The naira has extended its losing streak, falling for the third consecutive session as dollar supply in the foreign exchange (FX) market tightened.

According to the latest Central Bank of Nigeria (CBN) FX report, the official rate depreciated to ₦1,471.09 per dollar, marking a steady slide from the ₦1,455.23 opening rate at the beginning of October.

CBN steps in with $150 million injection

The currency even touched an intraday high of ₦1,477 on Tuesday, highlighting persistent demand pressures amid dwindling FX inflows.

In a bid to halt the naira’s slide, the CBN injected $150 million into the FX market to stabilise liquidity and boost confidence.

This intervention, analysts say, is aimed at maintaining recent gains in external reserves and cushioning the impact of falling market inflows.

Coronation Merchant Bank reported that total FX inflows fell sharply last week to $835.6 million, down from $1.18 billion the previous week, signalling reduced participation by foreign portfolio investors and exporters.

September stability gives way to October pressure

In September, the naira traded within the ₦1,531–₦1,522 per dollar range, supported by improved FX inflows, portfolio investments, and consistent CBN interventions.

But October has reversed that calm. With limited supply from exporters and investors, the currency has come under renewed strain.

Analysts say the CBN’s move may offer short-term relief, especially as oil receipts and external reserves continue to improve.

“The naira will rebound, says Janet Ogochukwu, economist and senior banker. What we are seeing is a minor tweak due to heightened dollar demand, but the pressure will moderate in the coming days,” she said.

Oil output boosts external reserves

Data from the CBN shows that Nigeria’s domestic oil production averaged 1.6 million barrels per day (mbpd) in August, slightly above its 1.5 mbpd OPEC quota.

This improvement, driven by a reduction in crude theft and pipeline vandalism, has helped stabilise foreign exchange earnings.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported that daily crude oil losses dropped to 9,600 barrels per day, a dramatic 90% plunge from 102,900 bpd recorded in 2021.

Oil prices hold steady as exports improve

Bonny Light crude averaged $73.18 per barrel in August, nearly unchanged from July’s $73.50, though higher than $65.90 in May.

Analysts attribute the relative price stability to a balance of global supply-demand factors, OPEC+ production decisions, and ongoing geopolitical tensions.

Crude exports remained firm at 1.06 mbpd in July, maintaining June’s level and exceeding May’s 1.00 mbpd.

As a result, foreign reserves climbed to $42.54 billion on Monday, October 6, 2025, up from $42.35 billion at the end of September, an encouraging sign of improved external stability despite market headwinds.

What lies ahead for the naira?

With the naira’s recent decline and the dollar’s renewed strength, the CBN faces a delicate balancing act, maintaining liquidity without draining reserves.

Experts warn that unless FX inflows rebound sharply, the currency could face further pressure despite interventions.

Still, rising oil production and a cautious monetary policy stance offer a glimmer of hope for the naira in the coming weeks.

Naira now among world’s most competitive currencies

Legit.ng earlier reported that Nigeria’s currency, the naira, is recording its strongest performance in over twenty years, emerging as one of the most competitive currencies globally amid a weakening U.S. dollar.

Experts say this milestone signals a turning point for Africa’s largest economy, one powered by reform, resilience, and growing investor confidence.

Yemi Kale, Group Chief Economist and Managing Director at Afreximbank, made this revelation at The Platform Nigeria event in Lagos, describing the naira’s current exchange rate as “arguably the most competitive in two decades.”