JUST IN: Naira Crumbles to N1,600 Per $1 as Tinubu’s Economic Turmoil Continues

The Nigerian Naira plummeted to N1,600 against the US Dollar on Thursday, underscoring ongoing economic challenges during President Bola Tinubu’s administration. Aboki Forex reported the decline despite the Central Bank of Nigeria’s efforts to stabilize the currency.

Although the Naira had been weakening against the Dollar prior to Tinubu taking office last May, its decline accelerated after the currency was floated. In September, it hit N1,000 per Dollar on the parallel market, signaling the limitations of Tinubu’s currency management amidst inflation.

In July, the Association of Nigerian Licensed Customs Agents (ANLCA) highlighted a decrease in vehicle imports due to the currency floatation.

On January 31, the Naira fell to N1,520.123 per Dollar according to Naira Rates, marking a N38 depreciation in 24 hours from N1,482.75 the previous day in the official foreign exchange market. It also marked the first time post-COVID-19 that the official rate surpassed the parallel market.

Tinubu’s monetary policies, including the elimination of fuel subsidies and consolidation of foreign exchange windows, contributed to the Naira’s 98% devaluation, according to Price Water Coopers. This move aimed to attract foreign investment and stimulate the economy in 2024.

READ ALSO: Naira Depreciates in Parallel Market, Gains Strength in Official Window

Since hitting N1,000 against the Dollar on September 26, the Naira has lost 17% of its value, prompting concerns about Tinubu’s fiscal policies.

Despite criticism and resistance, Tinubu’s administration sees the removal of petrol subsidies and the adoption of a clean float foreign exchange management as strategic steps towards a more market-driven economy, aiming to reduce the government’s financial burden.