Nigerian currency depreciated 10% in 2022, according to the World Bank

The value of the Nigerian Naira was predicted by the World Bank to decrease by 10.2% in 2022. This happened in 2022, when the country's inflation rate was high as a result of rising food and fuel prices. The international bank made this disclosure in its April 2023 edition of Africa's Pulse. According to a statement from the bank, "Other currencies with big losses last year include those of Sudan (23.6%), Malawi (20.7%), The Gambia (14.6%), and Nigeria (10.2%). The main causes of inflationary pressures in the region, notably in nations like Ghana, Sudan, and Malawi, were rising food and fuel prices as well as the devaluation of the exchange rate. The World Bank noted that Nigeria's 650 basis point increase in interest rates as part of tightening monetary policy did not lower the rate of inflation. The World Bank further stated that Nigeria is currently dealing with both a sizable budget deficit and high inflation. Ghana, Nigeria, Malawi, Zambia, and Burundi are a few examples of nations in Sub-Saharan Africa that are notable for having both broad budget deficits and high inflation (limited monetary policy space). According to a prior prediction by the Nigerian Economic Summit Group, inflation will weaken the naira by 14.9% in 2022. The International Monetary Fund estimates that since 1973, the value of the naira has fallen by 10.6% annually.