The value of the naira has continued its downward trend, depreciating further in the unofficial market, trading at ₦1,705 to the dollar on Wednesday, according to Bureau De Change (BDC) operators in Lagos and Abuja.
Aliyu Sani, a BDC operator in Lagos, confirmed that he sold dollars at ₦1,705 and bought at ₦1,695. In Abuja, the rate was slightly lower, with currency traders selling dollars at ₦1,700 and buying at ₦1,690.
On the Nigerian Autonomous Forex Exchange Market (NAFEX) housed on the FMDQ Securities Exchange, the naira closed trading at ₦1,659.69 to the dollar, marking a slight 0.04% depreciation from ₦1,658.97 the previous day.
In the official market, the naira traded between a high of ₦1,682 and a low of ₦1,562.97 to the dollar.
The daily turnover on the foreign exchange market dropped to $177.10 million from $217.86 million the day before, further reflecting the growing demand for U.S. dollars and limited supply.
This decline follows a record low earlier in the week when the naira closed at ₦1,700 per dollar, representing a 0.29% drop from the previous Friday’s rate of ₦1,695 to the dollar.
The World Bank recently ranked the naira among the worst-performing currencies in Sub-Saharan Africa in 2024, with the local currency depreciating by approximately 43% year-to-date.
The ongoing depreciation of the naira is attributed to increased demand for dollars in Nigeria’s parallel market, slow foreign exchange disbursements by the central bank, and limited inflows of U.S. currency into the country.