The naira closed the trading week on a weaker note at N1,466.5 to the dollar on Friday at the official foreign exchange market, extending the steady depreciation recorded throughout the week.

Data published on the Central Bank of Nigeria’s website showed that the local currency weakened across five consecutive trading sessions, reflecting renewed pressure in the foreign exchange market.

Friday’s closing rate marked a level last seen on October 21, 2025, when the naira settled at N1,464.5 to the dollar, underscoring a return of volatility after a period of relative stability.

Available trading data indicated a gradual but consistent decline in the naira’s value throughout the week.

On Monday, the currency closed at N1,454 to the dollar.

On Tuesday, the naira weakened further to N1,457 to the dollar.

On Wednesday, it depreciated slightly to N1,458.02 to the dollar.

By Thursday, the exchange rate had fallen to N1,462.9 to the dollar.

The naira eventually closed on Friday at N1,466.5 to the dollar.

On a week-on-week basis, the currency also recorded a decline when compared with the previous trading cycle.

The naira had closed last week at N1,455.50 to the dollar, further depreciating from Thursday’s closing rate of N1,455.25 to the dollar.

The sustained decline suggests persistent demand for foreign exchange, despite ongoing reforms and market interventions by the Central Bank of Nigeria.

The naira’s depreciation coincided with a major fiscal development, as President Bola Tinubu on Friday presented the 2026 Appropriation Bill to the National Assembly.

The President described the assumptions underpinning the 2026 budget as conservative.

Key projections in the budget include an oil price benchmark of 64.85 dollars per barrel.

The budget also assumes crude oil production of 1.84 million barrels per day.

An exchange rate of N1,400 to the dollar was also adopted in the budget framework.

President Tinubu stressed the need for strict budget discipline, noting that key economic officials had been directed to adhere closely to approved spending details and implementation timelines.

The exchange rate assumption in the 2026 budget is significantly stronger than the prevailing official market rate.

This disparity highlights a disconnect between fiscal projections and current foreign exchange market realities.

Analysts attribute the gap to concerns surrounding the sustainability of foreign exchange supply and risks to crude oil output.

President Tinubu presented the 2026 budget without releasing a performance report for the 2025 fiscal year, raising concerns over transparency and accountability.

These concerns are further compounded by what analysts describe as Nigeria’s irregular practice of effectively running multiple budgets concurrently.

Market observers note that the divergence between the budget’s assumed exchange rate and the prevailing market rate could influence investor sentiment in the coming weeks.

They warn that if crude oil production targets or external inflows fall short, pressure on the naira may persist.

However, analysts also note that improvements in foreign exchange liquidity, stronger oil earnings, or increased portfolio inflows could help stabilise the currency.

The naira’s latest closing rate reinforces concerns about short-term volatility, as the market weighs fiscal signals from the 2026 budget against broader macroeconomic conditions and ongoing foreign exchange market dynamics.