Naira Falls to N1,398 per Dollar as FX Liquidity Pressures Persist in Nigeria

Nigeria’s naira weakens to its lowest level since January as foreign exchange liquidity shortages continue pressuring the currency.

Nigeria’s currency weakened further at the close of the trading week as foreign exchange pressures persisted in the market. The Nigerian naira ended Friday at N1,398 against the U.S. dollar, according to data from the Central Bank of Nigeria.

During the session, the naira traded between N1,404/$ and N1,398/$, with the simple average rate settling at N1,394.55/$. The latest close marks the currency’s weakest level since late January.

Market analysts attribute the depreciation largely to limited dollar supply and ongoing speculative activity within Nigeria’s foreign exchange market. The widening gap between the official and parallel markets has also influenced trading behaviour.

Despite the recent pressure, CBN Governor Olayemi Cardoso noted that Nigeria’s external reserves have improved, reaching $34.8 billion in net reserves and $50.45 billion in gross reserves. A stronger global dollar, driven by geopolitical tensions, has also weighed on emerging market currencies.