Nigeria’s foreign exchange market opened the week on a tense note as the naira weakened further despite a fresh $100 million intervention by the Central Bank.

The move, aimed at calming rising demand for dollars at the official window, did little to stop renewed pressure on the local currency.

According to the latest figures released by the CBN, the naira reached an intraday high of N1457 to the dollar at the Nigeria Foreign Exchange Market.

This marked a slight dip from the previous day's rate trading session and signaled lingering strain from year-end import demands and the activities of multinationals repatriating funds.

CBN sells FX to authorised dealers

The bank’s intervention involved selling $100 million through Access Bank, UBA, Zenith Bank and other authorised dealers. The goal was to boost liquidity and stabilise pricing as Nigeria heads into the peak of holiday-related foreign currency transactions.

Yet, the impact was short-lived, and the naira continued to feel the weight of rising dollar appetite.

Naira weakens despite CBN support

By Monday’s close, the official rate at the NAFEM window stood at N1,451.86 per dollar. This represented a 0.10 percent depreciation, showing that the market still leans heavily on the demand side with limited supply to match it.

Traders say most of the pressure comes from importers racing to clear shipments before year-end and international firms moving funds offshore ahead of quarterly reporting cycles.

While the official market showed signs of strain, the parallel market held steady at N1,463 per dollar.

This stability in the informal segment, despite turbulence at the official window, highlights the complicated and sometimes unpredictable nature of Nigeria’s currency landscape.

The widening contrast between regulated and informal exchange rates continues to raise concerns among analysts.

Some believe the duality encourages speculation, while others argue it reflects the fragmented structure of the FX ecosystem.

Reforms set to reshape the FX market by 2026

Industry watchers expect the gap between the two markets to close gradually. One reason is the CBN’s ongoing reform that has drastically reduced the number of licensed Bureau de Change operators to just 82 nationwide. Experts have predicted that the Nigerian currency will finish 2025 at N1,400 per dollar.

Meanwhile, Janet Ogochukwu, senior banker and economist, told Legit.ng that the naira can sustain the current barrage of high dollar demands in the FX market. “For now, Nigeria’s forex reserve position is robust at over $45 billion, the highest in six years. Yes, I believe the naira can survive and hold its position against high demand,” she said.