Naira Hits Record Single-Day Fall in Official Forex Market

The Nigerian naira experienced its sharpest single-day decline at the official foreign exchange market on Friday, ending the week on a negative note despite significant gains in the parallel market.

Central Bank of Nigeria data indicated the naira weakened to N1,346.32 per US dollar on Friday, down from N1,341.35 the previous day. This represented a daily depreciation of N4.97, the largest drop recorded since the current phase of weakening began earlier in the week. Since Wednesday, the official rate has depreciated by a cumulative N10.36. On a week-on-week comparison, the naira closed 9.0% lower than the N1,355.42 rate recorded the previous Friday.

In contrast, the parallel market reported a pronounced strengthening of the local currency. The naira closed at approximately N1,317 per dollar, a significant improvement from the N1,440 rate seen the prior week. This equates to a weekly gain of N123 per dollar in the informal market.

The divergence between the official and parallel market rates highlights ongoing volatility and a notable gap in Nigeria’s dual exchange rate system. The Central Bank reported that the country’s gross external reserves remained stable at $48.50 billion as of February 17, 2026.

The persistent depreciation at the regulated official market occurs despite the relative stability in external reserves, pointing to underlying pressures in dollar liquidity and demand within the formal foreign exchange window. The simultaneous appreciation in the parallel market suggests an adjustment in informal sector pricing, potentially influenced by changes in demand dynamics or alternative dollar sources.

This split performance underscores the complex challenges facing Nigeria’s foreign exchange management. The significant premium of the official rate over the parallel market rate—now exceeding N29—may incentivize continued arbitrage activity and underscore the depth of unmet official demand. Market analysts will watch closely for any policy adjustments from the Central Bank of Nigeria aimed at bridging the rate disparity and stabilizing the naira in the formal segment.