By Milcah Tanimu
The Nigerian Naira has emerged as one of Africa’s worst performing currencies in 2024, according to the World Bank’s latest Africa’s Pulse report. This report reveals the alarming decline of the Naira, which ranks alongside the Ethiopian Birr and South Sudanese Pound.
The report attributes the Naira’s depreciation to rising demand for U.S. dollars and limited dollar inflow in recent months.
Naira Depreciation in 2024
As of August 2024, the Naira had lost approximately 43% of its value. The report states:
“The Nigerian Naira continued losing value, with a year-to-date depreciation of about 43% as of the end of August.”
The surge in demand for U.S. dollars in the parallel market, driven by financial institutions and non-financial end-users, has contributed to the Naira’s decline. Limited dollar inflows and slow foreign exchange disbursements from the central bank to currency exchange bureaus have further weakened the Naira.
Recent Market Trends
On October 14, 2024, the Naira hit a record low, closing at N1,700 per dollar in the parallel market, as reported by Bureau de Change (BDC) operators. This represents a 0.29% drop from the previous rate of N1,695/$1 recorded on October 11, despite crude oil prices exceeding $80 per barrel.
