The Nigerian naira has plummeted to an unprecedented low of N1,600 against the US dollar on the black market, a historic milestone in the country’s currency exchange landscape.

This depreciation comes as a culmination of persistent foreign exchange shortages and escalating demand for dollars, driven by speculators and individuals seeking foreign currency for various purposes including business, tourism, education, and healthcare.

The naira declined by 1.26 percent from its previous rate of N1,570 per dollar observed just a day earlier.

Moreover, compared to the N1,400 rate recorded at the beginning of February, the naira has declined by 11.95 percent against the dollar on the black market.

While the official market saw a marginal improvement with the naira strengthening to N1,498 per dollar, fueled by the Central Bank of Nigeria’s injection of over $100 million into banks, the disparity between the official and parallel market rates widened to 6 percent.

Traders attribute the scarcity of dollars in the black market to the CBN’s actions aimed at curbing the sources of dollar supply.

The situation underscores the challenges facing Nigeria’s foreign exchange market and highlights the urgent need for effective measures to stabilize the currency and address underlying economic issues.