Victor EzejaUnlike two weeks ago, when the Nigerian naira witnessed relative stability, it relapsed last week, recording a fluctuating trend.
The local currency opened the week with a depreciation to ₦1,610 per dollar at the black market. Similarly, it recorded depreciation at the official market as the Nigeria Foreign Exchange Market (NFEM) rate was ₦1,605.62 per dollar on Monday, 5 May 2025 against ₦1602.18 on Friday, 2 May.
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According to data published on the Central Bank of Nigeria (CBN) website, the NFEM rate increased slightly to ₦1,606.64 on Tuesday, and also recorded a closing rate of ₦1,609 per dollar. After recording a peak closing rate of ₦1,612 on Wednesday, 7 May, it closed at ₦1609 per dollar.
At the parallel or black market, the naira continued with the depreciating trend, exchanging ₦1,630 per dollar on Friday, 9 May, against ₦1,625 on Thursday.
While the CBN has been on the forefront working to ensure stability of the naira, it seems to have slipped last week.
Black market traders have attributed the drop in value of the naira to continuous increase in demand and low supply of dollars.
What to Expect this week
Analysts submit that the trend of naira depreciation at the Foreign Exchange market may continue except CBN intervenes to boost FX liquidity as there is currently high demand driven by individual and corporate requirements to meet fundamental needs and import commitments.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
