By Seun Ibiyemi
The Nigerian naira continued to show signs of weakness against the United States dollar on Monday, with both official and parallel foreign exchange markets reflecting sustained depreciation amid thin year-end liquidity and robust dollar demand.
In the official Nigerian Foreign Exchange Market (NFEM), the naira closed around ₦1,466.50 per US dollar, a level largely unchanged from volatile sessions last week but indicative of persistent downward pressure.
Meanwhile, the parallel (black) market told a more strained story, with Bureau De Change operators quoting rates near ₦1,475 to ₦1,485 per dollar, pointing to a continued gap between official and informal valuations.
Forex traders cited a liquidity crunch in the foreign exchange market and disappointing inflows typically associated with the festive “Detty December” season as key contributors to the naira’s slack performance.
Many had expected stronger diaspora remittances and foreign investor capital this month, but those flows have been weaker than anticipated, exacerbating pressure on the local currency.
Also noted that some foreign portfolio investors are repatriating dividends or delaying fresh investment, further reducing available dollar liquidity. Speculative activities and high demand for dollars for imports and travel have amplified the strain.
Despite recent Central Bank of Nigeria (CBN) interventions, including reported FX sales to support the official window, these measures have so far failed to reverse the downward trend.
Analysts say the currency outlook through the end of the year will remain sensitive to crude oil earnings, diaspora inflows, and broader economic signals.
As Nigeria heads toward 2026, policymakers face the dual challenge of shoring up foreign exchange reserves and narrowing the divide between official and parallel market rates if confidence in the naira is to improve.