By Ojoniko Uyo, Lokoja
The Nigerian naira has been listed as one of the worst-performing currencies in Sub-Saharan Africa in 2024, according to the World Bank’s latest Africa’s Pulse report.
As of August 2024, the naira had depreciated by approximately 43% year-to-date, ranking it among the weakest currencies alongside the Ethiopian birr and the South Sudanese pound.
The decline is attributed to surging demand for U.S. dollars in Nigeria’s parallel market, limited dollar inflows, and slow foreign exchange disbursements by the central bank.
The report highlights that financial institutions, non-financial end-users, and money managers driving dollar demand have further pressured the naira. Despite Nigeria’s foreign exchange market reforms, including the liberalization of the official exchange rate in June 2023, these efforts have been insufficient to stabilize the currency.