Naira Falls Sharply Against US Dollar in Official and Black Markets
The Nigerian naira dropped significantly against the United States dollar during the week, both at the official foreign exchange market and the parallel (black) market.
According to data released by the Central Bank of Nigeria (CBN), the naira closed at N1,363.39 per dollar on Friday at the official market. This was weaker than the N1,359.81 recorded on Thursday, showing a daily loss of N3.57.
Looking at the week as a whole, the naira lost N17.07 against the dollar at the official window. The currency experienced steady pressure throughout the week, as demand for foreign exchange remained high.
At the parallel market, also known as the black market, the naira performed even worse. It depreciated by N58 week-on-week, closing at N1,375 per dollar on Friday.
This was compared to N1,317 per dollar recorded the previous week. The sharp fall reflects continued pressure on the local currency outside the official market.
The decline in the naira’s value followed comments by President Bola Ahmed Tinubu, who confirmed that the apex bank had mopped up excess dollars from the foreign exchange market.
Analysts believe this action may have reduced dollar supply in circulation, contributing to the currency’s weakness.
Despite the depreciation of the naira, Nigeria’s external reserves showed improvement. Official figures indicate that the country’s foreign reserves rose to $49.51 billion as of February 25, 2026.
The increase in reserves suggests that the government still has some financial buffer to support the economy and manage currency volatility.
However, the continued weakening of the naira remains a concern for businesses and consumers, as it could lead to higher import costs and increased prices of goods and services.
Many Nigerians are watching closely to see what further steps monetary authorities will take to stabilise the currency in the coming weeks.
