The Nigerian naira concluded the trading week on a negative note, recording significant losses against major global currencies in both official and parallel foreign exchange markets.
Official Market Performance
Data released by the Central Bank of Nigeria revealed that the naira closed at N1,456.72 per US dollar on Friday, November 21, 2025. This represented a depreciation of N4.59 or 0.32% compared to the previous session's rate of N1,452.13/$1.
The local currency also weakened against other major currencies, falling by N5.29 against the British pound to trade at N1,905.98/£1. Similarly, it depreciated against the euro by N3.54, settling at N1,678.29/€1.
Parallel Market Pressure
In the unofficial market, the naira experienced similar downward pressure. Bureau de Change operators confirmed the currency's decline, with retail transaction rates showing noticeable increases.
Abudullahi, a BDC trader, disclosed to Legit.ng that the dollar buying rate reached N1,460, while the selling rate climbed to N1,465. The euro traded between N1,655 and N1,665, while the British pound sterling exchanged between N1,885 and N1,920.
Contrasting Economic Indicators
The currency's decline occurred despite positive developments in Nigeria's external reserves and foreign exchange inflows. The country's external reserves increased by $650 million week-on-week to $44.18 billion as of November 20, 2025, up from $43.53 billion recorded on November 13.
According to United Capital Plc, reserves have strengthened significantly in recent months, providing over eight months of import cover and supporting market confidence. The firm also reported that October witnessed the highest FX inflows since May, reflecting strong investor appetite for Nigeria's economy.
Data from FMDQ showed total FX inflows surged dramatically by 91% month-on-month to $6.1 billion in October, reinforcing confidence in Nigeria's external buffers and indicating growing interest from foreign investors.
Financial analysts note that while the naira faces moderate downward pressure, the strong external reserves and robust FX inflows continue to provide crucial support for the currency, helping to stabilize market confidence amid current challenges.
