The Nigerian naira began the week on a bearish note, recording a marginal depreciation against the US dollar in the official foreign‑exchange market. According to data from the Central Bank of Nigeria, the naira weakened to N1,488.60 on Monday, down from N1,487.90 on Friday—a decline of N0.7 per dollar.
This slight depreciation came despite Nigeria’s external reserves rising to a six‑year high of $42.03 billion as of 19 September 2025. The increase in foreign reserves is a positive development for the economy, providing a cushion against external shocks and supporting naira stability. The apex bank’s data show that reserves have been consistently rising, reaching a yearly high of $42.03 billion, a milestone that signals an improved balance‑of‑payments position and is expected to help maintain economic stability.
In contrast, the naira remained stable in the black market, trading at N1,522 per dollar on Monday—the same rate as on Friday. The black‑market rate is often viewed as a benchmark for the true value of the naira because it reflects supply and demand for foreign currency in the unofficial market. While the official market’s marginal depreciation may stem from demand‑supply imbalances, the black‑market stability suggests the currency is holding its ground against the dollar.
As the Nigerian economy continues to evolve, the performance of the naira will be closely watched by investors, businesses, and individuals. Current trends in the foreign‑exchange market are likely to influence the country’s trade balance, inflation, and overall economic growth.
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