According to regulatory data, the local currency traded at a volume-weighted average rate of ₦1,374.50 at the official Nigerian Foreign Exchange Market (NFEM) window.

This represents a marginal appreciation from the closing rates observed last week, indicating that the central bank’s supply-side market clearing is effectively anchoring institutional demand.

June 1, 2026 FX Market Spreads:

• NFEM Official Window ─> ₦1,374.50
• Parallel Market Buy  ─> ₦1,377.00
• Parallel Market Sell ─> ₦1,388.00

In the parallel market, foreign exchange operators reported parallel stability, with the dollar exchanging at a buying rate of ₦1,377 and a retail selling price of ₦1,388.

The spread between the official and parallel market windows remains exceptionally narrow, hovering around a healthy 1% margin.

Market analysts attribute this tight convergence to the elimination of speculative trading loops and an uptick in retail liquidity, which has significantly checked the panic-buying tendencies historically seen at the start of a new fiscal month.

Supply Outlook and Corporate Impact

Bureau de Change (BDC) operators note that while demand for invisible transactions, asuch as international tuition payments and summer travel allowances, remains seasonally active, the systematic distribution of foreign exchange across counter channels has successfully checked major rate distortions.

For Nigerian businesses, manufacturers, and multinational tech firms managing dollar-denominated license fees, the prolonged stability of the currency within the ₦1,360 to ₦1,390 corridor provides a critical buffer for corporate treasury management.

However, macroeconomic experts maintain that sustaining this stability through the rest of the second quarter will depend heavily on the continuous accumulation of Nigeria’s foreign reserves via crude oil receipts and non-oil export optimization.

At the official market window, the exchange rate hovered around ₦1,370–₦1,374 per US dollar, based on data from the Central Bank of Nigeria and market trackers.

In the parallel market, commonly referred to as the black market, the Dollar exchanged at approximately:

• Buying rate: ₦1,390 per US$1
• Selling rate: ₦1,400 per US$1

Market analysts say the relatively narrow gap between the official and parallel market rates reflects improved FX liquidity and sustained monetary tightening by the Central Bank of Nigeria. However, demand pressure from importers, travelers, tuition payments, and businesses seeking foreign exchange continues to influence market sentiment.

Recent trading trends indicate that the naira has remained within the ₦1,370–₦1,400 range throughout the week, showing moderate stability compared to previous months of sharper volatility.

Snapshot of Today’s Rates

Financial experts advise businesses and individuals involved in international transactions to monitor exchange rate movements closely, as fluctuations in crude oil prices, foreign reserves, and monetary policy decisions could continue to impact the naira in the coming weeks.

Data from Naira Rates shows the currency traded flat on Tuesday and Wednesday, January 6 and 7, 2026, at N1,477/$.

The end of the two-day flat trading period led to higher demand for foreign exchange from corporate firms, manufacturers, importers, and business owners who had delayed purchases in anticipation of lower rates. This allowed speculators to take advantage of the supply-demand gap by slightly adjusting rates upward.

The N1.99 depreciation was also driven by a surge in corporate and individual demand for the US dollar, as businesses prepared to resume full operations for the new year. This demand exceeded the immediate supply available in the parallel market.

In the black market, the naira traded at N2,204.40/GBP, N1,753.50/EUR, and N1,095/CAD.

In the cryptocurrency market, the naira exchanged at N4.76 million per Ethereum, N137.66 million per Bitcoin, and N205,495.85 per Solana. The local currency also traded at N1,474.49 per USDT and USDC.

At the official CBN foreign exchange window, the naira exchanged at N1,418.26/$, N1,913.66/GBP, and N1,657.52/EUR respectively on Wednesday, January 7, 2026.

Today’s official rate was yet to be updated as of the time of filing this report.

The local currency also recovered slightly against other major currencies. Against the British pound, it strengthened to N2,075/£1 from N2,080/£1, while the sell price remained unchanged at N2,100/£1. 

Similarly, it appreciated against the euro, trading at N1,770/€1 from N1,775/€1, with the sell price easing to N1,790/€1 from N1,800/€1.

However, the naira weakened marginally at the official window, where it closed at N1,535/$1 compared to N1,534/$1 on Monday. Data from the Nigerian Foreign Exchange Market (NFEM) showed the currency fluctuated between N1,534/$1and N1,535.50/$1 during Tuesday’s session.

The naira’s mixed performance reveals ongoing supply and demand pressures in the forex market. Analysts note that consistent interventions by the Central Bank of Nigeria (CBN) remain critical in stabilising the currency.

A surge in demand for the U.S. dollar put the Nigerian currency under pressure. However, the naira held its ground against other major foreign currencies, appreciating slightly against the euro.

The buy price of the euro fell to N1,770/€1 from the previous close of N1,775/€1, while the sell price stood at N1,790/€1.

Against the British pound, the naira maintained stability as the buy price remained at N2,090/£1, the same as the previous close, while the sell price eased to N2,115/£1 from N2,120/£1.

In the official market, the naira lost some of its earlier gains, edging down from N1,532/$1 to N1,533/$1. Data from the Nigerian Foreign Exchange Market (NFEM) showed the currency fluctuated between N1,532/$1 and N1,534/$1 during Tuesday’s trading.

With persistent demand pressure in the foreign exchange market testing the Central Bank of Nigeria’s (CBN) policy measures, sustained intervention will be critical to restoring stability.

Figures obtained from Abokifx showed that the Pound Sterling was bought and sold at 1,550/ £ and 1,565/ £, while Euro was 1,290/€ and 1,305/€ respectively.

A BDC operator in Lagos, Kamarudeen Ibrahim, said, “The naira traded at 1,220/$ a week earlier, but weakened to 1,233/$ by the end of the week.”

Another BDC operator, Akeem Yusuf, said, “The naira was sold for 1,233/$ on Friday; Today Monday, it did not change because people are not buying.” The naira weakened slightly at the parallel market by 1.1 per cent or N13.

However, on the Investor & Exporter forex window, the naira appreciated slightly on Friday, according to figures obtained from the FMDQ.

The local currency which closed at   889.63/$ on Thursday, appreciated slightly by 0.42 per cent or N3.75 to close at 885.88/$ on Friday.

Trading commenced at the official market at N915/$ and reached a high of N1,248/$ before closing at N885.88. The market recorded a total turnover of $92.16m on Friday. (Punch)

It is no longer news that the naira has been floated, following the recent announcement by the Central Bank of Nigeria (CBN).

However, the trending issue is how to save the Naira from the current state of free-fall against the United States dollar, particularly in the parallel market.

It all started with the statement by President Bola Ahmed Tinubu at his inauguration. In his inaugural address, he said:

“The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in plant, equipment, and jobs that power the real economy.”

Riding on that ‘presidential ambition’, the CBN announced the unification of the exchange rate (windows) on June 14, 2023. Ordinarily, the naira-dollar exchange rate ought to be determined solely by market forces hence existing ‘markets’ were collapsed into a single window.

The unification of the rates was supposed to bridge the gap between the official and the parallel rates. However, a significant disparity still exists between the official rate, alternatively known as the Investors and Exporters (I&E) window, and the parallel or black-market rate.

On Aug 9, the NAFEX rate was 782.23 to a dollar. On the black market, the greenback was trading for as high as 910/$.

This is a new record low for the naira since the unification. On the Binance crypto exchange platform, the P2P rate was between 920-924/$. The British pound was trading as high as 1167.70, while the Euro was hovering around 1000.

The disparity between the official and parallel market rates widens as demand surges from importers and travelers. Analysts also point to the fact that the CBN has been unable to meet payments for forward contracts.

Hence, pent-up demand has led most people to source their dollars from the parallel market. Additionally, the increased demand pressure from Nigerians seeking to pay for school fees as resumption nears for schools in the UK, US, and Canada has seen the naira reach an all-time low.

Following the announcement of the unification of the exchange rate by the CBN, analysts from Bank of America had forecasted a year-end value of 700/$.

Bismarck Rewane, chief executive officer of Financial Derivatives Company Limited, also predicted the strengthening of the naira to 680/$. Wale Edun, a finance expert and a close ally of the president, in his ministerial confirmation on Aug 1, predicted the value of the naira to be closer to 700/$, as against the 820/$ it was trading for in the parallel market.

Since President Tinubu assumption of office on May 29, 2023, the naira has lost over 60% of its value.

The exchange rate reforms were applauded by all and sundry as it was considered long overdue, but the reality is hitting hard on Nigerians.

The inflation rate as at July is currently 22.8%, the highest in eighteen years. This means the purchasing power of the average Nigerian is constantly being eroded as cost-pull inflation decimates the value of the naira.

How low will the naira plummet against the dollar? Only time will tell as the naira struggles to find its true value in the face of surging dollar demand.