economistsinmaking618-boop/nigeria-exchange-rate-analysis-1960-2024

65-year analysis of the Naira's collapse against the US Dollar (1960–2024) — how much ₦1,000 could buy over time, visualized in Tableau. # Nigerian Exchange Rate Analysis, 1960–2024 A 65-year analysis of the Naira's value against the US Dollar, and what it means for ordinary Nigerians. ## Overview The value of the Naira relative to the Dollar has changed every year since Nigerian independence. This project answers a simple question: **if you had ₦1,000, how many dollars could it buy each year, from 1960 to 2024?** ## Key Findings | Year | ₦1,000 Worth in USD | |---|---| | 1960 | $1,400.00 | | 2002 | $8.29 | | 2024 | $0.68 | Over 65 years, the Naira has lost **over 99.9% of its value** against the US Dollar. ## Methodology - **Data:** Official exchange rate data, 1960–2024 (annual) - **Av. LCU/$:** Naira required to buy one US Dollar (higher = weaker Naira) - **1000 Naira test:** US Dollars that ₦1,000 can buy (lower = weaker Naira) ## Dashboard **Explore the interactive version on Tableau Public →** ## Dashboard Interpretation **Purchasing Power (top left):** Tracks how many dollars ₦1,000 could buy each year. In 1960, ₦1,000 was worth $1,400 — Nigerians held strong purchasing power against the Dollar. That value held through the 1970s oil boom, then fell sharply after the 1986 Structural Adjustment Programme (SAP). By the 2000s, ₦1,000 was already near-worthless in dollar terms, reaching just $0.68 by 2024. **Naira Collapses (top right):** Tracks how many Naira it costs to buy one Dollar, split into three eras: - **Pre-SAP (green):** Nearly flat — the Naira traded close to parity with the Dollar. - **SAP & Transition (yellow):** The Naira begins losing value noticeably. - **Devaluation Era (blue):** A sharp climb, especially after 2015 and dramatically after 2022. In 1960, less than ₦1 bought $1. By 2024, over ₦1,500 was needed for the same Dollar. **YoY Depreciation (bottom):** Shows the speed of the Naira's decline year to year. Three spikes stand out: - **1986** — SAP introduced, sudden devaluation - **1999–2000** — transition from military to civilian rule, economic uncertainty …