The Naira weakened further to N1,369/$ on Monday, slipping from N1,361.5/$ recorded at the close of trading on Friday, as pressures in the foreign exchange market persisted despite a softer US dollar.
This is according to data published on the Central Bank of Nigeria’s (CBN) website on Monday.
Monday’s close marks the naira’s weakest level since April 8, 2026, when it last traded at the same level, extending a depreciation trend that has seen the currency lose ground steadily in recent sessions.
The latest movement also reflects a decline from N1,349.67/$ recorded at the start of last week.
The weakening comes amid concerns over declining external reserves and sustained demand pressures in the FX market, with analysts closely watching whether the Central Bank of Nigeria can sustain exchange rate stability in the face of tightening liquidity.
What the data is saying
Data from the CBN shows Nigeria’s external reserves fell from $49.18 billion on April 1 to $48.44 billion as of April 24.
- The currency has depreciated from N1,349.67/$ recorded at the start of last week
- The US Dollar Index fell 0.3% to 98.32 amid easing safe-haven demand
- Brent crude rose 1% to $106.40 per barrel
- The Japanese yen traded at 159.17 per dollar, just below the key 160 level
- Markets continue to price in a likely Fed pause at its upcoming meeting
The data points to a disconnect between global dollar weakness and domestic currency performance, as local supply-side constraints continue to outweigh external relief factors.
The naira’s latest decline reflects a combination of shrinking external buffers, sustained demand for foreign currency, and broader liquidity pressures in the official market.
More Insights
External reserves remain critical to exchange rate management because they support interventions and help reinforce market confidence. Continued drawdowns often raise concerns over the sustainability of support for the currency, particularly when inflows remain constrained.
Although CBN Governor Olayemi Cardoso has dismissed concerns over the recent reserve decline, insisting the trend should not trigger alarm, market participants remain focused on whether reserves can withstand prolonged intervention pressures.
Ordinarily, a weaker US dollar could support emerging market currencies, but Nigeria’s domestic vulnerabilities—including structural FX shortages and persistent demand from importers and investors—have continued to dominate naira pricing.
What you should know
Last week, Nairametrics reported that the Naira depreciated to N1,349/$ on Monday, down from N1,342.5/$ recorded at the close of trading on Friday.
Despite the recent dip, the Central Bank of Nigeria maintains an optimistic outlook for the country’s external reserves.
- The apex bank had previously projected that reserves could reach $51 billion by the end of 2026 as part of its broader macroeconomic stabilization and confidence-restoration agenda.
- The $51 billion projection forms part of a medium-term strategy to strengthen balance-of-payments resilience.
