The Nigerian naira slid against the U.S. dollar across both the official and parallel markets on Friday, July 4, 2025, ending a week of earlier gains on a sour note and reigniting concerns over the stability of the nation’s foreign exchange market.
According to data from the Central Bank of Nigeria (CBN), the naira closed at ₦1,528.56 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), weakening from ₦1,525.83 recorded the previous day. This marks a daily depreciation of ₦2.73.
At the black market, which continues to serve as a vital source for personal travel allowance (PTA), business payments, and diaspora remittances, the naira also declined. Rates rose to ₦1,570 per dollar from ₦1,560 the previous day—reflecting a ₦10 drop in value.
This downturn comes despite the naira posting four consecutive days of appreciation earlier in the week, buoyed by moderate inflows from oil revenues, improved FX liquidity, and policy efforts from the CBN aimed at stabilizing the volatile exchange landscape.
Currency traders and financial analysts say Friday’s slip may not necessarily signal the start of a sustained downward trend, but rather reflects the fragile nature of the gains made earlier in the week.
“This minor depreciation at the close of the week shows that while some improvements have occurred in the official window, structural imbalances and forex supply-demand mismatches remain unresolved,” said FX analyst Olayemi Adebanjo.
He added that uncertainties surrounding Nigeria’s foreign exchange reserves and delays in repatriation of export earnings are contributing to fluctuations, especially in the black market where speculative activity thrives.
Since the unification of the exchange rate in mid-2023, the CBN has introduced several interventions to boost confidence in the naira. These include allowing greater autonomy in price discovery, clearing FX backlogs owed to airlines and foreign investors, and raising interest rates to curb inflation.
However, critics argue that the apex bank needs to do more to restore investor confidence, plug revenue leakages, and boost forex inflows from non-oil exports.
“The market still operates under significant pressure,” said Dr. Zainab Sule, an economist at the University of Lagos. “Until Nigeria ramps up local production, addresses its balance of payment challenges, and reduces its reliance on imports, the naira will continue to face downward pressure in both markets.”
The outlook for the naira remains mixed. On one hand, global oil prices have shown signs of recovery, which could improve Nigeria’s dollar earnings. On the other, increasing demand for forex by businesses and importers, coupled with speculative hoarding of dollars by individuals, continues to pose a challenge.
Market watchers say the CBN’s next Monetary Policy Committee (MPC) meeting later this month could be crucial in signaling future policy directions, especially if the apex bank takes further steps to stabilize the naira and tighten monetary conditions.
In the meantime, Nigerians are bracing for continued uncertainty as the naira dances between temporary appreciation and periodic depreciation—mirroring the broader challenges of Africa’s largest economy.