The Naira weakened slightly at the close of trading on Friday, November 7, 2025, settling at N1,438.5 per dollar in the official market.
According to data from the Central Bank of Nigeria’s (CBN) website, the Naira traded at N1,438/$1 on Monday, N1,441.75/$1 on Tuesday, N1,440/$1 on Wednesday, N1,437.5/$1 on Thursday, before closing the week at N1,438.5/$1 on Friday, reflecting mild fluctuations but an overall weaker performance compared to last week’s close of N1,427.5 per dollar.
Parallel market sees slight appreciation during the week
In the unofficial (parallel) market, however, the Naira experienced marginal appreciation, strengthening to N1,445/$1 from N1,455/$1 recorded midweek.
During the week, it fluctuated between N1,445/$1 and N1,460/$1, according to traders in Lagos and Abuja.
Currency traders attribute the relative stability in the parallel market to improved dollar inflows from diaspora remittances and end-of-month corporate conversions, though they warn that seasonal demand for foreign exchange could soon reverse the trend.
Week-on-Week Performance
The Naira’s current level marks a week-on-week depreciation, ending at N1,438.5/$1 compared to N1,427.5/$1 the previous Friday, October 31, 2025.
Last week’s performance represented the second consecutive week of gains for the local currency, as it appreciated from N1,452.5/$1 on the first trading day of the week to N1,427.5/$1 on Friday, driven by increased market confidence and a boost in foreign exchange liquidity following recent Central Bank reforms.
This week’s pullback, however, suggests renewed pressure on the currency as importers begin to demand more dollars ahead of the festive and electioneering seasons.
Foreign reserves rise to $43.32 billion
Despite the mild depreciation, Nigeria’s foreign reserves continue to grow, climbing to $43.32 billion this week from $43.17 billion last week.
This marks one of the country’s strongest reserve positions in recent months, which experts say reflects the success of the Central Bank of Nigeria’s (CBN) policy measures, improved oil revenue inflows, and increased investor participation in the Nigerian market.
According to CBN data, the steady rise in reserves demonstrates stronger foreign exchange supply from autonomous sources, including portfolio investors, oil exports, and diaspora remittances.
Analysts warn of short-term volatility
Financial analysts have expressed concern that as Nigeria enters the festive and pre-election periods, pressure on the Naira could intensify. Seasonal import demand, election-related spending, and speculative trading may weigh on the currency’s stability in the coming weeks.
They also warn that while increased foreign reserves provide a buffer, the long-term sustainability of the Naira depends on deeper structural reforms — including boosting non-oil exports, strengthening fiscal revenue generation, and managing inflationary pressures.
“What we’re seeing now is cautious optimism,” a market analyst in Lagos, Abas Adelakun said. “The fundamentals are improving, but the next two months will test the resilience of both the market and the CBN’s policies.”
In its projection for the Naira, Standard Bank had stated that political developments and fiscal spending ahead of the 2027 general elections could exert pressure on the Naira.
According to the bank, “Electioneering activities are key factors stakeholders should consider as a likely driver of the USD/NGN pair in 2026 and 2027. Primary election activities are expected to begin in Q1:26, with campaigns for the 2027 general election expected to be in full swing from Q3:26. These activities are likely to lead to an increase in dollar demand, which, in addition to increased fiscal spending, should support an increase in money supply.”
The Bank projected that the Central Bank of Nigeria’s (CBN) stronger FX reserve position should allow the apex bank to mitigate USD/NGN upside pressure.
What you should know
In December 2024, President Bola Tinubu, during his budget presentation speech said the 2025 budget was based on the projections that inflation will decline from the current rate of 34.6 per cent to 15 per cent, while the exchange rate will improve from approximately 1,700 naira per US dollar to 1,500 naira.
Several experts expressed doubts about President Tinubu achieving the targets.