On October 3, 2024, Nigeria’s money, called the naira, became a little stronger compared to the U.S. dollar. It was worth N1,659.26 at the end of the day when people were exchanging money in the official Investor and Exporter (I&E) market. Lots of trading happened that day, kind of like a busy marketplace where people were buying and selling a lot.
The naira did a bit better, about 0.59% more than the day before, where it was N1,669.15 on October 2, 2024. This change happened because the Nigerian government is trying to make it easier for businesses to invest in drilling for oil deep in the ocean, hoping to get $5 to $10 billion in new investments soon.
Because the naira got a bit stronger, lots of trading took place, with the total reaching $450.39 million. That’s a big jump, 155% more, from the day before when there was $176.45 million in trading.
Important NumbersÂ
Exchange Rate: By the end of October 3, one dollar was worth N1,659.26, showing the naira improved by 0.59% from N1,669.15.
Highest and Lowest Rates: The naira went up and down during the day, hitting a high point of N1,696.00 and dipping to a low of N1,601.48, but finally stopping at N1,659.26.
Market Activity: In the I&E market, trading got really busy, climbing up to $450.39 million from $176.45 million the day before. In the whole of September, trading added up to a big number, $3.3 billion.
Other Market Rates: In another market called the parallel market, the naira started at N1,669.49 for one dollar. It changed between N1,673.34 at its highest and N1,645.00 at its lowest before finishing at N1,645.00.
Market Movement
During September, the naira was trying hard to find its steady price and was moving like a seesaw. Since March, the naira has had trouble keeping a steady value. In August, it was mostly around N1,500, but in September, it lost more value. Since the start of the year, the naira has lost around 75% of its value because things got more expensive and more people wanted foreign money.
Even so, Nigeria stored a bit more money from outside sources, going from $36.305 billion at the end of August to $36.730 billion by the middle of September.
What You Should Know
The Nigerian government wants to get $5 to $10 billion soon by giving special deals on taxes for oil and gas businesses operating deep in the ocean. They’re cutting down on taxes for things like diesel and natural gas to make many companies interested in investing in those areas.
What Might Happen
- The government is giving special benefits, like tax breaks, to companies that work in deep ocean oil and gas projects. This should get more companies interested in coming to Nigeria to invest.
- When more companies invest money, they will likely produce and sell more oil, which could help the naira become stronger.
- These new opportunities and tax cuts could make people feel optimistic about Nigeria’s economy and its currency, the naira.