Nigerian Naira dollar exchange weakened slightly to ₦1,532.54 as forex demand grew. Official rate stable, but pressure remains amid broader economic shifts

The Nigerian Naira dollar exchange rate opened the week with a marginal drop, settling at ₦1,532.54 per dollar on Monday, according to the Central Bank of Nigeria’s official figures.

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This 20 kobo decline from Friday’s closing rate of ₦1,532.34 reflects a 0.01% loss, underscoring continued strain in the foreign exchange market.

Despite the weakening, analysts view the Naira’s official rate as relatively stable, thanks to ongoing efforts by the CBN to manage market liquidity. Regular forex auctions and tighter control of speculative activity remain central to this strategy.

“The gap between official and parallel rates is still a concern,” said a Lagos-based currency trader. “But the CBN’s interventions have prevented any major shocks so far.”

The pressure on the Naira is largely driven by sustained demand for the dollar, used to fund imports and meet foreign debt obligations. Nigeria’s heavy reliance on oil for foreign exchange — over 80% — ties the currency’s fate to global oil prices.

Oil revenue fluctuations continue to affect Nigeria’s reserves, which stood at \$36.2 billion in June, slightly below previous levels. These dynamics contribute to volatility and investor caution.

Meanwhile, in the parallel market, the Naira was exchanged between ₦1,600 and ₦1,620 per dollar, revealing the ongoing disparity between official and street-level rates.

To combat this, the CBN has tightened oversight on Bureau de Change operators and cracked down on illicit forex transactions, aiming to reduce the spread between markets.

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Looking ahead, the Nigerian Naira dollar exchange outlook will depend on how effectively the CBN sustains forex supply and how quickly the government implements economic diversification efforts.