The naira has further depreciated to ₦1,629 per dollar in the Nigerian Foreign Exchange Market (NFEM) despite a substantial intervention by the Central Bank of Nigeria (CBN), which sold $668.8 million to support the currency.
The latest figures show a decline of ₦29 from last week’s rate of ₦1,600/$, continuing a trend of weakening for the naira.
At the parallel market, the naira also weakened, reaching ₦1,570 per dollar, up from ₦1,565 the previous week. The widening margin between the official NFEM rate and the parallel market rate has raised concerns about the stability of the currency.
The gap between the two rates expanded to ₦59 per dollar from ₦35 per dollar, highlighting the ongoing disparity in foreign exchange supply and demand.
According to Afrinvest’s Monthly Market Report, the naira’s decline was further evidenced in March, as it fell by 2.4% at the Nigerian Autonomous Foreign Exchange Market (NAFEM) window and by 2.6% in the parallel market, compared to February. The report attributed much of this depreciation to strong demand pressures, especially from foreign portfolio investors and local corporations seeking dollars.
AIICO Capital’s March report also confirmed that the naira was under significant pressure due to sustained demand for foreign currency. “The naira experienced significant depreciation in March 2025 due to persistent demand pressure in the foreign exchange market,” the report stated. Despite the CBN’s intervention with $668.8 million in dollar sales, the naira weakened by 2.97% month-on-month, closing March at ₦1,536.82/$, a sharp contrast to ₦1,492.49/$ at the start of the month.
