Lagos, Nigeria – Naira don start Friday at N1,580 per dollar for parallel market, down from N1,590 on Thursday. This drop come despite the dollar index strong for global market. Naija’s currency dey face wahala as country dey rely heavy on crude oil for foreign exchange, and current economic challenges dey worsen the situation.
Aminu Gwadabe, wey be president of Association of Bureau de Change Operators of Nigeria (ABCON), don talk say BDC operators dey struggle as commercial banks no dey sell foreign currency to dem. ‘Naija no dey get enough forex now, and we dey find am tough to operate,’ he add.
Naira dey vulnerable because of several issues wey dey affect Nigeria economy, including weak demand and ongoing trade wahala with the U.S. OPEC+ production quota adjustments also dey affect naira. Even Nigeria’s oil production peak na 1.7 million barrels per day last year, but pipeline vandalism and oil theft dey impede government’s plan to increase output by one million barrels per day in the next two years.
NBS statistics show say naira stability in Q1 2025 help reduce inflation rate from 24.48 percent in January to 23.18 percent in February. Lower energy prices, stable naira, and rebasing inflation index also contribute to this decline. But the dollar continue to dey appreciate as traders dey cautious of Fed’s decision on interest rates.
U.S. President Donald Trump don express say rate cut go be ‘great’ move, but central bank no show intention to cut rates due to economic uncertainty and inflation direction. ‘We go dey watch how tings dey unfold,’ one financial expert talk.
High geopolitical tension for regions like Turkey and Gaza dey push investors to Treasuries for safety. As oil prices dey fluctuating and U.S bond yields dey drop, global markets dey react with mixed sentiment.
Afreximbank don also call for better investment for Africa to develop manufacturing and infrastructure, suggesting say dis go change narrative for continent’s economic future. Africa need stop exporting raw materials and focus on industrialization to create more value locally.
<p'In conclusion, Nigerian currency dey face serious challenges but recovery dey possible with proper policies. For now, the naira dey watch how global markets and internal policies go affect am moving forward.
