The naira weakens slightly against the dollar in the parallel market amid forex liquidity concerns. The Nigerian Naira depreciated marginally against the United States Dollar in the parallel market on Tuesday, August 5, 2025, amid persistent concerns over foreign exchange liquidity and rising demand from importers and travellers.
The dollar-to-naira exchange rate hovered around N1,570/$1 at major black market hubs in Lagos and Abuja, weakening from the N1,560/$1 average recorded the previous weekend. This minor drop reflects ongoing volatility in the informal forex market despite efforts by the Central Bank of Nigeria (CBN) to stabilise the exchange rate through monetary tightening and reforms.
Key Exchange Rate Highlights – August 5, 2025 Black Market (Parallel Market): N1,570/$1 (sell), N1,560/$1 (buy) CBN Official Rate: N1,505.35/$1 (unchanged from Monday) Peer-to-Peer (P2P) Crypto Market: N1,580/$1 (varies slightly by platform) Bureau de Change Operators: Average sell rate between N1,565 and N1,575/$1 Dollar Demand Level: High, driven by business transactions and the summer travel season What Is Driving the Exchange Rate Fluctuations? Several economic factors continue to exert pressure on the Naira, including: Limited Dollar Supply: Despite increased oil prices, Nigeria’s FX reserves remain under pressure due to subsidy payments, debt servicing, and repatriation of profits by multinationals. Speculative Demand: Traders in the parallel market are hoarding dollars in anticipation of further devaluation, which worsens scarcity. Delayed FX Reforms: While the CBN has introduced several reforms to unify the exchange rate and attract foreign investors, the implementation pace remains slow, limiting investor confidence. Increased Demand from Importers and Students: With universities abroad resuming academic sessions, demand for Form A and Form Q FX transactions has surged, adding pressure to available supply 
