Market News

The gap between the official and parallel market exchange rates has widened to N69 per dollar, or 5.13 percent, from less than two percent previously, as renewed demand pressure pushes the naira lower in the parallel market.

Data collated from parallel market operators showed that the naira depreciated to between N1,410 and N1,430 per dollar on Monday.

At the official foreign exchange (FX) market, the naira depreciated marginally by 53 kobo week-on-week to close at N1,346.79 per dollar on Friday, compared with N1,346.26 traded the previous Friday at the Nigerian Foreign Exchange Market (NFEM), according to data published by the Central Bank of Nigeria (CBN).

Consequently, the gap between the official and parallel market rates widened to N69 per dollar, or 5.13 percent, on Monday from N61, or 4.53 percent, last week.

Speaking during an investor engagement in Bangkok, Olayemi Cardoso, governor of the CBN, said the gap between the official and parallel exchange rates had narrowed significantly to less than two percent from about 60 percent.

He attributed the improvement to the foreign exchange reforms introduced by the apex bank, noting that the buffers built during the reform process had helped Nigeria withstand external shocks.

“When you travel now, you don’t have to look for foreign exchange; you can use your Naira card and pay for whatever you want,” Cardoso said.

He argued that improved currency stability had restored confidence and predictability for businesses, travellers and investors.

Meanwhile, activity in the official FX market moderated last week, with total turnover at the NFEM window declining by 53.17 percent week-on-week to $1.92 billion from $4.10 billion recorded the previous week.

The number of transactions also fell by 21.46 percent to 1,325 deals from 1,687 deals in the preceding week.

At the interbank segment of the FX market, total turnover declined by 63.26 percent week-on-week to $556.79 million from $1.52 billion. The number of deals also dropped by 32.09 percent to 472 from 695.

Meanwhile, Nigeria’s external reserves, which provide the CBN with the capacity to support the naira and meet the country’s external obligations, declined by $130 million in one week to $55.13 billion as of November 5, 2026, from $55.26 billion recorded on October 27, 2026.

Despite the recent decline, the country’s external buffers have maintained a strong year-on-year growth trajectory, rising by 27.32 percent from $43.30 billion in the corresponding period of 2025, according to CBN data.