The Nigerian naira suffered a fresh setback on Tuesday, April 29, 2026, weakening against the United States dollar at the Nigerian Foreign Exchange Market (NFEM), despite recently being celebrated as Africa’s best-performing currency.
The sharp depreciation came as foreign exchange demand surged beyond available liquidity, forcing banks and dealers to adjust dollar quotes upward amid growing pressure on the local currency.
Major Banks Adjust Dollar Rates
Major financial institutions, including Access Bank, Guaranty Trust Bank (GTBank), and United Bank for Africa (UBA), were reported to have adjusted their dollar rates as the naira faced renewed selling pressure across both official and parallel markets.
Rising FX Payments Trigger Fresh Pressure
Market analysts say the latest decline was driven by increased foreign exchange payments and sustained demand for dollars from importers, investors, and offshore players. According to a report by MarketForces Africa, foreign portfolio investors also remained cautious, maintaining short positions in Nigerian markets, further increasing pressure on the local currency. This intensified the scramble for the US dollar, Nigeria’s dominant foreign exchange settlement currency, leading to another broad-based selloff of the naira.
Daily foreign exchange data released by the Central Bank of Nigeria (CBN) showed that the naira weakened significantly, touching an intraday high of N1,385 per dollar, compared to N1,370 quoted the previous trading day. The local currency also recorded an intraday low of N1,367.50 per dollar, highlighting increased volatility within the market.
Interbank Turnover Jumps as Traders React
The CBN’s daily FX publication also revealed stronger activity in the interbank market, with turnover rising sharply. Total interbank transactions climbed to $98.829 million across 78 deals, up from the previous session’s $76.65 million, indicating stronger market participation and elevated FX demand. This rise in turnover suggests that businesses and financial institutions are racing to meet obligations amid uncertainty over future exchange rate movements. Analysts note that such sustained pressure could keep the naira vulnerable in the near term, especially if inflows fail to match growing demand.
Parallel Market Mirrors Official Weakness
The pressure was not limited to the official market. In the parallel market, commonly referred to as the black market, the naira also weakened, falling to N1,390 per dollar. This reflects broad-based selling pressure across both formal and informal FX segments, reinforcing concerns about short-term currency stability. Despite Nigeria’s gross external reserves standing at $48.389 billion, confidence remains mixed as global economic uncertainties continue to influence investor sentiment.
Oil Price Surge Adds Fresh Inflation Fears
Adding to the tension is the sharp rise in global crude oil prices. Oil prices climbed past $110 per barrel for the first time in three weeks on Tuesday as the United States and Iran appeared to make little progress toward a peace deal that could reopen smoother energy supplies through the Strait of Hormuz. Brent crude, the international oil benchmark, rose as much as 4 per cent to hit $112.70 per barrel before easing slightly to around $111. While higher oil prices could support Nigeria’s FX reserves and government revenue, they also raise inflation concerns globally, putting pressure on bond markets and investor confidence.
For Nigerians already battling rising living costs, the latest naira depreciation may translate into higher prices for imported goods, fuel-related costs, and broader inflation in the weeks ahead.
Naira Appreciates at the Black Market
Legit.ng earlier reported that the Naira recorded mixed performance on Tuesday, April 28, 2026, appreciating marginally in the parallel market but weakening in the official foreign exchange window. Data showed that the naira strengthened to N1,390 per dollar in the parallel market, improving from N1,392 per dollar recorded on Monday, Vanguard reported. However, at the Nigerian Foreign Exchange Market (NFEM), the naira depreciated against the dollar, according to figures released by the Central Bank of Nigeria (CBN).
Author: Pascal Oparada (Business editor) - For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner.
