Nigerian naira traded within a relatively narrow range against the United States dollar on Monday, offering a measure of stability after a year marked by sharp fluctuations and sustained pressure on Africa’s most populous economy.
In official trading at Nigeria’s formal foreign exchange window, the naira exchanged at about ₦1,460 to the dollar, according to market data. The rate reflects cautious optimism among traders as year-end liquidity patterns and reduced speculative activity ease short-term volatility.
However, the currency continued to trade at weaker levels in the parallel market, where the dollar was sold for between ₦1,480 and ₦1,500, highlighting the persistent gap between official and unofficial exchange rates. The disparity remains a key concern for businesses and households that rely on informal channels due to limited access to foreign currency through official mechanisms.
Market analysts say the naira’s recent stability is partly driven by lower demand pressures typically seen towards the end of the year, combined with modest inflows from remittances linked to the festive season. These inflows have provided temporary support to the currency, though not enough to fundamentally alter underlying market dynamics.
Throughout 2025, the naira has faced headwinds from weak export earnings, foreign exchange shortages and uncertainty around economic reforms. Nigeria’s heavy reliance on oil revenues continues to expose the currency to global price swings and production challenges, while imports and debt servicing obligations maintain strong demand for dollars.
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The Central Bank of Nigeria has repeatedly emphasised its commitment to a market-driven exchange rate regime, alongside efforts to improve transparency and attract foreign investment. Authorities argue that recent reforms are aimed at restoring confidence in the foreign exchange market and narrowing the gap between official and parallel rates over time.
Economists caution, however, that sustained currency stability will depend on broader structural improvements. These include boosting non-oil exports, increasing foreign direct investment, improving fiscal discipline and addressing security concerns that weigh on investor sentiment.
For businesses, the current calm offers limited short-term relief, particularly for import-dependent sectors grappling with high costs and inflationary pressures. Consumers, meanwhile, continue to feel the impact of a weaker naira through higher prices for food, fuel and other essentials.
As Nigeria moves towards the close of the year, attention is turning to early-2026 prospects. Analysts say policy consistency, improved dollar supply and clearer economic signals will be crucial in determining whether the naira can maintain stability or face renewed pressure in the months ahead.
