The Nigerian naira continued its downward trend against the United States dollar on Tuesday, May 12, 2026, amid sustained pressure in both the official and parallel foreign exchange markets.
Data from the Central Bank of Nigeria indicated that the naira exchanged at an average rate of about ₦1,358 per dollar at the official Nigerian Foreign Exchange Market (NFEM).
At the parallel market, also known as the black market, the dollar reportedly traded between ₦1,390 and ₦1,400, reflecting continued demand for foreign currency by importers, travelers, and businesses.
Financial analysts attributed the depreciation to persistent forex liquidity challenges, rising import demand, inflationary pressure, and uncertainty surrounding global oil prices.
Economic observers also noted that the widening gap between the official and parallel market rates continues to reflect underlying supply and demand imbalances within Nigeria’s foreign exchange system.
Despite ongoing monetary reforms by the Central Bank of Nigeria aimed at stabilizing the currency market and improving forex inflows, many businesses and individuals still rely heavily on the parallel market due to limited access to official dollar allocations.
Experts say the future performance of the naira will depend largely on crude oil revenue, foreign investment inflows, diaspora remittances, and the effectiveness of government economic policies targeted at boosting confidence in the Nigerian economy.
