The Nigerian naira faced a challenging year in 2024, ending at ₦1,535/$1 against the US dollar. This marked a significant 40.9% depreciation from the previous year’s rate of ₦907.11/$1. Despite various reforms and policies by the Central Bank of Nigeria (CBN), the currency struggled to maintain stability.

On the parallel market, where exchange rates are unofficially determined, the naira traded at ₦1,660/$1, a 26.8% drop from ₦1,215/$1 in 2023. However, external reserves saw a positive increase, closing at $40.8 billion, a 24% rise from $32.9 billion at the end of 2023.

In 2024, the CBN introduced several policies aimed at stabilizing the naira and attracting foreign investments. These reforms spanned various sectors of the forex market:

• January: The naira appreciated to ₦1,455.59/$1 after measures to curb forex speculation and resolve airline FX issues.
• February: The ±2.5% cap on interbank forex transactions was removed, signaling a move toward a free-floating exchange rate. The EFCC intensified efforts to combat forex-related crimes.
• March: The Federal Government imposed a $10 billion fine on Binance for forex violations, while the CBN revoked licenses of over 4,000 Bureau De Change operators.
• April – Mid-Year: The CBN introduced stricter guidelines for BDCs, raised capital requirements to ₦2 billion, and implemented new policies to boost remittance inflows.

By the second half of the year, the government launched initiatives like a nine-month window for depositing undeclared foreign currencies and allowed banks to trade idle forex deposits.

Despite these reforms, the naira’s performance remained under pressure. The exchange rate fluctuated, with significant declines in April and July. By the end of the year, the naira remained one of the weakest currencies in Sub-Saharan Africa.

While the CBN made notable efforts to address forex challenges, the naira’s struggles underscore the need for more comprehensive strategies. As 2025 begins, Nigeria will need to build on these reforms to achieve lasting forex stability and economic growth.