Nigerian Naira Crashes to New Low Against US Dollar: A Deep Dive

Nigeria's currency, the Naira, is experiencing a steady decline against the US dollar since January 2025, causing significant concern within the Nigerian economy. The Naira is experiencing a steady decline against the US dollar since January 2025. The currency was at 460 in January last year but doubled its losses in 2025 hitting 893 this month. The situation intensified in early April, culminating in a record low.

Naira's Volatile Week and Record Low

Nigeria’s currency, which has endured a volatile week, fell to a record low on Thursday after dollar liquidity in the domestic foreign-exchange market shrank by nearly half. This highlights the ongoing challenges in maintaining a stable exchange rate amid fluctuating market conditions.

CBN Data Confirms Naira's Weakening Position

Data from the CBN showed that the Nigerian Foreign Exchange Market (NFEM), the naira closed at N1,606 per dollar at the end of trading on Friday, April 4. Friday's 13 de sept. de 2025 This figure represents a significant depreciation compared to previous months and underscores the pressure the Naira is facing.

Factors Contributing to the Naira's Decline

Several factors contribute to the Naira's continued weakness, including reduced dollar liquidity in the foreign exchange market, increased demand for foreign currency, and broader economic uncertainties. Experts are closely monitoring the situation to understand the full impact and potential solutions.

Looking Ahead: Will the Naira Recover?

The future of the Naira remains uncertain. The Central Bank of Nigeria (CBN) is likely to implement measures to stabilize the currency, but the effectiveness of these interventions will depend on addressing the underlying issues of dollar scarcity and investor confidence. Monitoring economic indicators and policy changes will be crucial in assessing the Naira's trajectory.