The naira traded weaker on Wednesday, with widening gaps between official and parallel market exchange rates, underscoring renewed pressure on Nigeria’s foreign exchange market.
Data from the Nigerian Foreign Exchange Market (NFEM) and the Central Bank of Nigeria (CBN) showed the volume-weighted average rate around ₦1,465 per US dollar, while parallel-market trackers placed the black-market rate between ₦1,490 and ₦1,495 to the dollar.
Analysts attribute the divergence to strong dollar demand from importers and corporate clients, coupled with limited CBN intervention and liquidity shifts following recent market operations. The naira has lost ground over the past two trading sessions as eligible FX users increased their demand for dollars.
The broader policy and global environment have also influenced trading sentiment. The CBN’s recent policy rate cut in late September, coming amid signs of easing inflation, has affected interest-rate differentials that typically shape capital flows and currency demand. With lower returns on naira-denominated assets, market participants say, some investors are shifting toward dollar holdings as a hedge.
For consumers and businesses, the near-term implications are tangible. Travellers and importers will likely face higher costs when sourcing dollars through cash or non-bank channels, as the parallel market reacts faster to shifts in liquidity and sentiment.
Financial analysts caution that unless CBN resumes more active market interventions or FX inflows improve, the spread between official and street rates could persist in the short term — a sign that Nigeria’s currency market remains sensitive to both policy direction and external funding conditions.