Naira hits N1,040 per dollar on black market

The foreign exchange (FX) market opened on Thursday with naira depreciating to an all-time low of N1,040 on the black market, also known as parallel market.

This represents 0.97 percent weaker than N1,030/$ closed on Wednesday at the same market.

At the Investor’ and Exporters’ (I&E) forex window, the naira depreciated by 1.43 percent as the dollar was quoted at N776.80 on Wednesday compared to N765.83/$1 quoted on Tuesday. It was weaker than N773.54$1 exchange on Monday,and N741.85 on Friday, data from the FMDQ indicated.

Nigeria’s foreign exchange market market continues to experience pressure, despite rates unification in June 14, 2023 by the Central Bank of Nigeria (CBN).

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Despite the exchange rate unification, FX inflows into Nigeria are lagging, a report by FSDH Research stated.

On the other hand, the demand for foreign currency remains high thereby creating pressure on the exchange rate. In addition, limited access to FX in the official market (delays, backlogs, documentation requirements) are incentivizing players to purchase FX in the black market.

“On a positive note, the government removed the peg on the official exchange rate in June 2023. This suggests some level of commitment to exchange rate reforms. The President is also at the forefront of wooing investors with the Nigeria-India Business Summit as an example.

“To win back investor’s confidence, we believe that the government must intensify its efforts in curtailing oil theft in the short term and provide a clear roadmap to improve FX inflows and management in the medium to long term to assure top institutional investors. In the immediate term, we expect the Naira to continue to face pressure in the official market,” analysts at FSDH Research said.

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.