Nigeria’s currency continued its downward slide on Thursday, November 27, as heightened end-of-year demand for foreign exchange put fresh pressure on the naira across official, retail, and parallel market windows.
Naira Falls Again at Official Market
At the Nigerian Foreign Exchange Market (NAFEM), the naira depreciated by 99 kobo (0.07%), closing at N1,443.91/$1 compared with N1,442.92/$1 in the previous session.
The currency also recorded losses against other major global currencies:
Pound Sterling: Fell by N6.50 to close at N1,913.03/£1, down from N1,906.53/£1
Euro: Weakened by N3.02, settling at N1,670.90/€1, from N1,667.88/€1
Banks and Black Market Operators Adjust Rates
In the retail segment, the naira showed similar fragility.
At GTBank’s FX counter, the currency slipped by N1, trading at N1,447/$1 compared with N1,446/$1 a day earlier.
The parallel market also felt the heat.
A BDC operator, Abdullahi, revealed:
“Demand is picking up fast. We’re buying dollars at N1,453 and selling at N1,468. Pounds go for N1,900 to N1,930, and euros trade between N1,650 and N1,680.”
Why the Naira Is Under Pressure
Analysts say the depreciation is largely driven by surging FX demand ahead of the festive season.
Key end-of-year factors include:
Importers stocking up ahead of Christmas and New Year
Manufacturers boosting raw material purchases
FMCG and retail businesses increasing inventories
Companies settling annual foreign contracts and obligations
This spike in demand is happening at a time of reduced FX inflows, putting additional strain on the market.
CBN Steps In
To curb volatility, the Central Bank of Nigeria has intensified market oversight and quietly injected liquidity. Though specific figures were not disclosed, traders say the apex bank’s interventions helped moderate excesses in the past week.
Despite the turbulence, analysts remain optimistic, citing Nigeria’s strengthening buffers.
The country’s external reserves have reportedly climbed to $46.7 billion, supported by:
Higher non-oil export receipts
Improved crude oil production
Increased diaspora remittances
Growing foreign portfolio investments
Customs FX Rate Reduced
In a separate development, the CBN has reduced the customs duty exchange rate to N1,421.23/$1, marking a drop from the previous N1,487.396/$1.
This adjustment is expected to lower importation costs and ease inflationary pressure on goods entering the country.
The apex bank also directed the Nigeria Customs Service to use the closing FX rate on the day a Form A is opened, ensuring alignment with market realities.
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