The naira traded in a narrow band against the dollar on Tuesday as the Central Bank of Nigeria's efforts to shore up foreign exchange supply continued to pay off. The official Nigerian Foreign Exchange Market (NFEM) rate settled at ₦1,373.25 per dollar, with traders reporting stability across both the official and parallel markets.
Data from the CBN showed the currency holding firm in official market transactions, where it moved between ₦1,370 and ₦1,372 against the greenback. Sustained inflows of foreign exchange and regulatory interventions by the central bank have underpinned this steadiness, market analysts said.
In the parallel market, dealers quoted the dollar at ₦1,395 for buying and ₦1,405 for selling on Tuesday morning. Other unofficial traders across Lagos and other commercial centres put the rate at around ₦1,385, meaning the gap between official and black market rates remained relatively tight compared with earlier months.
This narrowing spread signals progress in the CBN's push to improve forex liquidity and tamp down the demand for dollars in the informal market. When official supply improves, fewer people resort to the black market, and the premium traders charge shrinks. The spread stood at roughly ₦22 to ₦32 per dollar between official and parallel rates, substantially smaller than the gaps witnessed in 2025.
Analysts said the direction of the naira over the coming weeks will hinge on the size of foreign exchange inflows, how much businesses and individuals import, the health of Nigeria's external reserves, and broader market sentiment. Import demand remains a key pressure point, as factories and distributors seeking dollars to pay for goods abroad can weaken the currency if supply does not keep pace.
For ordinary Nigerians and businesses buying dollars, rates will vary slightly based on location, the size of the transaction and the margins dealers charge. Someone exchanging money at a bank branch may get a marginally better rate than someone using a bureau de change in a small town, though the official rate provides a benchmark.
The CBN has pursued multiple strategies to stabilise the naira, including efforts to attract diaspora remittances, manage the release of dollars to the market, and work with the banking system to ensure transparent pricing. These measures appear to be working, at least for now, though economists warn that much depends on Nigeria's ability to maintain and grow its dollar inflows through oil exports and other sources.
