The naira fell for the third consecutive day on Wednesday, closing at ₦1,473.29 per dollar at the official Nigerian Foreign Exchange Market, according to data released by the Central Bank of Nigeria (CBN).
The local currency, which opened the week at ₦1,457.51/$, depreciated to ₦1,463.23/$ on Tuesday before losing an additional ₦10.06 (or 0.69 percent) on Wednesday, reflecting sustained pressure in the forex market.
At the parallel market, the naira, which traded at ₦1,500/$ on Tuesday, appreciated slightly to ₦1,488/$ on Wednesday, data from CardinalStone showed.
Analysts at Cowry Assets Management Limited attributed the dip to a decline in investor appetite, despite recent gains that saw the currency hit a 10-month high last week at ₦1,455.17/$, its strongest level since December 2024.
“Rising import demand or weaker dollar inflows could slow further gains,” Cowry Assets said in its weekly report, noting that global oil price volatility and cautious investor sentiment may keep market stability fragile.
The analysts added that while oil prices could face pressure from higher supply, a rebound in global demand might still support Nigeria’s external reserves and foreign exchange position.
Meanwhile, Nigeria’s external reserves have continued their upward trend, rising to $42.63 billion as of Monday, up from $42.59 billion the previous Friday reflecting steady foreign inflows and CBN interventions.
Speaking at the G-24 media briefing on the sidelines of the IMF/World Bank Annual Meetings in Washington, CBN Governor Olayemi Cardoso maintained that the naira remains “more competitive” following recent reforms aimed at stabilising the currency.
“We were able to create resilience and buffers against potential shocks,” Cardoso said. “In terms of anchoring expectations, we found that those who followed the Nigerian economy were fairly comfortable.”
He added that Nigeria’s economic transformation hinges on strengthening domestic production.
“Nigeria is completely restructuring its economy, and a competitive currency is helping drive that transformation,” he said.
The latest performance underscores ongoing volatility in Nigeria’s forex market, as policymakers continue to balance exchange rate stability with economic growth.
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