The World Bank’s Africa’s Pulse report has identified the Nigerian naira as one of the worst-performing currencies in sub-Saharan Africa for 2024, citing a year-to-date depreciation of about 43 percent by the end of August. This sharp decline is largely attributed to limited dollar inflows and slow foreign exchange disbursements by the Central Bank of Nigeria (CBN) to currency exchange bureaus. The high demand for US dollars, particularly in the parallel market, further increased pressure on the naira.

According to the report, the depreciation has led to rising domestic prices, especially for imported goods, intensifying the financial burden on Nigerian consumers. As of October 15, 2024, the naira traded at ₦1,658 per US dollar in the official market, according to FMDQ Exchange.

The report also highlighted the Ethiopian birr and South Sudanese pound as other poor-performing currencies in the region, while the Kenyan shilling and South African rand showed signs of improvement. The Kenyan shilling was the best-performing currency, appreciating by 21 percent by August 2024, while the South African rand strengthened by 3.1 percent.

Regarding Nigeria’s economy, the World Bank projected that the country’s gross domestic product (GDP) would expand by 3.3 percent in 2024 and increase to 3.6 percent in 2025 and 2026, supported by gradual macroeconomic and fiscal reforms. Nigeria’s inflation rate, which peaked at 34.2 percent in June, declined to 32.2 percent by August, with the removal of petrol subsidies in mid-2023 playing a significant role in driving inflationary pressures.

Overall, sub-Saharan Africa’s economic growth forecast was downgraded to 3 percent for 2024, primarily due to Sudan’s economic collapse, but the region is expected to recover, with growth projected to rise to 3.9 percent in 2025, driven by private consumption and investment.