…Naira Holds Firm as Official, Parallel Market Gap Narrows to about ₦50/$
The Nigerian naira traded within a relatively stable range against the United States dollar on Tuesday, reflecting sustained liquidity in the official foreign exchange market and a narrowing premium between the Nigerian Foreign Exchange Market (NFEM) and the parallel market.
Data from the Central Bank of Nigeria’s (CBN) official market showed the naira trading at around ₦1,362.09 per US dollar, with transactions ranging between ₦1,359 and ₦1,365. The most recent NFEM session closed at approximately ₦1,361/$, while live interbank quotes placed the dollar at about ₦1,366.84/$ in early trading.
In the parallel market, commonly known as the black market, the dollar exchanged at ₦1,402–₦1,405 for buying and ₦1,410–₦1,412 for selling in Lagos, although rates varied slightly depending on transaction size and location.
The difference between the official exchange rate and the parallel market selling rate stood at about ₦48–₦50 per dollar, significantly narrower than the wide disparities recorded during previous periods of heightened foreign exchange volatility.
Market participants attributed the stability to improved liquidity in the official market, even as demand from importers, manufacturers and individuals seeking foreign exchange for invisible transactions continued to support rates in the parallel market.
The relatively tighter spread between both markets suggests that ongoing foreign exchange reforms by the CBN are gradually improving price discovery and reducing arbitrage opportunities, although analysts note that sustained dollar supply remains critical to preserving exchange rate stability.
The CBN continues to discourage the use of the parallel market, advising individuals and businesses to source foreign exchange through authorised banks and licensed financial institutions.
The exchange rate remains a key indicator for Nigeria’s technology and digital economy, influencing the cost of cloud services, software subscriptions, data centre infrastructure, imported hardware and cross-border digital payments.
A more stable naira also provides businesses with greater certainty for investment planning and foreign currency obligations.
