The naira weakened marginally at the official foreign exchange market on Monday, closing at N1,420.5 to the dollar as global dollar sentiment softened amid renewed concerns over U.S. economic and geopolitical risks.
Data published on the Central Bank of Nigeria (CBN) website showed the local currency depreciated slightly from its previous close, even as conditions improved in the parallel market.
The movement reflects continued divergence between Nigeria’s official and informal FX markets, against the backdrop of global volatility and lingering domestic liquidity challenges.
The official exchange rate edged lower despite signs of modest relief in the parallel market, highlighting persistent structural pressures in Nigeria’s foreign exchange system.
The widening spread demonstrates ongoing FX supply constraints and continued distortions between Nigeria’s formal and informal currency markets.
Nigeria’s exchange rate has largely stabilised in recent months, although it remains vulnerable to a combination of global currency movements and domestic policy adjustments aimed at improving market transparency and liquidity.
Naijaonpoint data show that the naira ended 2025 on a firmer note, closing at N1,429/$1 on December 31, representing a 7.4 per cent appreciation from the N1,535/$1 recorded on the final trading day of 2024.
These factors have kept the naira sensitive to both external shocks and internal structural constraints, despite recent signs of relative stability.
Global developments and Nigeria’s external buffers continue to play a critical role in shaping near-term currency expectations.
The International Monetary Fund upgraded Nigeria’s 2026 growth forecast to 4.4 per cent, from 4.2 per cent.