Nigeria's currency, the naira, recorded its steepest depreciation against the US dollar in the official foreign exchange market on Wednesday, coinciding with President Bola Ahmed Tinubu's second anniversary in office.

According to data from the Central Bank of Nigeria, the naira weakened to N1,590.74 per dollar on Wednesday, sliding from N1,583.73 recorded on Tuesday. This represents a significant drop of N7.01 in a single trading day, marking the highest depreciation since May 26, 2025.

The parallel market (black market) also witnessed a decline, with the naira falling by N3 to trade at N1,620 per dollar on Wednesday, compared to N1,617 previously.

Impact of Tinubu's Forex Policies

The naira's current struggles can be traced back to June 2023 when the Tinubu administration implemented a floating exchange rate policy at the foreign exchange market. This significant policy shift has resulted in the naira depreciating from approximately N460 per dollar when the policy was introduced to the current rate of N1,590.74.

This latest depreciation comes at a symbolic moment as it coincides with President Tinubu's second anniversary in office, highlighting the ongoing economic challenges facing his administration.

The continuous weakening of the naira against major foreign currencies has raised concerns among economists and ordinary Nigerians about the effectiveness of the government's monetary policies and their impact on the cost of living.

Market analysts note that the naira has been under persistent pressure due to various factors, including limited foreign exchange supply, high demand for dollars, and broader economic challenges facing the country.

The Central Bank of Nigeria has implemented various measures to stabilize the currency, but these efforts have yet to yield the desired results as the naira continues to face downward pressure in both the official and parallel markets.