Data from the Central Bank of Nigeria (CBN) confirmed that the dollar traded at a volume-weighted average rate of ₦1,375.41 at the official NFEM window, indicating horizontal consolidation from preceding sessions.

This stability points to the positive impact of improved foreign exchange inflows and strategic central bank interventions designed to clear outstanding demand backlogs.

In the parallel market, trading activity mirrored this stability. The greenback exchanged at an average buying rate of ₦1,378 and a selling rate of ₦1,390.

Notably, the premium between the official and unofficial windows remains historically narrow. Financial analysts attribute this convergence to enhanced systemic liquidity and a visible rebound in market confidence, which has effectively curbed speculative hoarding.

Market Dynamics and Supply Outlook

Despite the equilibrium, currency traders report that aggregate demand pressure from key economic segments, predominantly manufacturers, technology firms sourcing software licenses, and essential importers, remains robust.

Recent macro trading patterns indicate that the local currency has established a dependable support level, fluctuating within a tight corridor of ₦1,360 to ₦1,390 per dollar across both markets.

For corporate planners and stakeholders in the digital economy, this ongoing stabilization provides a much-needed window for predictable operational budgeting, even as market participants closely monitor the sustainability of the CBN’s supply-side interventions in the coming weeks.

The nation’s national currency traded at N1,478/$, N2,204.40/GBP. The local currency also exchanged at N1,753.50/EUR, and N1,092.99/CAD, retaining the same rate it exchanged on Wednesday, December 31, 2025.

According to the financial analysts, the stability in Nigeria’s exchange rate at the beginning of the year signals a significant easing of imported inflationary pressures and improved predictability for businesses planning for the new year.

The was primarily driven by a substantial increase in the nation’s foreign reserves to $45.9 billion as of Tuesday, December 30, 2025.

This, alongside the reduction in FX demand for fuel imports due to the expanded capacity of indigenous oil and gas refinery firms in Nigeria, like the Dangote Refinery.

Another major metric is Nigeria’s Q3 2025 excess Balance of Payments of $4.6 billion, which depicts that the ongoing economic reforms of the Federal Government are yielding the estimated outcomes.

For the cryptocurrency rates, the Naira transacted at N4.45 million per Ethereum, N133.54 million per Bitcoin, and N190,063.12 per Solana. The domestic currency also traded at N1,471.50 against USDT and N1,474 per USDC.

The CBN Nigerian Foreign Exchange Market (NFEM) FX Windows, Naira closed yesterday at N1,435.76 against the US Dollars, N1,687.87 per Euro, and N1,934.25 per Pound Sterling. Today’s rate won’t be updated due to the New Year’s public holiday.

He also predicted that dollars is likely to decline rapidly at a point in time in the next few weeks.

Dr. Bewaji made the comment while speaking to TECHECONOMY correspondent in reaction to the current trends of the naira against the United States of America dollar.

Recall that on Wednesday  the Nigerian naira was pegged at N1400/$1, meaning the exchange rate on the official market fell to N1,560/$1 on Tuesday; the strongest the naira has traded since the 4th of March when it closed at N1534/$1.

Speaking further, Dr. Wunmi, who traced the recent noticeable success of the naira to some drastic steps taken by the Federal Government, most noticeably on Binance, a global company that operates the largest cryptocurrency exchange in terms of daily trading volume of cryptocurrencies, said the actions and policies of the government are beginning to bring in positive results.

In his words, “You see the effect of that court order is that a lot of people who have traded using the instrumentality of Binance and who had thought that they have gotten away with it, they would be exposed in the next few days,  or few weeks, as that trove of data is analyze.

So, my thinking is that could it be that Binance probably told the Federal Government Team, that they cannot release this data to them because they would be violating their customer rights to privacy?

But if they bring the court order then we would obey because of the time within which the court order was given, and the first sign that the data has been accessed is this release of the names of the terror financiers.

It is fundamental to note that Binance disabled all its naira services recently after Nigerian authorities accused the company of exploitation, devaluation of the naira, and money laundering.

While the restriction on naira services on Binance exchange held firm, the Nigerian government also accused the company of terrorism financing and money laundering, saying $26 billion worth of transactions on the platform were untraceable.

Although critics said, the measure might increase youth unemployment in a country already struggling with soaring inflation. The Federal government of Nigeria said the measure by authorities followed recent moves to try to save Nigeria’s currency from collapse and address economic problems.

Wunmi emphasized that the recent gain recorded by the Nigeria naira is sustainable, but quickly pointed out that the Nigeria media seems not to have given enough attention to the chain of events birthing the noticeable success of the naira in the last two days.

According to him, “the biggest news in the last 48 hours is the order of the court directing Binance to release the names and particulars of customers of Binance to the Economic Financial Crime Commission (EFCC)

He noted that it was “unfortunate that the Nigeria Press seem to have gone to sleep, not knowing how important, and how very important this piece of news is. Because in the last 48 hours, my thinking is that you find the federal government releasing the list of 15 persons who are supposed to be behind terror financing.

“You see the effect of that court order is that a lot of people who have traded using the instrumentality of Binance and who had thought that they have gotten away with it, would be exposed in the next few days, few weeks, as that trove of data is analyzed.

Expressing Optimism, he said it is going to have a huge impact on the forex market. Because a lot of people who had thought they could trade clandestinely will now know that such an avenue would no longer be available.

So I think this momentum is sustainable and the dollar is likely to decline rapidly at a point in time in the next few weeks.

This is even aside from the inflow of foreign direct investment or portfolio investment. So the momentum is quite sustainable in my opinion.

The FX market recorded increased dollar supply as the daily foreign exchange market turnover rose by 230.82 percent to $137.82 million on Monday from $41.66 million recorded on Friday.

The dollar flows came from the willing buyers and willing sellers as they quoted the greenback as high as N1,249 and lower rate of N720 on the spot trading.

According to analysts, the increase in dollar supply in Nigeria’s forex market stems from a combination of the CBN interventions, policy adjustments, market dynamics, and expectations of future inflows.

However, ongoing efforts and sustained improvements in the underlying economic conditions are crucial for long-term stability and reducing reliance on temporary measures.

Recall that Yemi Cardoso, governor of the CBN, noted in November 2023 that the country had already witnessed improvements in FX market liquidity in recent weeks, as the market responded positively to tranche payments which have been made to 31 banks to clear the backlog of FX forward obligations.

“We have been subjecting these payments to detailed verification to ensure only valid transactions are honored.

“In a properly functioning market, it is reasonable to expect significant FX liquidity, with daily trade potentially exceeding $1.0 billion”, he said (BusinessDay).

Two weeks earlier, the naira had traded at 1,100/$ at the parallel market.

It, however, appreciated slightly on the Investor & Exporter forex window after it sold at 808.28/$ at the close of trading on Friday, from 810.05/$ on Thursday, according to figures obtained from the FMDQ.

According to some Bureau de Change Operators, the dollar was scarce as many did not have forex to sell to customers.

A BDC operator, Jubril Mutiu, said, “On Friday, the price was 1,175/$, but we don’t even have it. It is not available right now.”

Another BDC operator, Adamu Afeez, said, “We are looking for those to sell to us, but now, we don’t have the dollar to buy. If we don’t have one, we cannot sell.”

Another BDC operator, Ibrahim Abu, said, “We sold for 1,175/$ in the morning till afternoon on Friday. By 2 p.m., it was already selling for 1,190/$. It has been fluctuating. I don’t know what the rate will be on Monday.”

The naira had continued to maintain devaluation following the CBN’s order to the lending institutions to allow the free flow of the country’s exchange rate in June.

Before floating the naira, it traded at the official market on the FMDQ at 471.67/$ and at the parallel market at 765/$ in June.

Dr Aminu Gwadabe, the President, Association of Bureaux De Change Operators of Nigeria, said achieving stable, strong and virile exchange rate in Nigeria would require full participation of BDCs in the retail segment of the forex exchange market.

He said the challenges confronting the nation’s forex market and depreciation of the naira required cooperation from all.

The BDCs, he said, were licensed to play at the retail end of the forex market and should be fully involved in providing lasting solutions to the ongoing volatility in the exchange rate.

Gwadabe said, “The continuous depreciation of the naira in official and parallel markets does not benefit the BDCs and the domestic economy. Hence, steps should be taken to reverse the trend and strengthen the local currency for maximum economic impact.”

He said several measures by the apex bank to bridge the exchange rate gaps showed genuine intentions of the regulator to entrench exchange rate stability, but getting the BDCs involved in the solution recipe would bring the desired results of a highly liquid market and stable rates.

Gwadabe said that, like every other market segment, the market’s illiquidity remained a significant concern to the BDC sector.

He said aside from illiquidity in the market, ABCON was unhappy with the unlicensed forex dealers who were at the centre of speculative activities and attracting a negative image to the sub-sector.

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