On Thursday, the Nigerian Naira plummeted to N1,600 against the US dollar, further exacerbating the economic challenges facing Nigeria under Bola Tinubu’s leadership.
Aboki Forex reported the alarming dip despite efforts by the Central Bank of Nigeria to stabilize the currency’s free fall. The downward spiral of the Naira had begun before Tinubu assumed office in May, but it intensified following the decision to float the currency.
In September, the Naira’s exchange rate reached a historic low of N1,000 to one dollar at the parallel market, underscoring the perceived inadequacies of Tinubu’s efforts to manage the national currency amid rampant inflation.
Concerns about the impact of currency floatation were raised earlier in July by the Association of Nigerian Licensed Customs Agents (ANLCA), citing a decline in vehicle importation at the nation’s ports.
According to Naira Rates, the currency depreciated further to N1,520.123 per dollar by January 31, compared to N1,482.75 per dollar recorded in the official foreign exchange market on January 30, marking a significant decline within 24 hours.
The Price Water Coopers report, ‘Nigeria’s Economic Outlook: Seven Trends That Will Shape Nigerian Economy in 2024,’ highlighted Tinubu’s economic policies, including the scrapping of fuel subsidies and the consolidation of foreign exchange windows, which contributed to the Naira’s devaluation by 98 percent. Despite concerns, these policies were projected to attract foreign investment and stimulate the economy in 2024.
Since September 26, when the Naira plummeted to N1,000 against the dollar, the currency has lost 17 percent of its value, reflecting the persistent decline attributed to Tinubu’s fiscal policies.
While Tinubu’s administration frames these moves as strategic, such as the removal of petrol subsidy to alleviate financial burdens and promote a market-driven economy, the continued depreciation of the Naira underscores the challenges facing Nigeria’s economic landscape under his leadership.