The Naira weakened barely on the shut of buying and selling on Friday, November 7, 2025, settling at N1,438.5 per greenback within the official market.
In response to information from the Central Bank of Nigeria’s (CBN) web site, 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, earlier than closing the week at N1,438.5/$1 on Friday, reflecting gentle fluctuations however an general weaker efficiency in comparison with final week’s shut of N1,427.5 per greenback.
Parallel market sees slight appreciation through the week
Within the unofficial (parallel) market, nevertheless, the Naira skilled marginal appreciation, strengthening to N1,445/$1 from N1,455/$1 recorded midweek.
In the course of the week, it fluctuated between N1,445/$1 and N1,460/$1, in response to merchants in Lagos and Abuja.
Forex merchants attribute the relative stability within the parallel market to improved greenback inflows from diaspora remittances and end-of-month company conversions, although they warn that seasonal demand for international change may quickly reverse the development.
Week-on-Week Efficiency
The Naira’s present stage marks a week-on-week depreciation, ending at N1,438.5/$1 in comparison with N1,427.5/$1 the earlier Friday, October 31, 2025.
Final week’s efficiency represented the second consecutive week of beneficial properties for the native forex, because it appreciated from N1,452.5/$1 on the primary buying and selling day of the week to N1,427.5/$1 on Friday, pushed by elevated market confidence and a lift in international change liquidity following latest Central Bank reforms.
This week’s pullback, nevertheless, suggests renewed stress on the forex as importers start to demand extra {dollars} forward of the festive and electioneering seasons.
International reserves rise to $43.32 billion
Regardless of the gentle depreciation, Nigeria’s international reserves proceed to develop, climbing to $43.32 billion this week from $43.17 billion final week.
This marks one of many nation’s strongest reserve positions in latest months, which specialists say displays the success of the Central Bank of Nigeria’s (CBN) coverage measures, improved oil income inflows, and elevated investor participation within the Nigerian market.
In response to CBN information, the regular rise in reserves demonstrates stronger international change provide from autonomous sources, together with portfolio buyers, oil exports, and diaspora remittances.
Analysts warn of short-term volatility
Monetary analysts have expressed concern that as Nigeria enters the festive and pre-election durations, stress on the Naira may intensify. Seasonal import demand, election-related spending, and speculative buying and selling might weigh on the forex’s stability within the coming weeks.
In addition they warn that whereas elevated international reserves present a buffer, the long-term sustainability of the Naira is determined by deeper structural reforms — together with boosting non-oil exports, strengthening fiscal income era, and managing inflationary pressures.
“What we’re seeing now’s cautious optimism,” a market analyst in Lagos, Abas Adelakun stated. “The basics are bettering, however the subsequent two months will take a look at the resilience of each the market and the CBN’s insurance policies.”
In its projection for the Naira, Customary Bank had said that political developments and financial spending forward of the 2027 basic elections may exert stress on the Naira.
In response to the bank, “Electioneering actions are key elements stakeholders ought to contemplate as a possible driver of the USD/NGN pair in 2026 and 2027. Major election actions are anticipated to start in Q1:26, with campaigns for the 2027 basic election anticipated to be in full swing from Q3:26. These actions are more likely to result in a rise in greenback demand, which, along with elevated fiscal spending, ought to help a rise in cash provide.”
The Bank projected that the Central Bank of Nigeria’s (CBN) stronger FX reserve place ought to permit the apex bank to mitigate USD/NGN upside stress.
What it’s best to know
In December 2024, President Bola Tinubu, throughout his price range presentation speech stated the 2025 price range was based mostly on the projections that inflation will decline from the present fee of 34.6 per cent to fifteen per cent, whereas the change fee will enhance from roughly 1,700 naira per US greenback to 1,500 naira.
A number of specialists expressed doubts about President Tinubu attaining the targets.