Naira Falls Against Dollar Across Markets on Oct 7

The naira weakened against the U.S. dollar on Tuesday, October 7, depreciating in both the parallel market and at the Nigerian Foreign Exchange Market (NAFEM).

Currency dealers in Abuja told Economic Confidential that the naira traded at ₦1,485/$1 for buying and ₦1,495/$1 for selling — a decline from Monday’s closing rate of ₦1,460/$1. In Lagos, Kaduna, and Kano, the currency exchanged at ₦1,495/$1, down from ₦1,460/$1 on Monday.

At NAFEM, the local currency also closed weaker at ₦1,470.3/$1, compared to Monday’s ₦1,465.7/$1.

Analysts noted that while the market appears relatively stable, deeper structural issues persist within Nigeria’s foreign exchange system. They cited dollar scarcity, speculative demand, and uncertainty surrounding the Central Bank of Nigeria’s policy direction as major drivers of volatility.

They warned that without comprehensive reforms to address these imbalances, the naira remains vulnerable despite ongoing efforts to restore stability and investor confidence.