Naira Slides to N1,420 at Parallel Market Amid Dollar Squeeze

The naira extended its losing streak against the US dollar on Thursday, weakening to N1,420 at the parallel market as dollar scarcity and rising demand for foreign payments continued to pressure the local currency.

The currency has shed N5 within 24 hours, with Bureau de Change operators across Lagos and Abuja quoting rates as high as N1,425 — a reflection of tightening dollar liquidity in the informal segment.

The Central Bank of Nigeria has pulled back from active foreign exchange intervention since the naira’s earlier recovery, a deliberate policy shift that has left the currency more exposed to prevailing market forces.

External pressures are compounding the strain. The escalating US-Iran conflict has stoked fresh demand for the dollar globally, lifting the dollar index while weighing on other major currencies. For Nigeria, the conflict has yet to translate into the foreign exchange windfall many had anticipated from elevated oil prices.

Nigeria’s gross external reserves have continued to decline over several consecutive sessions, dropping to $49.57 billion following foreign exchange settlements — undermining the case for a near-term naira recovery.

At the official window, the naira also retreated on Wednesday, with the spot rate closing at ₦1,386.70 per dollar after a ₦4.07 decline.