The Nigerian Naira has demonstrated a marginal appreciation against the US dollar in the closely watched parallel (black) market, trading at an average of ₦1,460 to the dollar today, Wednesday, December 3, 2025.
This slight gain marks a positive but cautious trend, improving from the ₦1,470/$ rate recorded just the previous day.
This modest strengthening of the Naira is being attributed to a combination of factors, signalling the immediate impact of the Central Bank of Nigeria’s (CBN) recent policy decisions and increased liquidity.
Ongoing measures by the CBN to funnel remittances through official channels, combined with year-end seasonal inflows from Nigerians abroad, have boosted the supply of foreign currency in the system.
The CBN has maintained its commitment to clearing the foreign exchange (FX) backlog owed to foreign airlines and manufacturers. The periodic injection of FX into the official Nigerian Autonomous Foreign Exchange (NAFEM) window has a psychological effect, dampening speculative demand in the parallel market.
The high interest rates maintained by the CBN’s Monetary Policy Committee (MPC) continue to attract foreign portfolio investors (FPIs) into Nigerian Treasury Bills and other local instruments, increasing the overall non-oil FX supply.
Some analysts suggest that the persistent high cost of imports, driven by the weak Naira, is starting to force importers to curb demand, leading to a temporary slowdown in the chase for the dollar.
While the parallel market sees a slight gain, the rate in the official NAFEM window remains the primary benchmark. Rates in the official window are typically tighter, though subject to volatility based on daily liquidity. The current parallel market rate of ₦1,460/$ maintains a gap of approximately 5% to 8% with the official rate, depending on the day’s closing NAFEM price.
The marginal appreciation is a welcome sign but remains fragile. The primary challenge is to sustain this trajectory. For the Naira to achieve long-term stability below the ₦1,400 mark, the CBN must achieve two main objectives, maintaining liquidity and increasing structural earnings.
To ensure the regular and transparent supply of FX into the NAFEM window to meet legitimate demand, and that government successfully translates its push for growth in the non-oil export sectors (ICT, Agriculture, Solid Minerals) into tangible, verifiable FX earnings that reduce the national dependency on volatile crude oil prices.
Noting that the market remains highly sensitive to any shift in CBN policy or the price of crude oil.
