The Nigerian naira witnessed its steepest fall against the US dollar this week at the official foreign exchange window, following the recent tariff announcement by United States President Donald Trump.
According to data from the Central Bank of Nigeria, the local currency plummeted to N1,552.53 per dollar on Thursday, down from N1,531.25 recorded on Wednesday.
This indicated a single-day decline of N21.28 — the sharpest depreciation since March 22, when the naira slid by N18.96 in one day.
Meanwhile, the naira also saw a downturn at the parallel market, sliding by N5 to exchange at N1,560 per dollar, compared to N1,555 on Wednesday.
This depreciation comes despite CBN’s disclosure that Nigeria’s Net Foreign Exchange Reserve had climbed to $23.11 billion as of the end of 2024 — marking its highest level in over three years.
Analysts are linking the naira’s drop to Trump’s new tariff policy announced on Wednesday, which has drawn widespread international backlash.
Economists note that the 10 percent baseline tariffs could impact the $10 billion annual trade between Nigeria and the US.
In a statement released on Thursday, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said, “Trump’s tariff would affect Nigeria’s economy because it has brought an end to the African Growth and Opportunity Act.”
He added, “This could have implications for the naira exchange rate.”
