The Nigerian naira closed the week on a marginally softer note against the US dollar, ending Friday at N1,455.50/$1 at the official foreign exchange market. This represents a small depreciation from Thursday’s N1,455.25/$1 and last week’s close of N1,454/$1, according to data on the Central Bank of Nigeria (CBN) website.
Throughout the week, the naira traded above N1,450/$1, a trend not seen in over three weeks.
Comparison with Last Week
During the previous week, the naira opened at N1,450.01/$1 on Monday, appreciated slightly to N1,447/$1 on Tuesday, hovered around N1,447.50/$1 on Wednesday, fell to N1,449/$1 on Thursday, and closed at N1,454/$1. This week’s data suggests relative stability, yet the currency remains under pressure despite improving macroeconomic indicators.
Foreign Reserves Reach $45.44 Billion
A key highlight of the week was the continued growth of Nigeria’s external reserves, which have risen to $45.44 billion, the highest since July 23, 2019, when reserves stood at $45.04 billion. Nairametrics noted that reserves had previously hit $42.03 billion on September 19, 2025, marking a six-year peak at the time.
This accumulation means Nigeria has added nearly $5 billion to its FX reserves within a short period, a strong performance amid global challenges faced by other developing economies.
CBN Approves 82 New BDC Licenses
In another significant development, the CBN issued final operating licenses to 82 Bureau De Change (BDC) operators, effective November 27, 2025. The move follows the central bank’s updated regulatory and supervisory framework for BDCs, initially announced in May 2024.
Under the new guidelines:
- Tier-1 BDCs must maintain a minimum capital of N2 billion, while Tier-2 BDCs require N500 million.
- Application fees are set at N1 million for Tier-1 and N250,000 for Tier-2 licenses.
- Licensing fees are N5 million for Tier-1 and N2 million for Tier-2 operators.
The CBN said the licensing aligns with its goal to enhance liquidity in the FX market and ensure stronger compliance among BDC operators.
Implications for the FX Market
While the naira’s slight weakness this week signals ongoing demand pressures, rising foreign reserves and tighter FX regulation could help stabilize the currency in the medium term.
The new BDC licenses may also improve market liquidity and reduce pressure on parallel market rates, provided operators adhere to the regulatory framework. However, analysts caution that the surge in licensed operators could create temporary instability in a market still adjusting to prior regulatory changes.
Persistent demand pressures, reduced dollar inflows from crude exports, and speculative activity continue to weigh on the naira, underscoring the delicate balance between stability and market dynamics.
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