The naira weakened to ₦1,467.01 per dollar at the Nigerian Foreign Exchange Market, down from ₦1,460.07/$1, even as the nation’s external reserves continued to rise.

In the parallel market, the local currency traded at around ₦1,495/$1, widening the gap between both markets to nearly ₦28.

Nigeria’s foreign reserves have reportedly climbed above $43 billion, supported by higher oil inflows and improved investor confidence. Analysts, however, say strong demand for dollars from importers continues to pressure the naira despite the reserve gains.

The currency’s weakness could fuel inflation, as import-dependent businesses face higher costs. Economists say the Central Bank’s next policy moves will be key to stabilizing the market.