The key reason is Nigeria’s heavy reliance on imports. From fuel to food, we import more than we export. This increases demand for dollars while the supply remains limited.

Oil Dependency
Nigeria earns most of its foreign exchange from crude oil sales. Whenever global oil prices crash, the dollar inflow reduces drastically, putting pressure on the naira.

Inflation & Policy
High inflation, weak policies, and corruption have also fueled the fall. Businesses struggle, and citizens pay more for less.