The Nigerian naira weakened to N1,583/$1 on May 26, 2025, in the official foreign exchange market, down from N1,579/$1 on Friday, according to the Central Bank of Nigeria (CBN). Reported on May 28, 2025, this decline follows a strong appreciation trend the previous week. CBN data shows the naira fluctuated between N1,578/$1 and N1,583/$1 on Monday, with an average rate of N1,579.65/$1, reflecting volatility amid broader market pressures.
Against other currencies, the naira’s performance was mixed. It lost ground against the British pound, closing at N2,141.32/£1 on Monday, compared to N2,136.75/£1 on Friday. However, it strengthened against the euro, appreciating to N1,796.79/€1 from N1,791.95/€1. In the parallel market, the naira edged up to N1,618/$1 from N1,620/$1, showing slight resilience. Parallel market rates for the pound weakened to N2,160/£1 from N2,150/£1, while the euro remained stable at around N1,835/€1, down from N1,820/€1 earlier in the week. At the current exchange rate of N1,579/$1 as of May 28, 2025, these shifts highlight ongoing forex dynamics.
Nigeria’s foreign exchange reserves dipped to $38.55 billion on May 23, 2025, from $38.56 billion, a decline that follows a $364 million recovery between April 30 and May 14. The drop coincides with the CBN’s intensified reforms in the Bureau De Change (BDC) sector, where fewer than 5% of licensed operators have met new capital requirements of N2 billion for Tier 1 licenses and N500 million for Tier 2 licenses, up from N35 million. With the June 3, 2025, recapitalization deadline looming, the Association of Bureau De Change Operators of Nigeria (ABCON) reports widespread anxiety, as many operators risk losing licenses without an extension.
The CBN’s reforms aim to enhance transparency and curb forex malpractices, but the stringent requirements have sparked concerns about sector stability. The naira’s depreciation and reserve decline reflect broader challenges, including economic uncertainties and domestic policy adjustments. Analysts suggest that sustained CBN interventions could stabilize the naira, but the immediate outlook remains cautious.
