The Nigerian naira continued its downward slide on Tuesday, closing at N1,383 against the US dollar, as pressure intensified in the foreign exchange market. Fresh data from the Central Bank of Nigeria shows the currency weakening from N1,369/$ recorded a day earlier, highlighting a persistent depreciation trend that has unsettled traders and businesses alike.
Market activity during the day reflected ongoing volatility, with the naira trading between N1,367.5/$ and N1,385/$ before settling at its weakest level since early April. Compared to last week’s rate of N1,350.99/$, the local currency has posted a noticeable decline, reinforcing concerns among importers and investors who rely heavily on stable exchange rates for planning and pricing.
The pressure on the naira has been compounded by a decline in Nigeria’s external reserves, which dropped to $48.38 billion as of April 27, 2026, from $48.51 billion just a week earlier. This $124 million reduction signals continued interventions by monetary authorities and the burden of meeting external financial obligations, limiting the buffer available to defend the currency.
Globally, the US dollar has remained firm ahead of a key policy decision by the Federal Reserve, with investors seeking safety amid ongoing geopolitical tensions, particularly in the Middle East. This has added further strain on emerging market currencies like the naira, as stronger dollar demand reduces foreign exchange inflows into economies such as Nigeria.
Despite these challenges, the CBN maintains a cautiously optimistic outlook. Governor Olayemi Cardoso has downplayed concerns about the recent reserve decline, emphasizing long-term stability plans. The apex bank projects that reserves could rise to $51 billion by the end of 2026, even as analysts warn that persistent FX demand, limited inflows, and policy restrictions on Bureau De Change operators may continue to test the naira’s resilience in the near term.