Seasonal demand pushes naira to 1,425/$ on summer travel, school fees
By Aboki Forex —
The naira has fallen to N1,425 against the US dollar on the parallel market, driven by a seasonal surge in demand for summer travel, overseas tuition, and business trips. Data from currency dealers shows the local currency lost N55 or 3.86 percent from the N1,370/$ level it reached in February 2026.
Spread widens between official and parallel rates
The gap between the official and parallel exchange rates has widened to about N46, up from near-zero levels recorded four months ago. Currency dealers attribute the shift to increased dollar demand as Nigerians finalise travel plans for the summer holiday period and prepare for the upcoming academic term abroad.
One dealer in Lagos told BusinessDay that demand has been building steadily since late May, with many parents buying dollars for school fees and families stocking up for vacation expenses. The pattern is typical for this time of year, but the scale of the depreciation reflects deeper structural pressure on the naira.
Official rate holds steady
The official market, where the Central Bank of Nigeria (CBN) intervenes periodically, has remained relatively stable. However, the widening spread suggests that the official rate is not fully reflecting real-time demand pressures. Market participants expect the gap to persist until the peak summer season passes in September.
Some dealers noted that the naira could test lower levels if oil revenues do not improve or if foreign portfolio inflows remain weak. The CBN has not issued any new directive on bureau de change operations in recent weeks, leaving the parallel market to absorb the seasonal shock.
What this means for the naira and consumers
For Nigerian households and businesses, the weakening parallel rate means higher costs for imported goods, school fees, and travel. The widening spread also signals that confidence in the official market remains fragile. If the trend continues, the naira could face additional pressure in the third quarter, especially if global economic conditions tighten further.