Lagos, July 25, 2025
Nigeria’s naira recorded a surprising rebound in the parallel market, closing the week at ₦1,520 per dollar, gaining strength over the Central Bank of Nigeria’s official exchange rate, which stood at ₦1,537 per dollar.
This development marks a rare moment where the black market rate outperformed the official rate, reflecting shifting currency dynamics and increasing supply of dollars in the informal sector. Traders at major forex hubs in Lagos, Abuja, and Kano confirmed the strengthened position of the naira on Friday, attributing the trend to improved dollar inflows from remittances and tightened regulatory surveillance on speculative trading.
Market analysts say the naira’s performance is a response to the Central Bank’s sustained intervention through policy tightening and improved transparency in the FX market. Many also linked the strengthening to waning demand from importers and a gradual resurgence of confidence among currency holders.
“The narrowing gap between the official and parallel market rates is a positive signal for exchange rate stability, though sustainability remains a question,” said Abdulrahman Idris, a Lagos-based financial analyst.
The Central Bank of Nigeria has continued to assure the public of its commitment to unified and market-reflective exchange rates, aiming to attract foreign investment and boost reserves. However, the latest turn of events has sparked cautious optimism among stakeholders, especially importers and travelers, who had long borne the brunt of the naira’s volatility.
As the currency continues to fluctuate, all eyes remain on upcoming monetary policy measures and external factors like oil earnings and diaspora inflows, which are expected to influence the next phase of naira valuation.
