As Nigeria marks the final day of 2025, the local currency continues to witness a slight appreciation across both the official and parallel markets, ending the year on a relatively stable note compared to the volatility seen in previous quarters.
Official Market Trends
In the Nigerian Foreign Exchange Market (NFEM), the Naira opened the day’s trading at approximately ₦1,450.30 per dollar. This reflects a moderate gain from the previous day’s closing rate of ₦1,457.42. Throughout the early morning session, the exchange rate fluctuated within a tight corridor, reaching a high of ₦1,457.42 and dipping to a low of ₦1,447.30.
The Central Bank of Nigeria (CBN) has maintained its stance on price discovery through the NFEM, with the current closing rate hovering around ₦1,450.30. Market analysts suggest that the year-end stability is largely driven by a slight increase in liquidity and a slowdown in corporate demand as businesses close for the holiday period.
Parallel Market Performance
The parallel market, often referred to as the “black market,” also shows signs of a narrowing gap with the official rates. Today, Bureau De Change (BDC) operators in major hubs like Lagos (Ikeja and Broad Street) and Abuja (Wuse Zone 4) reported the dollar trading between ₦1,460 and ₦1,475.
While the parallel market remains slightly higher than the official window, the premium has remained significantly lower than the peaks recorded earlier in the year. Traders indicate that while retail demand for personal travel remains present, the aggressive speculative activities that once plagued the market have subsided.
The convergence of rates between the two markets remains a key focal point for the federal government’s economic team as they head into 2026. Experts believe that if current oil production levels and foreign portfolio inflows remain steady, the Naira could maintain this newfound stability in the first quarter of the coming year.
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