The naira weakened for a third straight session on Wednesday, closing at ₦1,473.29 to the United States dollar at the official market.
This compares with ₦1,463.23 on Tuesday and ₦1,457.51 at the start of the week, extending a slow but persistent slide. Dealers attribute the move to end-user demand from importers, portfolio positioning ahead of macro releases, and thin liquidity on days when supply from exporters and the central bank is modest.
Reports indicate the parallel market hovered near ₦1,488 per dollar, slightly stronger than Tuesday’s quotes around ₦1,500.
Analysts say the near-term path will depend on the cadence of oil-related inflows, diaspora remittances, and the Central Bank of Nigeria’s aggressive management of liquidity through auctions and bank-balance rules.
For households and small businesses, exchange-rate swings filter into prices of fuel, medicine, spare parts and school supplies, often with a lag.
Retailers typically adjust tags when new shipments are priced, so October’s softness may still wash through store shelves in the coming weeks. Investors are also watching whether improving crude output and higher benchmark rates lure more foreign portfolio capital back into domestic securities.
On the corporate side, firms with dollar liabilities face mark-to-market pressures, while exporters benefit from higher naira proceeds. Economists argue that clear guidance, credible data and steady reforms can anchor expectations, even when day-to-day prints are noisy.
Until liquidity deepens and confidence strengthens, volatility is likely to remain elevated in both official and street markets. Caution is advised.