Data from the Nigerian Foreign Exchange Market (NFEM) and independent parallel market sources show the Naira maintaining a consistent trading range, as the surge in year-end demand for dollars starts to taper.
On the official exchange window, the Naira opened at around 1,450.53 per US Dollar. Early trading saw only minor fluctuations, with the currency hitting a daily high of 1,450.86 and a low of 1,448.75. The Central Bank of Nigeria’s (CBN) managed float policy continues to underpin relative stability, contrasting with the pronounced volatility observed in previous quarters.
Meanwhile, in the informal “parallel” market, the US Dollar is exchanging hands between 1,460 and 1,475 per Naira. Though a gap persists between official and black market rates, traders report that the spread has narrowed considerably compared to the peak disparities seen throughout 2024. Market participants in Lagos and Abuja note that while end-of-year import orders and travel-related demand remain active, the frenetic pace typical of December has begun to subside.
Analysts attribute the steadier market conditions to a combination of factors. Reduced import pressure, following the conclusion of major holiday inventory purchases in November and early December, has eased demand for foreign currency. Additionally, higher remittance inflows from the Nigerian diaspora have strengthened liquidity in the retail segment. The CBN’s ongoing interventions and enforcement of NFEM regulations have also played a key role in curbing speculative activities.
Looking ahead, market watchers anticipate the Naira to maintain its current trading band through the close of 2025, barring any unexpected global economic disruptions.