Naira Ends Week Weaker at ₦1,421.9 Per Dollar

 

 

The naira closed the trading week softer at the official foreign exchange market, ending Friday at ₦1,421.9 per dollar despite a weaker U.S. dollar globally.

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Data from the Central Bank of Nigeria (CBN) and Nairametrics research show the local currency recorded marginal losses through the week as domestic supply constraints outweighed supportive global conditions.

The naira opened Monday at ₦1,425/$, traded at ₦1,420/$ on Tuesday, ₦1,423/$ on Wednesday, and ₦1,421.5/$ on Thursday before settling at ₦1,421.9/$ on Friday. Compared with last week’s close of ₦1,417.95/$, the currency ended weaker overall.

In the parallel market, the naira slipped to ₦1,491/$ from ₦1,490/$ the previous day, with weekly trading ranging between ₦1,483 and ₦1,491 per dollar. This widened the gap between official and parallel rates to ₦70/$, underscoring persistent distortions in Nigeria’s FX market.

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Currency expert Dayo Omole explained that Nigeria’s restrictions on foreign currency access and limited dollar supply prevent the naira from strengthening in line with global dollar weakness. “When the dollar falls globally but Nigeria continues to struggle with supply, the official and parallel market rates can diverge further,” he said.

Nigeria’s FX market remains under strain after years of controls, multiple exchange rates, and weak inflows. Reforms by the CBN have improved transparency but structural challenges continue to weigh on liquidity. Oil receipts remain subdued, foreign portfolio inflows are thin, and diaspora remittances inconsistent, leaving demand unmet and confidence fragile.

External reserves stood at $45.9 billion last week, providing some capacity for intervention. Meanwhile, the IMF has upgraded Nigeria’s 2026 growth forecast to 4.4% from 4.2%, citing optimism around reforms.

Still, global volatility and domestic supply constraints mean the naira’s path remains uncertain, with investors watching closely for policy shifts that could ease liquidity pressures and narrow the gap between official and street rates.