The Naira fell again in the parallel market on Tuesday, trading at N1,650 per dollar. This marks a slight drop from Monday’s rate of N1,648, raising fresh concerns about Nigeria’s foreign exchange stability.
However, in the official market, the Naira showed a rare improvement. It appreciated to N1,537 per dollar, gaining N1 from Monday’s rate of N1,538. While this offers some relief, the widening gap between the official and parallel markets remains a pressing issue.
Data from the Central Bank of Nigeria (CBN) highlights the growing disparity. Analysts say this reflects persistent challenges in balancing demand and supply for foreign currency. Many businesses and individuals are forced to turn to the parallel market, where demand continues to outweigh supply.
Economic experts link the Naira’s parallel market decline to high demand for dollars from importers and businesses. This pressure has grown as official channels struggle to meet forex needs. Despite CBN’s interventions and policy measures, the gap between the two markets continues to widen, fueling uncertainty.
Some analysts predict the Naira could stabilize around N1,550 per dollar in the official market by early 2025 if forex inflows improve and policies remain consistent. But the parallel market remains volatile, with fears of further depreciation if current trends persist.
The Naira’s decline is hitting businesses and households hard. Import costs are rising, inflation is climbing, and everyday Nigerians are feeling the pinch as goods and services become more expensive.
Calls for urgent action are growing louder. Experts urge the government to address root causes, including diversifying export revenue and reducing dependency on imports. Transparency in forex allocation is also seen as key to rebuilding market confidence.
The Naira’s performance in the coming months will be critical to Nigeria’s economic outlook. Stabilizing the currency is not just about market rates—it’s about easing the financial burden on citizens and ensuring economic growth.