The Nigerian Naira weakened for the second consecutive session on Tuesday, closing at N1,438.71 to the U.S. dollar in the official Investors and Exporters window, down N1.42 from Monday’s N1,437.29, according to Central Bank of Nigeria data.
The drop continues a bearish start to the week, driven by thin dollar supply and rising year-end import demand. In the parallel market, the rate held steady at N1,465 per dollar, with bureau de change operators reporting low turnover amid cautious sentiment.
Despite the currency’s slide, Nigeria’s external reserves edged higher to $43.37 billion as of November 10, up from $43.35 billion on November 7. The modest gain—supported by oil receipts and multilateral inflows—now covers roughly 10 months of imports and offers a cushion against deeper depreciation.
Analysts see mixed signals. “Reserves are climbing, but the Naira remains under pressure from seasonal factors and structural dollar shortages,” said Ayodele Ogunlade, currency strategist at Chapel Hill Denham. He forecasts a year-end rate near N1,490 if oil prices stay above $75 per barrel.
Businesses feel the pinch. “Every naira lost on the dollar raises input costs—fuel, spare parts, raw materials,” said Aminu Garba, a Lagos-based manufacturer. Importers are cutting orders, while exporters quietly welcome the edge.
Public frustration is mounting. On X, #NairaWatch trended with users lamenting rising prices. “Reserves up, Naira down—how does that help my market money?” one trader posted.
The Central Bank has stayed hands-off this week, relying on its unified exchange rate framework. Market watchers expect possible interventions if the slide accelerates, though Governor Olayemi Cardoso has emphasized market-driven pricing.
With inflation at 33% and fiscal deficits persisting, the Naira’s path remains uncertain. For now, two days of losses underscore a fragile recovery—one where rising reserves offer comfort, but a weakening currency keeps wallets tight.
