By Seun Ibiyemi
The Nigerian naira showed relative stability in early trading on Tuesday, with official foreign exchange data indicating a steady performance against the US dollar, even as demand pressures persisted in the parallel market.
According to financial market reports, the Naira traded around ₦1,452 to the US dollar in the official Nigerian Foreign Exchange Market (NFEM) during early session activity, with rates fluctuating within a narrow band as the Central Bank of Nigeria (CBN) continues efforts to manage volatility.
Market participants described the official market as relatively calm, with the exchange rate remaining close to levels seen in recent sessions.
This reflects ongoing liquidity support from the central bank and a subdued corporate demand typical of year‑end trading.
However, the parallel (black) market remained under pressure, with bureau de change operators reporting the US dollar exchanging for between ₦1,465 and ₦1,475, highlighting a persistent gap between official and unofficial rates.
Traders said this premium reflects continued strong demand for foreign currency by individuals and small‑scale businesses who often lack access to official FX channels.
Analysts noted that while the official market’s stability is encouraging, the divergence with the parallel window underscores underlying structural challenges in Nigeria’s FX framework. These include supply constraints and speculative activity that can influence sentiment ahead of the holiday season.
Economic indicators released in recent days also show Nigeria’s inflation rate easing, a trend that could support the naira over the medium term if sustained.
Traders and policymakers will be watching closely for shifts in liquidity conditions and any new monetary policy guidance from the CBN, which could influence exchange rate dynamics as the year draws to a close.