Naira Slides Further Despite Gains in Foreign Reserves

The naira weakened sharply on Wednesday, dropping to N1,625 per dollar on the black market—a 1.5% decline from Tuesday’s rate of N1,600.

At the official Nigerian Foreign Exchange Market (NFEM), the currency also slipped for a fourth consecutive session. It closed at N1,608.60 to the dollar, down 0.4% from N1,602.18 on May 2, according to data from the Central Bank of Nigeria (CBN).

Also Read: Naira Slides to ₦1,629 Despite CBN’s $688m FX Intervention

This depreciation comes despite a modest rebound in Nigeria’s external reserves, which had been declining since January. CBN figures show reserves rose by 0.43%, reaching \$38.09 billion as of May 6, up from \$37.93 billion at the end of April.

Analysts remain cautious, noting that while reserve growth is positive, it has yet to stabilise sentiment around the naira amid persistent demand pressures and investor uncertainty.