The Nigerian naira closed at ₦1,537 per dollar on Christmas Eve, its weakest pre-holiday rate ever, despite a marginal gain from the previous day’s close of ₦1,538. The year-end performance marks a staggering 42% depreciation year-on-year, underscoring Nigeria’s persistent economic struggles.
Data from the Central Bank of Nigeria (CBN) revealed an intraday high of ₦1,545 and a low of ₦1,533, highlighting continued volatility. The parallel market, often used as a benchmark for true demand, saw rates stabilize at around ₦1,650–₦1,655, far above the official figure.
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This reflects not just exchange rate pressures but broader economic headwinds like inflation and fiscal imbalances.
The CBN’s recent introduction of the Enhanced Foreign Exchange Management System (EFEMS) has improved transparency, enabling an 8% appreciation month-to-date. However, analysts caution that structural inefficiencies persist.
Despite temporary measures like allowing Bureau de Change operators to purchase $25,000 weekly and travelers to buy forex via commercial banks, the naira’s performance highlights the need for urgent reforms.
The current trajectory is unsustainable added. To restore confidence in the currency, Nigeria must address underlying macroeconomic challenges and enhance forex market efficiency.
As Nigeria enters the festive season, the naira’s plunge serves as a stark reminder of the economic hurdles facing Africa’s largest economy in the year ahead.
