The naira weakened further against the U.S. dollar as a slowdown in foreign exchange inflows tightened liquidity at the official market. The currency, which recently enjoyed relative stability due to improved investor confidence and sustained CBN support, has begun to reflect its underlying fragility amid reduced FX intervention.
Fresh daily FX data showed that the naira depreciated to N1,448.03/$1 on Monday as demand for foreign payments increased significantly, reflecting the seasonal rise in year-end obligations while inflows continued to shrink. This followed a close of N1,442.43/$1 on Friday.
According to the official market report, intraday trading saw the naira touch a high of N1,450.25 while the strongest bids were executed at N1,440.
The currency has faced persistent pressure for two consecutive weeks as the CBN works to settle outstanding obligations for foreign portfolio investors exiting equity positions. Analysts expect the naira to stabilise as the apex bank prepares to scale up FX injections into the market.
Last week, the CBN sold $50 million to support liquidity, although the move was insufficient to halt the downward drift in the official rate.
FX inflows into the Nigerian Foreign Exchange Market (NFEM) fell by 25.23% to $672.30 million, down from $899.20 million a week prior. Inflows had reached a peak of $1.37 billion earlier in November before the current slowdown set in.
The shortfall in U.S. dollar supply has been linked to heavy selloffs of naira assets in the fixed-income space, driven by the new capital gains tax. Many foreign investors opted to convert their holdings back to dollars, adding pressure to the local currency.
Foreign portfolio investors remained the largest contributors to available inflows, representing 34.42% ($231.40 million). Non-bank corporates accounted for 25.70%, exporters 22.47%, individuals 7.56%, and the CBN 5.52%, while remaining inflows came from other domestic sources.
In the parallel market, however, the naira experienced a mild recovery, appreciating by 0.12% to close at N1,470/$1 as demand dynamics shifted across informal trading channels.
