Naira Weakens Again as Dollar Demand Pushes Rates Higher in Parallel and Official Markets

Nigeria’s Naira recorded fresh losses against the United States dollar on Wednesday, depreciating in both the parallel market and the official foreign exchange window amid renewed pressure on the local currency.

In the parallel market, the Naira fell to ₦1,405 per dollar, down from ₦1,389 recorded on Tuesday, reflecting continued strain in the informal forex segment.

Official Market Also Records Decline

The depreciation trend was also seen at the official window, where the Naira closed at ₦1,361.5 per dollar at the Nigerian Foreign Exchange Market (NFEM), compared to ₦1,356.5 per dollar the previous day.

Data released by the Central Bank of Nigeria (CBN) showed that the indicative exchange rate rose by ₦5, indicating further weakening of the local currency against the dollar.

Widening Gap Between Markets

Following the latest movements, the gap between the parallel market rate and the official exchange rate widened to ₦43.5 per dollar, up from ₦32.5 per dollar recorded on Tuesday.

Analysts say the growing disparity continues to reflect persistent demand pressures and structural imbalances in the foreign exchange market.

Forex Turnover Drops Sharply

Meanwhile, trading activity in the official market saw a significant decline. Interbank turnover at the NFEM dropped by 56.8%, falling to $54.3 million from $125.7 million recorded the previous day.

Market watchers attribute the drop in transaction volume to ongoing adjustments and efforts by monetary authorities to stabilise liquidity in the forex market.

Outlook

As pressure on the Naira persists, attention remains on policy measures aimed at improving dollar supply and restoring stability across both official and parallel exchange windows.