The Nigerian naira has continued its decline against the U.S. dollar, experiencing a sharp drop across both the black market and the official foreign exchange market.
On Thursday, the naira weakened further in the parallel market, trading at N1,580 per dollar, a significant drop from N1,525 per dollar on Wednesday. This means the naira lost N55 in just one day.
A Bureau de Change operator in Wuse Zone 4, Abuja, Abubakar Alhasan, confirmed the new exchange rates. He noted, “The dollar is rising again. On Thursday night we bought between N1,550 and N1,560 and sold between N1,575 and N1,580. It seems we are returning to the N1,600 per dollar mark again.”
The official market also recorded a decline, with the naira falling to N1,512.30 per dollar on Thursday from N1,500.80 per dollar the previous day, according to data from the Central Bank of Nigeria (CBN). This represents a drop of N11.50 within 24 hours.
This marks the second consecutive day of significant depreciation for the naira, following a downward trend over the past four days. The situation has been linked to increasing demand for foreign exchange, putting more pressure on the currency.
At the same time, Nigeria’s external reserves have been shrinking. The CBN’s latest data shows that as of March 4, 2025, the country’s reserves stood at $34.34 billion, down from $34.41 billion on February 28, 2025. The decline in reserves further raises concerns about the naira’s stability in the coming weeks.
