Currency Fluctuations Reflect Growing Pressure Amid Rising Foreign Debt…..
The Naira experienced its first dip this week against the US dollar in the official foreign exchange market on Thursday, ending a brief period of stability. According to the Central Bank of Nigeria (CBN), the Naira weakened to ₦1,353.66 per dollar, down from ₦1,348.95 the previous day, marking a loss of ₦4.71 within 24 hours.
This decline almost completely reversed the Naira’s ₦5.51 per dollar gain over the previous three days, signaling the volatile nature of Nigeria’s currency market.
While the official rate showed a retreat, the black market painted a different picture. The Naira strengthened by ₦5, trading at ₦1,440 per dollar, up from ₦1,445 the day before. This gain came as a result of the Central Bank’s recent intervention in the Bureau De Change (BDC) segment, aiming to stabilize the currency in the informal market.
The fluctuation in the Naira’s value coincides with rising concerns over Nigeria’s foreign debt, which has reached $47.53 billion as of February 10, 2026. This sharp increase in external liabilities is putting additional pressure on the Naira, making it more vulnerable to external market forces.
What This Means for the Naira and the Economy
The Naira’s continued volatility reflects broader economic challenges facing Nigeria, as its foreign exchange reserves and external debt levels strain the country’s financial system. The Central Bank’s interventions in the currency market may help curb depreciation in the short term, but the persistent rise in foreign debt raises concerns about the sustainability of these measures.
As Nigeria’s currency faces ongoing fluctuations, the need for effective fiscal and monetary policies remains critical to ensuring long-term stability.
