Nigerian naira traded at about ₦1,468 to the U.S. dollar on Wednesday in the official foreign exchange market, while rates in the parallel market remained higher at around ₦1,495 per dollar, according to data from the Central Bank of Nigeria and currency dealers.....KINDLY READ THE FULL STORY HERE▶

The figures show the naira holding steady in the official market but still under pressure in the streets, where limited dollar supply continues to drive up demand.

At the Nigeria Foreign Exchange Market (NAFEM), the dollar traded at an average of ₦1,468, slightly stronger than Tuesday’s closing rate. On the parallel market, traders in Lagos and Abuja said they bought the dollar at ₦1,480 and sold at about ₦1,495, leaving a spread of roughly ₦27 between both markets.

Currency analysts say the difference between the two markets remains a key challenge for Nigeria’s foreign exchange system. While the official rate is influenced by central bank policy and interbank transactions, the parallel market reflects everyday demand from importers, students, and travelers who often struggle to access foreign currency through official channels.

“The gap persists because official dollar supply is still limited, while demand remains strong from importers and retail customers,” one Lagos-based dealer told Vanguard. “Until liquidity improves, we are likely to keep seeing a premium in the street market.”

Economists also point to broader factors behind the naira’s performance. Reduced oil revenue, lower foreign investment inflows, and persistent import demand have kept the dollar supply tight. Meanwhile, the Central Bank’s recent decision to ease monetary policy by cutting benchmark rates in September helped stabilize the official market but has not yet improved liquidity in the wider economy.

“The naira’s recent stability around the ₦1,460–₦1,470 range shows some confidence returning to the official market,” said an analyst at a Lagos investment firm. “But without stronger inflows from exports and foreign investors, the parallel market will likely remain elevated.”

For businesses and consumers, the dual exchange rates continue to create pressure. Importers who cannot secure dollars at the official rate often turn to the parallel market, where they pay more, leading to higher prices for goods and services. Individuals making tuition payments abroad or engaging in travel also face similar challenges.

“The impact is real for ordinary Nigerians,” said a Lagos trader who imports electronics. “We spend more on foreign exchange, and that affects the final price of everything we sell.”

Experts say narrowing the gap between the two markets will require stronger dollar inflows, higher export earnings, and clearer communication from monetary authorities. They also highlight the importance of restoring confidence in Nigeria’s foreign exchange system through transparency and consistent policy enforcement.

Looking ahead, market watchers will focus on whether the Central Bank increases dollar supply to banks or intervenes more actively to stabilize the market. They will also monitor global oil prices, which remain a major source of Nigeria’s foreign exchange earnings.

As of Wednesday evening, both official and street market dealers said trading was relatively calm, with limited volatility and steady demand for the dollar.

While the naira’s stability at ₦1,468 offers temporary relief, the persistent premium in the parallel market underscores ongoing pressure on Africa’s largest economy. Without stronger inflows and policy clarity, analysts warn, the currency could face renewed challenges in the coming weeks.