Naira don dey suffer well well, as e dey rank among the worst performing currencies for 2024, according to the World Bank‘s latest Africa’s Pulse report. The report show say the naira dey among the top worst performing currencies in Sub-Saharan Africa, alongside the Ethiopian birr and the South Sudanese pound.
Since the start of 2024, the value of the naira don depreciate by approximately 43%, and this dey cause serious pressure on the economy. The World Bank say the main reason for this depreciation be the surging demand for U.S. dollars in the parallel market, coupled with limited dollar inflows and slow foreign exchange disbursements by the Central Bank of Nigeria (CBN).
In the last 48 hours alone, the naira lose N106.7 against the dollar at the official foreign exchange market. On Wednesday, the naira drop to N1659.69 per dollar from N1658.97 on Tuesday, showing a significant loss. This trend dey continue despite interventions by the CBN to stabilize the currency.
The parallel market no be better, as the naira trade at N1705 per dollar on Wednesday, according to Bureau De Change operators in Lagos and Abuja. This mark a new low for the currency, and it dey put more pressure on Nigerians who need foreign exchange for their businesses and other needs.
The CBN Governor, Yemi Cardoso, talk say Nigeria get enough in its external reserves, which stand at $39.12 billion. But despite this, the naira still dey struggle to gain ground against the dollar.
The situation dey call for urgent attention from the government to address the economic challenges and find ways to stabilize the naira. The 2025 budget wey dey come soon suppose include solutions to these economic woes.
