ABUJA: Nigerian naira eased to its lowest in 12 weeks on the black market on Monday after the currency fell 1.05% against the US dollar as dealers funnelled unmet demand from official sources to the parallel market, traders said.

The currency eased to 475 naira per dollar on Monday, a level last seen in August. It traded at 465 naira a week earlier as demand pressure resurfaced in the wake of dollar shortages in the economy.

Traders had expected the currency to trade flat on the black market on the hopes that higher oil prices will boost Nigeria's foreign exchange supplies. Global oil prices climbed on Monday on latest Covid-19 vaccine progress.

The naira has been stuck at 381 per dollar on the official market supported by the central bank since July, a discount of nearly 20% to the black market rate.

The central bank has been selling dollars to foreign investors seeking to repatriate funds and to clear a backlog. But demand is swelling especially with importers seeking dollars to buy goods ahead of Christmas sales, traders say.