Nigeria, Africa's largest economy and most populous country, is struggling with high inflation.
In January this year, panic caused the naira to start a new round of plunge after the Nigerian regulator changed the calculation method of the closing exchange rate to bring the naira closer to the market rate. Not long ago, the Nigerian naira’s exchange rate against the U.S. dollar hit a record low in both the official and parallel foreign exchange markets, with the lowest hitting 1,680 naira per U.S. dollar.
Since the beginning of the year, the Nigerian naira has devalued by nearly 70%, becoming the worst-performing currency in the world.
Nigeria is a country that relies heavily on international trade and imports of various goods and services, including refined petroleum products, machinery and consumer goods, and is therefore extremely vulnerable to changes in global market fluctuations. The weakening naira has further eroded incomes and savings of local residents.
Recently, demonstrations have taken place in many places in Nigeria to protest against the high prices and high cost of living. On the evening of February 27, local time, the Nigeria Labor Congress announced the suspension of the two-day nationwide demonstrations it had previously decided to hold. The announcement issued by the organization stated that the demonstration on the 27th had achieved its expected goals and would require the Nigerian government to meet the relevant demands it raised in October last year within 14 days, including raising the minimum wage standard.
Scribant, senior political economist at Oxford Economics, said: "Reductions in disposable income and worsening cost of living pressures will continue to be a concern throughout 2024, which will further depress consumer spending and private sector growth."
