The Nigerian Naira's value continues to erode, reflecting a troubling trend that began shortly after President Bola Tinubu took office on May 29, 2023. Yesterday, the currency depreciated to N1,680 per dollar in the parallel market, down from N1,655 on Tuesday, marking another milestone in its downward trajectory.

The official Nigerian Autonomous Foreign Exchange Market (NAFEM) also recorded a significant drop, with the Naira falling to N1,667.42 per dollar. FMDQ data revealed an N8.94 depreciation from Tuesday's rate of N1,658.48. This decline was accompanied by a 39.6% decrease in trading volume, with only $100.47 million exchanged compared to Tuesday's $166.36 million.

The widening gap between the parallel market and NAFEM rates, now at N12.58 per dollar up from N3.48 on Tuesday, underscores the ongoing volatility in Nigeria's foreign exchange market.

This latest depreciation is part of a larger pattern that emerged following President Bola Tinubu's inauguration. One of his first major economic policies was to float the Naira and unify the country's multiple exchange rates. While this move was aimed at attracting foreign investment and stabilizing the currency in the long term, it has led to a sharp devaluation in the short term.

When Tinubu took office, the official exchange rate stood at around N465/$. The subsequent float saw the Naira's value plummet, losing over 70% of its value in less than a year. This rapid devaluation has had far-reaching effects on Nigeria's import-dependent economy, driving up inflation and the cost of living for average Nigerians.

As the Naira approaches the N1,700/$ mark, questions continue to arise about the effectiveness of the current forex policies and what additional measures might be needed to stabilize the currency and the broader economy.​​​​​​​​​​​​​​​​