Naira Falls in Black Market, Gains at Official Window on Sept 29

The naira falls marginally against the US dollar on Monday, September 29, depreciating in the parallel market, while appreciating at the Nigerian Foreign Exchange Market (NAFEM).

Currency dealers in Abuja told Economic Confidential that the naira traded at ₦1,490/$1 for buying and ₦1,500/$1 for selling, unchanged from Friday’s closing rate. Compared to the previous week, the local currency lost ₦5.33.

At NAFEM, the naira strengthened, closing at ₦1,476.3/$1 compared to ₦1,480.7/$1 on Friday, showing a modest appreciation.

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

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