The naira ended the week weaker at ₦1,421.9 /$ in the official market.
Local dollar shortages outweighed support from a softer U.S. dollar globally.
Early in the week, the currency showed mild stability before losing momentum midweek.
Liquidity Pressure Persists
It opened at ₦1,425/$ on Monday and strengthened to ₦1,420/$ on Tuesday.
However, it slipped to ₦1,423/$ on Wednesday and weakened further on Thursday.
It closed Friday at ₦1,421.9/$, below last Friday’s ₦1,417.95/$ close.
Central Bank of Nigeria reported that thin FX liquidity pressured the market.
As a result, calm trading failed to sustain recovery.
Parallel Market Widens Naira Gap
At the same time, traders faced increased pressure in the parallel market.
The naira weakened slightly to ₦1,491/$ on Friday from ₦1,490/$ the previous day.
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Throughout the week, trading ranged between ₦1,483/$ and ₦1,491/$, widening the gap to about ₦70/$.
Lagos-based currency trader Dayo Omole explained that domestic factors drive exchange rate movements.
He noted that restricted FX access and limited dollar supply prevent the naira from responding to global trends.
He added that the parallel market reflects unmet local demand rather than global dollar movements.
Reforms Test Market Confidence
Years of FX controls and weak dollar inflows continue to shape Nigeria’s FX market.
Although the CBN introduced reforms to improve transparency, structural challenges still disrupt price discovery.
Weaker oil exports and subdued foreign portfolio inflows continue to constrain dollar supply.
Inconsistent diaspora remittances also limit FX liquidity.
Nigeria’s external reserves stood at $45.9 billion last week, according to the CBN.
The IMF raised Nigeria’s 2026 growth forecast to 4.4% on reform optimism.
Nevertheless, global volatility continues to affect frontier currencies like the naira.
