Naira Records Modest Gain in Parallel Market as Official Rate Dips Slightly

By Diafa Doubra,

The Nigerian naira showed a slight improvement in the parallel market on Tuesday, trading at ₦1,540 per dollar, compared to ₦1,550 recorded last weekend. The modest appreciation comes as currency dealers report a narrowing gap between official and unofficial exchange rates.

However, the trend was different at the Nigerian Foreign Exchange Market (NFEM), where the naira slipped marginally to ₦1,536.99 per dollar, down from ₦1,535 in the previous session. This movement underscores the delicate balance policymakers are trying to maintain in stabilizing the country’s foreign exchange market.

Analysts note that the gradual convergence between the two markets down from a gap of ₦15 last week to about ₦3 today suggests improved liquidity and reduced speculative pressures. Recent interventions by the Central Bank of Nigeria (CBN), alongside growing inflows from diaspora remittances and export proceeds, are believed to be cushioning volatility.

While the gain in the parallel market offers some relief for import-dependent businesses and consumers battling inflation, experts warn that consistent structural reforms and tighter monetary controls are needed to sustain currency stability.

For many Nigerians, the naira’s daily fluctuations remain a major concern, directly affecting the cost of goods and services. Yet, Tuesday’s appreciation, though modest, is seen as a positive sign that the currency could stabilize further if the current momentum continues.