Naira Hits Record Low Against Dollar Amid Trump’s Tariff Announcement

The Nigerian naira experienced its highest depreciation against the dollar this week at the official foreign exchange market, following U.S. President Donald Trump’s tariff announcement. According to data from the Central Bank of Nigeria, the naira fell to N1,552.53 per dollar on Thursday, down from N1,531.25 on Wednesday, marking a decline of N21.28 within a single day. This represents the sharpest drop since March 22, when the naira slumped by N18.96 at the official market.

In the parallel market, the naira also weakened, losing N5 to trade at N1,560 per dollar on Thursday, down from N1,555 the previous day. This drop occurred despite the Central Bank of Nigeria’s report that the country’s Net Foreign Exchange Reserve (NFER) had reached $23.11 billion by the end of 2024, the highest level in over three years.

The naira’s decline came in the wake of President Trump’s tariff announcement on Wednesday, which has caused global concern. Economic analysts pointed out that the new 10 percent tariffs imposed by the U.S. could disrupt trade between the U.S. and Nigeria, valued at around $10 billion. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, warned that Trump’s actions would significantly impact Nigeria’s economy by effectively ending the African Growth and Opportunity Act. He added that these developments could further affect the naira’s exchange rate.