Dollar to Naira exchange rate today, April 24, 2026

Nigeria's naira has depreciated to N1,355 per US dollar, marking a fresh pressure point in Africa's largest economy as external reserves continue their downward trajectory. The currency weakness, recorded in late April 2026, reflects deepening structural challenges in Nigeria's foreign exchange market and raises critical questions for investors navigating the continent's most volatile emerging market.

## Why is the naira weakening despite oil revenues?

The Central Bank of Nigeria's reserve position tells the story: at $48.48 billion, external reserves have contracted significantly from higher levels earlier in 2026. Despite Nigeria being Africa's top oil exporter, persistent dollar demand across import-dependent sectors—manufacturing, pharmaceuticals, and consumer goods—continues to outpace inflows. The depreciation from N1,348.1/$ (Wednesday) to N1,355/$ (Thursday) signals that even modest daily volatility reflects acute underlying scarcity. Investors must recognize that oil price stability alone no longer anchors the naira; CBN intervention capacity is visibly constrained.

The parallel market remains a crucial barometer. While official and informal rates trade within a "relatively narrow band," this convergence masks thin liquidity at official windows. Banks and traders report rationing behavior, with some corporate clients unable to secure full dollar allocations. This two-tier reality—official quotes appearing stable while real market friction increases—creates hidden costs for multinational operations and foreign investors.

## What do declining reserves mean for monetary policy?

Nigeria's reserve cushion of $48.48 billion covers roughly 6–7 months of imports, below the IMF's recommended 9-month buffer. A CBN that cannot defend the naira is a CBN with limited room for rate flexibility or stimulus. The recent depreciation intensifies inflationary pressure, as 60% of Nigeria's inputs are imported. This compounds existing price shocks and reduces purchasing power—a headwind for consumer-facing businesses and a drag on GDP growth.

The policy dilemma is acute: tighten further (raising rates to defend the naira), crushing domestic credit and growth, or ease (allowing faster depreciation), fueling inflation. Governor Cardoso's team faces an impossible choice, and markets know it. Expect continued naira weakness in Q2–Q3 2026 unless oil prices spike above $90/barrel or the government accelerates non-oil revenue (taxation, Dangote refinery payoffs, privatization proceeds).

## How should investors position?

The N1,355/$ level is not a floor—technical analysis and reserve trends suggest N1,380–N1,400/$ is plausible by June 2026 under baseline scenarios. Dollar-denominated assets, diaspora bonds, and export-oriented equities (especially oil & gas) offer hedges. Conversely, naira-denominated debt instruments carry increasing real yield risk unless coupon rates exceed 16%+.

Foreign portfolio investors should demand currency risk premiums on Nigerian equities; the naira's volatility is no longer priced into many valuations. Domestic investors should lock in forex for essential imports now, as bank queues and informal premiums will worsen as reserves tighten further.

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