The depreciation of the Naira in recent months has sparked significant setbacks in the West African market, with trans-border traders increasingly shunning the Nigerian currency in favor of the CFA or other local currencies of non-francophone countries, according to investigations by Vanguard at the Seme border.

Traditionally, the Naira enjoyed status as the preferred medium of exchange due to Nigeria’s substantial trade volume with neighboring countries.

However, its decline in value since February has led to outright rejection by traders as of March 2024.

Official figures reveal a sharp decline in the Naira’s value against the CFA, dropping from N1/1.5CFA in early 2023 to N1/0.37595CFA recently. Despite slight improvements, the Naira remains far from its former strength, impacting the cost of imported goods and business activity in border towns.

On-ground reports from Benin-Nigeria border markets indicate a dwindling presence of the Naira, with money changers and transport operators favoring the CFA to mitigate losses due to the Naira’s instability.

Ibrahim Yakubu, a bike rider, and Taiye Ekiti, a money changer, voiced their preference for the CFA over the Naira, citing the dollar’s influence on the Naira’s depreciation.

Traders like Mr. Achi Collins, dealing in second-hand clothing, note the reluctance of counterparts to accept the Naira, prompting customers to exchange their money for CFA.

While some traders in Seme may still accept Naira, the exchange rate’s impact is evident in higher prices for goods.

The rejection of the Naira in major cities of the Benin Republic underscores its diminished value, with traders insisting on CFA for transactions.

Before now, Naira was accepted on the west coast, up to Ivory Coast and Senegal. Traders freely spent Naira in many countries of West Africa.

Nigerian sports journalists who covered sports events in Benin Republic, Togo, Ghana, Senegal and Ivory Coast spent Naira in the markets of these countries.

Naira was stronger than CFA then. Those days are gone. The naira is now rejected in these countries.