Rising dollar demand and weakening reserves deepen strain on Nigeria’s currency…..
Nigeria’s currency came under renewed pressure on Friday, slipping to its weakest level in three weeks amid sustained demand for foreign exchange.
The naira closed at N1,361.5 against the dollar, marking a steady decline from N1,355/$ on Thursday and N1,348.1/$ recorded midweek. The latest figures highlight a consistent downward trend that has defined trading throughout the week.
Data from the Central Bank of Nigeria shows that the currency had already weakened earlier, settling at N1,350.99/$ on Tuesday and N1,349.67/$ on Monday. Compared to last week’s closing rate of N1,342.5/$, the naira has lost nearly N20 in value within just a few days.
Friday’s closing rate represents the weakest level since April 9, when the currency traded at N1,365/$, underlining the persistent volatility in the foreign exchange market.
At the same time, Nigeria’s external reserves continued their downward movement. Figures from the central bank indicate reserves fell to $48.4 billion, down slightly from $48.54 billion recorded at the beginning of the week on April 20, 2026.
Analysts attribute the pressure on the naira to a combination of local and global factors. Demand for dollars has surged, particularly from importers, while foreign exchange inflows remain constrained. Seasonal pressures and limited supply through official channels have further tightened liquidity in the market.
On the global stage, the strengthening of the U.S. dollar and fluctuations in oil prices, Nigeria’s primary source of foreign earnings have compounded the situation, adding another layer of strain on the country’s FX outlook.
With these factors still in play, the naira’s near-term trajectory remains uncertain, as market participants continue to navigate a challenging currency environment.
