The Nigerian naira continued its upward momentum against the United States dollar, with the gap between official and parallel market exchange rates narrowing significantly.
On Tuesday, the dollar index dipped as global investors anticipated that the U.S. Federal Reserve may begin cutting interest rates following a weaker-than-expected jobs report. This global shift created favorable conditions for the naira, which has maintained consistent gains in recent sessions amid subdued foreign exchange demand from Nigerian corporates and eligible FX users.
Market analysts attributed part of the local currency’s recovery to the increased adoption of naira debit card alternatives for cross-border payments, reducing pressure on the unofficial market. According to checks conducted by MarketForces Africa, the dollar was trading at ₦1,515 in the parallel market on Tuesday.
At the official FX window managed by the Central Bank of Nigeria (CBN), the naira closed at ₦1,506.08 per U.S. dollar, a slight improvement from ₦1,506.84 recorded previously. The currency also reached an intraday high of ₦1,509.50 during trading, with the spot FX rate briefly touching ₦1,497—the strongest level of 2025 so far.
Data from the CBN confirmed a 0.05% appreciation in the official exchange rate, driven by resilient demand for the naira and reduced speculative trading activities.
Similarly, in the parallel market, the local currency appreciated by 0.61%, closing at ₦1,515 to the dollar. This development reduced the gap between official and unofficial market rates to below ₦10, highlighting improved FX market stability.
