Naira hits three-month low as dollar demand surges despite rising FX turnover
By Aboki Forex —
The naira fell to a three-month low on Monday, closing at N1,383.63 per dollar at the Nigerian Foreign Exchange Market (NFEM). That is the weakest level since April 7, 2026, when the dollar traded at N1,386.66.
Since hitting its strongest point this year at N1,341.35 on February 19, the naira has lost N42.28, or 3.06 percent. On a day-on-day basis, it weakened by N2.70 from Friday's close of N1,380.93.
A currency trader who spoke on condition of anonymity said the pressure came from elevated investor demand for dollars. This depreciation happened even as the Central Bank of Nigeria (CBN) stayed out of the FX market for the seventh straight week, according to Coronation Research.
Despite the weaker naira, market activity jumped. Total turnover at the NFEM window surged to $910.78 million on Monday, a 108.37 percent increase from $437.09 million on Friday. The number of deals rose by 26.42 percent to 378 from 299.
Coronation Merchant Bank reported that total FX inflows last week stood at $0.69 billion. Foreign portfolio investors (FPIs) accounted for the largest share at 50.93 percent, or $0.36 billion. Exporters and importers contributed 29.26 percent, or $0.20 billion. Non-bank corporates added 10.34 percent, or $0.07 billion. Equity investment FPIs brought in 5.75 percent, or $0.04 billion. Other sources made up the remaining 3.42 percent.
For the seventh week running, there were no FX inflows from the CBN. This highlights the growing role of autonomous sources in supporting market liquidity.
Analysts at Coronation expect the naira to trade within a relatively narrow range going forward. They said any future CBN interventions could help cushion pressure from sustained dollar demand.
The International Monetary Fund (IMF), in its latest Article IV Consultation report on Nigeria, said foreign exchange interventions may be justified during periods of market stress. The Fund noted the relative shallowness of Nigeria's FX market and the economy's exposure to volatile capital flows. But it stressed that such interventions should not replace necessary macroeconomic policy adjustments.