Nigeria’s currency recorded fresh losses on Thursday as the naira weakened against the dollar in both the parallel market and the official Nigerian Foreign Exchange Market (NFEM), reflecting sustained pressure on foreign exchange liquidity.
In the parallel market, the naira depreciated to N1,392 per dollar, slipping from N1,388 traded on Wednesday. The decline extended similar pressure seen in the official market, where the local currency also weakened against the greenback.
Figures released by the Central Bank of Nigeria showed that the indicative exchange rate in the NFEM closed at N1,371 per dollar, compared to N1,368.95 per dollar recorded a day earlier. This represented a depreciation of N2.05 for the naira in the official window.
The latest movement widened the gap between the official and parallel market rates to N21 per dollar, up from N19.05 recorded on Wednesday, suggesting persistent demand pressure outside the formal foreign exchange system.
Market activity also slowed significantly during the trading session. Data from the interbank foreign exchange market showed turnover dropped sharply by 39.6 percent, falling to $78.8 million from $130.6 million recorded the previous day.
Currency analysts say the decline in FX turnover may have contributed to the weakening of the naira, as lower dollar supply in the market often intensifies pressure on exchange rates.
The renewed depreciation comes despite ongoing efforts by monetary authorities to stabilize the foreign exchange market through reforms aimed at improving liquidity, boosting investor confidence, and narrowing the gap between official and unofficial exchange windows.
Economic observers note that volatility in the naira market continues to reflect broader concerns over foreign exchange inflows, external reserves, and sustained demand for dollars from importers and businesses.
With the spread between the parallel and official markets widening again, traders and investors are expected to closely monitor future interventions by the Central Bank and broader economic measures that could influence currency stability in the coming weeks.