Naira Slips for Third Day Amid Shifting Dollar Demand

The naira weakened for the third straight day, closing Wednesday’s trading at N1,473.29 per US dollar.

Data from the Central Bank of Nigeria (CBN) showed that the currency struggled against the dollar at the official Nigerian Foreign Exchange Market throughout the week. The naira opened the week at N1,457.51/$, fell to N1,463.23/$ on Tuesday, and dropped by N10.06, or 0.69%, on Wednesday.

In the parallel market, the naira rebounded slightly after Tuesday’s close of N1,500/$, ending Wednesday at N1,488/$. Experts at Cowry Assets Management Limited attributed the official market decline to a subdued appetite for the naira.

The depreciation follows last week’s 10-month high, when the naira closed at N1,455.17/$—its strongest level since December 2024. Analysts had previously projected stability for the currency, citing Central Bank interventions and foreign inflows. However, Cowry Assets warned that rising import demand or weaker dollar inflows could slow further gains, noting that global oil market volatility may also temper investor sentiment.

Nigeria’s external reserves have maintained a steady rise, standing at $42.63 billion as of Monday, up from $42.59 billion on Friday.

Speaking at the G24 media briefing during the IMF/World Bank Annual Meetings in Washington, CBN Governor Olayemi Cardoso described the naira as “more competitive” following reforms and currency stabilization measures. He emphasized that domestic production underpins the currency’s strength, saying, “Nigeria is completely restructuring its economy, and a competitive currency is helping drive that transformation.”