Naira Nosedives After Trump’s Tariff surprise 

The Nigerian naira recorded its steepest one-day crash in weeks on Thursday, triggered by global market panic after U.S. President Donald Trump unveiled sweeping new import tariffs.

According to figures from the Central Bank of Nigeria (CBN), the naira plunged into the official forex window, sliding from ₦1,531.25 to ₦1,552.53 per dollar—a ₦21.28 drop in just 24 hours, and its sharpest fall since March 22. The black market followed suit, with rates weakening to ₦1,560 from ₦1,555.

This setback came despite a surge in Nigeria’s Net Foreign Exchange Reserves, which hit $23.11 billion in December 2024, the highest since 2021. But analysts say global uncertainty, worsened by Trump’s trade war rhetoric, is spooking investors and shaking confidence in emerging market currencies like the naira.

Trump’s declaration of a 10% tariff on all U.S. imports has drawn global backlash and is raising alarms in African economies that depend on preferential U.S. trade deals. In Nigeria, concerns are mounting that this could signal the demise of the African Growth and Opportunity Act (AGOA), which allows certain African countries, including Nigeria, to export duty-free to the U.S.

Dr. Muda Yusuf, head of the Centre for the Promotion of Private Enterprise (CPPE), warned that losing AGOA privileges would cut Nigeria’s export revenue and deepen trade deficits, both of which could further erode investor confidence and pressure the naira.