At the parallel market, the naira fell to N1,580 per dollar on Thursday, down from N1,525 on Wednesday, marking a single-day loss of N55. A Bureau de Change operator at Wuse Zone 4 in Abuja confirmed the rate to *Brand Icon Image*, noting, “The dollar is rising again. On Thursday night, we bought between N1,550 and N1,560 and sold between N1,575 and N1,580. It seems we are returning to the N1,600 per dollar mark again.”
Similarly, at the official market, the naira weakened to N1,512.30 per dollar on Thursday, compared to N1,500.80 on Wednesday, according to data from the Central Bank of Nigeria (CBN). This represents a depreciation of N11.50 in a single day.
This marks the second consecutive day of significant depreciation for the naira, continuing a four-day downward trend driven by increased demand for foreign exchange.
Declining External Reserves
The naira’s depreciation coincides with a drop in Nigeria’s external reserves, which fell to $34.34 billion as of March 4, 2025, from $34.41 billion on February 28, 2025, according to CBN data. The decline in reserves highlights the ongoing pressure on the country’s foreign exchange supply.
The persistent depreciation of the naira underscores the challenges facing Nigeria’s foreign exchange market, including rising demand for dollars and limited supply. Analysts and stakeholders are closely monitoring the situation, as the naira’s volatility continues to impact businesses and the broader economy.