The Nigerian naira recorded a modest gain in the parallel foreign exchange market on Monday, appreciating to N1,550 per dollar, compared to the previous rate of N1,570/$ recorded over the weekend.
Currency traders in Lagos, Abuja, and Kano confirmed the new rates, attributing the development to a slight drop in demand for the greenback and increased inflows from exporters and diaspora remittances.
At the official Nigerian Autonomous Foreign Exchange Market (NAFEM), however, the naira traded at a weaker average of N1,520/$, showing a narrower gap between official and parallel market rates.
A Bureau de Change (BDC) operator in Abuja, who simply identified himself as Mallam Ibrahim, said the market had seen “more supply than usual,” forcing some sellers to adjust rates downward. “Today we sold at N1,550/$ after many days of hovering around N1,570. People are bringing in dollars to take profit from the high rates,” he explained.
Analysts believe the naira’s appreciation, though slight, may reflect renewed confidence in ongoing Central Bank of Nigeria (CBN) interventions aimed at stabilizing the foreign exchange market. They, however, cautioned that without sustained supply and a broader policy framework to boost forex earnings, the currency could come under fresh pressure.
An economist, Dr. Amina Yusuf, noted that while the naira’s rebound is welcome, “the government must prioritize non-oil exports and investment inflows to ensure long-term stability. Short-term gains in the parallel market can easily be reversed.”
The naira has faced severe volatility in recent months following the floating of the currency and removal of multiple exchange windows, which left market forces to largely determine its value.
