Naira Drops Massively Against US Dollar At Official Exchange Market

The Nigerian currency, the Naira, has just experienced its most significant decline against the United States (US) Dollar in the official foreign exchange market, coinciding with the tariff announcement made by U.S. President Donald Trump.

Data from the Central Bank of Nigeria (CBN) indicated that the naira fell to ₦1,552.53 per dollar on Thursday, down from ₦1,531.25 on Wednesday, April 2.

Naijaonpoint reports that this represents a decrease of ₦21.28 against the dollar on Thursday compared to the previous day’s exchange rate of ₦1,531.25.

This marks the largest single-day depreciation against the dollar since March 22, when the naira fell by ₦18.96 over the course of a week in the official market.

In the parallel market, the naira also weakened, dropping by ₦5 on Thursday to₦1,560 per dollar from ₦1,555 the day before.

This decline occurs despite the Central Bank of Nigeria’s announcement that the country’s Net Foreign Exchange Reserve (NFER) reached $23.11 billion at the end of 2024, the highest level seen in over three years.

The naira’s drop in both the official and black markets follows the tariff announcement from Trump’s administration on Wednesday, which has generated global backlash.

Economic analysts have noted that Trump’s 10 percent baseline tariffs could impact U.S.- Nigeria trade, which is valued at approximately $10 billion.

The CEO of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, stated on Thursday that Trump’s tariffs would negatively affect Nigeria’s economy by effectively ending the African Growth and Opportunity Act.

“This could have implications for the naira exchange rate,” the CPPE chief stated.