The naira weakened further on Friday, closing at N1,361.5 per US dollar as pressure in Nigeria’s foreign exchange market intensified and the currency hit its lowest level in three weeks.
Data from the Central Bank of Nigeria (CBN) showed the naira extended a week-long decline, driven by strong dollar demand, limited supply, and ongoing uncertainty in the FX market.
The latest rate reflects consecutive losses recorded earlier in the week, including N1,355/$ on Thursday and N1,348.1/$ on Wednesday, showing sustained depreciation across trading sessions.
Compared with last week’s close of N1,342.5/$, the currency has weakened by nearly N20 in one week, highlighting rising volatility in the market.
The naira also touched its weakest point since April 9, when it closed at N1,365/$.
Nigeria’s external reserves also dropped to $48.4 billion from $48.54 billion at the start of the week, adding further pressure on foreign exchange liquidity.
Analysts attribute the downturn to excess dollar demand from importers and manufacturers, weak FX inflows, and seasonal pressures in the market.
Samuel Obadofin, FX analyst said demand for dollars continues to outpace supply, especially from businesses dependent on imports.
“Demand for dollars is still significantly higher than supply, especially from importers and manufacturers,” he said.
He added that recurring midweek demand spikes often worsen pressure toward the end of trading sessions.
Global factors such as a stronger US dollar and fluctuations in oil prices have also contributed to weakening FX earnings.
While reforms have improved market structure, analysts say sustained stability will depend on stronger dollar inflows and improved reserves.
