The Naira continued its downward slide against the US dollar this week, closing at N1,454/$1 on Friday as rising festive-season spending intensified pressure on the foreign exchange market.
After maintaining relative stability in recent weeks, the currency faced renewed strain as importers, retailers, and consumers increased their demand for dollars in preparation for Christmas and New Year activities.
Throughout the week, official market data on the Central Bank of Nigeria’s (CBN) website reflected a steady weakening of the currency.
The naira traded at N1,450.01/$1 on Monday, appreciated to N1,447/$1 on Tuesday, and a slight slip to N1,447.5/$1 on Wednesday.
By Thursday, it had depreciated to N1,449/$1, before closing the week at N1,454/$1 on Friday.
During the week, the naira traded, according to market sources in Abuja, at N1,469.5/$1 and N1,472/$1.
Analysts attribute the trend to typical year-end spending patterns that drive up FX demand during the festive period.
One BDC operator at Wuse Zone 4 told Naijaonpoint that despite the Central Bank of Nigeria’s attempts to stabilise the market, factors such as speculative trading and increased import activity have placed additional pressure on the naira.
This latest bout of depreciation comes as Naijaonpoint reported that the Federal Government has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), which includes a projected exchange rate of N1,512/$1 for 2026—an indication that policymakers are aligning forecasts with prevailing market conditions.
Compared to last week’s closing rate of N1,446.9/$1, the naira ended the current trading week on a weaker footing, consistently staying above the N1,447/$1 mark and surpassing the N1,450/$1 threshold on several occasions.
This comes in contrast to the previous week, when the currency showed signs of gradual recovery.
It opened at N1,452/$1 on Monday, strengthened to N1,441/$1 on Tuesday, and held steady at N1,442/$1 on Wednesday. The upward momentum continued from N1,445.9/$1 on Thursday to a final close of N1,446.9/$1 on Friday.
That mild strengthening trend has now reversed, highlighting the naira’s vulnerability to market pressures and the heightened foreign exchange demand typically associated with the final quarter of the year.
In a positive development, Nigeria’s foreign reserves rose to $45.04 billion, up from $44.9 billion at the beginning of the week, according to data published on the CBN website.
The modest increase signals improved inflows, possibly from crude oil earnings, Eurobond-related transactions, or multilateral financing. Stronger reserves often provide the apex bank with more room to intervene in the FX market if necessary.
As part of efforts to stabilise the naira and deepen investor confidence, the CBN disclosed last week that it is finalising a revised Foreign Exchange (FX) Manual.
As part of efforts to stabilise the naira and deepen investor confidence, the CBN disclosed last week that it is finalising a revised Foreign Exchange (FX) Manual.
This comes as the apex bank continues introducing structural reforms aimed at improving transparency, tightening oversight, and enhancing price discovery.
According to him, the upcoming manual will “expand market participation, tighten documentation standards, enhance EFMs surveillance and ensure consistency” as Nigeria continues its transition toward a more predictable and credible FX market structure.
Cardoso noted that the introduction of the Nigerian Foreign Exchange Code earlier in the year has already provided a strong foundation for ethical conduct and transparency among authorised dealers.
Naijaonpoint reports that the Naira closed November on a slightly weaker note, continuing the pattern of volatility that has defined the foreign exchange market in recent months.
The naira traded at N1,446.9/$1 on November 28, compared to N1,438/$1 at the opening of the month.