This week, the Nigerian naira experienced its biggest drop against the US dollar at the official exchange market.

The Central Bank of Nigeria (CBN) reported that the naira fell to N1,552.53 per dollar on Thursday, down from N1,531.25 on Wednesday. This represents a N21.28 drop in just one day, the largest single-day decline since March 22, when the naira dropped by N18.96.

The naira also weakened at the black market, falling by N5 to N1,560 per dollar from N1,555 the previous day. This depreciation comes after US President Donald Trump announced new tariffs, which have caused concern worldwide.

Despite the Central Bank’s announcement that Nigeria’s foreign exchange reserves reached $23.11 billion at the end of 2024, the currency continues to struggle.

Experts believe Trump’s 10 percent tariffs will affect trade between the US and Nigeria, which is valued at around $10 billion.

Dr. Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprise, stated that the tariffs would impact Nigeria’s economy, especially since the move ends the African Growth and Opportunity Act (AGOA). He also noted that this could lead to further instability in the naira’s exchange rate.