The naira, which has in recent times experienced stability, concluded 2024 with significant depreciation across foreign exchange (FX) markets, recording a 40.9 per cent loss against the dollar in the official market despite notable growth in external reserves.
According to BusinessDay, this sharp decline highlights ongoing challenges in Nigeria’s currency market in the just concluded year despite efforts to stabilise the economy.
Data from the Central Bank of Nigeria (CBN) reveals that the dollar was quoted at ₦1,535 on December 31, 2024, the last trading day of the year in the Nigerian Foreign Exchange Market (NFEM). This marks a steep drop from ₦997 per dollar on December 31, 2023, in what was then known as the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The decline of ₦628 within a year underscores a significant 40.9 per cent depreciation in the naira’s value during 2024. Moreover, the 12-month trajectory shows a 35.6 percent decline from ₦988.46 per dollar on January 2, 2024, to ₦1,535 by the year’s end.
The parallel market mirrored this downward trend. By December 31, 2024, the dollar was trading at an average of ₦1,656, compared to ₦1,164 at the end of 2023, representing a 29.7 per cent depreciation in the black market.