NGNUSD Falls on Weak FX Inflows, Rising Foreign Payments
The Nigerian naira (NGN) lost against the US dollar (USD) due to a subtle FX shortfall in the foreign exchange market on Thursday, reflecting the absence of the Central Bank intervention.
The local currency official rate has been supported by the Central Bank of Nigeria (CBN) US dollar supply to reduce rising demand for foreign payments by eligible companies and other market participants.
The high US dollar upstreaming abroad places pressures on the naira, worsening the exchange rate to around N1450 per dollar. The market has seen signifciant decline in FX inflows while US dollar demand keeps rising.
At the official window, the CBN average exchange rate depreciated by 7bps or ₦0.98 to close at ₦1,443.9028/$, trading within a range of ₦1,446.00/$ to ₦1,442.00/$ during the session.
The depreciation was driven by market participants’ demand outpacing the available supply, AIICO Capital Limited said in a commentary note. The CBN has recently pumped about $450 million to boost FX inflows in the market.
The amount has proven to be insufficient to keep the naira uptrend, reflecting significant year end foreign payments for imports or other eligible transactions.
Elsewhere, Nigeria’s gross external reserves increased by $49.8 million day on day to $44.6 billion as of November 26, 2025. Outlook: We expect the naira to trade in line with prevailing demand and supply levels, as external reserves provide support.
Global oil prices rose on Thursday as market participants weighed the likelihood that talks to end the war in Ukraine will yield an agreement, with trading volume thin due to the Thanksgiving holiday in the United States.
Brent crude gained 80 cents, or 1.28%, to $63.34 per barrel, while U.S. West Texas Intermediate (WTI) rose by 42 cents, or 0.72%, to $59.07. However, gold prices edged lower, easing from a near two-week high hit in the previous session, while investors assessed the likelihood of a U.S. interest rate cut in December.
Spot gold shed 0.17% to $4,157.46/oz, while U.S. gold futures lost 0.65% to $4,189.65/oz. Analysts expect markets to open with a cautious but slightly risk-on tone, as steady gold prices and weakening oil underpin moderate investor optimism while waiting on further macro signals. MTN Nigeria Sets to Pay Shareholders Interim Dividend
