Naira strengthens further as FX liquidity improves
Story from Martha Gwary
The Naira strengthened notably on Tuesday, October 7, 2025, with exchange rates in both the official and parallel markets settling into the mid-₦1,400s range.
This convergence was driven by improved foreign exchange (FX) liquidity and sustained Central Bank of Nigeria (CBN) interventions, which have boosted market confidence.
Official and Parallel Rates Converge
At the Nigerian Foreign Exchange Market (NFEM), the Naira traded at approximately ₦1,464–₦1,466 per US dollar, based on volume-weighted official figures. Other end-of-day data placed the official rate at ₦1,465.20 per US$1, while other CBN bulletins and media reports cited a closing level of around ₦1,470.26.
In the parallel market, monitored by platforms like AbokiFX and local trackers, the exchange rate hovered between ₦1,470 and ₦1,480 per US$1. Despite this recent strengthening, a premium remains between the official and unofficial market rates, which points to continued segmentation within the FX market.
Factors Driving the Gains
Market participants credit Naira’s recent appreciation to increased FX inflows and a higher dollar supply in the NFEM. This has occurred alongside the CBN’s ongoing use of its matching platform and targeted liquidity operations.
Global factors, including the strength of the US dollar and fluctuating investor sentiment, have also influenced FX flows into the Nigerian market.
What Analysts Are Watching
Traders are closely monitoring the CBN’s daily FX releases and open market operations for signals of sustained supply.
Analysts emphasise that tracking the parallel market premium will be crucial in determining whether improvements in the official market are effectively reaching retail and bureau de change (BDC) channels.
Additionally, the performance of global oil markets and the resulting inflows from crude exports will remain pivotal in shaping the Naira’s trajectory over the coming weeks.
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