Naira Gains Slightly at Official Market, Slips in Black Market

The naira continued its upward trajectory at the official foreign exchange market on Tuesday, posting a slight gain against the US dollar. According to data from the Central Bank of Nigeria (CBN), the local currency appreciated to N1,600.03 per dollar, up from N1,600.44 recorded on Monday. This reflects a modest day-to-day gain of 41 kobo, following a more notable N5.71 gain the previous day.

However, the picture was different at the parallel market, where the naira weakened. It traded at N1,635 per dollar on Tuesday, a decline of N5 from Monday’s rate of N1,630. This divergence signals mixed market sentiment, with gains at the official window contrasted by losses in the black market.

The currency movement comes as Nigeria’s external reserves showed short-term fluctuations. Reserves rose by $86.67 million to reach $38.10 billion as of May 6, 2025, but declined to $38.21 billion by Monday, May 12, 2025, according to CBN data.