The Nigerian naira has depreciated against the US dollar at the parallel foreign exchange market, ending the week on a negative note as the currency continues to face pressure.

According to Bureau de Change operators in Wuse Zone 4, Abuja, the naira dropped to N1,628 per dollar on Friday from N1,623 traded on Thursday, representing a N5 depreciation on a day-to-day basis.

"We buy at N1,624 per dollar and sell between N1,628 and N1,630 per dollar due to a surge in demand," Abubakar Alhasan, a BDC operator, confirmed on Friday.

This marks the fourth consecutive depreciation for the naira at the black market since Monday, May 26, 2025, indicating persistent pressure on the currency.

Meanwhile, the naira remained stable at the official foreign exchange market, maintaining the rate of N1,586.15 against the dollar on Friday, unchanged from the previous day's trading.

Weekly Performance Analysis

The week under review showed more depreciation than appreciation across foreign exchange markets. On a week-on-week basis, the naira weakened by N13 at the parallel market and N5.17 at the official foreign exchange market against the dollar.

This trend aligns with the African Development Bank's 2025 economic outlook, which forecasts that the naira and other currencies on the continent would slip by 6 percent in 2025.

The continued depreciation of the naira comes amid various economic challenges facing Nigeria, with currency stability remaining a key concern for businesses, investors, and ordinary citizens who continue to grapple with the effects of exchange rate volatility on prices of goods and services.

Analysts suggest that addressing the fundamental issues affecting Nigeria's foreign exchange market, including boosting exports, increasing foreign investments, and implementing consistent monetary policies, will be crucial for achieving long-term stability of the naira.