The value of the Nigerian naira has gone through some roller-coaster fluctuations over the years. I remember a period back in June 2023 when the Central Bank of Nigeria decided to allow the naira to trade freely. As a result, there was a sharp decline in its value as it responded to market dynamics.

One major factor behind such fluctuations is the heavy reliance on oil, Nigeria's primary export. Any price change in oil directly impacts the economy and, consequently, the naira. We saw this after global oil prices plummeted, leading to less foreign currency inflow, making the naira weaker.

The disparity between the official exchange rate set by the Central Bank and the black market also played a part. I've observed many people opting for the unofficial market rate to gain better value, a trend that continues to this day.

These fluctuations show how external factors like global commodity prices and internal policy decisions, such as liberalizing the exchange rate, greatly impact the naira's value.