The Nigerian naira is one of the worst-performing currencies in sub-Saharan Africa in 2024, according to the World Bank’s latest Africa’s Pulse report. The report highlights that the naira depreciated by 43 percent by the end of August 2024 compared to the beginning of the year.
The World Bank attributed the naira’s decline to high demand for U.S. dollars and limited foreign currency inflows. “Surges in demand for U.S. dollars in the parallel market, driven by financial institutions, money managers, and non-financial end-users, combined with limited dollar inflows and slow foreign exchange disbursements… explain the weakening of the naira,” it said.
On October 15, the naira closed at N1,658 per dollar on the official exchange platform. However, in street-level currency exchange operations—similar to private money exchanges in the U.S.—it traded at N1,700 per dollar on October 14.
The World Bank noted that the naira’s depreciation has contributed to higher domestic prices, particularly for imported goods, further burdening Nigerian consumers.
Despite the challenges facing the naira, the World Bank maintained a cautiously optimistic outlook for Nigeria’s economic growth. The bank forecasts Nigeria’s economy to grow by 3.3 percent in 2024, rising to 3.6 percent by 2025.
—Ezinwanne Onwuka reports for TruthNigeria from Abuja.
