Naira Slides in Black Market, Gains at Official Window

The naira slipped against the US dollar on Friday, August 29, recording a marginal depreciation in the parallel market.

Currency traders in Abuja told Economic Confidential that the naira exchanged at ₦1,540/$1 for buying and ₦1,550/$1 for selling, weaker than Thursday’s close of ₦1,545/$1, representing a ₦5.33 decline.

In contrast, at the Nigerian Foreign Exchange Market (NAFEM), the naira appreciated slightly to ₦1,531/$1 on Friday, compared to ₦1,535/$1 the previous day.

Despite the modest rebound at the official window, the widening spread between official and parallel rates highlights sustained pressure in Nigeria’s foreign exchange market, driven by dollar scarcity, speculative demand, and uncertainty over the Central Bank’s policy direction.

Analysts caution that without deeper structural reforms, the local currency may remain under strain, despite ongoing interventions aimed at restoring investor confidence and market stability.