The value of the naira dropped to ₦1,629 per dollar on Monday, even though the Central Bank of Nigeria (CBN) sold $668.8 million to support the currency.
According to data from the CBN, the official exchange rate went from ₦1,600 per dollar last Friday to ₦1,629 this week—meaning the naira lost ₦29 in value.
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In the black market, the naira also weakened, falling from ₦1,565 to ₦1,570 per dollar.
This pushed the gap between the official and black market rates wider—from ₦35 to ₦59 per dollar.
Reports from investment firms like Afrinvest and AIICO Capital said the naira lost more value in March due to strong demand for dollars from both foreign investors and local companies.
AIICO said the naira dropped by almost 3% during March, even with the CBN’s dollar sales.
Even though the CBN’s dollar supply helped improve liquidity in mid-March, it wasn’t enough to meet rising demand. This caused further pressure on the naira.
By the end of March, Nigeria’s foreign reserves also fell by $110 million to $38.31 billion.
Looking ahead, analysts say the CBN will likely continue pumping dollars into the market to keep the naira stable.
However, global issues—like new U.S. tariffs and oil price changes—may cause more instability.
Last week, the naira was fairly stable early on, trading between ₦1,525–₦1,535. But by midweek, strong foreign demand and falling oil prices pushed the naira down to ₦1,570.
The CBN’s support helped a little, but the naira still closed the week at ₦1,567.02, while foreign reserves dropped again to $38.15 billion.