Nigeria Battles Currency Crisis and Soaring Inflation

Photo of author
Written By Kris Enyinnaya

Nigeria, the largest economy in Africa, finds itself grappling with a severe currency crisis and soaring inflation rates.

These challenges have plunged the country into one of its most severe economic crises in recent memory, sparking widespread outrage and protests across the nation.

Read More: Standard Chartered’s CEO Points to ‘Lack of Confidence’ as China’s Biggest Problem

Escalating Inflation and Currency Depreciation

Recent data from the National Bureau of Statistics revealed that Nigeria’s headline consumer price index (CPI) surged to 29.9% year-on-year in January, marking its highest level since 1996.

Credits: DepositPhotos

Simultaneously, the Nigerian naira has plummeted to new all-time lows against the U.S. dollar, exacerbating the economic turmoil.

Government Intervention Efforts

In response to the crisis, President Bola Tinubu announced plans to raise a substantial sum of at least $10 billion to bolster foreign exchange liquidity and stabilize the depreciating naira. 

However, despite such initiatives, the currency has depreciated by approximately 70% since May 2023, when Tinubu assumed office.

Reforms and Their Impact

Tinubu’s administration initiated various reforms aimed at revitalizing the economy and attracting international investments. 

These reforms included unifying Nigeria’s multiple exchange rates and allowing market forces to determine the exchange rate.

Consequently, the currency experienced a sharp devaluation, further exacerbating the economic downturn.

Economic Impact and Social Unrest

The economic crisis has triggered significant social unrest, with protests erupting nationwide due to the surging cost of living and widespread economic hardship. 

Additionally, government reforms, such as the removal of gas subsidies, have further fueled public discontent and exacerbated the negative impact of the currency depreciation.

Multifaceted Economic Challenges

In addition to inflation and currency depreciation, Nigeria faces various economic challenges, including record levels of government debt, high unemployment rates, power shortages, and declining oil production, its primary export. 

These challenges are compounded by violence and insecurity in rural areas, exacerbating the economic strain.

Also Read: Shipping giant Maersk says Red Sea vessel diversions could extend into the second half of 2024

Policy Responses and Future Outlook

Economists anticipate that inflation will continue to rise, peaking at nearly 33% year-on-year in the second quarter of 2024.

Credits: DepositPhotos

In response, the Central Bank of Nigeria (CBN) may implement significant interest rate hikes to combat inflation and stabilize the economy.

However, uncertainties loom over the effectiveness of such measures and their potential long-term impact on Nigeria’s economic recovery.

Navigating Uncertain Terrain

As Nigeria grapples with its most severe economic crisis in years, policymakers face the daunting task of implementing effective measures to stabilize the economy and mitigate the adverse effects of inflation and currency depreciation. 

The road ahead remains uncertain, with the country confronting multifaceted challenges that require urgent and decisive action to restore economic stability and foster sustainable growth.

Read Next: Can This Prestigious Fashion Brand Pivot Beyond a Decade of Stagnant Growth? 


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.