FX: After weeks of gains, naira stumbles against the dollar

Nigeria’s currency, the naira, has lost ground against the United States dollar after showing strength in recent weeks.

According to data from the Central Bank of Nigeria on Wednesday, the official exchange rate slipped to ₦1,494.03 per dollar, compared with ₦1,484.14 recorded on Tuesday. This represents a day-to-day depreciation of ₦9.89.

The setback follows Tuesday’s performance when the naira touched its highest level in seven months, briefly raising hopes of stability in the foreign exchange market.

At the black market, the story was different, as the naira held steady at ₦1,537 per dollar, the same rate traded a day earlier.

Despite this weakening at the official market, Nigeria’s external reserves have continued to improve.

The apex bank’s report showed reserves rose to $41.89 billion as of September 16, 2025, reflecting a stronger buffer for the economy.

The mixed signals—reserves strengthening on one side and the naira slipping on the other—highlight the fragile balance the market is grappling with.

Many observers say investor confidence, demand for dollars, and government policy moves will determine whether the naira can quickly rebound or face further pressure in the coming days.