By Boluwatife Oshadiya | April 21, 2026
Key Points
- Naira depreciates to ₦1,349.67/$ amid rising FX demand
- External reserves decline to $48.62bn, down $1.4bn
- Oil prices surge over geopolitical tensions in Middle East
Main Story
The Nigerian naira weakened to approximately ₦1,349.67 per dollar at the official foreign exchange market on Monday, pressured by increased demand for foreign currency and a decline in external reserves.
Data from the Central Bank of Nigeria showed the currency depreciated by ₦6.03 compared to the previous session, while interbank FX turnover dropped sharply to $18.77 million from $124.34 million recorded on Friday.
The naira traded within a band of ₦1,341/$ to ₦1,353/$ during the session before settling near ₦1,350/$, reflecting continued volatility in the market.
Nigeria’s gross external reserves fell to $48.62 billion, marking a $1.4 billion decline from the recent $50 billion level, amid sustained pressure from international payments and fluctuating crude oil prices.
Despite last week’s modest appreciation of 0.99 per cent at the official window, the parallel market showed weakness, with the naira depreciating to ₦1,400/$, highlighting persistent demand pressure outside formal channels.
Meanwhile, global oil prices surged, with Brent crude rising over 5 per cent to around $95 per barrel following renewed geopolitical tensions involving the United States and Iran near the Strait of Hormuz.
What’s Being Said
“The depreciation persisted despite FX interventions as demand pressures outweighed supply,” market analysts said.
“Reserve drawdowns and global oil volatility remain key drivers of FX market instability,” they added.
What’s Next
- Market participants will monitor CBN FX interventions and liquidity levels
- Oil price movements will remain a key determinant of external reserves
- Analysts expect continued volatility in both official and parallel FX markets
The Bottom Line:
The naira’s renewed weakness underscores the fragile balance between FX supply and demand, with declining reserves and global oil market uncertainty posing immediate risks to currency stability.
