The Nigerian naira has experienced a significant depreciation, trading at N1,535 to the US dollar in the parallel market and N1,523/$ at the official market as of July 9, 2024.
This decline is attributed to various economic challenges, including a fuel crisis and escalating food shortages. The Central Bank of Nigeria faces pressure to stabilize the currency amidst these issues. Additionally, there are concerns over inflation, with Nigeria reportedly having the world’s fifth-highest inflation rate at 104% per year by some measures.
The economic situation is further complicated by the government’s decision to suspend tariffs and taxes on certain imports to address a worsening food crisis.
