Data from the Central Bank of Nigeria (CBN) indicated that the naira weakened by 0.3 percent at the Nigerian Foreign Exchange Market (NFEM), closing at ₦1,438.49 per dollar, compared to ₦1,433.65 the previous day.
The parallel market mirrored the downward trend, as the naira shed ₦20 to settle at ₦1,460/$, a 1.4 percent decline from Tuesday’s rate of ₦1,440. Similarly, GTBank’s daily FX rate for international transactions ended at ₦1,446/$, up slightly from ₦1,443 recorded a day earlier.
Market analysts attributed the latest depreciation to reduced liquidity inflows and a mild uptick in dollar demand. A recent report by Coronation Merchant Bank revealed that FX inflows through the NFEM dropped to $1.04 billion last week, compared to $1.37 billion the previous week. The report also showed that foreign portfolio investors (FPIs) remained the largest contributors, accounting for 62.3 percent ($645.4 million) of total inflows. Exporters followed with 15 percent, non-bank corporates contributed 11.6 percent, while foreign direct investments (FDIs) and other sources made up 1.9 percent and 9.2 percent, respectively.
Despite the current volatility, Nigeria’s external reserves have continued on an upward trajectory, rising to $43.27 billion as of November 4, 2025, according to the latest CBN data—a sign that the country’s foreign asset position remains relatively stable.
Earlier in the week, the naira’s movement had been unsettled by remarks from former U.S. President Donald Trump, which triggered uncertainty among investors and caused a brief market reaction.
Ayokunle Olubunmi, Head of Financial Institutions Ratings at Agusto & Co., said Trump’s comments had a noticeable effect on both the currency and bond markets. “It’s not far-fetched because we also saw a drop in the bond market,” he explained. “The reaction was expected, given that markets tend to respond sharply to such political statements.”
Olubunmi, however, noted that the impact would likely be temporary. “Trump often makes strong statements that create some initial disruption, but the markets usually stabilise once the dust settles,” he added.
After briefly recovering on Tuesday, the naira came under renewed strain on Wednesday as tightening liquidity conditions and sustained dollar demand dragged it lower once again. Market watchers say stability may return in the coming days if FX inflows pick up and investor sentiment improves.