Lagos, Nigeria – The Nigerian Naira started the week on a downward trend, depreciating against the US dollar across both official and parallel foreign exchange markets on Monday. This decline comes despite recent gains recorded in February 2025, particularly in the black market.
According to data released by the Central Bank of Nigeria (CBN), the Naira fell to N1,492.49 per dollar at the official market, down from N1,499.07 recorded at the close of trading on Friday last week. This represents a depreciation of N6.58 against the dollar within a single day.
Similarly, at the parallel market, commonly referred to as the black market, the Naira also weakened, trading at N1,506 per dollar on Monday compared to N1,505 last week. The marginal drop highlights the ongoing volatility in the foreign exchange market.
The depreciation comes despite the Naira’s significant gains in February 2025, particularly in the black market, where it outperformed the official market. Analysts attribute the recent decline to persistent foreign exchange shortages, increased demand for dollars, and fluctuating market dynamics.
The CBN has continued to implement measures to stabilize the Naira and boost liquidity in the foreign exchange market. However, challenges such as low oil revenues, limited foreign investment inflows, and speculative activities have continued to exert pressure on the local currency.
Market observers are closely monitoring the situation, as the Naira’s performance remains critical to Nigeria’s economic stability. The recent depreciation underscores the need for sustained efforts to address structural issues in the economy and enhance foreign exchange supply.
As the week progresses, stakeholders will be watching for further developments in the foreign exchange market, particularly any interventions by the CBN to curb volatility and restore confidence in the Naira.