Nigeria’s currency, the naira, has been ranked as one of the worst-performing currencies in Sub-Saharan Africa in 2024.
According to the latest report by the World Bank, titled Africa’s Pulse, the naira has depreciated by 43% as of the end of August 2024.
This significant depreciation has placed Nigeria’s currency alongside those of Ethiopia and South Sudan, both of which have also experienced substantial drops in value this year.
The report highlights economic challenges, inflation, and the weakening exchange rate system as contributing factors to this decline.
The World Bank emphasized that the naira’s sharp depreciation is one of the most severe in Africa this year, further exacerbating Nigeria’s economic instability.
The impact has been felt across various sectors of the economy, affecting both domestic and international trade.
The report calls for urgent reforms to stabilize the currency, which has been under pressure due to rising debt levels, limited foreign reserves, and a struggling oil sector.
As of now, the government has not announced any immediate plans to address the currency crisis, but the situation remains critical for economic recovery.
