The naira traded mixed on Monday, holding steady at the official foreign exchange window while slipping further at the parallel market amid persistent dollar shortages and strong demand from importers and retail buyers.
Data from the Central Bank of Nigeria (CBN) showed the Daily Nigerian Foreign Exchange Market (NFEM) rate — the volume-weighted official benchmark — closed at ₦1,467.43 per US dollar. Interbank and spot transactions reflected similar levels, with rates ranging between ₦1,468 and ₦1,475.
However, in the parallel market, the local currency weakened further, with traders buying dollars at about ₦1,480 and selling for up to ₦1,500.
Analysts linked the widening spread between the official and street market rates to continued foreign exchange scarcity and unrelenting demand pressures from manufacturers, importers, and individuals sourcing dollars for travel, education, and business needs.
“The street market premium reflects ongoing supply constraints,” a Lagos-based currency trader told First News. “Even though the official market appears more stable, most small businesses still rely on the parallel market for quick access to forex.”
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The CBN has introduced several measures to improve liquidity — including policy rate adjustments and targeted interventions — but structural challenges continue to hinder dollar inflows.
For consumers, the weaker parallel rate means higher prices for imported goods and services, while businesses that depend on foreign inputs face increased procurement costs. Conversely, households receiving foreign remittances may gain more naira through informal exchanges, though experts warn that official channels remain safer and more transparent for large or traceable transactions.
The naira’s short-term direction will depend on inflows from exports, remittances, and CBN interventions as investors watch for signs of improved liquidity across the markets.