The naira slipped against the U.S. dollar at the Nigerian Foreign Exchange Market (NFEM) last week as data revealed a continued shortfall in foreign currency supply, forcing monetary authorities to intervene twice to stabilise the market.
Central Bank of Nigeria (CBN) data showed the official spot rate closed at N1,535.92 per dollar, down slightly from N1,533.56 at the week’s open. The apex bank sold $150 million to authorised dealer banks during the week to ease liquidity pressures, but inflows have yet to recover.
According to research by Coronation Merchant Bank, aggregate FX inflows fell for the third consecutive week to $732.8 million — a 7.4% drop from $791.1 million recorded the week before. Non-bank corporates were the largest contributors, bringing in $295 million, ahead of foreign portfolio investors (FPIs) with $267.9 million. Exporters accounted for 19.45% of inflows, while individuals contributed only 0.45%. Other international sources made up 3.19%.
Despite the inflow decline, Nigeria’s gross external reserves climbed by $800.51 million week-on-week to close at $40.16 billion — the first time reserves have crossed the $40 billion mark since January. Analysts attribute the increase to sustained FPI participation and rising non-bank corporate inflows.
Market experts expect the naira to remain relatively stable this week, trading between N1,500/$1 and N1,600/$1, in line with CBN’s policy guidance. However, they warn that unforeseen external shocks could trigger volatility.
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