The naira recorded a significant drop on Wednesday, November 19, at the official foreign exchange market despite a surge in Nigeria’s foreign reserves in recent times.
The Central Bank of Nigeria’s exchange rate data indicated that the naira depreciated to ₦1,454.19 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, against the ₦1,447.43 it traded for on Tuesday. This reflects a ₦6.76 depreciation.
The official NFEM rate is a volume-weighted average published daily by the Central Bank of Nigeria (CBN) and serves as the market’s reference for formal transactions.
The CBN data revealed that while the naira traded between a high of ₦1,460.50 and a low of ₦1,449.96, it closed at a spot rate of ₦1,451 on Wednesday.
At the parallel market, also known as the black market, where individuals and small bureaux trade, the greenback was quoted at ₦1,475, showing a premium of about ₦24 over the official rate.
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The gap between the two windows matters because it affects import costs, consumer prices, and business margins.
A widening spread can increase inflationary pressures, while a narrower gap may ease them.
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This week, official rates have remained in the mid-₦1,400s, with parallel market quotes hovering in the high-₦1,400s, reflecting moderate but contained volatility across trading venues.
Trading at the official market began the week on a negative note with the NFEM rate at ₦1,448.03 on Monday, November 17, down from ₦1,442.43 on Friday, November 14.
Pinnacle Daily reports that this depreciation of the local currency comes amid a surge in Nigeria’s foreign reserves. CBN data show that the reserves rose to $44.05 billion as of November 18th, 2025, a $786.65 million increase from the $43.26 billion recorded at the beginning of the month.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
