Naira Appreciates in Black Market, Slides at Official Window on Oct 3

The naira strengthened against the US dollar on Friday, October 3, appreciating in the parallel market while recording a modest decline at the Nigerian Foreign Exchange Market (NAFEM).

Currency dealers in Abuja told Economic Confidential that the naira traded at ₦1,450/$1 for buying and ₦1,460/$1 for selling, a ₦40.33 gain compared to Monday’s exchange rate of ₦1,500/$1.

At NAFEM, however, the naira closed weaker at ₦1,465.7/$1, down from Thursday’s ₦1,455.2/$1.

Analysts cautioned that the persistent gap between the official and parallel markets highlights structural weaknesses in Nigeria’s forex framework. They attributed the volatility to dollar scarcity, speculative demand, and lingering uncertainty over the Central Bank of Nigeria’s policy direction.

They warned that without broader reforms to address underlying imbalances, the naira remains exposed despite ongoing interventions aimed at restoring stability and boosting investor confidence.