The Nigerian Naira has dropped to N1,570 per U.S. dollar in the parallel market. Previously, it traded at N1,545 over the weekend.
However, the situation is different in the Nigerian Foreign Exchange Market (NFEM). There, the Naira appreciated slightly, trading at N1,528 per dollar. This difference highlights the ongoing challenges in Nigeria’s exchange rate management.
The drop in the parallel market is mainly due to high demand for the U.S. dollar combined with low supply. Consequently, the Naira has been losing value steadily. According to Bureau De Change operators in Abuja, the rate fell from N1,560/$1 on Monday to N1,565/$1 on Tuesday. Eventually, it hit N1,570/$1 by Wednesday.
Meanwhile, analysts remain concerned about the growing gap between the parallel and official exchange rates. As of February 2025, the official rate stood at N1,513 per dollar, while the parallel market rate surged to N1,570 per dollar.
Moreover, experts warn that without proper intervention, the Naira may continue to weaken. They stress that the widening gap could severely affect the economy, making it harder for businesses and citizens to cope.
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