The Nigerian naira experienced its steepest fall against the US dollar this week, following the announcement of fresh tariffs by US President Donald Trump.
Data from the Central Bank of Nigeria (CBN) showed the naira plummeted to N1,552.53 per dollar on Thursday, from N1,531.25 the previous day—an unprecedented single-day drop of N21.28. This marks the currency’s most significant daily depreciation since March 22, when it slid by N18.96.
The parallel market reflected a similar trend, with the naira weakening by N5 to exchange at N1,560 per dollar, down from N1,555 on Wednesday.
This slump came despite positive indicators from the CBN, which recently reported Nigeria’s Net Foreign Exchange Reserves at $23.11 billion as of year-end 2024—its highest in over three years.
Trump’s imposition of a 10% baseline tariff on selected imports triggered concerns among analysts, especially for US-Nigeria trade ties, which are worth around $10 billion.
Dr. Muda Yusuf, head of the Centre for the Promotion of Private Enterprise (CPPE), warned that the development could undermine Nigeria’s economic stability and signal the end of trade incentives like AGOA, ultimately putting more pressure on the naira.
