The Nigerian Naira maintained a narrow trading range against the United States Dollar on Monday, December 22, 2025, as activity in the foreign exchange market reflected the usual year-end liquidity patterns.
Data from the Nigerian Foreign Exchange Market (NFEM) and informal channels show that the local currency continues to battle persistent inflationary pressures despite recent interventions.
Official Market Performance (NFEM)
At the Nigerian Foreign Exchange Market, which serves as the official window for corporate and government transactions, the Naira opened the week with a slight depreciation.
According to data from the FMDQ Securities Exchange, the Naira was quoted at a closing rate of approximately 1,466.50 per dollar.
This follows a volatile Friday session where the rate fluctuated between a high of 1,469.90 and a low of 1,460.00. Market analysts suggest that the current pricing reflects a 14.45% inflation rate and the Central Bank of Nigeria’s (CBN) current Monetary Policy Rate of 27.00%, both of which continue to influence investor sentiment and dollar demand for holiday-related imports.
Parallel Market Realities
In the parallel market, commonly referred to as the black market, the Naira traded at a significant premium compared to the official window. Reports from Bureau De Change (BDC) operators in Lagos and Abuja indicate that the dollar is currently selling between 1,475 and 1,485 per unit.
The gap between the official and parallel rates remains a point of focus for the CBN, as it attempts to unify the windows. While the spread has narrowed compared to previous quarters, the informal market remains a primary source for individual travelers and small-scale importers who cannot access the NFEM in a timely manner.
Market Outlook
The Central Bank’s recent data release confirms an exchange rate of roughly 1,464.50 for basic transactions, but commercial banks are quoting slightly higher rates for card-based international payments, often reaching 1,485.
As the year winds down, experts expect the exchange rate to remain relatively stable unless there is a significant shift in crude oil production levels or a surprise policy announcement from the apex bank. The focus for the first quarter of 2026 will likely remain on enhancing dollar liquidity to further stabilise the local currency.
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