The Nigerian naira faced continued pressure in the official foreign exchange market last week, depreciating by 1.25% to settle at ₦1,536.89/$ on Friday.
Data from the Central Bank of Nigeria (CBN) indicates that the naira began the week on a weaker note at ₦1,528.03/$, down from ₦1,517.93/$ in the previous trading session.
It further declined to ₦1,532.93/$ before experiencing a brief recovery midweek. However, by Friday, the currency slipped again to its lowest level of the week at ₦1,536.89/$.
The depreciation comes as negotiations between the Nigerian National Petroleum Corporation Limited (NNPCL) and local refineries over the naira-for-crude agreement remain stalled. Talks are expected to resume this week in an effort to resolve disputes and potentially extend the deal.
Dangote Petroleum Refinery, which has temporarily halted petroleum product sales in naira due to currency misalignment, has further contributed to concerns.
Industry experts warn that without a resolution, fuel importers may turn to the FX market to source dollars, increasing demand for the greenback and intensifying pressure on the naira.
Despite CBN’s ongoing efforts to stabilize the naira by boosting FX supply to banks and Bureaux De Change (BDCs), the currency has continued to struggle.
Analysts caution that while these interventions may offer short-term relief, lasting stability requires deeper structural reforms to address Nigeria’s persistent foreign exchange challenges.
Meanwhile, in the parallel market, the naira gained ₦12 against the dollar, marking a 0.77% appreciation to close at an average of ₦1,568/$.
