Naira falls at official market despite rising dollar supply

The naira fell against the US currency at the official foreign exchange (FX) market despite an increase in dollar supply on Wednesday.

After trading on Wednesday, the naira depreciated by 1.15 per cent as the dollar was quoted at N854.61, which was weaker than N844.85 quoted on Tuesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), data from the FMDQ indicated.

Dollar supply from willing buyers and willing sellers increased by 62.22 percent to $181.30 million on Wednesday from $111.76 million recorded on Tuesday.

On Tuesday, the FX quoted on the spot trading weakened to N1,249 against N1,189.12. On the lower spot segment, the dollar was quoted at N700, stronger than N720 on Tuesday at NAFEM.

At the money market, the Nigerian treasury bills (NTB) secondary market closed on a positive note on Wednesday, with the average yield across the curve decreasing by 12 bps to 8.51 per cent from 8.63 per cent on the previous day, according to a report by FSDH research.

Related News

The report noted that average yield across the long-term maturities declined by 20 bps. However, the average yields across short-term and medium-term maturities remained unchanged. NTB for the November 7, 2025 (-116 bps) maturity bill witnessed maximum buying interest.

In the Open Market Operation (OMO) bills market, the average yield across the curve remained unchanged at 11.38 percent. The average yield across the long-term maturities closed flat at 11.38 per cent.

At the fixed income market, the Federal Government of Nigeria (FGN) bonds secondary market closed on a flat note on Wednesday, as the average bond yield across the curve closed flat at 14.62 per cent. The average yield across the medium tenor of the curve increased by one basis point. However, average yields across the short-tenor and long-tenor of the curve remained unchanged. The report stated that April 26, 2029, was the worst performer, with an increase in yield of 5 bps.

At the FGN savings bond auction for December 2023, the DMO allotted bonds worth N1.67 billion across the two-year (N477.98 million) and three-year (N1,195.71 million) tenors at coupon rates of 12.287 per cent (-18 bps) and 13.287 per cent (-18 bps), respectively.

Allotment for two-year bonds decreased by 44.53 per cent compared to N861.64 million allotted in the last auction, and allotment for three-year bonds decreased by 40.24 per cent versus N2.00 billion allotted in the previous auction.

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.