According to the World Bank’s latest Africa’s Pulse report, the Nigerian Naira ranks among the worst-performing currencies in sub-Saharan Africa for 2024.
The report reveals that the Naira’s decline places it on par with the Ethiopian Birr and South Sudanese Pound. The depreciation is attributed to the rising demand for US dollars and limited foreign exchange inflow in the Nigerian economy. Despite efforts to stabilize it, the currency has continued to lose value throughout the year.
As of August 2024, the Naira had depreciated by approximately 43 percent, driven by surging dollar demand in the parallel market, financial institutions, money managers, and non-financial end-users. The Central Bank of Nigeria’s slow disbursement of foreign exchange to currency exchange bureaus has further compounded the situation.
Daily Trust reports that the Naira hit a new low of N1,700 per dollar in the parallel market on October 14, 2024. This marked a slight decline from N1,695/$1 on October 11, despite rising crude oil prices surpassing $80 per barrel.
The Nigerian government is under pressure to address the Naira’s depreciation and present the 2025 budget to offer solutions to the ongoing economic challenges.