Market News

By Kazeem Ugbodaga, with Agency Report

The Naira weakened to N1,475.35 per US dollar on Friday, at the official foreign exchange market, marking a 0.29 percent decline from the previous day’s rate of N1,471.02, as reported by the Central Bank of Nigeria.

The currency experienced fluctuations throughout the week, with a brief appreciation of 0.15 percent on Thursday, but overall trended downward due to sustained demand pressures and limited liquidity.

Analysts suggest that structural challenges, including foreign exchange supply constraints and market dynamics, continue to drive the Naira’s volatility, raising concerns about Nigeria’s economic stability.

In Lagos, on Friday, the Nigerian Naira continued its downward trajectory, closing at N1,475.35 per US dollar at the official foreign exchange market, as reported by the Central Bank of Nigeria.

This marked a 0.29 percent decline, equivalent to a N4.32 loss compared to Thursday’s rate of N1,471.02. The depreciation rounded out a week of volatility, during which the Naira struggled to maintain stability amid fluctuating market conditions.

The Naira’s performance over the week of October 13 to 17, 2025, was marked by a pattern of mild but consistent depreciations, interrupted only by a brief uptick on Thursday. 

Starting at N1,457.51 on Monday, the currency weakened progressively, reaching N1,463.23 on Tuesday and N1,473.29 on Wednesday. Thursday saw a modest rebound, with the Naira appreciating by N2.26 or 0.15 percent to N1,471.02, before slipping again to N1,475.35 on Friday. This net loss of N17.84 over the week underscores the currency’s ongoing challenges in the official market.

Analysts attribute the Naira’s fluctuations to a combination of increased demand for foreign currency and constrained liquidity inflows

. Nigeria’s foreign exchange market has faced persistent pressure due to limited dollar supply, driven by factors such as reduced oil revenue, high import demand, and speculative activities.

The Central Bank of Nigeria’s efforts to stabilize the market through interventions, such as selling dollars to Bureau de Change operators, have yielded mixed results. For instance, recent reports indicate that the bank’s actions to bolster liquidity have not fully offset the demand pressures, contributing to the Naira’s unsteady performance.

The Naira’s depreciation aligns with broader economic challenges in Nigeria, where inflation and foreign exchange shortages continue to strain the economy.

According to recent analyses, Nigeria’s foreign reserves stood at approximately $42.1 billion as of October 2025, but outflows for imports and debt servicing have limited the Central Bank of Nigeria’s ability to defend the currency effectively.

The parallel market, often a gauge of market sentiment, has seen even wider disparities, with rates reportedly exceeding N1,600 per dollar in some instances, further highlighting the gap between official and unofficial markets.