The Nigerian naira suffered its steepest decline against the US dollar this week, following President Donald Trump’s new tariff policy announcement.
According to official data from the Central Bank of Nigeria (CBN), the naira fell to N1,552.53 per dollar on Thursday, down from N1,531.25 on Wednesday, marking a daily drop of N21.28. This represents the naira’s sharpest single-day depreciation since March 22, when the currency lost N18.96 in value.
In the parallel market, the naira also weakened slightly, dropping by N5 to trade at N1,560 per dollar, compared to N1,555 on Wednesday.
This depreciation comes despite the CBN’s recent report showing that Nigeria’s Net Foreign Exchange Reserves stood at $23.11 billion at the end of 2024—its highest level in over three years.
The currency slide followed President Trump’s tariff declaration on Wednesday, which sparked global reactions.
His administration announced a 10 percent baseline tariff on select imports, a move that experts warn could significantly impact US-Nigeria trade relations—currently valued at $10 billion.
Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), expressed concern that the tariffs could negatively affect Nigeria’s economic outlook, particularly by signalling an end to the African Growth and Opportunity Act (AGOA) benefits.
“This could have implications for the naira exchange rate,” Dr. Yusuf noted in a statement.
As global markets react to Trump’s economic policies, analysts are closely watching the naira’s trajectory in the coming weeks.