The Naira has recorded its first drop in value against the US dollar this week, affecting both the official and black market exchange rates. Traders reported that the currency weakened as demand for dollars increased, putting more pressure on Nigeria’s foreign exchange system. This decline has raised fresh concerns among businesses and citizens who rely on stable exchange rates for planning.

At the official market, the Naira slipped as forex shortages continued to affect supply. Financial analysts say the drop is tied to reduced inflow of foreign currency and rising demand for imports. The situation shows that Nigeria’s FX reforms still face challenges, especially with market liquidity remaining unstable.

In the black market, the Naira experienced an even steeper fall. Many buyers turned to the parallel market because of delays and limits in official FX channels. As a result, the exchange rate widened further between both markets, highlighting the persistent gap that policymakers have been trying to reduce.

Experts warn that if the pressure continues, the Naira may face more volatility in the coming days. They advise the government to improve dollar supply, support local production, and strengthen policies that can boost investor confidence. These steps, they believe, will help ease the pressure on the currency across all markets.