Nigeria’s currency has suffered another setback at both the official and parallel foreign exchange markets, raising fresh concerns over the effectiveness of ongoing Central Bank of Nigeria interventions amid persistent dollar shortages.
DDM gathered that the naira weakened at the Nigerian Foreign Exchange Market despite sustained foreign exchange sales by the apex bank aimed at stabilising the market.
Official data from the NFEM showed that the naira depreciated by 0.16 per cent to close at ₦1,457.84 per United States dollar, compared with the previous closing rate of ₦1,455.49.
The marginal drop underscores continued strain in the foreign exchange market, where demand for dollars continues to outpace available supply.
Market analysts attributed the latest depreciation to weak dollar inflows from traditional sources, including the Central Bank, exporters, foreign portfolio investors, and non-bank corporates.
According to traders, these inflows remain insufficient to significantly rebalance the market or ease mounting pressure on the local currency.
Intraday trading figures further highlighted the fragility of the naira, as the currency touched a session low of ₦1,462.90 per dollar.
This level represents the highest exchange rate recorded so far in December, signalling sustained stress in the official market.
Spot rates were also quoted around ₦1,456 per dollar during trading, marking the weakest point the naira has reached in the last two weeks.
Although the Central Bank has maintained its intervention strategy through periodic dollar sales, market participants said the approach has only helped to reduce sharp volatility rather than address the underlying demand imbalance.
Traders noted that while the naira’s short-term outlook appears relatively stable, it has continued to surrender gains recorded in recent weeks.
The depreciation trend was mirrored in the parallel market, where the naira also weakened against the dollar.
At the informal market, the currency fell by about 0.20 per cent to exchange at approximately ₦1,474 per dollar.
Analysts say the movement in the parallel market reflects broader pressure across Nigeria’s foreign exchange ecosystem, suggesting that intervention efforts have yet to produce lasting relief.
The sustained weakness of the naira comes amid wider global market developments that could influence Nigeria’s external position.
In the international oil market, crude prices recorded notable gains, driven by heightened geopolitical tensions.
The rally followed an announcement by United States President Donald Trump ordering a comprehensive blockade of sanctioned oil tankers entering and leaving Venezuela.
Brent crude oil rose by $1.17, representing a 1.99 per cent increase, to close at $59.84 per barrel.
Similarly, United States West Texas Intermediate crude gained 97 cents, or 1.76 per cent, settling at $56.10 per barrel.
Rising oil prices are typically viewed as positive for Nigeria’s foreign exchange earnings, given the country’s reliance on crude exports.
However, analysts caution that production constraints, oil theft, and structural challenges may limit the extent to which higher prices translate into improved dollar inflows.
Gold prices also continued their historic rally, posting one of their strongest performances in decades.
The precious metal has more than doubled in value over the past two years, marking its most sustained advance since the 1979 oil crisis.
Spot gold rose by 0.79 per cent to $4,337.85 per ounce, while United States gold futures climbed 0.88 per cent to $4,370.50 per ounce.
Market analysts attribute the surge in gold prices to heightened investor appetite for safe-haven assets amid geopolitical uncertainty and global macroeconomic risks.
Sentiment in the commodities market suggests that prices may remain firm in the near term.
Gold is projected to continue strengthening on bullish forecasts extending into 2026, while oil prices are expected to stay supported by ongoing supply risks linked to geopolitical developments.
For Nigeria, however, analysts warn that stronger global commodity prices alone may not be enough to stabilise the naira without deeper structural reforms, improved dollar inflows, and restored investor confidence.
As pressure persists across both official and parallel markets, attention remains fixed on whether the Central Bank can deploy more effective tools to arrest the naira’s gradual slide and restore stability to the foreign exchange market.