The Nigerian naira’s value has taken a hit, depreciating by 0.90% against the US dollar, with the exchange rate now standing at N1637.59.
This decline has sparked concerns among experts, who warn of potential economic dangers.
According to data from the Nigerian Autonomous Foreign Exchange, the naira’s downward trend is attributed to a significant increase in dollar demand, leading to a high turnover of $143.15m in the foreign exchange market.
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Former Chief Economist of Zenith Bank, Marcel Okeke, notes that the combination of pipeline vandalism, organized youth involvement, and the sudden crash in oil prices has severely endangered the oil sector, which is crucial for oil exploration and production.
“The reduction in revenue, coupled with the government’s increased borrowing from dollar-based bonds, spells disaster for the economy,” Okeke said.
As the naira continues to weaken, Nigerians may face increased costs for foreign goods and services, further straining the economy.
The situation highlights the need for urgent economic reforms to mitigate the effects of the naira’s decline.
