On Tuesday, the naira weakened to ₦1,383 against the US dollar.
As a result, pressure in Nigeria’s FX market and falling reserves drove the decline.
FX Pressure Deepens On Naira
According to the Central Bank of Nigeria, the naira closed at ₦1,369/$ on Monday.
However, it weakened further on Tuesday and traded between ₦1,367.5/$ and ₦1,385/$.
By the end of the session, the currency settled at ₦1,383/$, while it averaged ₦1,380.19/$.
Notably, this marks its weakest level since April 7, 2026, when it hit ₦1,389/$.
In comparison, last Tuesday’s rate stood at ₦1,350.99/$, showing a steady downward trend.
Reserves Extend Decline
Meanwhile, external reserves also declined during the period.
They dropped to $48.38 billion on April 27, from $48.51 billion on April 21.
This $124 million fall shows that authorities continue FX interventions and meet external obligations.
Importantly, external reserves act as a buffer for currency stability and FX interventions.
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However, their decline raises concerns about how long support measures can continue.
Global Dollar Strength Persists
At the same time, the US dollar held firm ahead of a decision by the Federal Reserve.
In addition, geopolitical tensions in the Middle East increased demand for safe-haven assets.
Elsewhere, the euro and pound moved within narrow ranges.
Similarly, the Japanese yen hovered near the key 160 level against the dollar.
Back home, Nigeria’s FX market still faces strong import demand and weak inflows.
Moreover, ongoing reserve drawdowns continue to weigh on the naira’s performance.
According to traders, the CBN still restricts Bureau De Change access to the official market.
As a result, regulators aim to maintain control and address past abuses.
Despite this, the CBN Governor, Olayemi Cardoso, dismissed concerns about the decline.
He insisted that the trend should not cause alarm despite recent movements.
Looking ahead, the central bank remains optimistic about the reserves outlook.
It expects reserves to reach $51 billion by the end of 2026.
Overall, domestic and global factors continue to pressure the naira.
