The value of the Nigerian naira continued to decline, reaching N1,500 per U.S. dollar in the official currency market on Thursday. This marks the fourth consecutive day that the naira has lost value due to a shortage of foreign exchange (FX) supply.
According to financial data from the FMDQ platform, the exchange rate depreciated slightly by 0.06% to N1,500.65. This decline happened because the demand for dollars was much higher than the supply available in the foreign exchange market. Over the past four trading days, businesses and individuals needing foreign currency have struggled to get enough, leading to further pressure on the naira.
In response to this situation, the Central Bank of Nigeria (CBN) stepped in to stabilize the naira by selling foreign exchange to authorized banks. On Thursday, the CBN injected $11.5 million into the official market at rates between N1,495.0 and N1,502.5 per dollar. However, this intervention was not enough to significantly change the direction of exchange rates.
Despite the recent depreciation, financial analysts remain optimistic about the naira’s prospects, especially given its steady appreciation last week. Another positive sign is that the difference between exchange rates in the official and parallel (black) markets has narrowed.
Over the past few weeks, the naira has gained value in the black market due to a few factors. First, the CBN has been selling $25,000 to each Bureau de Change (BDC) operator to help meet demand. Additionally, the CBN has implemented stricter regulations to ensure transparency in the foreign exchange market. Furthermore, commercial banks have been allowed to provide foreign exchange for personal and business travel allowances, creating direct competition with informal currency traders.
As a result, the exchange rate in the parallel market strengthened by 1.27% on Thursday, reaching N1,570 per dollar. This has led to a significant reduction in the gap between the official and parallel market rates, which now stands at N70. This is about a 50% decrease in the difference compared to earlier in 2025.
