Nigeria’s naira is projected to lose ground against the US dollar in the days ahead, with analysts pointing to a surge in foreign exchange demand from fuel importers as the main driver. As of 24 July 2026, the currency was quoted at about N1,368 to the dollar on the official window, firmer than the N1,383 recorded a week earlier, while it changed hands at roughly N1,420 in the parallel market.
Importers licensed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority have been stepping up dollar buying to stock up on petroleum products, and that concentrated demand is expected to tilt the balance toward depreciation. One trader quoted in the report warned that downside risks were skewed toward a weaker naira as importers rushed to secure hard currency.
Industry voices, including the Independent Petroleum Marketers Association of Nigeria, argue the reliance on imported fuel is self-defeating. They note that imported products can be priced around 20 percent higher than output from the Dangote Refinery, meaning the practice piles pressure on the exchange rate without delivering cheaper pump prices at home.
Despite the near-term outlook, the broader external picture has offered some cushion, with the Central Bank of Nigeria continuing efforts to steady the currency and shore up reserves. The forecast underscores how tightly Nigeria’s currency stability remains bound to the dynamics of the fuel import market.
Source: Punch.
Comments 0