Nigeria’s foreign reserves have dropped by $2. 2 billion amid concerns about the central bank’s support for the Naira and the settlement of over $2 billion foreign exchange backlog. Watch this report for more details!

Nigeria's foreign reserves have fallen $2.2 bn since January

Nigeria is looking at $1.5 billion worth of loans from the World Bank to help with its chronic dollar shortage. The severe dollar shortage has been a significant factor in the sharp collapse of the Naira to a record low.

Sinking Naira pushes Nigeria to seek $1.5 bn aid from World Bank

Nigeria is the country with the largest economy in the African continent has been struggling with poor economic growth and skyrocketing inflation. The inflation numbers hit an 18-year high of 25.8 per cent in August. But with President Bola Tinubu taking office in May hopes were high that his administration would be able to curb the crisis.

Nigeria: Africa's biggest economy under threat

Let’s focus on Nigeria's currency woes as the Naira takes a sharp dive, reaching a record low against the US Dollar. with heavy demand for US Dollars, the central bank recently auctioned dollars at a significantly weaker exchange rate, raising concerns about a potential devaluation as a result, the naira hit a record low, creating a ripple effect across the economy.

Nigeria's Naira hits record low

Nigeria's currency, the Naira, has reached a historic low following the recent dollar auction conducted by the central bank, Bloomberg reported on Wednesday. The auction conducted by the central bank saw dollars sold at a naira rate nearly 30 percent weaker than the tightly controlled official market rate. This has fueled speculation of an imminent devaluation, adding to the concerns raised after the inauguration of Nigeria's new president last month.

The impact of the currency's depreciation was felt immediately, as the Naira slipped by 0.7 percent - the steepest decline in nearly six months - in official trading on the Nigeria Exchange. It eventually settled at 467.04 naira to a dollar, marking an unprecedented low point in the history of the Nigerian currency.

Nigeria's dwindling dollar earnings and reserves, coupled with the high demand for foreign currency from industries and importers, have compelled the government to manage supply and demand through multiple exchange rates. However, this system has resulted in a significant portion of the population resorting to the black market, where the Naira is approximately 40 percent weaker than the official rate.

Currency Crisis: World Bank Rings Alarm Bell&nbsp;

Meanwhile,&nbsp;the latest World Bank's global economic prospects for Sub-Saharan Africa&nbsp;report has said that Nigeria faces several macroeconomic challenges.&nbsp;

The World Bank report said that Nigeria's economic growth momentum has been hampered by persistent inflation, foreign exchange shortages, and disruptions caused by the recent naira redesign. These factors have impacted the post-pandemic rebound in Nigeria's non-oil sector, leading to a cooling effect on economic activity earlier this year.

Furthermore, lower energy prices and stagnant oil production have further hindered the growth trajectory. As a result, the World Bank has warned that&nbsp;economic growth is expected to barely exceed population growth, falling short of the necessary pace to make substantial progress in alleviating extreme poverty.

While the challenges facing Nigeria's economy are significant, they are not unique to the country.

The World Bank's report underscores the broader regional impact, with subdued recoveries and adverse external economic headwinds affecting other countries in Sub Saharan Africa. These challenges include weakened domestic vulnerabilities, tight global financial conditions, weak global growth, and heightened social unrest in some nations.

The World Bank's report also provides a global outlook, projecting a deceleration of growth from 3.1 percent in 2022 to 2.1 percent in 2023. This global economic slowdown adds to the already complex landscape for countries like Nigeria as they navigate both domestic and international challenges.

Nigeria's currency, the Naira, has reached a historic low following the recent dollar auction conducted by the central bank, Bloomberg reported on Wednesday. The auction conducted by the central bank saw dollars sold at a naira rate nearly 30 percent weaker than the tightly controlled official market rate.

Nigeria's currency, the Naira, has reached a historic low following the recent dollar auction conducted by the central bank, Bloomberg reported on Wednesday. The auction conducted by the central bank saw dollars sold at a naira rate nearly 30 percent weaker than the tightly controlled official market rate. This has fueled speculation of an imminent devaluation, adding to the concerns raised after the inauguration of Nigeria's new president last month. The impact of the currency's depreciation was felt immediately, as the Naira slipped by 0.7 percent - the steepest decline in nearly six months - in official trading on the Nigeria Exchange. It eventually settled at 467.04 naira to a dollar, marking an unprecedented low point in the history of the Nigerian currency. Nigeria's dwindling dollar earnings and reserves, coupled with the high demand for foreign currency from industries and importers, have compelled the government to manage supply and demand through multiple exchange rates. However, this system has resulted in a significant portion of the population resorting to the black market, where the Naira is approximately 40 percent weaker than the official rate. Currency Crisis: World Bank Rings Alarm Bell Meanwhile, the latest World Bank's global economic prospects for Sub-Saharan Africa report has said that Nigeria faces several macroeconomic challenges. The World Bank report said that Nigeria's economic growth momentum has been hampered by persistent inflation, foreign exchange shortages, and disruptions caused by the recent naira redesign. These factors have impacted the post-pandemic rebound in Nigeria's non-oil sector, leading to a cooling effect on economic activity earlier this year. Furthermore, lower energy prices and stagnant oil production have further hindered the growth trajectory. As a result, the World Bank has warned that economic growth is expected to barely exceed population growth, falling short of the necessary pace to make substantial progress in alleviating extreme poverty. While the challenges facing Nigeria's economy are significant, they are not unique to the country. The World Bank's report underscores the broader regional impact, with subdued recoveries and adverse external economic headwinds affecting other countries in Sub Saharan Africa. These challenges include weakened domestic vulnerabilities, tight global financial conditions, weak global growth, and heightened social unrest in some nations. The World Bank's report also provides a global outlook, projecting a deceleration of growth from 3.1 percent in 2022 to 2.1 percent in 2023. This global economic slowdown adds to the already complex landscape for countries like Nigeria as they navigate both domestic and international challenges.

Naira Hits All-Time Low Amidst Grim World Bank Report on Nigeria's Economy

People in Nigeria have taken to sleeping outside banks. They want to be among the first in line to get notes from the cash machine once it is loaded up in the morning.

Nigeria : Anger and chaos outside banks due to Naira shortage

Just weeks ahead of the Presidential election in Nigeria, 13 of the 18 political parties have threatened to withdraw from the polls over the currency redesign policy and the controversy surrounding it.

Nigeria: Row over currency redesigning

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