The Nigerian Naira displayed a mixed performance against the US Dollar on Friday, December 12, 2025. While the official window of the Nigerian Foreign Exchange Market (NFEM) maintained a familiar trading band, the parallel market witnessed a marginal appreciation for the Naira, reducing the market’s premium slightly.
Trading activities in the official NFEM, which includes the Investors’ and Exporters’ (I&E) Window, indicated a slight movement in the benchmark rate compared to the previous day’s close.
NFEM Closing Rate (December 12): ₦1,449.38 per US Dollar (Based on early morning data and previous day’s trends).
NFEM Highest Intraday Rate: The dollar was traded at a high of approximately ₦1,452.50.
NFEM Lowest Intraday Rate: The Naira touched its strongest point for the day at about ₦1,449.38.
The relatively tight band in the official market reflects the Central Bank of Nigeria’s (CBN) continued intervention efforts and liquidity management strategies aimed at fostering stability for importers and formal businesses.
Parallel Market (Black Market) Rate
In the unofficial parallel market, widely used for cash transactions and personal transfers, the Naira showed a minor gain, reversing a recent weakening trend.
Parallel Market Buying Rate: ₦1,475.00 per US Dollar
Parallel Market Selling Rate: ₦1,485.00 per US Dollar
This parallel market range of ₦1,475 – ₦1,485 indicates a premium of approximately ₦25.62 to ₦35.62 when compared to the official NFEM closing rate of ₦1,449.38.
Market Divergence: The spread between the NFEM and the parallel market remains a key concern for economic analysts, though the current parallel rate of ₦1,485 shows a slight improvement from the reported rate of ₦1,490 observed earlier in the week.
Market Analysis and Drivers
The exchange rate dynamics today are influenced by several factors:
Crude Oil Prices: Sustained stability in international crude oil prices is helping to bolster Nigeria’s external reserves, which feeds positively into the CBN’s ability to supply the NFEM.
Diaspora Remittances: The approach of the festive season is typically associated with a surge in foreign currency inflows via diaspora remittances, contributing to the supply, particularly in the parallel market.
Monetary Policy: Market participants are closely watching the CBN’s stance on interest rates, with expectations that aggressive rate hikes may continue to be used as a tool to control inflation and attract foreign portfolio investment.
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