Naira cools for seven straight trading days

… CBN says travelers can obtain 25% BTA, PTA in cash, 75% transfer to prepaid card

The naira has cooled for seven consecutive trading days, reflecting sustained demand pressure tied to heightened festive-season import needs, according to traders who said the market had been under mild but persistent strain as businesses front-loaded their FX obligations ahead of year-end.

Data published by the Central Bank of Nigeria (CBN) showed that the naira depreciated marginally by N5 or 0.4 percent after the dollar was quoted at N1,454.38 on Tuesday, compared with N1,448.43 recorded on December 1, 2025 at the Nigerian Foreign Exchange Market (NFEM).

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On a daily basis, the currency slipped by 0.2 percent or N2.52 to close at N1,454.38 yesterday against N1,451.86 on Monday.

The pressure extended to the parallel market, where the naira weakened by N3 to close at N1,483 on Tuesday, compared with N1,480 the previous day. Traders said the movement in both markets underscored the persistent tightness in liquidity, even as Nigeria recorded only $2 billion in FX inflows in November, the lowest in 16 months, despite increased CBN interventions.

The decline in inflows highlights the depth of the FX liquidity challenge and the hurdles facing the naira as monetary authorities continue efforts to stabilise the market. FMDQ data showed a 67 percent month-on-month slump in total FX inflows to $2.0 billion in November, compared with $6.1 billion in October.

Analysts at FBNQuest described the inflow level as the weakest since July 2024, when it stood at $1.9 billion, adding that “tight liquidity amid persistent demand pressure heightened volatility throughout November,” which contributed to the naira’s 1.3 percent depreciation that month to N1,446.90 per dollar.

Meanwhile, the CBN has clarified fresh rules guiding how travellers can access Business Travel Allowance (BTA) and Personal Travel Allowance (PTA), explaining that beneficiaries may now receive up to 25 percent of their entitlement in cash, while at least 75 percent must be transferred to a prepaid card. The apex bank stated that travellers are required to provide all necessary documentation before accessing these allowances. These details were contained in a document titled ‘Frequently Asked Questions (FAQs) on the Current Reform of the Bureau De Change Sub-Sector’, published on its website.

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The bank also addressed questions on BDC access for medical and educational payments. It confirmed that Nigerians travelling abroad for medical treatment can obtain foreign currency up to $5,000 from a BDC, provided they submit all required documents as outlined in the Guidelines. For medical expenses above that threshold, customers are expected to approach any commercial or non-interest bank for the balance.

On school fees, the CBN reiterated that Nigerians studying abroad, or their sponsors, can obtain foreign currency from a BDC for payment of school fees to foreign institutions, subject to a maximum of $10,000 in any given year and the submission of all stipulated documents.

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks.

She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.

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