Naira gains 1.75% as speculators watch government’s FX plans

Naira on Thursday gained 1.75 percent on the parallel market, also known as the black market, following some sentiments around the government’s plans to increase dollar liquidity, which has put speculators in and wait position.

During the intraday trading on Thursday, the dollar was quoted at N1,120 compared to N1,140 quoted on the previous day, on the black market.

“This is how we saw it. The dollar is coming down. Everybody is waiting to see what the government is trying to do so that we will not lose money,” a street trader at CMS said.

Nigeria’s government plans to increase dollar supply and digitalise FX transactions and discourage speculative demands and hoarding of FX in cash.

At the Nigerian Autonomous Foreign Exchange Market (NAFEM), Naira depreciated further at the official market, losing 0.55 percent despite a 60.06 percent increase in dollar liquidity on Wednesday.

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After trading on Wednesday at the Nigerian Autonomous Foreign Exchange Market, the dollar was quoted at N874.71, which was weaker than N869.91 quoted on the previous day, according to the data obtained from the FMDQ.

There was increased dollar supply from the willing buyers and willing sellers and the spot rate was N1,097.50/$1 high and N745.00/$1 low.

The volume of dollar transactions, which reflects the daily foreign exchange (FX) market turnover increased by 60.06 percent to $113.52 million on Wednesday from $70.92 million recorded on Tuesday.

On Wednesday, the naira fell to N1,140 per dollar on renewed demand pressure on the black market segment of the foreign exchange market.

This represents 5.55 percent and 8.91 percent depreciation against the dollar when compared with N1,080/$1 and an average of N1,046.66 exchanged on Tuesday.

Naira on Tuesday fell to an average rate of N1,046.66 per dollar following a shortage of dollars on the black market.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.