Naira Trades Low as Dollar Inflow Declines, Traders Release Fresh FX Rates
- The naira weakened to N1,373.70/$ as foreign exchange demand pressures persist despite improved liquidity
- FX turnover rose to $76.3 million, but remained insufficient to meet growing dollar demand
- Nigeria's oil production increased to 1.49 million barrels per day, still below government targets
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian naira weakened further against the United States dollar on Monday as foreign exchange inflows remained subdued despite improved liquidity at the official market window.
Data from the Central Bank of Nigeria (CBN) showed that the local currency closed at N1,373.70/$ at the Nigerian Foreign Exchange Market (NFEM), compared to N1,371/$ recorded at the close of trading last week.
Source: Getty Images
Demand pressure persists
The latest depreciation extends the naira’s recent losing streak as strong demand for foreign payments continued to outweigh available dollar supply.
According to the CBN’s daily FX report, transactions at the official market were completed within an intraday high of N1,374.50/$ and a low of N1,370/$.
Market data also revealed that the exchange rate had climbed as high as N1,375/$ over the past 10 trading sessions, reflecting persistent volatility driven by fluctuating FX inflows and rising demand from eligible market participants.
FX turnover improves
Despite pressure on the naira, trading activity at the interbank market improved significantly.
FX turnover surged to about $76.3 million across 92 deals on Monday, a sharp increase from the $48.5 million recorded in the previous trading week.
However, the increase in market liquidity was still insufficient to fully meet growing demand for foreign exchange obligations.
At the parallel market, commonly known as the black market, the naira weakened further to around N1,390/$, highlighting broad selling pressure across both official and informal trading segments.
Analysts warn of continued weakness
Financial analysts say the naira may remain under pressure in the near term unless Nigeria records stronger dollar inflows or fresh policy support measures.
Analysts at Cowry Asset Management Limited noted that although Nigeria’s external reserves have shown modest improvement, FX liquidity remains fragile.
The firm added that rising global crude oil prices could support export earnings but warned that oil prices remain highly volatile due to ongoing geopolitical tensions.
Experts believe the naira is likely to continue trading within a weak and unstable range in the absence of stronger inflows from oil exports, foreign investments, or diaspora remittances.
Oil production shows recovery
Meanwhile, Nigeria’s crude oil production continued its gradual recovery in April 2026.
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), average daily crude production rose by 7.6% month-on-month to 1.49 million barrels per day from 1.38 million barrels recorded in March.
Including condensates, total oil production climbed to 1.66 million barrels per day, the highest level recorded so far in 2026, according to a report by MarketForces Africa.
Source: Getty Images
The increase was driven by reduced crude oil theft, improved pipeline operations, and higher output from newly activated upstream assets.
Analysts, however, say Nigeria’s projected average production of 1.71 million barrels per day in 2026 still falls below the Federal Government’s target of 2.06 million barrels per day.
Naira stabilises around N1,374/$
Legit.ng earlier reported that the Nigerian Naira began the new month with minor ups and downs against the US Dollar in both the official and informal foreign exchange markets.
As of the early hours of Friday, May 1, 2026, figures from the Nigerian Foreign Exchange Market (NFEM) and currency traders in Lagos and Abuja show that the Naira is still trying to settle at a stable level.
At the official market, the Naira opened at around ₦1,374.69 per Dollar. This comes after slight fluctuations recorded toward the end of April.
Source: Legit.ng
