Naira trades weaker amid falling dollar inflows, rising demand

Naira trades weaker amid falling dollar inflows, rising demand

Nigeria’s naira weakened slightly on Tuesday, November 11, 2025, as the Central Bank of Nigeria’s (CBN) official Daily Foreign Exchange Market (NFEM) rate closed around ₦1,436.58/$1, reflecting reduced dollar inflows and sustained demand pressures.

In the parallel market, traders across Lagos and other cities quoted the dollar between ₦1,445 and ₦1,469, with most transactions occurring near ₦1,460–₦1,465, and some reports indicating offers as high as ₦1,515/$1. The spread between the official and street markets widened to about ₦28–₦30, underscoring limited FX liquidity and increased pressure on informal channels.

Commercial banks and authorised dealers maintained quotes within the mid-₦1,440s range through the NAFEX/NAFEM and Investors & Exporters (I&E) windows for corporate transactions. A Citibank bulletin dated November 10 listed rates between ₦1,442 and ₦1,448, showing institutional pricing remains firmer than black-market levels.

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Analysts said the naira’s modest weakness mirrors a 15.7% decline in weekly FX inflows and continued demand from importers and for invisible transactions. They warned that until official inflows strengthen, the parallel market premium will likely persist.

For consumers, small-dollar buyers should expect to pay ₦1,445–₦1,469/$1 where banks are unable to supply cash. Corporate clients transacting through official windows will see slightly firmer rates in the ₦1,440s, depending on bank access and documentation.

Economists say that without stronger inflows from oil exports, remittances, and foreign investment, the exchange rate will remain volatile, sustaining pressure on both households and businesses.

Naira trades weaker amid falling dollar inflows, rising demand