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Naira drops to N1,560/$1 at black market, N1,532.51/$1 official.
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Traders blame contractor payments, weak supply, and diversion of remittances.
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CBN inflows and reduced panic-buying provide temporary support.
The naira has weakened further in the parallel market, slipping to N1,560 per dollar on Friday, August 15, 2025, as forex traders linked the depreciation to increased government contractor payments, dollar diversion, and persistent supply challenges.
Currency dealers said the demand surge was driven by Federal Government disbursements to contractors, many of whom quickly converted proceeds into dollars. They also pointed to diversion of diaspora remittances away from official channels, fueling pressure on the local market and widening the gap with the official window, where the naira closed at N1,532.51 per dollar.
A senior official of the Association of Bureau De Change Operators of Nigeria admitted distortions but insisted stability would return. “It is under control. We noticed distortions, but relative stabilization is returning. Payments to contractors increase demand and add pressure on the naira, since most quickly convert proceeds into dollars,” he said.
He added that speculation remained a major driver. “People don’t use the naira as a store of value anymore. Once they get paid, they convert to dollars. You have arbitrageurs, speculators, holders—some don’t do any other business, it’s just speculation,” he explained.
Another operator, Aminu Ardo, was more upbeat, linking slight improvements at the official window to fresh CBN inflows and reduced panic-buying.
READ ALSO: Naira Records Slight Appreciation Against Dollar at Official Market
“Another thing is that many importers who rush to buy dollars have slowed down because of the new directives and monitoring. Also, there has been no panic-buying like before, and that helps the naira hold ground,” he noted.
Despite these factors, traders warned that inflation nearing 30% and continued diversions through informal routes, including social media transactions, remain key risks to naira stability.
