The Nigerian naira experienced a notable decline against the US dollar between March 28 and April 4, 2025, following the announcement of new tariffs by the administration of former US President Donald Trump.
Data from the Central Bank of Nigeria (CBN) revealed that the naira weakened by N30 per dollar during the week-on-week period. Specifically, the naira depreciated from N1,536.82 per dollar on Friday, March 28, to N1,567.02 per dollar by the close of trading on Friday, April 4, 2025. This movement reflected a consistent weakening in the official foreign exchange market, with the naira experiencing a decline almost every day, except for Tuesday, when it briefly closed at N1,531.25 per dollar.
In the parallel market, the naira also recorded a drop, falling by N10 week-on-week. The currency traded at N1,560 per dollar on Friday, down from N1,550 the previous week.
This decline occurred as the effects of the Trump administration’s tariffs on imports began to ripple through global markets, influencing exchange rates worldwide. On Wednesday, Trump’s government announced a broad range of tariffs, which subsequently contributed to the naira’s weakening in both the official and black markets.
The tariff announcements from the Trump administration have had a far-reaching impact, with delayed economic effects that have influenced the currency markets across various countries, including Nigeria.
