The Nigerian Naira began the new month with minor fluctuations against the US Dollar across both official and parallel markets. Early trading on Friday, May 1, 2026, showed the local currency attempting to stabilise, based on data from the Nigerian Foreign Exchange Market (NFEM) and parallel market activity in Lagos and Abuja.
Official market performance
In the Nigerian Foreign Exchange Market, the Naira opened at about 1,374.69 per Dollar, following mild volatility recorded in the closing sessions of April. Analysts noted that liquidity injections by the Central Bank remain crucial in sustaining the current range, with the previous day’s closing rate hovering around the 1,375 level.
Demand in the official window remained steady, largely driven by trade-related transactions, while the narrow spread between the session’s high and low points reflected a cautious start to the month.
Parallel market trends
In the parallel market, widely known as the black market, the Dollar traded close to official rates, with Bureau De Change operators quoting between 1,374 and 1,376 per Dollar.
The convergence between both markets continues to stand out, reducing opportunities for arbitrage and speculative activities.
However, some traders reported a slight rise in demand for the British Pound and Canadian Dollar, which were exchanged at roughly 1,735 and 1,010 respectively in the parallel market.
Economic outlook
The relative stability in the exchange rate at the start of May is linked to ongoing interventions and close monitoring of foreign capital inflows.
Market participants are, however, watching global oil prices and domestic inflation trends, which remain key drivers of the Naira’s long-term performance.
While the narrowing gap between official and parallel rates offers more clarity for planning, the high cost of imports continues to exert pressure on prices of goods and electronics nationwide.