Market participants said limited volatility at the official window and consistent demand at bureaux-de-change kept the spread between the two markets narrow. “Flows have been quite stable this week. Exporters are bringing in modest volumes, and demand hasn’t been excessive,” one Lagos-based trader said.
At the official NFEM, the naira traded close to its Friday level in the mid-₦1,430s, reflecting balanced inflows from exporters and small-dollar remittances. In the parallel market, dealers quoted selling levels at ₦1,469–₦1,470, with buying quotes ranging from ₦1,445 to ₦1,458. Most transactions, according to operators, were small-ticket retail and travel-related purchases rather than bulk corporate demand.
Analysts view the current exchange rate pattern as a sign of increased stability in Nigeria’s FX ecosystem. The narrower gap between the official and parallel market rates suggests improving confidence in formal channels, aided by recent central bank reforms and inflows through the naira-for-crude framework.
“The convergence we’re seeing is a reflection of better market discipline and more consistent supply,” said a market economist with a Lagos investment firm. “It doesn’t mean all the challenges are gone, but volatility has clearly reduced.”
Going forward, traders say the naira’s short-term direction will depend on foreign-exchange inflows from oil and non-oil exports, as well as renewed portfolio investment in local debt instruments. With inflation showing early signs of easing and the Central Bank of Nigeria (CBN) maintaining a predictable policy stance, most analysts expect the local currency to remain stable unless a major external shock disrupts supply dynamics.