The Nigerian naira experienced a notable decline against the US dollar at the official foreign exchange market, ending the week on a downward trend. According to data from the Central Bank of Nigeria, the naira dropped to N1,465.68 on Friday, down from N1,455.25 on Thursday. This represents a day-to-day loss of N10.43, following a significant gain on the previous day.
In contrast, the black market exchange rate remained stable, with the naira trading at N1,485 per dollar on Friday, unchanged from the previous day. This stability in the parallel market is noteworthy, given the fluctuations in the official market.
The naira’s depreciation on Friday marks the first decline since the beginning of the week, as the currency had enjoyed a positive run over the past four days. However, on a week-on-week basis, the naira still appreciated by N14.98, compared to the N1,480.66 per dollar recorded on September 27th, 2025.
The development comes amidst a steady increase in Nigeria’s external reserves, which stood at $42.40 billion as of October 2, 2025, up from $42.33 billion on September 29, 2025. This growth in reserves may be seen as a positive indicator for the country’s economy, potentially influencing the naira’s performance in the foreign exchange market.
The naira’s performance is closely watched by investors, economists, and policymakers, as it has significant implications for Nigeria’s trade balance, inflation, and overall economic growth. As the country continues to navigate the complexities of the global economy, the stability of the naira will remain a key area of focus. With the external reserves on an upward trend, it will be interesting to see how the naira performs in the coming weeks, and whether it can sustain its recent gains.
