The naira weakened to as low as N1,490 per dollar in the parallel market, widening the gap with the official exchange rate to its highest level in 11 months, according to data from Nairametrics Research and the Central Bank of Nigeria (CBN). While the official market recorded a modest appreciation, closing at N1,417.95 per dollar on Friday from N1,424.5 a week earlier, the parallel market rate depreciated from about N1,477 on January 9 to between N1,489 and N1,490 in Abuja. The divergence pushed the spread between both markets to N73, the widest since February 2025, underscoring sustained pressure on the foreign exchange market amid strong demand and limited supply.
CBN data showed that Nigeria’s external reserves rose slightly to $45.8 billion from $45.6 billion the previous week, supported by inflows from oil exports and portfolio investments, but analysts note that demand-side pressures continue to outweigh improvements in external buffers. The widening exchange rate gap is closely watched as a signal of market stress, as it suggests growing arbitrage opportunities and increased reliance on the parallel market by individuals and businesses unable to access official forex. Historically, prolonged disparities between both rates have prompted policy interventions by the apex bank, with market participants closely monitoring developments for signals on future exchange rate direction and monetary responses.