The downturn is attributed to declining crude oil prices, which have constrained dollar inflows — a key source of foreign reserves for the Central Bank of Nigeria (CBN).
LAGOS — The Nigerian naira plummeted to its weakest level yet in 2025, exchanging at N1,628 to the US dollar in the parallel market on Thursday, May 8.
This represents a depreciation of N23 from the N1,605 recorded just a week earlier, according to local Bureau de Change operators. “Today, we sell at N1,628 and buy at N1,613,” said Abdullahi, a trader.
The downturn is attributed to declining crude oil prices, which have constrained dollar inflows — a key source of foreign reserves for the Central Bank of Nigeria (CBN).
Meanwhile, the official market showed a slight improvement, with the naira trading at N1,609.57/\$1, a marginal gain of 89 kobo.
Despite the gain, the currency weakened against the pound and gained modestly versus the euro.
The CBN is still reeling from a reported N13.9 trillion loss in 2024 as it redeems legacy contracts and attempts to stabilize the naira.
Analysts warn that without improved dollar inflow, more depreciation may follow.
