The naira continued to face heavy pressure in the parallel market on Tuesday, with the US dollar selling for as high as ₦1,550 across major Nigerian cities.
Bureau de change operators in Lagos, Abuja, and Port Harcourt confirmed the new selling rate, which marks another decline for the local currency. The latest figure widens the gap with the official market, where the naira traded at around ₦1,537 earlier in the week.
Persistent Demand, Weak Supply
Market watchers attribute the depreciation to several factors. Demand for foreign exchange remains high, while supply struggles to keep pace. A recent Central Bank of Nigeria (CBN) intervention—injecting $50 million into the market—had only a short-term effect, with the naira quickly resuming its slide in the parallel market.
Speculative activities have also been blamed for pushing up the dollar’s value, as traders exploit the high demand in the unregulated space.
Impact on Nigerians
The rising black market rate poses new challenges for businesses and individuals. Importers and travelers are expected to bear the brunt, with higher costs for sourcing foreign exchange translating into more expensive goods and services.
On the other hand, Nigerians receiving remittances may benefit, as the stronger dollar offers better value when converted in the parallel market.
Economic Concerns
Analysts warn that the growing disparity between the official and unofficial exchange rates underscores persistent economic instability. Despite reforms aimed at easing pressure on the naira, inflation, and market uncertainty continue to fuel volatility.
The outlook remains uncertain, with experts watching to see whether the CBN will step in again to stem the decline or allow market forces to determine the trajectory of the currency in the coming weeks.
