The naira weakened further against the United States dollar on Wednesday, reflecting continued pressure across both the official and parallel foreign exchange markets.

At the parallel market, the local currency depreciated to about ₦1,490 per dollar, compared with ₦1,470 recorded the previous day. The latest movement highlights sustained demand for foreign exchange amid limited dollar supply in the informal market.

The naira also recorded a mild decline at the Nigerian Foreign Exchange Market (NFEM), where it closed at ₦1,421 per dollar. This represents a ₦5 depreciation from the ₦1,416 exchange rate recorded on Tuesday, according to data published by the Central Bank of Nigeria (CBN).

As a result of the contrasting rates, the spread between the parallel market and the official window widened to ₦69 per dollar, up from ₦54 the previous day. Market watchers say the growing gap reflects persistent distortions in dollar supply and demand across the foreign exchange ecosystem.

Currency analysts note that the pressure on the naira is being driven by a combination of factors, including strong import demand, speculative activity, and cautious dollar inflows. While recent policy measures by the monetary authorities have helped improve transparency at the official window, challenges remain in stabilising the currency across all segments of the market.

The naira’s performance continues to be closely watched by businesses and investors, particularly as exchange rate movements have direct implications for inflation, import costs and overall economic confidence.

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The naira remained stable on Wednesday, November 5, 2025, with the U.S. dollar trading between ₦1,430 and ₦1,445 at the official Nigerian Foreign Exchange Market (NFEM).

At the parallel (black) market, traders bought the dollar at around ₦1,435 and sold between ₦1,450 and ₦1,459, showing only a slight difference from official rates.

Market analysts attributed the stability to improved liquidity, steady inflows from foreign investors and exporters, and sustained intervention by the Central Bank of Nigeria (CBN).

They also linked the calm market to recent monetary policy adjustments, including the September interest rate cut, which helped ease inflationary pressure and boost investor confidence.

According to currency dealers, dollar supply has improved compared to previous weeks, while demand has become more predictable.

“There’s more balance now. People are not hoarding dollars as much as before,” one trader said.

Economists noted that the CBN’s efforts to clear foreign exchange backlogs have strengthened transparency and restored confidence in the market.

However, they warned that external factors — such as declining oil revenues, global inflation, and potential capital outflows — could still pose risks to the naira in the months ahead.

They urged the federal government to sustain fiscal discipline, promote non-oil exports, and boost local production to reduce pressure on the currency and support long-term stability.

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