UPDATE 1-Nigerian naira slides to 3-year low on black market after oil price crash

(Adds naira spot rate, trader comment, background)
By Chijioke Ohuocha
ABUJA, April 21 (Reuters) - The Nigerian naira fell to its
lowest level against the dollar in three years on the black
market on Tuesday, traders said, a day after a historic oil
price rout pushed U.S. crude futures below zero.
The naira touched 420 per dollar on the black market, for
the first time since February 2017, 14% weaker than the official
market rate.
The currency has been hitting new lows on the
over-the-counter spot and black markets on thin volumes since
last month after the central bank adjusted the naira's official
rate, implying a 15% devaluation. It was quoted at a low of
388.92 on the spot market on Tuesday.
A lockdown of Nigeria's main cities this month to stop the
spread of the coronavirus has slowed activities in the economy
and the currency market particularly with the central bank
running scanty operations and traders working from home. A crash
in oil prices will also hurt the oil-producing country.
"It's all about the corona pandemic and until the lockdown
is lifted, we don't expect improvement in liquidity," one trader
said.
Nigeria has reported 665 cases of the coronavirus and 22
deaths, the country's Centre for Disease Control said on Monday.
The naira also weakened on the forward market. One-year
dollar/naira non-deliverable forwards NGN1YNDFOR= stood at
498.5 points, weakening from Monday's close of 492.4, Refinitiv
data showed. Dollar demand has been swelling and piling up pressure on
the naira, traders said. Importers with past due obligation are
scrambling for hard currency while providers of foreign exchange
such as offshore investors have exited.
U.S. oil futures traded in negative territory for the second
day on Tuesday, after diving below zero for the first time ever
on Monday, as concerns grew that the United States will run out
of storage space for oil as the coronavirus lockdown leads to a
supply glut. Global benchmark Brent crude also fell sharply in response
to the collapse of demand following reduced economic activity.
June delivery was down $5.25, or 21% at $20.32 per barrel.
Nigerian crude is benchmarked to Brent. The West African
country has been discounting its oil cargoes to find buyers,
which could hurt public spending and its dollar earnings.