The Nigerian Naira showed relative stability against the United States Dollar on Tuesday, December 23, 2025, as trading commenced in both official and parallel markets. Analysts attribute the calm to consistent interventions by the Central Bank of Nigeria (CBN) and a steady flow of foreign exchange into the system.
Stability in the Official Market
In the official Nigerian Foreign Exchange Market (NFEM), the Naira experienced only minor fluctuations, reflecting a controlled trading environment. The exchange rate opened at around ₦1,455.95 per $1, slightly lower than Monday’s closing rate of ₦1,459.43.
During the trading session, the Naira touched an intraday high of ₦1,461.63 and a low of ₦1,452.65, indicating modest volatility. Market observers noted that the relative steadiness in the official window reflects a sustained supply of foreign currency to meet both corporate and individual needs.
Parallel Market Shows Persistent Premium
Meanwhile, in the parallel market, commonly referred to as the black market, the Dollar continued to trade at a noticeable premium. Bureau de change operators quoted the currency between ₦1,720 and ₦1,745 for sales, while buying rates ranged from ₦1,710 to ₦1,730.
The widening gap between the official and parallel rates—often called the “spread”—remains a key concern for economists. While the official market has seen relative stability, the parallel market reacts more sharply to localized demand pressures, particularly during the festive season.
Factors Driving Naira Movements
Several factors are influencing the Naira’s performance as the year comes to a close:
- Seasonal Demand: Holiday travel and increased import activities typically elevate demand for foreign currency, putting pressure on available reserves.
- CBN Interventions: Regular interventions and forex auctions by the Central Bank have helped prevent sharp devaluations in the official market.
- Global Oil Prices: As Nigeria’s main source of foreign exchange, fluctuations in crude oil prices continue to significantly affect the Naira’s strength.
Economic analysts suggest that if the current balance between supply and demand is maintained through official channels, the Naira is likely to remain within this range for the rest of the week.