The naira has fallen at the official market to a four-month low as a result of President Donald Trump’s tariff-induced crash in crude oil prices.
Benchmark crude oil price, Brent Crude fell as low as $60.6 per barrel on Tuesday following a reciprocal tariff that was imposed by Donald Trump on countries.
West Texas Intermediate also fell to $64.48 per dollar, according to data from oilprice.com.
Nigeria was slammed 14% reciprocal tariff. Trump announced blanket 34 per cent tariffs on China last week.
In Nigeria, proceeds from the sale of crude oil account for over 95 per cent of foreign exchange used to build up the country’s foreign exchange reserves.
The Whistler reports that with the low prices of oil, there have been unfavourable movements in the foreign exchange market since Trump announced the Tariff.
At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed at N1629 per dollar and traded as high as N1655 per dollar.
This is the lowest that the naira has traded since December 3, 2024 when the currency traded at N1,625 per dollar, according to data.
The naira saw its highest rally in 2025 when it closed at N1,475 per dollar on January 31, 2025.
Between January 31, 2025 and April 7, 2025, the naira fell by 10.4 per cent from N1475 to N1,629 per dollar.
At the parallel market controlled by the Bureau de Change, the naira fell to N1,610 from about N1,570.
In a recent circular, the Central Bank of Nigeria raised concern that the fall in crude oil prices was impacting the foreign exchange market.
