Photo: Balogun Market in Lagos (file photo) — Wikimedia Commons.
The naira weakened to a 10-month low of 1,430 per dollar in the parallel market on Wednesday, as seasonal demand for the greenback gathered momentum ahead of the festive season and amid election-related spending.
The rate compared with 1,410 per dollar on Monday and 1,425 on Tuesday, extending a slide that has widened the gap between the street rate and the official rate, BusinessDay reported, citing data collated from currency exchangers.
- Parallel market: 1,430 naira per dollar on Wednesday, from 1,410 on Monday
- Official market: 1,350.86 naira per dollar on Tuesday, per CBN data
- External reserves fell $330 million to $54.93 billion as of November 9
How wide the gap has grown
The depreciation widened the gap between the official and parallel rates to about 80 naira per dollar, or 5.93 per cent, from 66 naira, or 4.89 per cent, on Monday — reflecting renewed pressure in the informal foreign exchange market.
At the Nigerian Foreign Exchange Market, the official window, the naira also weakened slightly, closing at 1,350.86 per dollar on Tuesday against 1,349.34 on Monday, according to Central Bank of Nigeria data.
What is driving the pressure
Traders and analysts link the softening to heightened seasonal demand from importers and travellers heading into the end-of-year period, alongside foreign portfolio outflows and a firmer United States dollar globally.
Nigeria's external reserves — the Central Bank's buffer to defend the naira and meet external obligations — declined by $330 million to $54.93 billion as of November 9, a 0.59 per cent contraction from the $55.26 billion peak recorded on October 27, according to CBN data. Reserves nonetheless remain above the bank's full-year target of $51.04 billion.
What happens next
Investors and traders will watch trading in the coming days for signs of whether the naira steadies around current levels or slips further as demand for dollars builds into December.
Credit: BusinessDay report of November 11, 2026. Follow @newstweetnaija on Instagram for the day's biggest stories.
