The Nigerian naira extended its losing streak on Tuesday, closing at ₦1,383 per dollar amid renewed pressure in the foreign exchange market and a continued decline in external reserves.

Data from the Central Bank of Nigeria (CBN) shows the currency weakened from ₦1,369/$ recorded a day earlier, reflecting sustained volatility in the FX market.

Naira Weakens Further

Intraday trading saw the naira fluctuate between ₦1,367.5/$ and ₦1,385/$, with a simple average rate of ₦1,380.19/$.

Tuesday’s close marks the weakest level since early April and highlights a steady depreciation trend in recent sessions. On a week-on-week basis, the currency has also weakened compared to last week’s closing rate of ₦1,350.99/$.

External Reserves Continue to Drop

Pressure on the naira is being compounded by a decline in Nigeria’s external reserves.

CBN data shows reserves fell to $48.38 billion as of April 27, 2026, down from $48.51 billion recorded on April 21 — a drop of approximately $124 million within one week.

The decline reflects ongoing FX interventions by the apex bank as well as external debt obligations.

Global Factors Add Pressure

The naira’s performance is also being influenced by global market conditions.

The US dollar remained firm ahead of a policy decision by the Federal Reserve, with investors seeking safe-haven assets amid geopolitical tensions in the Middle East.

The dollar index hovered around 98.57, while other major currencies such as the euro and pound traded within narrow ranges. The Japanese yen also remained weak near key psychological levels.

FX Market Struggles Persist

Nigeria’s foreign exchange market has remained under pressure despite intermittent stabilisation efforts by monetary authorities.

Persistent demand for foreign currency, limited inflows, and continued reserve drawdowns have combined to weigh on the naira.

Market sources indicate that restrictions on Bureau De Change (BDC) operators’ access to the official FX window remain in place, limiting liquidity in the retail segment.

CBN Maintains Optimistic Outlook

Despite the recent decline, CBN Governor Olayemi Cardoso has downplayed concerns, stating that the drop in reserves should not trigger panic.

The apex bank maintains that external reserves could rise to $51 billion by the end of 2026 as part of its broader macroeconomic stabilisation strategy.

Outlook Remains Fragile

The simultaneous weakening of the naira and decline in reserves underscores ongoing fragility in Nigeria’s FX fundamentals.

While global dollar strength continues to exert external pressure, domestic challenges such as supply constraints and demand imbalance remain key drivers of currency volatility.

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