Market News

The naira on Tuesday traded steadily in the official foreign exchange (FX) market, holding firm despite a sharp decline in weekly foreign exchange inflows through the Nigerian Foreign Exchange Market (NFEM).

Data from the Central Bank of Nigeria (CBN) showed that the naira appreciated marginally by 61 kobo as the dollar was quoted at N1,447.42 on Tuesday, compared with N1,448.03 recorded on Monday at the official market.

In the parallel market, popularly known as the black market, the local currency also remained stable, exchanging at N1,455 per dollar on Tuesday. Traders attributed the steady performance to improved market confidence, gradual liquidity support, and a moderation in speculative demand.

Nigeria’s external reserves have continued their upward trajectory, rising to 43.97 billion dollars as of November 17, 2025, according to figures published on the CBN website.

However, senior officials of the apex bank confirmed to BusinessDay that the actual level of foreign currency reserves has reached 46.7 billion dollars, a level market analyst say reflects improved inflows, enhanced FX management, and a stronger external position.

Tilewa Adebajo, chief executive officer of CFG Advisory, also noted this development, saying, “The CBN reports that reserves have hit an eight-year high of 46.7 billion dollars."

Despite the stability in the exchange rate, inflows into the NFEM fell sharply during the review week. Total foreign exchange receipts dropped to $672.30 million, down from $899.20 million in the previous week, representing a decline of 25.2%, according to a report by Coronation Merchant Bank.

Foreign Portfolio Investors (FPIs) continued to dominate market inflows, accounting for 34.42 percent ($231.40 million) of total inflows. They were followed by Non-Bank Corporates with 25.70%. Exporters with 22.47%, Individuals with 7.56%, and the CBN with 5.52%, while other sources contributed 4.33%.

The report noted that last week, the naira recorded a mixed performance across different FX market segments. At the official window, the currency weakened by 0.41% week-on-week, closing at N1,442.43 per dollar compared with N1,436.58 per dollar in the preceding week.

Meanwhile, the parallel market recorded a gain, with the rate appreciating by 1.03 percent week-on-week to close at N1,450 per dollar. The movement narrowed the gap between the official and parallel market rates significantly, reducing it to 0.52 percent from 1.98 percent recorded a week earlier.

On the reserves front, gross external reserves rose marginally by 0.24% week-on-week, representing an increase of 103.06 million dollars, to reach 43.43 billion dollars as of November 13, 2025. Analysts say the combination of rising reserves and steady inflows, despite week-to-week fluctuations, continues to anchor market confidence.

Analysts at Coronation Research expect that the naira will remain stable and anchored below the N1,500 per dollar mark in the near term, supported by improved liquidity conditions, enhanced FX inflow management, and targeted interventions by the CBN. Many analysts believe that as long as reserves maintain their upward trend and investor sentiment remains positive, pressure on the naira will remain manageable.