The Nigerian Naira experienced a decline in value against the United States Dollar at the start of the week, impacting both official and parallel foreign exchange markets. According to data from the Central Bank of Nigeria, the Naira dropped to N1,470.26 on Monday, marking a decrease from the N1,465.68 traded on Friday. This translates to a weakening of N4.58 per dollar compared to the previous Friday.
In the parallel market, also known as the black market, the Naira also saw a decline, dropping to N1,505 per dollar on Monday from N1,495 at the close of business on Friday. Bureau de Change operators cited rising demand for foreign exchange as the primary reason for this decline. The Naira’s depreciation follows a similar trend observed on Friday.
Despite this development, Nigeria’s external reserves have continued to rise, reaching $42.44 billion as of October 3, 2025. This increase in reserves suggests a growth in the country’s foreign assets, which could potentially impact the value of the Naira in the future.
The decline in the Naira’s value may have significant implications for Nigeria’s economy, particularly in terms of trade and foreign investment. A weaker Naira can make imports more expensive, potentially leading to higher prices for consumers. On the other hand, a weaker currency can also make Nigerian exports more competitive in the global market.
The Central Bank of Nigeria’s efforts to manage the foreign exchange market and stabilize the Naira’s value will be closely watched in the coming days. The bank’s actions, combined with the country’s rising external reserves, may help to mitigate the effects of the Naira’s depreciation and promote economic growth. As the situation continues to unfold, it is essential to monitor the developments in Nigeria’s foreign exchange market and their potential impact on the country’s economy.
