The naira exchanged at N1,540 per dollar in the parallel market on Wednesday, weakening from N1,525 per dollar recorded the previous day.
In contrast, the currency appreciated in the official Nigerian Foreign Exchange Market, closing at N1,502.5 per dollar after gaining N6.5 from Tuesday’s rate of N1,506.5 per dollar.
Data published by the Central Bank of Nigeria confirmed the improvement in the official window, highlighting efforts to stabilize the market despite persistent pressure.
The parallel market, however, remained under strain as demand for the greenback outweighed available supply, particularly from importers and travelers.
The divergent performance widened the gap between the two markets significantly.
On Wednesday, the spread stood at N37.5 per dollar, compared to N18.5 per dollar on Tuesday, raising renewed concerns about the sustainability of current policy measures and the risks of arbitrage.
Analysts note that the naira’s volatility reflects deeper structural issues within Nigeria’s foreign exchange system.
While the CBN has intensified its interventions to boost liquidity and attract foreign inflows, the parallel market continues to absorb unmet demand from the official window, driving up rates in the process.
Going forward, experts stress that bridging the gap between both markets will be crucial to achieving stability.
They argue that sustained inflows from crude oil exports, improved investor confidence, and consistent policy reforms are key factors that will determine the naira’s trajectory in the coming weeks.