The Nigerian naira experienced its sharpest decline against the US dollar this week following President Donald Trump’s announcement of new tariff policies.
Official 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 the previous day, marking a decline of N21.28. This represents the largest single-day depreciation since March 22, when the currency lost N18.96.
In the parallel market, the naira also weakened slightly, falling 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 Nigeria’s Net Foreign Exchange Reserves reached $23.11 billion at the end of 2024—the highest level in over three years.
The currency’s fall follows President Trump’s tariff announcement on Wednesday, which stirred global reactions. His administration introduced a 10 percent baseline tariff on certain imports, a move that experts warn could significantly affect US-Nigeria trade relations, currently valued at $10 billion.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), expressed concerns that the tariffs could negatively impact Nigeria’s economic outlook, potentially signaling the end of benefits under the African Growth and Opportunity Act (AGOA).
“This could affect the naira exchange rate,” Dr. Yusuf cautioned in a statement.
As global markets react to Trump’s economic policies, analysts are closely monitoring the naira’s performance in the coming weeks.