Nigeria’s currency, the naira, has fallen to an all-time low of ₦1,448.20 per dollar at the official foreign exchange market, despite ongoing reforms by the Central Bank of Nigeria (CBN) aimed at stabilizing the market.
Data from the FMDQ Securities Exchange, which oversees official FX trading, showed that the naira depreciated sharply at the close of trading on Tuesday its weakest level since the introduction of the foreign exchange market reforms (EFEMS) earlier this year.
Traders attributed the latest decline to rising demand for the dollar by importers, inadequate supply from official sources, and waning investor confidence.
“Dollar demand remains significantly higher than supply,” one FX trader told BusinessDay. “Even with the CBN interventions, there’s still a huge backlog of unmet foreign exchange requests from manufacturers and airlines.”
The Central Bank had earlier introduced several policy measures under the Exchange Rate Market Reforms (EFEMS) including rate unification, clearing of FX backlogs, and promotion of market transparency to boost liquidity and attract foreign investors.
However, analysts say the reforms are yet to yield the desired stability, as Nigeria continues to battle declining oil revenues, low foreign reserves, and capital flight.
“The reforms are well-intentioned, but the structural problems remain,” said financial analyst Dr. Bismarck Rewane. “Without stronger FX inflows and productivity growth, the naira will continue to face pressure.”
At the parallel market, the naira traded even weaker, hovering around ₦1,520/$, widening the gap between the official and unofficial windows. The depreciation has intensified inflationary pressures, with imported goods and raw materials becoming increasingly expensive.
Manufacturers and traders have expressed growing concern, warning that persistent naira volatility could push more businesses into distress and worsen Nigeria’s cost-of-living crisis.
“This level of instability makes planning impossible,” said a member of the Manufacturers Association of Nigeria (MAN). “Our input costs are rising daily, and consumers can’t afford the new prices.”
Economists are calling on the CBN to introduce stronger liquidity-support mechanisms, attract diaspora remittances through official channels, and restore investor confidence through consistent policy direction.
Despite the challenges, CBN Governor Yemi Cardoso has maintained that the FX reforms will deliver long-term benefits once market forces stabilize.
“We are in a transition phase,” he said recently. “The process may be painful now, but the goal is a more transparent and efficient FX system that will strengthen the naira over time.”
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