Naira Slides to ₦1,366/$ at Official Window

Nigeria’s currency, the naira, recorded a slight depreciation at the official foreign exchange market, closing at ₦1,366 to the US dollar on Tuesday, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).

The latest figure represents a marginal decline from the previous trading session, reflecting continued pressure on the local currency amid persistent dollar demand and tight foreign exchange supply.

At the parallel (black) market, the naira traded weaker, exchanging at around ₦1,410/$, highlighting the widening gap between official and informal market rates. Currency traders attributed the disparity to limited liquidity at the official window and sustained demand from importers, manufacturers, and individuals seeking dollars for travel and overseas payments.

Market analysts note that while recent Central Bank of Nigeria (CBN) reforms — including exchange rate unification and increased transparency — have helped stabilize the market to some extent, structural challenges remain. These include low foreign inflows, high import dependence, and speculative activities in the FX market.

Looking ahead, experts say the naira’s performance will largely depend on improved dollar supply from oil exports, foreign portfolio investments, and diaspora remittances. Any uptick in external reserves or increased CBN interventions could offer short-term relief, though sustained stability may require deeper economic reforms.

For now, currency watchers expect the naira to continue trading within a narrow but volatile range as the market reacts to policy signals and global economic developments.