Foreign-exchange trading opened the month on a cautious note as the naira weakened slightly against the dollar in the parallel market on Monday, December 1, 2025. Increased demand from importers and holiday travellers put mild upward pressure on street-market prices, while the official Nigerian Foreign Exchange Market (NFEM) rate held relatively steady.
Data from market trackers and the Central Bank of Nigeria’s published NFEM table showed the local currency trading between ₦1,440 and ₦1,446 per dollar at the official window. Despite tight liquidity conditions in that segment, the rate has remained broadly stable in recent weeks.
In contrast, bureaux-de-change operators across Lagos, Abuja and Port Harcourt quoted the greenback at about ₦1,455 for buying and ₦1,465 for selling — a slight uptick from the previous week. Traders attributed the movement to seasonal demand typically seen at the start of the festive period, when both commercial and personal FX needs rise.
Market analysts described the divergence between official and parallel-market rates as a reflection of two key dynamics: limited FX supply in formal channels, which pushes some transactions to informal markets, and the CBN’s steady policy posture. Following recent monetary adjustments aimed at curbing inflation, the central bank has adopted a cautious stance on interest-rate cuts, a move observers say helps maintain a relatively narrow trading band at the official window even as informal rates fluctuate.
Impact on Consumers and Businesses
For import-dependent firms and businesses with dollar-linked obligations, the slight increase in parallel-market rates translates to higher operating costs if they cannot access dollars through official channels. Conversely, individuals receiving remittances or small traders who qualify for official-window transactions may benefit from the more stable NFEM rates.
Analysts note that the naira’s short-term direction will depend on several factors: the scale and timing of CBN interventions in official markets, inflows from oil exports, and remittance volumes expected through the end of the year.