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By Ogaga AriemuThe Nigerian naira fell sharply against the United States dollar at the close of trading on Friday, ending the week on a disappointing note after days of positive performance.
According to official data released by the Central Bank of Nigeria (CBN), the naira depreciated to ₦1,465.68 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), compared to ₦1,455.25 per dollar recorded on Thursday.
This represents a ₦10.43 drop in value within a single day, signaling renewed pressure on the local currency after a brief period of recovery.
The decline comes after the naira had shown strong momentum earlier in the week, gaining steadily for four consecutive days due to improved dollar supply and increased investor confidence.
However, market analysts suggest that renewed demand for foreign exchange by importers and corporate entities toward the weekend may have triggered the latest round of depreciation.
At the parallel (black) market, the naira remained stable at ₦1,485 per dollar on both Thursday and Friday, suggesting that traders are maintaining a wait-and-see approach as the market adjusts to recent policy measures introduced by the apex bank.
Despite Friday’s decline, the naira still recorded a slight improvement on a week-on-week basis, appreciating by ₦14.98 when compared to the ₦1,480.66 per dollar exchange rate recorded on Friday, September 27, 2025.
Meanwhile, Nigeria’s external reserves have continued to grow, standing at $42.40 billion as of October 2, 2025, up from $42.33 billion just three days earlier.
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Analysts view this steady rise in reserves as a positive sign, reflecting improved foreign inflows and potential stability for the foreign exchange market in the coming weeks.
Experts have continued to urge the Central Bank to sustain its monetary tightening measures and enhance transparency in the forex market to restore full confidence among investors and businesses.
They also emphasized the need for Nigeria to boost local production and reduce dependence on imports, which remains one of the major factors driving dollar demand.
While the week ended with a slight setback for the naira, economists remain cautiously optimistic that the local currency could regain strength if foreign inflows continue to rise and market reforms are fully implemented.
