“Detty December” promised dollar inflows, but the money failed to show up in the forex market.
As a result, traders say demand has overtaken supply, and fresh pressure has hit the Naira.
After weeks of calm, confidence has weakened, while volatility has returned.
Detty December Fails To Boost Liquidity
Currency traders report tighter dollar liquidity across the market.
Meanwhile, foreign investors are repatriating funds and delaying new investments.
At the same time, speculators are increasing pressure on the currency.
Naira Slides Amid Rising Demand
Consequently, the Naira closed at ₦1,466.5/$1 on Friday, December 19, 2025.
This compared with ₦1,454/$1 at the start of the week.
Notably, the close marked the Naira’s weakest level since October.
According to CBN data, the currency fell in all five trading sessions last week.
In addition, external reserves declined, thereby deepening market anxiety.
Reserves dropped from $45.472 billion on December 12 to $45.209 billion by December 19.
Market Pressure Persists Despite Interventions
Traders also say “Detty December” inflows have underperformed expectations.
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Although diaspora Nigerians and foreign visitors are spending, volumes remain limited.
Moreover, most inflows pass through informal or electronic channels.
As a result, these inflows have done little to boost street-level dollar liquidity.
ABCON president Aminu Gwadebe says liquidity remains the market’s core challenge.
According to him, foreign investors exiting with dividends have driven up dollar demand.
Furthermore, speculators and hoarders continue to restrict supply.
Meanwhile, many Nigerians still choose dollars as a store of value.
At the same time, year-end obligations and import payments have pushed demand higher.
However, exporters are releasing proceeds into the system too slowly.
Similarly, portfolio investors remain cautious amid ongoing uncertainty.
In response, the CBN injected $150 million to support the Naira.
Additionally, the regulator licensed 82 new BDC operators to improve retail liquidity.
Traders believe the move could help if authorities enforce it effectively.
Meanwhile, Nigeria’s FX reserves recorded their first decline in 25 weeks.
Specifically, reserves fell by $263.15 million to $45.21 billion in mid-December.
At the same time, FX inflows dropped sharply to $2.0 billion in November.
Foreign portfolio investment also fell significantly during the period.
Likewise, foreign direct investment weakened.
Analysts link the slowdown to weaker inflows and rising demand.
Until inflows recover, therefore, traders expect continued pressure on the Naira.
