Nigeria’s foreign-exchange market experienced a wider spread on Tuesday as the naira moved in opposite directions across official and informal trading segments, causing market participants to readjust expectations amid fluctuating liquidity conditions.
Data from the day’s session showed that the gap between the official Nigerian Foreign Exchange Market (NFEM) rate and parallel-market rate increased to 1.70%, up from the previous 1.14%. The divergence reflects ongoing volatility even as speculative pressure continues to decline.
In the official window, the naira recorded an appreciation of ₦3.04, closing at ₦1,445.39 per dollar as supply flows remained steady. Market observers attributed the improvement to robust liquidity and strengthened demand-management measures enforced by the Central Bank of Nigeria.
However, in the parallel market, the currency weakened by ₦5 to settle at ₦1,470 per dollar. The contrasting performance between both markets widened the FX spread and signalled persistent structural challenges affecting price convergence.
Central Bank data indicated slight gains in the NFEM rate, which climbed by ₦3.04 to close at ₦1,445.3929, reversing earlier mild losses. Analysts noted that this movement reflects temporary relief in FX pressures.
Meanwhile, Nigeria’s external reserves increased to $44.67 billion, representing a 9.3% growth since the start of the year. The reserves have continued to provide critical support for currency defence initiatives and FX market stability.
Analysts expect the naira to continue trading in line with prevailing demand-supply dynamics, noting that healthy reserves could cushion short-term volatility.
Global commodities also trended softer. International oil benchmarks recorded a decline as markets re-evaluated geopolitical risks and monitored oversupply concerns. Brent crude dipped by 76 cents or 1.20% to close at $62.41 per barrel, while U.S. West Texas Intermediate (WTI) lost 71 cents or 1.20% to settle at $58.61.
Gold prices also retreated as investors engaged in profit-taking after recent multi-week gains. Spot gold dropped 0.85% to $4,196.96 per ounce, while U.S. gold futures declined 1.07% to $4,229.00 per ounce. Analysts believe gold may remain pressured in the short term due to firmer U.S. yields and expectations ahead of the Federal Reserve’s upcoming policy announcement.
