Naira Plummets to Record N1,473.29/$ in Official Market Despite Rising External Reserves

The Nigerian Naira experienced its most significant single-day depreciation this week, weakening sharply against the United States dollar on Wednesday as the country’s currency continues its downward trend.

Dependable NG reports that data released by the Central Bank of Nigeria (CBN) showed that the Naira fell to N1,473.29 per dollar on Wednesday, a notable decline from the N1,463.23 recorded on Tuesday. This single-day loss of N10.06 surpasses the previous daily drops of N5.72 on Tuesday and N2.34 on Monday, bringing the total depreciation this week to over N18.12 when compared to the N1,455.17/$ rate recorded on October 10th last week.

Conversely, the parallel market presented a stable, albeit high, rate, with the Naira trading between N1,490 and N1,505 against the dollar on Wednesday, mirroring the exchange rates from Tuesday.

This sustained decline in the official foreign exchange (FX) market comes despite Nigeria’s external reserves continuing their steady climb, reaching $42.65 billion as of October 14, 2025, up from $42.59 billion recorded on October 10th. Furthermore, the National Bureau of Statistics (NBS) announced on Wednesday that Nigeria’s inflation rate saw a six-month decline, dropping to 18.02 per cent in September 2025. The widening gap between the rising reserves and the weakening local currency raises questions about the efficacy of current FX management policies.