In a significant shift in the foreign exchange market, the value of the Nigerian Naira has plummeted, closing at N1,602.1811 per dollar at the end of trading on Friday. This represents a marked decline from Wednesday’s exchange rate of N1,596.6891, just before the May Day celebration.
According the Central Bank of Nigeria (CBN), the naira traded for as high as N1,606.5 per dollar on the Nigerian Foreign Exchange Market (NFEM) before settling at the current rate on May 2, 2025.
The naira had made a remarkable recovery on Wednesday when it had a positive trend not seen in the past 20 days.
Market analysts have noted that this recent depreciation of the Naira is part of a broader trend affecting the currency, which has been under pressure due to various economic factors, including inflation, dwindling foreign reserves, and ongoing challenges in the oil sector. The Naira’s decline is concerning for businesses and consumers alike, as it raises the cost of imports and contributes to rising inflationary pressures within the economy.
The Central Bank of Nigeria (CBN) has been closely monitoring the situation, and while it has implemented measures in the past to stabilise the currency, the persistent volatility suggests that further intervention may be necessary. Experts are calling for a comprehensive approach to address the underlying issues affecting the currency and to restore confidence in the Nigerian economy.
The implications of this currency depreciation could be far-reaching, affecting everything from consumer prices to business operations across Nigeria.
