Naira loses N9.88 to dollar amid rising external reserves

The naira on Wednesday weakened by N9.88 against the dollar at the official foreign exchange (FX) market, even as Nigeria’s external reserves continued to rise.

Data released by the Central Bank of Nigeria (CBN) showed that the naira depreciated by 0.7 percent, with the dollar quoted at N1,494.01 compared to N1,484.13 on the previous day at the Nigerian Foreign Exchange Market (NFEM).

In the parallel market, also known as the black market, the naira traded steadily at N1,525 per dollar, while Guaranty Trust Bank (GTBank) maintained its rate at N1,515 per dollar for international transactions.

Nigeria’s external reserves climbed to $41.89 billion as of September 16, 2025, representing a 2.27 percent increase compared to $40.96 billion recorded on August 18, 2025, according to CBN data.

In his personal statement at the last Monetary Policy Committee (MPC) meeting, Aloysius Uche Ordu, a member of the committee, noted that the naira had appreciated earlier, with the gap between the official and BDC rates narrowing and remaining stable due to improved FX liquidity. He explained that remittances and foreign portfolio investments (FPIs) had remained strong, helping to boost reserves to $40.11 billion as of July 18, 2025, equivalent to more than nine months of import cover.

However, he expressed concern over the relatively low level of foreign direct investment (FDI) inflows. According to the United Nations Conference on Trade and Development (UNCTAD), Nigeria attracted only $1 billion in FDI in 2024. This figure is significantly lower than what comparable countries received in the same period: Indonesia ($24 billion), India ($28 billion), Egypt ($46 billion), and Brazil ($59 billion). Ordu stressed that attracting investments into Nigeria cannot rest solely on the CBN, but requires a whole-of-government approach. He called for coordinated action involving the Ministries of Trade and Industry, Solid Minerals, Digital Economy, Finance, Planning, and Agriculture, alongside security agencies, to create an enabling environment for long-term FDI that will spur growth and create jobs for the country’s large population of unemployed youths. He argued that such a unified strategy is crucial to raising Nigeria’s economic size to the trillion-dollar mark in the future.

Emem Usoro, Deputy Governor, Corporate Services at the CBN, also observed that exchange rate movements have shown encouraging signs. She attributed this to higher FX turnover in the market, reforms aimed at strengthening price discovery and transparency, as well as rising investor confidence supported by growing external reserves.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.