The Nigerian Naira is one of the worst-performing currencies in sub-Saharan Africa in 2024, according to the World Bank’s latest Africa’s Pulse report. The report places the Naira alongside the Ethiopian Birr and the South Sudanese Pound, highlighting their significant declines in value within the region.
The World Bank report attributes the Naira’s depreciation to an increasing demand for U.S. dollars and limited dollar inflows into the country. By August 2024, the Naira had depreciated by approximately 43%, reflecting the country’s ongoing foreign exchange challenges.
“By August 2024, the Ethiopian Birr, Nigerian Naira, and South Sudanese Pound were among the worst performers in the region,” the report stated, pointing to the pressure from the parallel market and slow foreign exchange disbursements by the Central Bank of Nigeria (CBN).
The report noted that surges in demand for U.S. dollars, particularly in the parallel market, have been driven by various financial institutions, money managers, and non-financial end-users. With the CBN struggling to meet the demand for foreign exchange, the Naira has weakened steadily, compounding Nigeria’s economic woes.
