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The Nigerian naira took a hit on Wednesday, depreciating sharply across both official and black market channels, following U.S. President Donald Trump’s announcement of a 90-day pause on global tariffs—excluding China.

Data released by the Central Bank of Nigeria (CBN) revealed that the naira fell to ₦1,628.93 per U.S. dollar at the official exchange rate window. 

This marks a drop of ₦17.38 compared to Tuesday’s rate of ₦1,611.55, reversing a brief rally that had seen a marginal 0.60 kobo gain just 24 hours earlier.

In the parallel market, the currency also plunged. From ₦1,575 per dollar on Tuesday, the naira depreciated to ₦1,620 per dollar on Wednesday. 

This decline is attributed to a sudden surge in dollar demand, especially in major hubs like Wuse Zone in Abuja.

“We bought at around ₦1,610 per dollar and sold for ₦1,620 due to increased demand,” a Bureau de Change operator confirmed to DAILY POST.

Ironically, the depreciation comes amid some positive macroeconomic indicators. On the same day, the Central Bank announced that Nigeria had recorded a balance of payments surplus of $6.83 billion, with diaspora remittances hitting $20.93 billion in 2024—figures that would typically support currency strength.

So, why is the naira still crashing?

Analysts believe Trump’s tariff pause, which notably exempts China, has triggered uncertainty in global markets, causing investors to reposition their assets. As a result, demand for the U.S. dollar surged both locally and globally, pushing weaker currencies like the naira into the red zone.

“This move by Trump may have created a ripple effect,” said one Lagos-based economist. “Traders are bracing for possible shifts in trade dynamics and are hoarding dollars as a hedge.”

Market watchers are now concerned that the naira may weaken further unless the Central Bank steps in with decisive forex interventions or adjusts its monetary policy stance. 

Many Nigerians, already grappling with inflation and rising food prices, fear that a weaker naira will only worsen the cost-of-living crisis.

As global events continue to shape Nigeria’s forex market, all eyes are on both the Federal Government and the Central Bank to stabilize the currency and reassure investors.

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