Naira Gains in Black Market But Slips at Official Window as FX Pressure Persists
- The Nigerian naira appreciated in the parallel market but weakened in the official window, according to data from the Central Bank of Nigeria
- The gap between both rates narrowed sharply, while interbank FX activity declined significantly, with deals and turnover dropping by over 40% and 49%, respectively
- Analysts say the currency remains vulnerable to liquidity challenges, external debt pressures, and weak foreign inflows despite short-term stability signs
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Nigeria’s currency posted mixed movements across foreign exchange segments on Friday, April 24, 2026, reflecting ongoing pressure in the market despite short-term gains in the informal window.
The naira appreciated slightly in the parallel market, strengthening to N1,380 per dollar from N1,390 recorded a day earlier, suggesting improved dollar supply at the retail end of the market.
Source: UGC
Parallel market gains as official rate weakens
Currency traders often attribute such movements to intermittent inflows from diaspora remittances and reduced speculative demand.
In contrast, data from the Central Bank of Nigeria showed that the naira weakened at the Nigerian Foreign Exchange Market (NFEM), closing at N1,358.66 per dollar compared to N1,354.20 on Thursday.
This represents a depreciation of N4.46, based on the regulator’s indicative exchange rate, which reflects transactions among authorised dealers and institutional players.
As a result of these opposing trends, the spread between the official and parallel market rates narrowed significantly to N21.34 per dollar, down from N40.80 recorded in the previous session, indicating a temporary convergence between both markets.
Decline in FX market activity raises concerns
Despite the modest improvement in the parallel market, trading activity in the official window weakened notably during the week.
The volume of deals in the interbank foreign exchange market dropped by 41.7% to 346 transactions, down from 594 deals in the preceding week.
Similarly, turnover fell sharply by 49.5% to N248.44 million, compared to N492.57 million recorded earlier, highlighting reduced liquidity and lower participation by market players.
Analysts say such declines may reflect cautious trading behaviour among investors and banks amid uncertainty around foreign exchange inflows, Vanguard reported.
On a weekly basis, the naira depreciated by N9.66 in the official market, underscoring persistent pressure from limited dollar supply, even as it gained N7 in the parallel segment.
Market analysts, including those at Cowry Asset Management Plc, noted that the naira’s near-term outlook remains tied to policy actions and liquidity conditions.
According to the firm, while recent appreciation in the parallel market signals short-term stability, subdued oil revenue and some other factors could constrain sustained currency recovery.
They stated:
“While recent gains suggest some short-term stability, persistent pressure from external debt obligations, weak oil revenue accretion, and foreign portfolio outflows may limit sustained appreciation.”
African currencies tipped to extend gains
Meanwhile, Legit.ng previously reported that the naira is among several African currencies expected to strengthen further against the United States dollar in the coming days.
Other currencies projected to appreciate include Zambia’s kwacha, which is likely to remain resilient, supported by improving macroeconomic conditions and strong copper prices—the country’s major export.
While currencies in Kenya and Uganda are expected to remain relatively stable, Ghana’s cedi may weaken further due to sustained demand for dollars from the energy sector.
Source: Legit.ng
