Key points:
Official CBN (NAFEM) Rate: ₦1,423.17 / USD
Black-Market Rate: ₦1,490 / USD
Drivers: Supply squeeze in the foreign exchange (FX) market following a period of improved liquidity; Underlying concerns over weak oil prices and potential FX liquidity crises.
Top Tools: CBN Forex Portal, Aboki Fx
The Naira extended its decline on Friday, weakening across both the official and parallel markets due to a fresh squeeze in dollar supply. Despite the current pressure, an investment firm's outlook suggests the currency remains undervalued and could trade within a stronger range of ₦1,350-₦1,400 for the year if reforms hold.
FAQ
- What's the gap between CBN & black-market rates? The premium widened to approximately ₦66.83, reflecting heightened pressure and increased dollar scarcity in the unofficial market as supply tightened.
- Will the naira strengthen soon? While the long-term outlook from analysts remains positive (forecasting ₦1,350-₦1,400), immediate strengthening is unlikely until the current supply squeeze eases. The market's trajectory is a test of the CBN's ability to manage liquidity amidst external pressures.
- How do oil prices affect rates? Weak oil prices are cited as a primary worry for 2026. They directly threaten the foreign exchange inflows needed to maintain market liquidity. The current supply squeeze and depreciation illustrate how vulnerable the Naira is to any reduction in dollar earnings from crude oil.
- Next article in the series 'Dollar to Naira Rate Series': Today’s Dollar to Naira Rate: Dollar → Naira Snapshot Rate for 11 October 2025
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