The Nigerian Naira has experienced its second consecutive decline against the US dollar at the official foreign exchange market. According to data from the Central Bank of Nigeria, the Naira dropped to 1,498.98 per dollar on Thursday, down from 1,494.03 on Wednesday. This represents a day-to-day depreciation of 4.45 Naira. Over the past two days, the Naira has weakened by 14.84 against the dollar and other foreign currencies.
In contrast, the black market exchange rate remained stable, with the Naira trading at 1,537 per dollar on Thursday, unchanged from the previous day. The stability in the black market rate suggests that the official market decline may not be entirely reflective of the broader foreign exchange landscape.
The decline in the Naira’s value comes despite the country’s external reserves continuing to rise, reaching $41.95 billion as of September 17, 2025. The rising reserves suggest that the country has a significant buffer to support its currency, but the depreciation highlights the ongoing challenges in the foreign exchange market.
The Naira’s depreciation may have implications for the country’s trade and economic stability. A weaker currency can make imports more expensive, potentially leading to higher prices for consumers. On the other hand, a weaker Naira can also make Nigerian exports more competitive in the global market, potentially boosting the country’s trade balance.
The Central Bank of Nigeria’s management of the foreign exchange market will be closely watched in the coming days to see how it responds to the Naira’s decline. The bank has implemented various measures in the past to support the Naira, including tightening monetary policy and introducing foreign exchange restrictions. It remains to be seen whether these measures will be sufficient to stabilize the currency or if further action will be needed.
As the Naira’s value continues to fluctuate, businesses and investors will be keenly monitoring the situation to assess the potential impact on their operations and investments. The ongoing depreciation of the Naira highlights the complexities and challenges of managing a currency in a volatile global economic environment.