Naira Plunges to Record Low Amid Global Economic Tensions
Naira Falls Sharply Against Dollar Despite CBN Efforts
In a dramatic start to the trading week, the Nigerian naira depreciated to ₦1,612.23 per US dollar at the official market on Monday—marking its lowest level since the days of Donald Trump’s tariff announcement.
According to fresh data from the Central Bank of Nigeria (CBN), this represents a staggering ₦45.21 drop from last Friday’s official rate of ₦1,567.02.
Exchange Rates at a Glance
| Date | Official Rate (₦/$) | Black Market Rate (₦/$) |
|---|---|---|
| Fri, April 4, 2025 | 1,567.02 | 1,560 |
| Mon, April 7, 2025 | 1,612.23 | 1,575 |
BDCs Report Higher Rates in Abuja
Abubakar Alhasan, a Bureau De Change (BDC) operator in Wuse Zone 4, Abuja, confirmed that dollars sold on the black market reached ₦1,575 per dollar, up from last Friday’s rate. This growing gap between official and parallel market rates reflects continued uncertainty in Nigeria’s FX ecosystem.
CBN’s $197 Million Intervention Falls Short
Despite a $197 million intervention by the CBN last Friday, intended to stabilize the naira, the market response suggests investor confidence remains shaky. The failure to halt the currency’s slide is drawing concerns from economists and business leaders alike.
This mirrors the pattern seen during the Trump-era trade war when global financial volatility triggered similar reactions in emerging markets.
Black Monday Hits Nigerian Stock Market
It wasn’t just the naira that took a hit.
According to VestaDaily, Nigeria’s stock exchange joined global markets in a steep decline, an event now dubbed “Black Monday”. The ripple effect of global uncertainties—including the U.S. tariffs, oil price fluctuations, and FX scarcity—has placed Nigeria’s economic outlook under a microscope.
Why Is the Naira Falling?
Several key factors are driving this depreciation:
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FX demand exceeding supply, despite recent interventions
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Weak oil revenues, which fund Nigeria’s dollar reserves
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Investor flight to safety, pulling capital out of emerging markets
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Market speculation and parallel market dynamics
Read more from Investopedia on currency devaluation.
What’s Next for the Naira?
With rising inflation, unstable FX flows, and global market uncertainty, economists say the CBN may need to make further interventions—but not enough unless they are matched with policy reforms and foreign investment incentives.