NAIRA TO WEAKEN AS FUEL IMPORTERS INCREASE DOLLAR DEMAND

The naira is projected to face further depreciation pressure as fuel importers intensify their demand for dollars in the foreign exchange market.

Market operators made this forecast on Friday amid reports of rising petrol import bills due to domestic supply shortfalls.

Analysts noted that the heightened dollar appetite from oil marketers, alongside other corporate demands, is likely to widen the gap between official and parallel market exchange rates in the short term.

A bureau de change operator in Lagos said fuel importers remain one of the largest drivers of dollar demand, often exerting significant pressure on the local currency.

The Central Bank of Nigeria has sustained interventions to support the naira, but experts believe the currency will remain vulnerable until local refining capacity is fully optimised and fuel imports are substantially reduced.