Naira’s Downward Spiral Continues: Hits N1,554.85 at Official Market, N1,590 in Black Market

The Nigerian naira has slumped against the U.S. dollar for the fourth consecutive time across both official and parallel foreign exchange markets, raising fresh concerns about the currency’s stability. On Thursday, data from the Central Bank of Nigeria (CBN) revealed that the naira fell to N1,554.85 per dollar, down from N1,543.91 the previous day—a notable drop of N10.92. This marks the steepest single-day decline in the past 48 hours at the official market.

In the black market, the naira weakened further, slipping to N1,590 per dollar from N1,585 on Wednesday, a depreciation of N5 in just 24 hours. This persistent slide underscores a troubling trend that has gripped the currency since the start of the week, erasing much of the appreciation and relative stability it had achieved in recent months.

Despite policy interventions by the Central Bank of Nigeria aimed at bolstering the naira—such as floating the currency and efforts to clear foreign exchange backlogs—the naira’s depreciation streak suggests these measures are struggling to hold ground. Analysts point to a combination of factors, including high demand for dollars, dwindling foreign reserves, and Nigeria’s reliance on imported goods, as key drivers of the currency’s woes. The gap between the official and black market rates, now at N35.15, also hints at ongoing market distortions and a lack of confidence in the formal forex system.

As the naira continues its descent, Nigerians face mounting economic pressure, with rising costs for imported essentials like fuel and food. The CBN’s next moves will be critical, but for now, the currency’s downward trajectory shows no signs of abating, threatening to unravel months of fragile progress.