The Nigerian Naira experienced a slight decline against the US Dollar in the foreign exchange market, marking the first depreciation since March 2024. According to data from FMDQ, the Naira fell to N1,148.14 per Dollar on Tuesday from N1,136.04 on Monday, representing a 1% decrease. Similarly, the parallel market saw a drop to N1,100 per Dollar from N1,050 per Dollar on Monday, resulting in a N50 depreciation.

This shift in the exchange rate comes as Nigeria’s foreign exchange reserves have been dwindling, reaching $32.29 billion on April 15, 2024, down from $34.45 billion in March. The decrease in reserves can be attributed to a decline in crude oil revenue, with Nigeria’s oil production dropping to 1.23 million barrels per day in March from 1.32 million barrels per day in February.

Despite efforts by the Central Bank of Nigeria to support the Naira, including selling US Dollars to Bureau De Change operators at a benchmarked rate, the currency has faced challenges in maintaining its value. However, the Naira had been performing well in previous months, earning recognition as the best-performing currency in April by Goldman Sachs.

Looking ahead, the Nigerian government has pledged to increase oil production to boost revenue in the coming months. As the country navigates economic challenges, the fluctuating exchange rate serves as a reminder of the importance of diversifying revenue sources and strengthening the economy.