The naira extended its losing streak on Tuesday, weakening for the third consecutive trading session as dollar supply at the official and parallel markets dwindles.
Data from the Central Bank of Nigeria (CBN) showed the Nigerian Foreign Exchange Market (NFEM) rate slipped to ₦1,471 per dollar from ₦1,470 on Monday, trading within a narrow band of ₦1,477 to ₦1,467.
At the official close, the naira settled at ₦1,472 per dollar, compared to ₦1,464 in the previous session, marking another day of thin liquidity and heightened pressure.
Since opening October at ₦1,455.23, the spot rate has trended downward, with traders noting that the absence of CBN intervention has left the market vulnerable to speculative swings.
In the parallel market, the naira dropped further by ₦20 to close at ₦1,490 per dollar, down from ₦1,470 on Monday, reflecting tightening foreign exchange supply.
According to Coronation Merchant Bank’s research unit, “activity levels moderated as FX inflows declined to US$835.60 million versus US$1.18 billion in the prior week,” highlighting the strain from reduced liquidity.
Despite the currency weakness, Nigeria’s crude oil performance remained a bright spot, with production exceeding its OPEC quota of 1.5 million barrels per day (mbpd).
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported a sharp decline in crude oil losses to 9,600 barrels per day, over 90% lower than 102,900 bpd recorded in 2021, reflecting improved security and reduced theft.
Bonny Light crude averaged $73.18 per barrel in September, slightly below $73.50 in August but well above May’s $65.90. This underscores the impact of global supply-demand imbalances, OPEC+ production decisions, and geopolitical disruptions shaping price movements.
Meanwhile, on Tuesday, the U.S. Dollar Index (DXY) strengthened to 98.65, gaining 0.54% as global investors sought safe-haven assets.
The index has now risen more than 2.4% from September’s low of 96.22.
