The Nigerian naira ended the week on a disappointing note on Friday,falling sharply against the United States dollar after four consecutive days of gains.
According to official data from the Central Bank of Nigeria (CBN), the naira depreciated to ₦1,465.68 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), down from ₦1,455.25 per dollar recorded on Thursday.
This marks a ₦10.43 drop in value in a single day, highlighting renewed pressure on the local currency after a brief rebound.The decline follows a strong start to the week, when the naira gained steadily for four days, buoyed by improved dollar supply and increased investor confidence.
Market analysts, however, attributed Friday’s setback to renewed demand for foreign exchange by importers and corporate entities towards the weekend.At the parallel (black) market, the naira remained stable at ₦1,485 per dollar on both Thursday and Friday, indicating that traders are adopting a wait-and-see approach amid recent policy adjustments by the apex bank.
Despite Friday’s dip, the naira still showed improvement on a week-on-week basis, appreciating by ₦14.98 compared to the ₦1,480.66 per dollar rate recorded on Friday, September 27, 2025.
Meanwhile, Nigeria’s external reserves continued their upward trend, rising to $42.40 billion as of October 2, 2025, up from $42.33 billion just three days earlier.Analysts see this steady increase in reserves as a positive development, reflecting improved foreign inflows and potential stability for the forex market in the coming weeks.
Experts have continued to urge the Central Bank to sustain monetary tightening measures and enhance transparency in the forex market to restore full investor and business confidence.
They also emphasized the importance of boosting local production and reducing import dependence, which remains one of the key drivers of dollar demand
While the naira suffered a setback at the close of the week, economists remain cautiously optimistic that the currency could regain strength if foreign inflows continue to improve and ongoing market reforms are fully implemented.