Black Market Halts Trading as Naira Slides to ₦1,565/$

Trading activities in the parallel market came to a standstill on Monday, August 4, following the persistent depreciation of the naira against the US dollar over the past week.

Currency dealers in Abuja told Economic Confidential that the sharp demand for dollars pushed the naira to a threshold that forced many traders to temporarily suspend exchange operations.

As of Friday, the naira traded at ₦1,555/$ for buying and ₦1,565/$ for selling, marking a ₦5.33 drop from Thursday’s closing rate of ₦1,560/$. This sharp decline capped a weeklong slide from ₦1,540/$ on Monday, signaling heightened volatility in the foreign exchange market.

A currency vendor, who spoke on condition of anonymity, said, “the rise of the dollar in the black market is threatening the naira, and the government doesn’t approve that. So to control the situation, trading has temporarily stopped, at least until next week.”

Meanwhile, at the official Nigerian Foreign Exchange Market (NAFEM), the naira remained stable at ₦1,533/$ on Monday, unchanged from Friday’s closing.

Earlier in July, the official rate had appreciated slightly from ₦1,528/$ on July 21 to ₦1,525/$, showing brief gains before renewed pressure set in. Despite this, the widening gap between the official and black-market rates continues to reflect underlying challenges in Nigeria’s forex environment — including dollar scarcity, speculative trading, and uncertainties surrounding the Central Bank’s monetary policy.

Analysts caution that without sustained structural reforms, the naira will remain under pressure, even as recent policy efforts aim to restore investor confidence and stabilize the currency.