Naira Closes Week Lower at ₦1,444/$1 as FX Pressures Intensify

The Naira finished the week on a softer note in the official foreign exchange market, closing at N1,444 per dollar on Friday, according to data published on the Central Bank of Nigeria’s (CBN) website.

The currency struggled to find stability throughout the week despite continued growth in the country’s external reserves. It began trading on Monday at N1,437.50/$1, slipped to N1,440.89/$1 on Tuesday, weakened further to N1,444.85/$1 midweek, recovered slightly on Thursday at N1,441/$1, and then retreated again to N1,444/$1 by Friday.

Week-on-Week Movement

On a week-on-week basis, the Naira depreciated from N1,438.5/$1 the previous Friday, marking another mild but steady decline driven by persistent demand pressures, thin FX liquidity, and speculative positioning.

CBN data from last week showed a relatively more stable pattern, with rates ranging between N1,437.5/$1 and N1,441.75/$1. This week’s performance underscores heightened volatility and renewed strain on the currency.

Reserves Continue to Grow

Despite the weaker Naira, Nigeria’s foreign reserves continued their upward climb, rising to $43.5 billion, up from $43.32 billion the week before. The steady increase has been linked to improved oil earnings, rising non-oil inflows, and tighter FX management measures by the CBN.

Analysts note that higher reserves typically strengthen confidence in the CBN’s capacity to intervene in the market. However, the persistent pressure on the Naira suggests that underlying demand-supply challenges remain unresolved. They caution that meaningful currency stability will require stronger export performance, improved investor sentiment, and consistent monetary policy actions.

Black Market Also Under Pressure

The Naira also weakened in the parallel market, trading between N1,455/$1 and N1,463/$1 during the week. While the CBN’s managed float—buoyed by growing reserves—has reduced the extreme volatility seen earlier in the year, softer global oil prices and broader economic headwinds continue to weigh on market sentiment.

Several Bureau De Change (BDC) operators recently told Nairametrics that many players are struggling to stay afloat due to the suspension of FX allocations from the CBN. Without access to official dollar supply, operators say they face mounting overheads and dwindling margins.