The Nigerian Naira experienced its most significant decline against the United States dollar on Wednesday, marking a continuation of its downward trend this week. According to data from the Central Bank of Nigeria, the Naira weakened to 1,473.29 per dollar, a drop from 1,463.23 on Tuesday. This translates to a day-to-day depreciation of 10.06 against the dollar, the highest decline at the official FX market this week. The currency has dropped by 18.12 compared to the 1,455.17 per dollar rate on October 10th last week.

In comparison, the Naira had previously declined by 5.72 and 2.34 on Tuesday and Monday, respectively. Meanwhile, on the black market, the Naira maintained stability, trading between 1,490 and 1,505 per dollar on Wednesday, unchanged from the previous day’s rates. This development comes as Nigeria’s external reserves continue to rise, reaching 42.65 billion as of October 14th, up from 42.59 billion on October 10th.

The latest inflation rate data released by the National Bureau of Statistics showed a decline in Nigeria’s inflation rate to 18.02 percent in September 2025, marking the sixth consecutive decline. This decline in inflation rate may have implications for monetary policy and the overall economic outlook. The Naira’s depreciation against the dollar may also impact Nigeria’s trade balance and economic growth.

The recent movements in the foreign exchange market and inflation rate are significant for Nigeria’s economic stability and growth prospects. As the country navigates its economic challenges, the performance of the Naira and the inflation rate will be closely watched by investors, policymakers, and stakeholders. The continued rise in external reserves is a positive development, but the depreciation of the Naira poses challenges for the country’s trade and economic growth. Nigeria’s economic policymakers will need to carefully monitor these developments and adjust policies accordingly to ensure economic stability and promote growth.