The Nigerian Naira has recorded its highest depreciation against the United States Dollar this week, according to data from the Central Bank of Nigeria. As of Friday, the Naira dropped to N1,464.4974 per dollar, down from N1,457.8402, marking a significant decline. This downward trend has been consistent throughout the week, with the currency shedding N12.67 against the dollar at the official market.
The daily decline of N6.6498 per dollar is the highest since December 4, 2025. Similarly, the Naira weakened at the black market, closing at N1500 per dollar on Friday, a drop of N15 from the previous week’s rate of N1490. The decline in the value of the Naira is attributed to a decrease in Nigeria’s external reserves, which fell by $0.20 billion, or 0.57 percent, to $45.21 billion as of December 17, 2025.
The external reserves had previously stood at $45.47 billion on December 12. The drop in reserves and the subsequent depreciation of the Naira have raised concerns about the country’s economic stability. The decline in the value of the Naira can have far-reaching implications for the economy, including increased costs for imports and potential inflationary pressures.
The Central Bank of Nigeria’s data highlights the need for careful management of the country’s foreign exchange market to mitigate the impact of external factors on the economy. The decline in external reserves and the depreciation of the Naira are likely to be closely monitored by economists and policymakers in the coming weeks.
In recent months, the Naira has experienced significant volatility, with the currency fluctuating in value against the US Dollar. The current decline is the most significant in several months, underscoring the challenges facing the Nigerian economy. As the country navigates these economic challenges, it is essential to maintain a stable and predictable foreign exchange market to support economic growth and development.
The Nigerian government and the Central Bank of Nigeria will need to implement policies to stabilize the Naira and boost external reserves to mitigate the impact of the current decline. This may involve measures to increase foreign investment, improve trade balances, and manage the country’s debt obligations. By taking proactive steps to address the current economic challenges, Nigeria can work towards achieving economic stability and promoting sustainable growth.