The Nigerian naira has reversed its recent gains, falling to a 10-day low against the United States dollar in the official market as dollar inflows decline.
Naira's Third Consecutive Day of Decline
Fresh data from the Central Bank of Nigeria reveals that the naira depreciated significantly on Wednesday, November 12, 2025, closing at N1,443.08 per dollar in the official market. This represents a decline of N4.37 or 0.3% from Tuesday's rate of N1,438.71.
The currency last traded below this level on October 29, 2025, when it closed at N1,444.42 per dollar. Wednesday's performance marks the third consecutive day of losses for the Nigerian currency as dollar demand gradually increased.
Broader Currency Weakness Across Markets
The naira's weakness extended beyond the US dollar, affecting other major currencies as well. Against the British pound sterling, the naira sold for N1,910 on Wednesday compared to the previous rate of N1,895.65.
Similarly, the currency declined against the euro, closing at N1,673/€1 in contrast to Tuesday's rate of N1,663.24. The rates for international payments on Guaranty Trust Bank's naira card also reflected this trend, standing at N1,447 per dollar on Wednesday, up from N1,444 on Tuesday.
In the parallel market, the situation was more pronounced with the naira falling by N5 to N1,460 per dollar.
Analysts Point to Mid-Month Demand Pressures
Market analysts attributed the naira's recent movement to mild demand pressures that are typical of mid-month transactions. Despite the temporary decline, traders maintain that the market remains stable, supported by steady liquidity and improved foreign exchange inflows.
According to a report by United Capital, foreign exchange inflows into Nigeria have continued to strengthen from both investment and trade sources, helping to reinforce the naira's resilience in recent months.
The firm observed that rising dollar supply has helped narrow the spread between official and parallel market rates to below 1%, a significant improvement from around 7% in January 2025.
United Capital stated: "More investors are now reallocating from dollar assets to naira-denominated investments," citing renewed confidence in the economy's short-term outlook.
The recent decline occurs against the backdrop of Nigeria's external reserves rising to $43.30 billion as of November 5, 2025 - the highest level since October 11, 2018. This surge represents a major milestone for the country, boosting the CBN's capacity to support the naira amid persistent exchange rate pressures.
Analysts maintain that despite temporary factors such as US trade policy adjustments affecting sentiment earlier in the year, the risk of sharp naira depreciation remains low due to Nigeria's stable economic outlook.
