The naira recorded a weekly loss in the official foreign exchange (FX) market despite a sharp increase in market liquidity and continued growth in Nigeria’s external reserves.
Data published by the Central Bank of Nigeria (CBN) showed that the naira depreciated by N9.65 week-on-week as the dollar was quoted at N1,371.04 on Friday, compared to N1,361.39 recorded on Friday last week at the Nigerian Foreign Exchange Market (NFEM). This represents a loss of 0.70 percent.
NFEM turnover surged by 249.16 percent week-on-week to $509.22 million as of Thursday, up from $145.84 million recorded on Thursday last week, according to available data from the CBN.
However, on a day-on-day basis, turnover declined by 36.57 percent from $802.79 million recorded on Wednesday.
The number of deals executed at the NFEM window also declined week-on-week. Data showed that transactions fell to 289 deals on Thursday, representing an 11.62 percent drop from 327 deals recorded on the corresponding day of the previous week. On a daily basis, the number of deals also declined by 16.71 percent from 347 deals on Wednesday.
Activity at the interbank segment weakened during the week. The number of interbank deals fell by 36.26 percent week-on-week to 58 deals on Friday, compared to 91 deals recorded on Friday last week. It also declined by 43.69 percent from 103 deals executed on Thursday.
Interbank turnover dropped by 37.95 percent week-on-week to $48.49 million on Friday from $78.15 million recorded on Friday last week. On a day-on-day basis, turnover declined by 38.45 percent from $78.78 million on Thursday.
In the parallel market, also known as the black market, the naira traded between N1,395 and N1,400 per dollar, largely unchanged from levels recorded last week. The gap between the official and parallel market rates narrowed to about N24 per dollar.
Nigeria’s external reserves continued their upward trend, rising by $220 million to $48.54 billion as of May 14, 2026, from $48.32 billion recorded on May 7, 2026, according to figures published on the CBN website. The reserves growth is expected to strengthen the apex bank’s capacity to support liquidity and defend the local currency.
Meanwhile, within the week, Olayemi Cardoso, governor of the CBN, unveiled the fourth edition of the CBN Foreign Exchange Manual as part of efforts to deepen transparency and strengthen Nigeria’s FX market framework.
Cardoso said the revised FX Manual will take effect from June 1, 2026, and will be distributed free of charge to authorised dealers to support seamless adoption and compliance.
According to him, the revised manual aligns with international best practices and reflects the apex bank’s commitment to modernising Nigeria’s foreign exchange administration to improve clarity, consistency and market efficiency.
“The launch of the fourth edition of the CBN Foreign Exchange Manual reflects our collective commitment to strengthening Nigeria’s macroeconomic foundations, enhancing transparency, and reinforcing confidence in the foreign exchange market,” Cardoso said.
Stakeholders commended the CBN for undertaking an extensive consultative process and rigorous technical review involving banks, corporates and other market participants before finalising the revised manual.
Cardoso urged both public- and private-sector stakeholders to demonstrate professionalism and commitment to ensure effective implementation of the revised FX framework.
“Strong monitoring frameworks built on consistency, fairness and accountability are critical to maintaining the credibility and stability of Nigeria’s foreign exchange market,” he added.