The Nigerian naira experienced a notable depreciation against the U.S. dollar on Thursday, following the recent imposition of a 14% tariff on Nigerian exports by U.S. President Donald Trump.
The currency weakened by approximately 1.3%, with the dollar quoted at ₦1,552.53, compared to ₦1,531.25 the previous day, according to data from the Central Bank of Nigeria (CBN).
In the parallel market, the naira also declined, closing at ₦1,560 per dollar, down from ₦1,555 on Wednesday. This depreciation coincided with a 0.3% decrease in Nigeria’s gross external reserves, which stood at $38.17 billion as of April 2, 2025.
The new U.S. tariffs have raised concerns about potential reductions in Nigeria’s export revenues, particularly affecting key sectors such as oil and agriculture. Economic analysts warn that these trade barriers could exacerbate existing economic challenges, including currency instability and inflationary pressures.
The global financial markets have also reacted negatively to the U.S. tariff announcements, with significant declines in stock markets and a weakening of the U.S. dollar. Analysts attribute these movements to fears of a potential global trade war and its implications for international trade dynamics.
