharp decline to President Trump’s announcement of new US trade tariffs, which have triggered global market concerns.
The administration’s 10 percent baseline tariffs, which are expected to impact over $10 billion worth of US-Nigeria trade, have sparked fears over potential disruptions to international trade relations.
Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), warned that the tariffs could have far-reaching effects on Nigeria’s economy, particularly due to implications on the African Growth and Opportunity Act (AGOA).
“The termination of AGOA could have implications for the naira exchange rate,” Yusuf stated on Thursday.
