The Nigerian naira continued its downward trend at the official Nigerian Foreign Exchange Market (NFEM), closing at N1,612 per dollar on Wednesday, May 7, 2025.
This marks a slight depreciation from N1,609/$1 recorded the previous day, according to data published by the Central Bank of Nigeria (CBN).
Despite the CBN’s ongoing efforts to stabilise the currency, including increased foreign exchange market interventions and a marginal rise in external reserves, the naira’s value remains under pressure.
Wednesday’s trading session saw increased volatility, with the naira exchanging as high as N1,615/$1 and as low as N1,605.01/$1, reflecting a broader in-day range compared to Tuesday’s narrower band of N1,609.5/$1 to N1,603/$1.
Analysts and market participants attribute the latest decline to persistent liquidity constraints and delayed foreign currency inflows, which have limited the supply of dollars in the market. These issues continue to challenge the effectiveness of the CBN’s interventions and underscore the fragile state of Nigeria’s forex landscape.
The CBN has reiterated its commitment to ensuring stability in the foreign exchange market, but traders note that without stronger inflows and improved investor confidence, the naira could remain vulnerable to further depreciation in the near term.
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