Naira depreciation hits new high against dollar

The Nigerian Naira experienced its largest depreciation against the US dollar at the official foreign exchange market on Friday, ending the week on a downward trend. According to data from the Central Bank of Nigeria, the Naira fell to N1,423.17 against the dollar, down from N1,419.72 on Thursday. This represents a decline of N3.45, the largest daily depreciation of the week and so far in 2026.

In contrast, the black market exchange rate remained steady at N1,490 per dollar on Friday, unchanged from the previous day. Over the course of the week, the Naira recorded three gains and two losses against the US dollar and other major currencies.

The decline in the Naira’s value comes despite the country’s external reserves continuing to rise, reaching $45.67 billion as of January 8, 2026. This increase in reserves is a positive indicator of the country’s economic stability and ability to meet its international obligations.

The foreign exchange market in Nigeria has been subject to fluctuations in recent times, influenced by a range of factors including economic indicators, government policies, and global market trends. The Central Bank of Nigeria has been working to stabilize the currency and maintain a stable exchange rate, but challenges persist.

The Naira’s performance against the dollar is closely watched by investors, businesses, and individuals, as it has a significant impact on the country’s trade balance, inflation, and overall economic growth. As the Nigerian economy continues to evolve, the stability of the Naira will remain a key area of focus for policymakers and market observers.

The current state of the foreign exchange market in Nigeria highlights the need for continued monitoring and management to ensure economic stability and growth. As the country’s economy navigates the complexities of global trade and finance, the performance of the Naira will remain a crucial indicator of its progress.