Naira Appreciates to N1,487/$ in the Parallel Market — Signs of Recovery in Nigeria’s Forex Landscape

Appreciates to N1,487/$ in the Parallel Market — Signs of Recovery in Nigeria’s Forex Landscape

The Naira appreciates to N1,487 per dollar in the parallel market, signaling renewed strength in Nigeria’s forex market. Learn what this means for traders and the economy.

Naira Gains Momentum Against the Dollar

Nigeria’s currency, the Naira, continued its upward trend on Tuesday, appreciating to ₦1,487 per US dollar in the parallel market, compared to ₦1,491/$ recorded the previous day. This improvement reflects growing optimism in the country’s foreign exchange market and a positive response to recent fiscal and monetary policy measures.

In the Nigerian Foreign Exchange Market (NFEM), the Naira also strengthened, trading at ₦1,447/$ — up from ₦1,452.5/$ on Monday, according to data from the Central Bank of Nigeria (CBN). This represents a ₦5.5 gain for the national currency, suggesting that current interventions by financial regulators are gradually stabilizing the forex ecosystem.

Understanding the Naira’s Appreciation

The recent rise of the Naira can be attributed to several contributing factors. Here’s a closer look at what’s driving this improvement:

Increased Dollar Supply: The CBN’s decision to enhance liquidity and streamline forex access for banks and Bureau de Change (BDC) operators has provided more access to foreign currency.
Positive Investor Sentiment: Confidence among international investors is gradually returning as the Nigerian government continues its economic reform agenda.
Improved Oil Revenue: With global oil prices rebounding, Nigeria’s foreign reserves have received a notable boost, strengthening the local currency’s performance.

This steady appreciation has narrowed the pressure on the parallel market, which is often seen as a barometer of real demand for foreign exchange in Nigeria.

Market Spread and Implications

While the Naira gained strength, the margin between the parallel market rate (₦1,487/$) and the NFEM rate (₦1,447/$) widened slightly to ₦40 per dollar, compared to ₦38.5 per dollar on Monday.

This widening spread reflects persistent market volatility but also suggests a healthy level of arbitrage reduction compared to earlier months when the gap exceeded ₦100 per dollar.

For importers, exporters, and online traders, these developments indicate a gradual normalization of the exchange rate environment. The ongoing policy alignment between the CBN and financial institutions continues to promote exchange rate transparency and accountability.

What This Means for Businesses and Consumers

A stronger Naira has both immediate and long-term implications:

1. Lower Import Costs

Businesses that rely on imported goods or raw materials will see reduced expenses, potentially translating into lower prices for consumers.

2. Investor Confidence Boost

Foreign investors view currency stability as a key factor for market entry. The continued appreciation may encourage capital inflows into Nigeria’s tech, banking, and manufacturing sectors.

3. Reduced Inflationary Pressure

When the exchange rate stabilizes, imported goods become cheaper, helping to ease inflation, which has remained one of Nigeria’s biggest economic challenges in 2025.

For individuals who make frequent international transactions — such as paying for foreign tuition or digital services — this also means reduced exchange rate losses.

Expert Insights

Economic analysts believe the Naira’s short-term resilience is a result of combined fiscal tightening, reduced speculation, and better coordination between the government and the financial system.

According to market experts quoted by BusinessDay, consistent improvement in forex management and sustained crude oil production could strengthen the Naira further toward the ₦1,400/$ mark in coming weeks, provided global conditions remain favorable.

Steps to Monitor the Exchange Rate Daily

Keeping track of Nigeria’s exchange rate can help individuals and businesses make informed financial decisions. You can:

Visit the CBN’s official website for the latest daily forex rates.
Use trusted finance apps such as XE Currency or AbokiFX for real-time updates.
Follow reputable financial news outlets and blogs that provide verified forex market insights.

Is the Naira on a Sustainable Path?

The Naira’s appreciation to ₦1,487/$ is a positive signal for Nigeria’s economic recovery. However, experts caution that sustaining this progress will require continued fiscal discipline, diversification of export earnings, and proactive management of external reserves.

For now, the outlook remains cautiously optimistic — with businesses and consumers hoping this trend continues into the last quarter of 2025.

Stay informed about Nigeria’s forex market trends and policy updates by following verified platforms such as the CBN Official Website and BusinessDay Nigeria.

If you want to keep up with daily exchange rate analysis and tech-finance updates, bookmark AndroidPols.com.ng — your trusted source for breaking news on technology, finance, and innovation.