Naira Slides in Black Market Despite Official Market Gains

The Nigerian naira closed the week weaker against the US dollar in the parallel market, despite a marginal gain at the official exchange window. On Friday, the naira depreciated to N1,635 per dollar in the black market, down from N1,625 on Thursday. A Bureau de Change operator in Wuse Zone 4, Abuja, Abubakar Alhasan, confirmed the rate, noting that dollars were bought at N1,625 and sold at N1,635 on Friday. This reflects a N10 decline in the local currency within 24 hours.

Conversely, the official market recorded a slight appreciation. Data from the Central Bank of Nigeria indicated that the naira strengthened to N1,598.72 per dollar on Friday, compared to N1,599.32 on Thursday—marking a modest gain of N0.60.

Throughout the week, the naira experienced mixed performance across various trading platforms, though overall trends suggested more gains than losses.

This development follows the latest report from the National Bureau of Statistics, which showed a decline in Nigeria’s headline inflation rate to 23.7 percent in April. Market watchers now turn their attention to the Central Bank’s Monetary Policy Committee meeting scheduled for May 19 and 20, where policymakers are expected to decide whether to maintain or adjust the current 27.50 percent interest rate.