Market News

The Naira continued its recovery yesterday, gaining ground against the United States dollar both in the parallel market and in the Nigerian Foreign Exchange Market (NFEM).

In the parallel, or black market, the Naira closed at N1,540 per dollar, an improvement from the N1,545 per dollar recorded over the weekend.

This slight but steady gain has given hope to traders and ordinary Nigerians watching the movement of the currency.

At the official NFEM window, the Naira also appreciated, exchanging at N1,527.5 per dollar compared to N1,531 per dollar last Friday.

According to figures released by the Central Bank of Nigeria (CBN), this marked an appreciation of N3.5. The last time the currency traded at this level was on July 3, 2025.

With the two markets moving closer, the gap between the official and the parallel market rates has narrowed to N12.5 per dollar, down from N14 last week.

Analysts say a reduced gap could help restore confidence in the foreign exchange system, reduce speculative trading, and ease pressure on businesses that rely heavily on imported goods.

Currency traders in Lagos and Abuja confirmed the improvement, noting that demand for dollars was relatively calm compared to previous weeks.

They also credited recent CBN interventions and tighter monitoring of forex inflows as part of the reasons for the Naira’s better showing.

Financial experts, however, caution that the government must sustain policies that encourage dollar supply into the economy, including boosting exports, attracting foreign investments, and ensuring transparency in forex allocation. Without such steps, they warn, the Naira’s recent gains could prove short-lived.