The parallel market mirrored this trend, also dropping to ₦1,536/$ due to sustained demand pressures from foreign portfolio investors and local corporations
By Titilope Adako
Nigeria | April 8 2025
The naira on Monday depreciated to ₦1,629 per dollar at the Nigerian Foreign Exchange Market (NFEM), despite a $668.8 million intervention by the Central Bank of Nigeria (CBN).
According to data from the apex bank, the official exchange rate rose from ₦1,600/$ last Friday, marking a ₦29 depreciation.
Similarly, the naira fell in the parallel market, trading at ₦1,570/$ compared to ₦1,565/$ over the weekend.
As a result, the gap between the parallel and official markets widened from ₦35 to ₦59 per dollar.
Reports from Afrinvest and AIICO Capital confirm that the naira weakened significantly in March, with the official rate closing at ₦1,536.82/$, down from ₦1,492.49/$ at the start of the month—representing a 2.97 per cent month-on-month decline.
The parallel market mirrored this trend, also dropping to ₦1,536/$ due to sustained demand pressures from foreign portfolio investors and local corporations.
AIICO Capital noted that despite CBN’s intervention, market demand continued to outweigh supply, putting the naira under persistent pressure.
“Although liquidity improved mid-March due to CBN sales, by month-end, the naira still recorded marginal gains of only 0.5bps. On a quarterly basis, the local currency depreciated by 7bps at the NFEM, while external reserves dropped by around $110 million to $38.31 billion,” the report stated.
Last week, the naira experienced sharp fluctuations, trading between ₦1,525 and ₦1,535/$ earlier in the week before rising to ₦1,570/$ midweek.
The pressure was attributed to increased offshore demand, falling oil prices due to an OPEC+ supply hike, and global uncertainties triggered by former U.S. President Donald Trump’s new tariff measures.
By the end of the week, the naira closed at ₦1,567.02/$, recording a weekly loss of 1.97 per cent, while reserves fell by another $149 million to $38.15 billion.
Looking ahead, investment firms expect the CBN to continue boosting liquidity to support the naira, though global risks could trigger fresh volatility and capital outflows.
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Lagos, Nigeria | April 8 2025