Nigeria’s foreign exchange market opened the week with the Naira showing signs of cautious stability, even as divergences between official and parallel market rates continued to draw attention. Traders and analysts alike are keeping a close eye on the market amid ongoing efforts by the Central Bank of Nigeria (CBN) to maintain order in currency trading.
On Tuesday, December 16, 2025, data from the Nigerian Foreign Exchange Market (NFEM) indicated that the Naira closed early trading at ₦1,452.27 per US Dollar. This performance suggests that the central bank’s measures to stabilize the official exchange rate are having some effect, with rates fluctuating minimally within a narrow band of ₦1,451.19 to ₦1,452.57 during the session.
While the official window appears relatively steady, activity in the parallel market tells a different story. Bureau De Change (BDC) operators and street-level traders reported that the US Dollar was changing hands at between ₦1,465 and ₦1,475. The higher rate in this unofficial segment underscores ongoing demand-supply mismatches, particularly among small businesses and individual importers who often find it challenging to access foreign currency through official channels. The persistent premium in the parallel market continues to be a source of concern for economists and policymakers.
Market analysts attribute the relative calm in the NFEM to targeted liquidity injections by the CBN and a seasonal slowdown in corporate demand for foreign exchange as the year draws to a close. Yet, they warn that the disparity with the black market reflects deeper structural issues, including speculative trading and uneven access to foreign currency, which continue to pressure the Naira.
Looking ahead, traders remain cautious, closely watching policy announcements that could impact exchange rates. Efforts by monetary authorities to unify the official and parallel market rates, as well as initiatives to curb inflationary pressures, are expected to influence market dynamics in the weeks to come.