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Lagos – The Nigerian Naira continued its downward trend on Friday, April 4, 2025, hitting a rate of N1,600 per US dollar in the official Nigerian Foreign Exchange Market (NFEM). This significant Naira depreciation ends a roughly three-month spell where the currency seemed to find footing around the N1,500 per dollar level, adding pressure to the Nigerian economy.
Figures released by the Central Bank of Nigeria (CBN) confirmed the sharp climb. The official indicative rate moved from N1,569 per dollar just the day before (April 3), marking a N31 fall in the Naira’s official value overnight. Current data from today, April 5, 2025, suggests continued volatility, though official rates may take time to update fully; CBN data for April 3rd showed the NFEM closing rate at N1,569.
Parallel Market Gap Widens
This Naira depreciation wasn’t confined to the official market. On the parallel, or “black,” market, where many Nigerians access foreign currency, the Naira also weakened. Reports indicated it traded at N1,565 per dollar on Friday, down from N1,555 previously. This widened the gap between the official and parallel rates to N35 per dollar, up sharply from N14 the day before, highlighting the increasing difficulty in sourcing dollars at the official rate. Independent tracking sites like XE.com showed rates around N1,536 per dollar as of late Friday (April 4).
Economic Headwinds Increase
The steady Naira depreciation poses challenges for Nigeria’s economy, which relies heavily on imports. A weaker Naira makes imported goods – from fuel to food staples and manufacturing inputs – more expensive. This fuels inflationary pressures, squeezing household budgets and increasing costs for businesses. While inflation eased slightly in February 2025 to 23.18% after a data rebasing, the currency’s fall could reverse that trend. While some argue a weaker Naira could boost export competitiveness, others point out that Nigeria’s reliance on imported raw materials often negates this benefit, potentially harming local industries and SMEs.
