The Nigerian naira suffered another setback on Monday, depreciating significantly against the U.S. dollar at the official foreign exchange window.
Data released by the Central Bank of Nigeria (CBN) revealed that the naira fell to ₦1,612.23 per dollar, compared to ₦1,567.02 recorded on Friday, April 4—representing a sharp day-on-day decline of ₦45.21.
This marks one of the steepest single-day declines in recent weeks, reflecting growing volatility in the foreign exchange market despite the CBN’s recent interventions aimed at stabilizing the naira.
In contrast, the naira maintained relative stability on the parallel (black) market, trading flat at ₦1,565/$1, the same rate recorded on the previous trading day.
The consistency in the unofficial market suggests continued divergence between the official and parallel rates, a gap that the CBN has been working to close through a series of reforms and policy shifts.
The naira also held steady against other major foreign currencies across the board: British Pound (GBP): ₦2,015/£1; Euro (EUR): ₦1,670/€1; Canadian Dollar (CAD): ₦1,150/CA$1.
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These figures mirrored the previous day’s rates, indicating minimal activity or market shifts outside of the dollar pairing.
Economists warn that the renewed depreciation at the official window could be a result of increased demand for foreign exchange amidst limited supply, dwindling reserves, and external debt servicing obligations.
“What we’re seeing is the naira reacting to pressure from import demand, corporate repatriation needs, and speculative hoarding,” said Ifeanyi Ugwu, a currency market analyst at Nova Capital. “Until Nigeria boosts its FX inflows from exports, remittances, or investment, this pressure is likely to persist.”
The CBN has recently intensified efforts to unify the exchange rates and improve dollar liquidity by encouraging diaspora remittances through official channels and tightening loopholes in the FX system.
However, the results have been mixed, with frequent fluctuations still characterizing the market.
Analysts also point to ongoing global macroeconomic uncertainties—including rising interest rates in the U.S. and volatile oil prices—as contributing factors influencing Nigeria’s exchange rate performance.
The monetary authorities are expected to closely monitor the situation ahead of the next CBN Monetary Policy Committee (MPC) meeting, where further decisions on interest rates and potential interventions could be announced.
In the meantime, businesses and consumers will likely continue to feel the impact of a weaker naira, particularly in the form of higher import costs and inflationary pressure.