The Nigerian naira suffered its sharpest single-day decline in weeks against the U.S. dollar on Thursday, following global economic tremors triggered by new tariff announcements from former U.S. President Donald Trump.
According to data from the Central Bank of Nigeria (CBN), the naira depreciated significantly in the official foreign exchange market, falling to ₦1,552.53 per dollar from ₦1,531.25 on Wednesday.
This marks a ₦21.28 loss in just 24 hours—the largest daily slump since March 22, when the currency dropped by ₦18.96.
The downward trend extended to the parallel (black) market, where the naira also weakened, trading at ₦1,560 per dollar on Thursday compared to ₦1,555 the previous day.
The sharp fall comes despite encouraging data from the CBN showing Nigeria’s Net Foreign Exchange Reserve (NFER) climbed to $23.11 billion as of December 2024—the highest level in more than three years. However, analysts say global headwinds, particularly Trump’s aggressive trade stance, have unsettled emerging markets, including Nigeria.
Trump’s announcement of a baseline 10% tariff on all U.S. imports on Wednesday sent shockwaves through international markets and drew widespread criticism from trade partners. In Nigeria, economic experts say the policy shift could damage trade ties and place additional pressure on the naira.
Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), warned in a statement on Thursday that Trump’s tariffs could effectively signal the end of the African Growth and Opportunity Act (AGOA)—a U.S. policy initiative that granted certain African nations, including Nigeria, duty-free access to the U.S. market.
“This could have implications for the naira exchange rate,” Dr. Yusuf said. “The loss of AGOA access would reduce Nigeria’s export earnings and increase trade imbalances, potentially weakening investor confidence and foreign inflows.”
Trade between Nigeria and the U.S. is currently valued at over $10 billion. A significant portion of that hinges on preferential terms made possible by AGOA.
