The Nigerian Naira is in a downward spiral, causing concern for the country’s economy. But what’s behind this sudden drop?
A significant depreciation against the US dollar has been recorded for the Naira in the official foreign exchange market. The Central Bank of Nigeria’s data reveals a notable decline, with the Naira ending the week of November 21, 2025, at N1,456.73 per dollar, a substantial drop from the previous week’s rate of N1,442.43. This translates to a weekly loss of N14.06, a worrying trend for Nigeria’s currency.
But here’s where it gets intriguing: despite this depreciation, the black market, often sensitive to currency fluctuations, remained surprisingly stable. The Naira held its ground at N1,465 per dollar, unchanged from the previous week’s rate. This stability is unexpected, given the market’s usual responsiveness to such shifts.
And the plot thickens! This currency crisis unfolds even as Nigeria’s foreign reserves grew by 1.25% to $43.64 billion in the same week. Typically, a rise in reserves should strengthen a currency, but the Naira’s story seems to defy this economic logic.
So, what’s the reason behind this depreciation? Is it a temporary blip or a sign of deeper economic challenges? Could it be a result of market speculation, or are there underlying issues with Nigeria’s monetary policies? The situation sparks many questions and leaves experts pondering the next steps for the Naira’s recovery.
What do you think is the primary cause of this currency crisis? Do you think the Naira’s depreciation is a cause for immediate concern, or is it a natural fluctuation? Share your thoughts and let’s spark a conversation on this intriguing economic development!