Naira gains slightly at official market, hits ₦1,533.18 per dollar as CBN interventions continue.
Parallel market weakens to ₦1,545, widening gap despite efforts to unify Nigeria’s exchange rates.
The Nigerian naira continued its modest recovery against the U.S. dollar at the official foreign exchange market on Tuesday, July 29, 2025, closing at ₦1,533.18 per dollar, an improvement from ₦1,534.21 recorded the previous day.
This represents a ₦1.03 day-on-day gain, marking the second consecutive day of appreciation for the local currency in the official FX window, operated by the FMDQ Securities Exchange.
The naira’s recent performance has been attributed to continued interventions by the Central Bank of Nigeria (CBN), improved forex liquidity, and reduced demand pressure from importers. Analysts say sustained stability in oil earnings and better remittance inflows may also be contributing to the positive trend.
However, the currency showed a different trajectory in the parallel (black) market, where it weakened further to ₦1,545 per dollar, down from ₦1,537 on Monday. The widening gap between the official and unofficial rates highlights ongoing challenges in aligning both markets despite recent reforms.
Currency dealers in Lagos and Abuja said the parallel market remains under pressure due to high demand for dollars, especially among businesses seeking forex for non-officially approved transactions.
The CBN had recently introduced several measures to unify Nigeria’s exchange rate system and improve transparency in the FX market. These include reforms to the Bureau De Change operations, increased forex auctions, and enhanced monitoring of international transfers.
Despite these interventions, the FX market remains sensitive to global economic conditions, oil price fluctuations, and domestic policy responses.
Market watchers will be observing whether the current official market appreciation can be sustained in the coming weeks and if the gap with the parallel market will begin to narrow.
The next trading session will offer further insight into the stability of the naira amid ongoing fiscal and monetary reforms.
