The Nigerian naira depreciated further against the US dollar on Tuesday at the official foreign exchange market, continuing a downward trend that has intensified since President Bola Ahmed Tinubu removed Finance Minister Wale Edun from office.
According to data from the Central Bank of Nigeria, the naira weakened to N1,350.74 per dollar on Tuesday, down from N1,349.67 the previous day. This marks a daily decline of N1.07.
In the parallel market, the currency also fell, with the naira trading at N1,425 per dollar, a N5 drop from Monday’s N1,430.
The depreciation comes 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 country’s foreign exchange market saw the naira slump across both official and unofficial channels at the start of the week.
Analysts link the currency’s slide to growing uncertainty following the finance minister’s removal, which has raised concerns over fiscal policy direction and investor confidence. The central bank has yet to comment on the recent movements, but market observers say the trend reflects broader pressures on Nigeria’s foreign exchange system.
Nigeria’s external reserves have been under strain due to falling oil revenues, the country’s main source of foreign currency, and increased demand for dollars. The depreciation of the naira adds to inflationary pressures and complicates efforts to stabilise the economy.
With the currency weakening across 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.
