Economy
Nigeria’s Dollar Reserves Crash Dramatically as Naira Rebounds
Nigeria is facing a significant depletion of its foreign-exchange reserves, marking a concerning trend not observed in four years. This development has sparked apprehension amid suspicions that the central bank may be exhausting its dollar holdings to bolster the naira, following its commitment to allowing the currency to float more freely.
According to calculations by Bloomberg, liquid reserves have plummeted by 5.6% since March 18, coinciding with the commencement of the naira’s rebound from its record-low levels against the dollar.
As of April 12, Nigeria’s foreign reserves stand at $31.7 billion, reflecting the most substantial decline within a similar timeframe since April 2020, based on data compiled by Bloomberg.
The decline in reserves comes as the Central Bank of Nigeria grapples with stabilizing the naira amidst economic turbulence and fluctuating global currency markets.
The commitment to a more flexible exchange rate regime was initially lauded as a step towards market-driven currency valuation. However, the rapid depletion of reserves has raised concerns about the sustainability of this approach.
Observers point to the delicate balance between supporting the naira’s value to maintain stability in the economy and ensuring an adequate level of reserves to safeguard against external shocks.
The current trajectory raises questions about the central bank’s strategy and its long-term implications for Nigeria’s economic resilience.
Stakeholders are closely monitoring developments in the foreign-exchange market and urging prudent management of reserves to mitigate risks and maintain confidence in the economy.
The Nigerian Naira displayed a slight softening against the US Dollar in the early trading hours of Thursday, April 23, 2026, across both the official and parallel foreign exchange markets. Financial analysts are keeping a close eye on the market as mid-week demand for the greenback continues to influence rate stability.
In the Nigerian Foreign Exchange Market (NFEM), the Naira opened the trading day with a modest depreciation.
According to real-time data from the FMDQ Securities Exchange, the Naira is currently trading at an average of 1,351.59 NGN per 1 USD. This represents a marginal decline compared to the opening rates observed earlier in the week, where the currency had seen support near the 1,347 NGN level.
Market turnover at the official window remains a key point of focus for investors, as the Central Bank of Nigeria (CBN) maintains its policy of managed float to curb excessive volatility while ensuring essential sectors have access to foreign currency.
Parallel Market Trends
The informal or parallel market continues to trade at a significant premium compared to the official rate. Early morning reports from Bureau De Change (BDC) operators in major hubs such as Lagos (Ikeja and Broad Street), Abuja (Wuse Zone 4), and Kano suggest that the Dollar is being exchanged at rates ranging between 1,465 NGN and 1,480 NGN.
The spread between the NFEM and the parallel market currently sits at approximately 113 Naira, a gap that experts attribute to the unmet demand from small-scale importers and individuals seeking personal travel allowances (PTA) who often find the official channels more stringent.
Economic Factors and Outlook
The current pressure on the Naira is largely attributed to sustained demand for the Dollar to fund international trade obligations and service foreign debt. Additionally, the recent fluctuations in global oil prices—Nigeria’s primary source of foreign exchange—continue to dictate the strength of the nation’s external reserves.
As the trading session progresses into the afternoon, participants expect the rate to stabilize, though any significant intervention from the apex bank or shifts in market liquidity could alter the closing figures for the day. Market watchers are advised to monitor official closing reports for a comprehensive view of the day’s performance.
The Federation Account Allocation Committee (FAAC), has shared N2.036 trillion among the Federal Government, states and the Local Government Councils (LGCs).
The revenue was shared at the April meeting of FAAC in Abuja.
The N2.036 trillion total distributable revenue comprised statutory revenue of N1.320 trillion, Value Added Tax (VAT) revenue of N515.391 billion and Agumentation of N200 billion.
A communiqué issued by FAAC indicated that total gross revenue of N2.364 trillion was available in the month of March.
It said that total deduction for cost of collection was N81.084 billion, while total transfers, refunds and savings was N246.872 billion and Agumentation of N200 billion.
The communiqué said gross statutory revenue of N1.699 trillion was received for the month of March 2026.
This is higher than the sum of N1.561 trillion received in the preceding month by N137.914 billion.
“Gross revenue of N664.425 billion was available from VAT in March 2026.
“This was lower than the N668.450 billion available in the month of February 2026 by N4.025 billion,” it said.
The communiqué said from the N2.036 trillion total distributable revenue, the Federal Government received total sum of N789.159 billion and the state governments received total sum of N657.596 billion.
It said that the LGs received N468.826 billion, while the sum of N120.759 billion (13 per cent of mineral revenue) was shared to the benefiting State as derivation revenue.
“On the N1.320 trillion distributable statutory revenue, the Federal Government received N632.260 billion and the state governments received N320.691 billion.
“The LGs received N247.239 billion and the sum of N120.759 billion (13 per cent of mineral revenue) was shared to the benefiting States as derivation revenue,” it said.
It said that from the N515.391 billion distributable VAT revenue, the Federal Government received N51.539 billion, the state governments received N283.465 billion and the LGs received N180.387 billion.
It said that from the N200 billion Augmentation, the Federal Government received N105.360 big government received N53.440 billion, and the LGs received N41.200 billion.
It said that in March, Companies income Tax (CIT), CGT, SDT and Excise Duty increased significantly.
It said that Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Oil and Gas Royalty, Import Duty and CET decreased considerably, while VAT decreased marginally.
(NAN)
The Black Market Dollar-to-Naira Exchange Rate for 20th April 2026 Can Be Accessed Below.
IMPORTANT NOTE: The exchange rate changes hourly. It depends on the volume of dollars available and the Demand. This means…you can buy or sell 1 dollar at a certain rate, and the price can change (high or low) within hours.
The official naira black market exchange rate in Nigeria today, including the Black Market rates, Bureau De Change (BDC), and CBN rates.
Please note that the exchange rate is subject to hourly fluctuations influenced by the supply and demand of dollars in the market.
What’s the dollar to naira black market today, 20th April 2026?
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players sell a dollar for ₦1400 and buy at ₦1390 on Monday 20th April, 2026, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Selling Rate ₦1400
Buying Rate ₦1390
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN) CBN Rate Today
Highest Rate ₦1348
Lowest Rate ₦1340
Disclaimer:NEWSRAIN NIGERIA does not set or determine forex rates. The official NAFEX rates are obtained from the FMDQOTC website. Parallel market rates (black market rates) are obtained from various sources, including online media outlets. The rates you buy or sell forex may be different from what is captured in this article.
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