The Nigerian naira began the week on a downward trend, depreciating against the United States dollar in both official and parallel foreign exchange markets. According to data from the Central Bank of Nigeria, the naira weakened to N1,451.86 per dollar on Monday, down from N1,450.4287 on Friday last week. This translates to a decline of N1.43 at the official market.

In the parallel market, the naira experienced a more significant drop, falling by N15 to N1,490 per dollar, compared to N1,475 on Friday. This development comes despite Nigeria’s external reserves reaching a six-year high of $45.11 billion as of December 5, 2025.

The Central Bank of Nigeria also published a list of 82 fully licensed Bureau De Change operators in the country on Monday. This move is part of the bank’s efforts to regulate the foreign exchange market and ensure stability.

The naira’s depreciation is a significant development in Nigeria’s economy, given the country’s reliance on imports and the impact of exchange rates on inflation. The surge in external reserves, however, suggests that the country has a significant buffer to withstand economic shocks.

The foreign exchange market in Nigeria has been volatile in recent years, with the naira experiencing significant fluctuations against major currencies. The Central Bank of Nigeria has implemented various measures to stabilize the market, including restricting access to foreign exchange for certain imports and introducing a flexible exchange rate regime.

As the Nigerian economy continues to navigate the challenges of a global pandemic and declining oil prices, the performance of the naira will be closely watched by investors and policymakers. The Central Bank of Nigeria’s efforts to regulate the foreign exchange market and maintain economic stability will be crucial in determining the naira’s trajectory in the coming weeks and months.