The Nigerian naira weakened against the United States dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), closing at ₦1,349.34 per dollar on Monday, November 9, 2026, as increased seasonal demand for foreign currency put pressure on the domestic currency.
The depreciation represented a decline of ₦2.55, or 0.19 per cent, compared with the previous trading session’s rate of ₦1,346.79 per dollar.
The development highlights the continuing sensitivity of Nigeria’s foreign exchange market to changes in demand and supply, particularly during periods when businesses and individuals require additional foreign currency for international transactions.
According to market information reported by Business Post Nigeria, the naira also recorded losses against other major international currencies during the same trading session.
Against the British pound, the local currency weakened by ₦6.92 to close at ₦1,810.55, compared with the previous rate of ₦1,803.63.
The naira also depreciated against the euro by ₦6.35, moving from ₦1,504.10 to ₦1,510.45.
The performance across the three major currencies indicates that the pressure was not limited to the dollar market.
Seasonal demand puts pressure on the foreign exchange market
Foreign exchange demand in Nigeria is influenced by several factors, including international trade, business transactions, education expenses, travel, investment activities and payments for imported goods and services.
During periods of increased commercial activity, companies may require additional foreign currency to settle international obligations.
Individuals may also increase their demand for dollars and other foreign currencies for travel, school fees and personal transactions.
Such demand can place pressure on the naira, particularly when the available supply of foreign exchange is insufficient to meet market requirements.
The latest depreciation was attributed to seasonal foreign exchange demand as trading activity moderated.
The development also coincided with a pause in the recent growth of Nigeria’s external reserves, reducing the improvement in the country’s external financial position.
External reserves are important because they provide the Central Bank of Nigeria with a financial buffer that can support foreign exchange market stability and help the country meet international obligations.
When reserves experience pressure, the country’s ability to respond to external shocks may become more limited.
However, daily movements in the exchange rate do not necessarily indicate a lasting change in the direction of the currency.
Naira performance at other exchange outlets
The depreciation was also reflected in reported rates at other foreign exchange outlets.
At the GTBank foreign exchange desk, the dollar was quoted at approximately ₦1,357, representing a decline of ₦1 from the previous reported rate of ₦1,356.
Meanwhile, the parallel market rate remained unchanged at approximately ₦1,375 per dollar.
The differences between rates across the various market segments highlight the importance of monitoring the different channels through which foreign exchange transactions take place.
For businesses, exchange-rate movements can influence the cost of imported raw materials, machinery, equipment and other products purchased from international suppliers.
Manufacturers that depend heavily on imported inputs may face additional financial pressure when the naira weakens.
Importers may also need more naira to purchase the same amount of foreign currency, potentially increasing the cost of goods entering the country.
These additional costs can eventually affect selling prices and contribute to inflationary pressures if businesses transfer higher expenses to consumers.
Implications for businesses and consumers
The latest movement in the naira is particularly important for companies operating in sectors such as manufacturing, aviation, pharmaceuticals, construction and retail.
These industries often require foreign currency to pay international suppliers and maintain their operations.
A weaker naira can increase the cost of imported goods and services, making financial planning more difficult for businesses.
Companies with foreign currency obligations may also face higher repayment costs when their revenues are generated mainly in naira.
Consumers can equally feel the impact through higher prices of imported products, electronics, household goods and other items affected by exchange-rate movements.
For exporters, however, a weaker naira can sometimes improve the local currency value of foreign earnings, depending on their operating costs and access to foreign exchange.
What to watch in the coming weeks
The future performance of the naira will depend on several factors, including foreign currency supply, external reserves, export earnings, investor confidence and monetary policy decisions.
Nigeria’s crude oil earnings remain particularly important because petroleum exports are a major source of foreign exchange for the country.
Improved oil production and export receipts could support foreign currency inflows, although the impact would depend on other external and domestic conditions.
Investors and businesses will also monitor the Central Bank of Nigeria’s foreign exchange policies and developments in the global currency market.
For now, the latest depreciation demonstrates that seasonal demand and movements in foreign exchange supply continue to influence the value of the naira.
