Naira Holds at ₦1,456 Official, ₦1,740 Black Market

The Nigerian Naira held broadly steady against the US Dollar on Tuesday, December 23, 2025, as trading began in both the official and parallel foreign exchange markets.

This relative calm comes as the Central Bank of Nigeria (CBN) continues its efforts to manage liquidity and stabilise rates within the Nigerian Foreign Exchange Market (NFEM).

Official Market (NFEM) Update

At the official window, the Naira recorded only mild intraday movements, staying within the band seen in last week’s sessions. Early data from the NFEM showed the Naira opening around ₦1,455.95 to 1 USD.

This followed Monday’s closing rate of ₦1,459.43 on December 22. During today’s session, traders reported an intraday high of ₦1,461.63 and a low of ₦1,452.65 in early deals.

The limited volatility in the official market points to a relatively consistent flow of foreign exchange to meet approved demand from businesses and individuals.

Parallel (Black) Market Movements

On the parallel market, commonly called the black market, the Dollar continues to trade at a noticeable premium over the official rate.

As at today, December 23, 2025:

• Selling rate (Dollar to Naira): approximately ₦1,720 – ₦1,745
  
• Buying rate (Naira to Dollar): roughly ₦1,710 – ₦1,730
  

The persistent gap between the official and black market rates,often described as the exchange rate “spread”, remains a key concern for analysts. While the official window appears relatively stable, the parallel market is more sensitive to cash demand, speculative activity, and end-of-year spending pressure.

What’s Driving the Current Rates?

Several factors are shaping Naira’s performance as the year winds down:

• Seasonal Demand: December travel, increased imports, and holiday-related spending typically push up demand for foreign currency, adding pressure on the available Dollar supply.
  
• CBN Interventions: Ongoing CBN interventions and FX auctions in the official market have helped prevent sharper depreciation and kept rates within a managed range.
  
• Global Oil Prices: As crude oil remains Nigeria’s main foreign exchange earner, movements in global oil prices continue to influence investor confidence and the strength of the Naira.