Naira steady at official window as cash demand pushes black market rates higher

The naira maintained its position at the official Nigerian Foreign Exchange Market (NFEM) on Friday, even as it continued to trade weaker on the parallel market.

At the Investors & Exporters (I&E) window, the local currency was quoted around ₦1,460 to the US dollar — a slight intraday dip compared with levels seen earlier in the week.

However, in the parallel, or black market, rates stayed notably higher. Currency dealers in Lagos and other major commercial hubs priced the dollar between ₦1,495 and ₦1,515, with reports of some transactions reaching as much as ₦1,515. On average, the street rate hovered around ₦1,500 to the dollar.

For importers and corporate entities transacting through official channels, rates remain near the NFEM level of about ₦1,460. But individuals buying or selling cash on the streets continue to face the higher parallel market range of ₦1,495–₦1,515, raising costs for remittances, foreign travel, and dollar-linked goods.

The persistent spread between official and parallel rates reflects ongoing differences in liquidity, access to foreign currency, and overall market sentiment. Analysts note that recent policy actions by the Central Bank of Nigeria (CBN) — including interventions and monetary policy adjustments — have helped steady the official window, even as sustained demand for cash keeps street prices elevated.

Market watchers say attention will now turn to weekly FX turnover figures, potential CBN interventions, and movements in the global dollar. An increase in official dollar supply through the FMDQ/NAFEM platform could keep the NFEM rate firm or slightly stronger, while continued strong cash demand may maintain the premium in the parallel market.