Naira holds steady at official market despite weakness on parallel market

The Nigerian naira held its ground at the official foreign exchange market on Friday, even as it continued to face pressure on the parallel market.

At the Investors and Exporters (I&E) windowthe official segment of the Nigerian Foreign Exchange Market (NFEM) the naira traded around ₦1,460 per US dollar, showing only a mild intraday dip compared to rates recorded earlier in the week.

Market analysts say the stability at the official window reflects the Central Bank of Nigeria’s (CBN) ongoing efforts to sustain liquidity and curb volatility through policy tightening and coordinated forex interventions.

However, in the parallel, or black market, rates stayed notably higher. Currency dealers in Lagos and other major commercial hubs priced the dollar between ₦1,495 and ₦1,515, with reports of some transactions reaching as much as ₦1,515. On average, the street rate hovered around ₦1,500 to the dollar.

For importers and corporate entities transacting through official channels, rates remain near the NFEM level of about ₦1,460. But individuals buying or selling cash on the streets continue to face the higher parallel market range of ₦1,495–₦1,515, raising costs for remittances, foreign travel, and dollar-linked goods.

The persistent spread between official and parallel rates reflects ongoing differences in liquidity, access to foreign currency, and overall market sentiment. Analysts note that recent policy actions by the Central Bank of Nigeria (CBN) — including interventions and monetary policy adjustments — have helped steady the official window, even as sustained demand for cash keeps street prices elevated.

Market watchers say attention will now turn to weekly FX turnover figures, potential CBN interventions, and movements in the global dollar. An increase in official dollar supply through the FMDQ/NAFEM platform could keep the NFEM rate firm or slightly stronger, while continued strong cash demand may maintain the premium in the parallel market.