The Nigerian Naira maintained a narrow trading range against the United States Dollar on Monday, December 22, 2025, as foreign exchange market activity mirrored typical year-end liquidity patterns.
Data from the Nigerian Foreign Exchange Market (NFEM) and informal channels indicate that the local currency continues to face persistent inflationary pressures despite recent interventions.
Official Market Performance (NFEM)
At the Nigerian Foreign Exchange Market, the official window for corporate and government transactions, the Naira opened the week with a slight depreciation.
According to FMDQ Securities Exchange data, the Naira closed at approximately 1,466.50 per dollar.
This follows a volatile Friday session, during which the rate ranged between a high of 1,469.90 and a low of 1,460.00. Analysts note that the current pricing reflects a 14.45% inflation rate and the Central Bank of Nigeria’s (CBN) Monetary Policy Rate of 27.00%, both continuing to influence investor sentiment and dollar demand for holiday-related imports.
Parallel Market Realities
In the parallel market, also known as the black market, the Naira traded at a notable premium compared to the official window. Reports from Bureau De Change (BDC) operators in Lagos and Abuja indicate that the dollar is selling between 1,475 and 1,485 per unit.
The gap between the official and parallel rates remains a focus for the CBN as it works toward unifying the windows. While the spread has narrowed compared to previous quarters, the informal market continues to serve individual travelers and small-scale importers who cannot access the NFEM in a timely manner.
Market Outlook
The Central Bank’s recent data confirmed an exchange rate of roughly 1,464.50 for basic transactions, though commercial banks quote slightly higher rates for card-based international payments, often reaching 1,485.
As the year comes to a close, experts expect the exchange rate to remain relatively stable unless there is a significant shift in crude oil production or an unexpected policy announcement from the apex bank. Early 2026 is likely to focus on enhancing dollar liquidity to further stabilise the local currency.