The Nigerian Naira gained a record 21.8% appreciation against the US dollar in March 2024.

This feat is a major turnaround in the exchange rate policy as President Tinubu’s economic team continues with measures to close the gap between official and unofficial exchange rates.

Official figures show that by the end of March 2024, Naira closed at N1309/$1 a significant rise from N1595.11/$1 at the end of February 2024.

Related: Banks Report a Decline in Dollar Sales as Naira’s Value Drops to 1,479/Dollar

The success is a major indicator that several forex policies and economic strategies and inventions by the Central Bank of Nigeria are going in the right direction as President Tinubu keeps pushing towards stabilizing and strengthening the Naira.

Further, the Naira witnessed major recovery in the parallel market as the exchange rate moved from N1600/$1 in February to N1250/$1 by the end of March 2024.

 In the parallel market, the Naira recorded a 28% gain, a major reflection of the impact of measures aimed at closing the official and unofficial exchange rates.

The gains recorded in the official and parallel market in March is the highest the Nigerian Naira has gained against the US dollar in five years.

Prior to this success, the exchange rate was fixed at N450/$1 for close to two years and N380/$1 between 2020 and 2021.

Despite the gains, Nigerians are worried that the prices of commodities are yet to drop since the country faced inflation at the dawn of President Tinubu’s economic policies.

Recall that during his New Year speech, President Tinubu said that he was not “oblivious to the expressed and sometimes unexpressed frustrations of my fellow citizens. I know for a fact that some of our compatriots are even asking if this is how our administration wants to renew their hope.”

“Over the past seven months of our administration, I have taken some difficult and yet necessary decisions to save our country from fiscal catastrophe. One of those decisions was the removal of fuel subsidy which had become an unsustainable financial burden on our country for more than four decades.

“Another was the removal of the chokehold of few people on our foreign exchange system that benefited only the rich and the most powerful among us. Without a doubt, these two decisions brought some discomfort to individuals, families and businesses.

“I am well aware that for some time now the conversations and debates have centred on the rising cost of living, high inflation which is now above 28% and the unacceptable high under-employment rate.”

He went further to encourage Nigerians that “the time may be rough and tough, however, our spirit must remain unbowed because tough times never last. We are made for this period, never to flinch, never to falter. The socio-economic challenges of today should energize and rekindle our love and faith in the promise of Nigeria.

“Our current circumstances should make us resolve to work better for the good of our beloved nation. Our situation should make us resolve that this new year 2024, each and everyone of us will commit to being better citizens.

“Having laid the groundwork of our economic recovery plans within the last seven months of 2023, we are now poised to accelerate the pace of our service delivery across sectors.”

It is yet to be seen if the Naira gain will have a major impact on the price of commodities as Nigerians lament the harsh economic realities of the country.