The naira extended its downward trend on Monday, weakening to ₦1,369 per dollar at the official market, amid persistent foreign exchange pressures and declining external reserves.
Data from the Central Bank of Nigeria showed the currency slipped from ₦1,361.5/$ recorded at the close of trading last Friday, marking its weakest level since early April.
The latest depreciation reflects sustained demand for foreign currency and tightening liquidity conditions, despite a slight easing in global dollar strength.
Figures released by the apex bank indicated that Nigeria’s external reserves dropped from $49.18 billion on April 1 to $48.44 billion as of April 24, raising concerns over the country’s capacity to defend the currency.
Market analysts note that the naira’s performance continues to diverge from global trends, where the US dollar has softened slightly, suggesting that domestic supply constraints remain the dominant factor driving exchange rate movements.
The currency has now declined from ₦1,349.67/$ at the start of last week, underscoring a steady loss of value in recent trading sessions.
Experts say shrinking external buffers, coupled with strong demand from importers and investors, are putting sustained pressure on the foreign exchange market.
While Olayemi Cardoso, CBN govvernor has downplayed concerns over the reserve decline, insisting it should not trigger alarm, investors remain cautious about the sustainability of the current intervention strategy.
The central bank has projected that external reserves could rise to $51 billion by the end of 2026, as part of broader efforts to stabilise the macroeconomic environment and restore investor confidence.
