The Nigerian naira weakened to its lowest level in three weeks on Friday, as foreign exchange market pressures continued to weigh on the local currency.
According to data from the Central Bank of Nigeria (CBN), the naira closed at ₦1,361.50 against the US dollar on Friday, marking a depreciation of ₦6.50 from Thursday’s rate of ₦1,355 per dollar.
The currency had traded at ₦1,348.10 on Wednesday and ₦1,350.99 on Tuesday, showing consistent weakness throughout the week. Friday’s rate represents the weakest performance since April 9, when the naira settled at ₦1,365 per dollar.
The latest decline comes as Nigeria’s external reserves also came under mild pressure, falling from $48.54 billion at the beginning of the week (April 20) to $48.4 billion by Friday.
Market analysts attribute the ongoing pressure to a combination of factors, including strong dollar demand from importers, seasonal foreign currency needs, and relatively constrained supply from official sources. Global strength of the US dollar and volatility in international oil prices, which affect Nigeria’s FX earnings, have further compounded the situation.
Liquidity gaps in the foreign exchange market have widened in recent sessions, with limited inflows failing to match the steady demand for dollars. This imbalance has kept the naira under sustained downward pressure at the official window.
The development highlights the continued challenges facing the naira despite recent interventions by the Central Bank. Stakeholders are hopeful that improved oil production, higher non-oil export earnings, and increased capital inflows could help ease the pressure in the coming weeks.
As of Friday, the naira remained volatile, reflecting the delicate balance between foreign exchange supply and demand in Africa’s largest economy.
