The naira weakened for the third consecutive day on Wednesday, closing at ₦1,473.29 per dollar in the official Nigerian Foreign Exchange Market, according to data from the Central Bank of Nigeria.
The local currency, which opened the week at ₦1,457.51/$, slipped to ₦1,463.23/$ on Tuesday before dropping by another ₦10.06 (0.69%) on Wednesday.
At the parallel market, however, a slight recovery was recorded as the naira appreciated from ₦1,500/$ on Tuesday to ₦1,488/$ on Wednesday, figures from CardinalStone showed.
Financial experts at Cowry Assets Management Limited attributed the recent decline to reduced investor appetite and weaker dollar inflows. The dip follows the naira’s brief rally last week, when it reached a 10-month high of ₦1,455.17/$ — its strongest level since December 2024.
The slide contrasts with earlier projections from analysts who expected the currency to maintain stability, buoyed by Central Bank interventions and anticipated foreign inflows. Cowry Assets, however, had warned that “rising import demand or weaker dollar inflows could slow further gains,” noting that fluctuations in global oil markets may keep investor sentiment cautious.
Meanwhile, Nigeria’s external reserves have continued to grow, reaching $42.63 billion on Monday — up from $42.59 billion last Friday.
At the IMF/World Bank Annual Meetings in Washington, CBN Governor Olayemi Cardoso maintained an optimistic outlook, insisting that the naira is now “more competitive” after recent reforms.
“Nigeria is completely restructuring its economy, and a competitive currency is helping drive that transformation,” Cardoso said, emphasizing that domestic production remains key to sustaining the naira’s long-term strength.