Black Market Traders Announce New Dollar Price as Naira Loses N25 in One Day.
- The naira weakens by N25 in parallel market, trading between N1,410 and N1,420 per dollar
- Gap between official and parallel exchange rates widens amid growing demand for US dollars
- Central Bank of Nigeria intervenes to stabilise naira's appreciation against excessive volatility
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s currency suffered a fresh setback on Thursday as the naira weakened by N25 in a single trading session at the parallel market, reflecting renewed demand pressure for the US dollar.
Information gathered from street traders and online foreign exchange tracking platforms showed the naira trading between N1,410 and N1,420 per dollar across several black-market hubs nationwide.
Source: Getty Images
At the upper band of N1,420/$, the local currency has depreciated by about 1.8 per cent compared with N1,395/$ quoted on Wednesday, highlighting a sudden reversal after weeks of gradual strengthening.
The development suggests that pressure is once again building in Nigeria’s informal foreign exchange market, where businesses and individuals often turn when access to official FX channels becomes limited.
Gap with official rate widens
The latest depreciation has also widened the gap between the official exchange rate and the parallel market.
The spread between the two markets expanded slightly to around N8, up from N7 recorded last week, signalling growing tension between demand and supply across Nigeria’s foreign exchange ecosystem.
Although the difference remains relatively narrow compared with past periods of severe currency distortions, analysts say sustained pressure in the parallel market could widen the gap if demand continues to rise.
Naira also weakens in official market
The naira also recorded a mild decline in the official foreign exchange window.
At the Nigerian Foreign Exchange Market (NFEM), the currency weakened by N2.80, with the dollar quoted at N1,387.09 on Wednesday compared with N1,384.29 on Tuesday.
This represents a 0.2 per cent depreciation, indicating that pressure on the naira is gradually extending beyond the parallel market.
Despite the recent dip, the naira has enjoyed a relatively stable period in recent weeks, supported by reforms and improved liquidity in the official market.
CBN interventions slow naira rally
Market participants attribute the cooling of the naira’s earlier rally to the actions of the Central Bank of Nigeria, which has reportedly stepped into the market to moderate the pace of appreciation.
According to traders, the apex bank has been actively buying dollars from the market to prevent the naira from strengthening too quickly, a move aimed at avoiding excessive volatility.
“CBN is the one mopping up the dollar because it was appreciating too fast. They’re buying it from the market,” a currency trader familiar with the transactions said.
Such interventions are often used by central banks to maintain stability and discourage speculative trading that can occur when exchange rates move sharply.
February gains despite intervention
Analysts at the Financial Markets Dealers Association noted that the naira still recorded gains in February despite the central bank’s interventions.
According to the association, the currency appreciated across both the official NFEM window and the parallel market during the month, even as the apex bank conducted late-month foreign exchange purchases to limit excessive strengthening.
Analysts say the central bank’s strategy appears to be aimed at keeping the naira within a stable range while maintaining investor confidence and preventing abrupt currency swings.
Outlook for the currency
Currency watchers say the direction of the naira in the coming weeks will depend largely on dollar liquidity, demand from importers, and further policy actions by the central bank.
Source: Getty Images
If demand for foreign exchange continues to rise in the parallel market, the naira could face renewed pressure. However, sustained interventions and improved FX inflows may help stabilise the currency and keep the gap between official and informal markets relatively narrow.
Naira depreciates for 6 straight days
Legit.ng earlier reported that after weeks of impressive gains, the Nigerian naira has eased off its recent surge in the official foreign exchange market, signalling a shift in momentum on Wednesday, February 25, 2026.
The Central Bank of Nigeria (CBN) stepped in to buy U.S. dollars from the market, slowing the local currency’s rapid appreciation and slightly weakening the naira against the greenback.
Official data shows the naira closed at ₦1,356.11 per dollar, a drop of about 74 kobo from Tuesday’s rate of ₦1,355.37.
Source: Legit.ng
