As a Nigerian, the rate at which the dollar depreciates in value shouldn’t be a surprise to us at this moment; it is safe to say it is something that happens on a daily basis, but why does the naira keep depreciating in value?
Currently $1 equals N710, the reason for the depreciation of the Naira currency is due to the increase in high demand of Naira in the thick of low supply of dollars. It can be said Naira is given out more, Nigeria imports more than export which results to low income of dollars.
This causes inflation in prices of goods as well as services. Goods imported from outside are more expensive therefore the rate of selling them increases too.
This has emerged as a major issue of concern for most individuals and operating companies. The cost of raw materials, as well as the cost of production, is rising.
The national debt has built up to as significantly large amount of N41.6 trillion in the first quarter of 2022
More concerning is the fact that the increase in the money supply does not appear set to slow down any time soon, despite the fact that it is pushing inflation up.