The Nigerian Naira has started the week on a downward trend, recording a significant depreciation against the United States dollar at the official foreign exchange market. According to data from the Central Bank of Nigeria, the Naira weakened to N1,436.34 against the dollar on Monday, down from N1,421.73 on Friday. This represents a decline of N14.61, marking the first depreciation of the Naira since October 14, 2025, at the official FX market.

The decline in the Naira’s value may come as a surprise, given the country’s rising external reserves, which stood at $43.197 billion as of October 31, 2025. However, the foreign exchange market is subject to various factors, including supply and demand, economic indicators, and global events. The Naira’s performance at the official market is closely watched by investors, businesses, and individuals, as it has a significant impact on the country’s trade and economy.

In contrast, the Naira exchanged at N1,460 per dollar at the black market, which represents an improvement from the rate on Friday. The parallel market rate is often seen as a benchmark for the Naira’s value, although it is not officially recognized by the government. The disparity between the official and black market rates highlights the complexities of Nigeria’s foreign exchange market, where multiple rates coexist.

The depreciation of the Naira at the official market may have implications for businesses and individuals who rely on imports, as it could lead to higher costs and inflationary pressures. On the other hand, exporters may benefit from a weaker Naira, as it makes their products more competitive in the global market. As the Nigerian economy continues to navigate the challenges of a volatile global economy, the performance of the Naira will remain a key area of focus for policymakers, investors, and stakeholders.

The rise in external reserves is a positive development, as it provides a buffer against economic shocks and supports the country’s ability to meet its international obligations. However, the decline in the Naira’s value at the official market serves as a reminder of the need for continued economic reforms and prudent management of the foreign exchange market. As the week unfolds, market participants will be watching closely to see if the Naira can recover its losses or if the downward trend will continue.