The Nigerian Naira began Thursday on an uneven footing against the United States Dollar, recording minor movements in both the official and parallel markets as traders weighed supply conditions and central bank signals. With January gradually moving forward, forex players remain cautious, watching how liquidity and policy actions will shape the currency’s direction.
At the official Nigerian Foreign Exchange Market, the Naira started trading at about 1,422.25 per Dollar in the morning session. As transactions continued, the local currency slipped slightly to around 1,423.42 per Dollar, reflecting modest pressure rather than a sharp decline. Market watchers noted that the limited swing in the rate points to relative calm in the official window, even as access to foreign exchange remains a key concern. The Central Bank of Nigeria’s ongoing measures to curb volatility are believed to be keeping movements within a tight range.
Meanwhile, activity in the parallel market told a different story. Currency dealers in commercial centres such as Lagos and Abuja quoted the Dollar between 1,495 and 1,510 Naira for buyers, highlighting the persistent gap with the official rate. The informal market continues to attract customers seeking dollars for travel, education payments, and small business imports, despite the steeper prices. Traders say that while costs are higher, cash availability is generally easier compared to formal banking channels.
Looking ahead, analysts anticipate that the Naira will likely hover around current levels through the rest of the week. Its performance will depend largely on developments in global oil prices, which influence Nigeria’s foreign reserves, as well as the level of trading on the official NFEM platform. Any fresh signals from monetary authorities regarding interest rates or inflation control could also sway the market.
As trading progresses, investors and businesses are expected to monitor end-of-day rates closely for clearer insight into how the currency may fare in the weeks ahead.
