As a result of the additional debt obtained by the federal government, Nigeria’s external debt profile rose to $38.39 billion as of December 2021 from $33.35 billion recorded at the end of 2020.
The Exchange rate between the naira and the US dollar dropped significantly by 6.03% in the year 2021 to close at N435/$1 as of the end of trading activities on Friday,31st December 2021, compared to N410.25 to a dollar recorded in the corresponding date of last year.
Meanwhile, at the parallel market, which is a more volatile market, naira crashed against the US dollar to close at N565/$1 on the 31st of December 2021 as against N460/$1, which was recorded at the end of the previous year.
The market differential between the official and the black market was N49.75 as of last year. It has now widened to N140.74, as surging demand for scarce forex puts exchange rate at record levels at the unofficial market.