The naira came under mild pressure last week in the official foreign exchange market as slowing liquidity and a steady decline in external reserves tempered recent gains.
At the parallel market, also known as the black market, the currency held steady at N1,400 per dollar on Monday.
Data from the Central Bank of Nigeria (CBN) showed the naira weakened by N14.80, week-on-week, with the dollar quoted at N1,358.44 on Friday, representing a 1.09 percent depreciation from N1,343.64 recorded on April 17, 2026, at the Nigerian Foreign Exchange Market (NFEM) window.
The gap between the official and parallel market rates narrowed slightly to N42 per dollar on Friday from N44 as of April 10, 2026.
Nigeria’s external reserves, which provide the Central Bank with firepower to support the currency, continued on a downward trend, declining by 3.16 percent to $48.44 billion as of April 23, 2026, from a peak of $50.02 billion recorded on March 11, 2026, according to data on the CBN website.
Foreign exchange inflows also weakened. Figures from FMDQ showed total FX inflows into the market declined by 7 percent month-on-month to $4.1 billion in March. Analysts at Quest Merchant Bank attributed the moderation partly to seasonal patterns, noting a similar 5 percent decline recorded in March 2025.
“Although inflows from foreign portfolio investors (FPIs), which remain the main source of FX supply, dipped only slightly, the overall decline in liquidity was largely driven by a sharp drop in inflows from local individuals, which fell to $22.2 million from $697.8 million in the previous month,” the analysts said.
With reduced inflows and persistent demand pressures, the Central Bank’s interventions became a key source of FX supply. CBN sales rose sharply to $691 million in March, representing a 112 percent increase month-on-month.
Within the domestic segment, local exporters remained a significant source of supply, although their contribution eased by 2 percent to $770.3 million.
The pressure on the naira was already evident in March, with the exchange rate depreciating by about 1.3 percent month-on-month to close at N1,387 per dollar, according to the Quest report.
Remittance inflows also showed weakness. CBN data indicated that total direct remittances fell by 46.22 percent to $107.47 million at the end of January 2026, down from $200.31 million in December 2025.
Olayemi Cardoso, governor of the CBN said the apex bank is targeting $1 billion in monthly remittance inflows by year-end, up from the current level of about $600 million per month.
He said recent engagements with the Nigerian diaspora, including during the president’s visit to the United Kingdom, were aimed at boosting inflows through formal channels.
According to him, the Central Bank has focused on removing bottlenecks and improving access through initiatives such as enabling Bank Verification Numbers (BVN) for Nigerians abroad and integrating International Money Transfer Operators (IMTOs) into the system.
“The Central Bank has done much to create an enabling environment. What is needed now is for banks to develop products that encourage diaspora Nigerians to channel funds through formal systems,” Cardoso said, adding that early signs of progress are encouraging.
A separate report by FMDA showed the naira reversed part of its earlier gains during the week, with the NFEM rate depreciating marginally by 0.47 percent amid a decline in market turnover.
Interbank turnover dropped sharply by 49.56 percent, while the number of deals fell from 594 to 346, indicating reduced participation and softer FX supply, which further weighed on the currency.)))
