Nigeria’s currency weakened slightly at the official market on Monday, as the Nigerian Foreign Exchange Market rate closed at 1,451.86/$ from 1,450.43/$ recorded on Friday.

According to data from the NFEM daily exchange summary available on the website of the Central Bank of Nigeria, the naira traded at an intra-day high of 1,457/$ and a lowest rate of 1,450.25/$ during Monday’s trading session.

The slight depreciation continues a pattern of cautious trading as demand for foreign exchange edges higher towards the year-end, with market participants noting that liquidity levels remain relatively steady but sensitive to shifts in dollar supply.

Analysts say the naira’s movement remains within a narrow band, suggesting that the market is adjusting gradually to seasonal pressures while awaiting further policy signals from monetary authorities.

Meanwhile, at the parallel market, the naira remained unchanged at N1,463/$, according to Cowry Asset Management. This stability, the firm noted, reflected divergent currency dynamics between the regulated official segment and the informal foreign exchange market.

Last week, the naira depreciated by N3.69 to the dollar, driven by higher demand pressure than the available supply levels. Although there were inflows from Foreign Portfolio Investors and interventions from the CBN, it was not enough to drive demand pressure lower. Overall, the naira declined by 0.25 per cent week-on-week.

The mild pressure on the naira is a carryover from November, when the domestic currency had been impacted by geopolitical tension. AIICO Capital, in its monthly report for November, noted that geopolitical tension and pressure from the dollar had halted the steady appreciation of the naira.

“The naira depreciated modestly against the USD in November 2025, with the NFEM rate declining by 1.76 per cent from 1,421.73/$ to close at 1,446.74/$, and the parallel market dropping by 1.03 per cent from 1,455.00/$ to close at 1,470.00/$. Volatility peaked mid-month, fuelled by high dollar demand, following the U.S. President taking military action against Nigeria regarding the Christian genocides and the redesignation of Nigeria as a ‘Country of Particular Concern’ by President Trump, which triggered sell-offs and capital outflows.

“Mid-month, despite the CBN reforms and S&P’s positive outlook revision, the naira sustained a decline as investors’ demand for USD came higher than the available supply. This trend continued till the month’s end to halt the third monthly appreciation. Meanwhile, external reserves rose by $1.5bn m/m to $44.67bn, driven by active reserve management and sustained inflows, providing a stronger buffer for market stability,” the analysts said.