Naira Climbs to ₦1,390 as Black Market Gap Shrinks
Atume Terfa
The Nigerian naira showed renewed strength on Monday, rising to about ₦1,390 per US dollar in the black market — a welcome boost from last week’s levels and a sign that the gap with official exchange rates is steadily narrowing.
Traders reported a 2.16 % gain, with the currency climbing from roughly ₦1,420 on Friday to ₦1,390 by Monday morning. This improvement cut the spread between the parallel and official FX rates to about ₦35, down sharply from ₦92 earlier in the week, reflecting growing convergence between the two markets.
Market watchers attribute the improvement to ongoing measures by the Central Bank of Nigeria (CBN) to stabilise the foreign exchange market. Key interventions, such as reopening retail FX access for Bureau De Change (BDC) operators, have helped ease dollar scarcity in the parallel market, contributing to the naira’s uptick.
Official market figures, however, showed a slight depreciation last week, with the naira quoted at around ₦1,355.42 per dollar, slightly weaker than the previous session. Still, analysts say the narrowing gap indicates improving market confidence, which could encourage investors and traders alike if the trend continues.
Economists had previously flagged potential pressures on the naira in 2025 due to FX supply challenges, predicting possible further weakening. Yet, the recent gains across both official and parallel markets hint at stabilisation taking hold, despite ongoing inflationary pressures and structural imbalances in the foreign exchange landscape.
Overall, the naira’s stronger performance and the shrinking gap with official rates signal cautious optimism for market participants, even as broader economic dynamics continue to influence the currency’s trajectory.
