The Nigerian naira recorded its strongest depreciation against the U.S. dollar this week, according to data from the Central Bank of Nigeria. By Friday, the official rate had fallen to N1,464.4974 per dollar, down from N1,457.8402, a decline of N12.67 over the week. The daily drop of N6.6498 per dollar is the steepest since December 4, 2025.
The black‑market rate also weakened, closing at N1,500 per dollar on Friday, a decrease of N15 from the previous week’s N1,490. This depreciation is linked to a reduction in Nigeria’s external reserves, which fell by $0.20 billion (0.57 %) to $45.21 billion as of December 17, 2025, down from $45.47 billion on December 12.
The shrinking reserves and the resulting naira weakness have raised concerns about the country’s economic stability. A weaker naira can raise import costs and generate inflationary pressures, highlighting the need for careful management of the foreign‑exchange market.
In recent months the naira has been highly volatile, and this latest decline is the most pronounced in several months, underscoring the challenges facing the Nigerian economy. To support growth and development, it is essential to maintain a stable and predictable foreign‑exchange environment.
The Nigerian government and the Central Bank will need to adopt policies that stabilize the naira and rebuild external reserves. Potential measures include attracting foreign investment, improving the trade balance, and managing debt obligations. Proactive steps in these areas can help Nigeria achieve economic stability and promote sustainable growth.
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