The naira fell by 3.5% against the dollar in the parallel market on Thursday, dropping from N1,525 to N1,580.
Data from street traders and online platforms confirmed the depreciation, following a recent appreciation to N1,485 last month.
Ayokunle Olubunmi, head of financial institution ratings at Agusto & Co., stated that previous naira gains were unsustainable.
Although devaluation in 2025 may not be as steep as in 2024, the naira will likely continue experiencing some depreciation.
Aminu Gwadabe, president of ABCON, highlighted challenges such as low availability, unfavorable rates, limited banking participation, and uncertainties.
He noted that these factors have eroded confidence in the currency framework, leading to speculative activities and further depreciation.
Gwadabe urged monetary authorities to intervene by supporting BDCs, allowing dollar imports, and ensuring transparent bank dollar sales.
He also called on fiscal authorities to maintain deficit reduction, boost productivity, and declare an emergency on inflation.
The official foreign exchange market also saw depreciation, with the naira closing at N1,500.80 per dollar on Wednesday.
Data from FMDQ and the Central Bank of Nigeria (CBN) confirmed a slight drop, with dealers quoting the highest rate at N1,505.
Some traders attributed the pressure to increased dollar demand, but no clear reason for the renewed volatility was identified.
