The Nigerian naira continued to depreciate against the US dollar on Tuesday in the official foreign‑exchange market, extending a downward trend that has intensified since President Bola Ahmed Tinubu removed Finance Minister Wale Edun from office. Central Bank data show the naira weakened to N1,350.74 per dollar, down from N1,349.67 the day before—a daily decline of N1.07.
In the parallel market, the currency also fell, trading at N1,425 per dollar, a N5 drop from Monday’s N1,430. This depreciation occurs amid a sustained decline in Nigeria’s external reserves, which fell to $48.54 billion on Monday from $48.61 billion on April 17, 2025. The foreign‑exchange market saw the naira slump across both official and unofficial channels at the start of the week.
Analysts link the slide to growing uncertainty after the finance minister’s removal, which has raised concerns about fiscal‑policy direction and investor confidence. The central bank has not yet commented on the recent movements, but market observers say the trend reflects broader pressures on Nigeria’s foreign‑exchange system. External reserves have been strained by falling oil revenues—the country’s main source of foreign currency—and increased demand for dollars.
The naira’s depreciation adds to inflationary pressures and complicates efforts to stabilise the economy. With the currency weakening in both markets and reserves declining, stakeholders are closely watching for policy responses from the central bank and the new finance leadership to address the forex challenges.
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