The Nigerian naira has continued its downward slide against the US dollar, hitting a new low of N1637.59 at Tuesday’s close. According to data from the Nigerian Autonomous Foreign Exchange, the naira depreciated by N14.63 against the dollar, marking a 0.90% drop in value.
The foreign exchange market witnessed significant trading activity, with a turnover of $143.15m. However, the naira’s performance was tumultuous, with the spot rate closing at N1637.59, a slight appreciation of N3.61 from the opening rate. The forward rate showed significant fluctuations, ranging from N1,499.00 to N1,655.00.
Despite a brief recovery on Friday, with the naira appreciating by 2.9% against the dollar, the currency remains under pressure. The recent drop in global oil prices, which now sell below $70 per barrel, has raised concerns about Nigeria’s economy, heavily reliant on the oil sector.
Former Chief Economist of Zenith Bank Marcel Okeke warned that the combination of pipeline vandalism, youth involvement, and the oil price crash has severely endangered the oil sector, crucial for oil exploration and production. “The reduction in revenue, coupled with increased government borrowing from dollar-based bonds, spells disaster for the economy,” Okeke said.
