(DDM) – The Nigerian Naira recorded significant losses against the United States dollar at the official foreign exchange market, highlighting growing concerns over the nation’s currency stability.
Data from the Central Bank of Nigeria (CBN) revealed that the Naira closed the week at N1,456.73 on Friday, 21 November 2025.
This represents a notable decline from the previous week’s rate of N1,442.43 on 14 November, marking a week-on-week loss of N14.06.
The depreciation reflects ongoing pressures in the foreign exchange market, even as Nigeria continues to maintain relatively strong foreign reserves.
According to the CBN, the country’s foreign reserves increased by 1.25 per cent last week, reaching $43.64 billion.
Despite this rise in reserves, the Naira’s decline at the official market suggests that supply and demand dynamics in foreign currency trading continue to exert pressure on the local currency.
Meanwhile, the black market, which has experienced reduced patronage in recent months, maintained relative stability.
Naira was traded at N1,465 per dollar on the parallel market, the same rate as recorded the previous week.
Market analysts suggest that the stability of the black market rate reflects limited activity and reduced speculative demand for dollars outside official channels.
The week-on-week depreciation adds to a broader narrative of currency vulnerability in Nigeria, where economic pressures, import demands, and market sentiment influence the exchange rate.
The CBN has in the past intervened in the market to cushion extreme fluctuations, but the recent trend indicates that additional measures may be needed to maintain investor confidence.
Economists warn that continued weakening of the Naira could affect the cost of imports, inflationary pressures, and overall economic stability.
Businesses reliant on foreign exchange for imports may face higher operating costs, while consumers could experience rising prices for imported goods.
The government and CBN have previously emphasized the importance of strengthening the Naira through policy interventions, increased export revenue, and diversification of the economy.
However, sustaining these measures requires a delicate balance between supporting domestic currency value and ensuring adequate liquidity in the foreign exchange market.
The current week’s depreciation signals that despite rising reserves, structural factors continue to influence currency performance.
Investors and market watchers will be closely monitoring the Naira’s trajectory in the coming weeks to assess the impact on trade, investment, and economic growth.