Naira Faces Fresh Pressure As Pound Sterling Trades Above ₦2,000 In Parallel Market

Parallel Market Rates Surge Past ₦2,000

Data gathered from Lagos and Abuja currency dealers showed that most operators quoted rates between ₦2,030 and ₦2,100, while mid-market platforms and online exchange aggregators placed the average conversion at ₦1,914.50 per £1.

The widening gap between official rates and street market prices reflects persistent volatility in Nigeria’s FX system, with importers, travelers, and families making payments abroad increasingly relying on informal channels.

Analysts note that the current ₦1,900–₦2,100 range has become the realistic benchmark for Nigerians funding overseas tuition, medical expenses, and import transactions linked to the United Kingdom.

Impact on Businesses and Households

The continuous depreciation of the naira against the pound is weighing heavily on import-dependent businesses and households with financial obligations in the UK.

Importers face higher settlement costs, while Nigerian students abroad are grappling with surging tuition and living expenses denominated in pounds.

“The ₦2,000 threshold is fast becoming the new normal for transactions involving the British pound,” said a senior trader at a Lagos-based FX bureau. “Demand is high, and supply is just not enough.”

Liquidity Strain and Market Outlook

Industry experts link the sustained pressure to limited foreign exchange inflows, speculative trading, and Nigeria’s structural dependence on imports.

As of Tuesday, the naira traded at ₦1,443.77 per U.S. dollar on the black market, highlighting a broader trend of currency weakness across all major benchmarks.

An analyst with a Lagos investment advisory firm told Naija News:

“The market will remain tight until there’s a meaningful boost in FX liquidity. Without higher oil revenues or inflows from remittances and exports, the pound will likely stay above ₦2,000 in the short term.”

Policy Concerns and Future Projections

Analysts caution that without coordinated fiscal and monetary interventions, the naira may continue to face downward pressure throughout the quarter.

While global markets remain mixed, the British pound has shown resilience amid steady UK economic data and investor confidence, compounding the naira’s struggles.

Experts advise businesses and individuals to track both official NFEM rates and parallel market movements to make informed financial and investment decisions.

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