Naira Crash: Four Years of Saving ₦1 Can’t Buy $1- DDM

DDM News

(DDM) – Millions of Nigerians are waking up to a harsh economic reality that reveals just how far the local currency has fallen.

A fact-check by Diaspora Digital Media (DDM) shows that saving ₦1 per day for four years,v₦1,460 total, barely amounts to $0.91 at today’s exchange rate.

As of April 2025, the Nigerian Naira trades at approximately ₦1,613 to $1 on the official market, reflecting years of unchecked depreciation.

This staggering rate of devaluation illustrates the growing chasm between Nigeria’s economy and the global financial system.

In simpler terms, a Nigerian saving ₦1 daily for 1,460 days still wouldn’t be able to buy a single dollar in 2025.

This bleak arithmetic underscores deeper macroeconomic issues that continue to plague the nation.

Nigeria remains heavily dependent on crude oil exports, which account for around 90% of foreign exchange earnings.

Yet, global oil prices have dropped in recent years, cutting into Nigeria’s dollar reserves.

Oil production targets are also being missed due to pipeline vandalism, insecurity, and operational failures, especially in the Niger Delta.

Despite setting a 2025 production benchmark of 2.18 million barrels per day, industry observers doubt the country will meet it.

The Central Bank of Nigeria (CBN) has attempted several interventions to stabilize the Naira.

Policies like exchange rate unification and the rollout of an Electronic Foreign Exchange Matching System were introduced with high hopes.

But persistent forex scarcity and speculation have kept the black-market rate elevated, sometimes nearing ₦1,800 per dollar.

In contrast, the official rate hovered around ₦460 per dollar as recently as mid-2023, revealing the scale of the plunge.

This disparity has fueled inflation, which jumped from 22.79% in June 2023 to nearly 29% by December the same year.

The inflation crisis has made essential goods and services increasingly unaffordable for ordinary Nigerians.

Businesses reliant on imported inputs face higher operating costs, and many have shut down.

Job losses are mounting as industries scale back or relocate due to worsening exchange rates and reduced profit margins.

Households now struggle with basic needs, while salaries remain stagnant in the face of surging prices.

Some economists, including analysts at Goldman Sachs, have warned that continued devaluation is “a mathematical necessity.”

They argue that Nigeria must reconcile its fiscal imbalances with market realities to avoid further shocks.

The 2025 federal budget estimates a hopeful ₦1,400 per dollar, but analysts consider this projection highly ambitious.

Achieving that target would require massive improvements in oil output, forex inflow, and investor confidence.

Economic diversification and infrastructure reform remain key but underfunded areas.

In the absence of bold and consistent structural changes, the Naira may continue its free fall.

For everyday citizens, the message is clear: the value of their savings and salaries is shrinking at an alarming pace.

The notion that four years of daily savings cannot buy a single dollar captures the severity of Nigeria’s economic dilemma.

This is not just a currency issue, it is a humanitarian and social crisis threatening millions.

Until Nigeria revamps its revenue base, improves security, and fosters industrial growth, economic stability will remain elusive.

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