Naira Slides in Black Market, Gains at Official Window

The naira weakened slightly against the US dollar on Thursday, September 4, recording a marginal loss in the parallel market even as it appreciated at the official Nigerian Foreign Exchange Market (NAFEM).

Currency traders in Abuja told Economic Confidential that the naira traded at ₦1,530/$1 for buying and ₦1,540/$1 for selling, compared to Wednesday’s closing of ₦1,540/$1, reflecting a mild depreciation.

At NAFEM, however, the local currency closed stronger at ₦1,521/$1, up from ₦1,526/$1 recorded the previous day.

Analysts note that despite the official window rebound, the widening spread between official and parallel market rates underscores persistent pressure on the foreign exchange market. They attribute the volatility to dollar scarcity, speculative trading, and uncertainty over the Central Bank’s policy stance.

They caution that without deeper structural reforms, the naira may remain vulnerable despite ongoing interventions aimed at restoring market stability and investor confidence.