Naira slides to N1,604/$ at official market as FX pressures persist

The Nigerian naira depreciated further against the U.S. dollar at the official foreign exchange market on Tuesday, closing at N1,604.00/$1, compared to N1,599.00/$1 recorded the previous day.

This was according to data published by the Central Bank of Nigeria (CBN).

The local currency also weakened against other major foreign currencies, with the British Pound exchanging at N2,115.25, reflecting sustained pressure on the naira across the board.

In the parallel market, the naira followed a similar trajectory, trading at N1,618/$1, weakening from N1,605/$1 on Monday. This data was gathered from currency traders at Wuse Zone 4, Abuja — a major hub for retail foreign exchange dealings in the country.

Despite the latest decline, key stakeholders in the foreign exchange market remain cautiously optimistic. Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), attributed the overall improvement in market sentiment to ongoing CBN interventions and structural reforms.

“The sustained CBN intervention in the Nigerian Foreign Exchange Market (NFEM) has boosted liquidity and helped stem volatility, while enhancing investor confidence,” Gwadabe said.

He pointed to the shift toward domestic crude oil sales in naira as a key strategy that has reduced pressure on the local currency, especially during periods of high FX demand.

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“The continuation of crude oil sales in naira to local refineries has helped ease demand pressure, which had initially caused tension in the market,” he added.

Gwadabe also cited global economic adjustments, such as the U.S. revision of tariffs on key trading partners, as additional contributors to improved foreign exchange dynamics.

He praised the CBN’s transparency in disclosing Nigeria’s net foreign exchange position — reported at over $6 billion — saying it had improved market clarity and investor trust.

Further highlighting positive trends, he noted a 9% increase in diaspora remittances, now at $20.98 billion, as a sign that recent CBN measures to diversify forex sources are yielding results.

However, Gwadabe warned that the journey toward complete FX market stability is far from over. “Despite all these positive indices, it is still yet uhuru,” he remarked, urging closer collaboration between fiscal and monetary authorities.

He emphasized the need for “humane and inclusive policies” under President Bola Tinubu’s administration to address inflation, security, and other macroeconomic challenges.

Meanwhile, some foreign exchange analysts and Bureau De Change operators continue to call for increased CBN interventions, noting that the persistent uncertainty surrounding reforms and limited access to official FX windows remain major barriers to naira recovery.