Nigeria’s currency, the naira, has slipped past the N1,400 mark against the United States dollar at the official foreign exchange market, signalling renewed pressure on the local currency.
Figures from the Nigerian Foreign Exchange Market (NFEM) indicate that the naira exchanged at N1,401.4 to the dollar on Tuesday, showing continued weakness in the currency in recent weeks.
The current rate reflects a 4.09 percent drop over a three-week period, compared with the N1,346.32 per dollar recorded on February 20 at the official trading window.
Market data also showed that the currency had already moved beyond the N1,400 level earlier in the week, trading at about N1,405.62 per dollar on Monday, a development that points to renewed instability in the country’s foreign exchange market.
Financial analysts say the latest movement in the exchange rate may be influenced by developments in the global economy, including geopolitical tensions among major nations that have unsettled international financial markets and affected currency movements in emerging economies such as Nigeria.
Fluctuations in global crude oil prices have also been identified as a contributing factor. Oil prices briefly rose to around 100 dollars per barrel earlier in the week, the highest level seen in nearly two years, before later dropping to about 87 dollars per barrel. Such changes could have implications for Nigeria’s foreign exchange earnings.
Experts note that sustained increases in oil prices could help boost Nigeria’s foreign currency inflows and reduce pressure on the naira. However, they caution that ongoing global uncertainty and cautious investor sentiment may continue to affect the stability of the local currency.
The latest depreciation highlights the persistent challenges facing Nigeria’s foreign exchange market as authorities continue efforts to stabilise the currency and improve liquidity within the system.
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