Calm conditions largely defined foreign exchange trading on Christmas Eve, with the Nigerian Naira showing only marginal movements against the United States Dollar across both official and informal markets. Early indicators suggest that despite the usual spike in seasonal demand, the local currency has remained within a relatively narrow and predictable range.
Data from the Nigerian Foreign Exchange Market (NFEM) and checks across major Bureau De Change (BDC) centres point to a market that is steady rather than volatile. This stability comes at a time when demand for foreign exchange typically rises due to holiday travel, overseas payments, and end-of-year commercial activities.
Official Market Shows Mild Appreciation
At the official window, the Naira traded at an average rate of about ₦1,453.70 to the Dollar during the morning session of December 24, 2025. Although early trades briefly touched a high of ₦1,460.75, the currency strengthened slightly as liquidity improved, settling below the previous session’s closing rate of ₦1,461.50.
Market watchers attribute this modest appreciation to improved dollar supply and sustained oversight by the Central Bank of Nigeria (CBN). The CBN’s reference or “mean” rate remained close to ₦1,454, reinforcing confidence that the official market is benefiting from better price discovery and consistent inflows, particularly from diaspora remittances common during the festive season.
Parallel Market Trades at a Premium
In contrast, the parallel market continued to price the Dollar higher, reflecting the convenience premium associated with faster access to cash. Reports from currency traders in Lagos and Abuja indicate buying rates ranging between ₦1,465 and ₦1,475, while selling rates hovered between ₦1,480 and ₦1,490 per Dollar.
Despite this premium, the gap between the official and parallel markets remains relatively narrow. Analysts link this trend to ongoing exchange rate convergence efforts and regulatory measures aimed at reducing arbitrage opportunities. Nevertheless, the informal market remains active as individuals and small businesses prioritize speed and flexibility during the holiday period.
Outlook Remains Cautiously Positive
The Naira’s performance in the final days of 2025 contrasts with the sharp swings recorded in previous years. Financial analysts note that a more balanced supply-demand structure, alongside increased transparency in the NFEM, has helped dampen volatility.
Looking ahead, expectations are that the exchange rate will remain within the ₦1,450–₦1,500 range through year-end, provided there are no unexpected global economic disruptions. For now, the Naira’s steady footing offers a measure of reassurance to businesses and consumers navigating the festive season.