Naira Rises, Hits N1,370/$ on Parallel Market

The naira strengthened further against the US dollar in the parallel market on Tuesday, trading around N1,370 per dollar as improved liquidity and rising external reserves continued to support the local currency.

Live market trackers and bureau de change operators put the parallel (black market) rate near N1,370–N1,375 for the dollar, with some quotes showing buying around N1,372 and selling near N1,382 earlier in the session. This marks a notable firming from levels above N1,380–N1,390 recorded in recent days and earlier in the month.

In the official Nigerian Foreign Exchange Market (NFEM), the naira also held relatively steady, with the indicative rate reported around N1,329–N1,331 per dollar. The gap between the official and parallel rates narrowed to roughly N40–N50 in recent sessions, reflecting reduced pressure compared with wider spreads seen earlier in the year.

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Trading activity in the official market showed mixed volume. One recent session recorded a sharp rise in interbank turnover after a quieter period, while external reserves continued their upward trajectory, hovering near $54.7–$55 billion according to the latest available Central Bank of Nigeria figures. The higher reserve position, supported by oil earnings and other inflows, has provided a buffer for the currency.

Currency dealers attributed the parallel-market gains to balanced demand and better dollar availability. Importers, travellers and businesses still rely heavily on the informal market for immediate access to foreign exchange, but the reduced premium has eased some of the pressure on transaction costs.

The naira’s recent performance comes after a period of relative stability following earlier volatility. In late September, the currency had fluctuated between roughly N1,375 and N1,385 in the parallel market, with occasional dips and recoveries tied to liquidity conditions and official market activity. Analysts note that sustained reserve growth and any continued improvement in dollar supply could help keep the naira on a firmer footing in the near term, though demand from the real sector remains a key factor to watch.

For ordinary Nigerians and businesses, the movement means a slightly lower cost of acquiring dollars outside the banking system. At the prevailing parallel rates, $1,000 would cost approximately N1.37 million, down from higher levels seen weeks earlier. Official-market rates remain more favourable for those able to access them through authorised channels.

Market participants will continue to monitor oil prices, diaspora remittances, foreign investment flows and any further policy signals from the Central Bank as the week progresses. While the latest data points to cautious optimism for the naira, the dual-market structure means spreads and liquidity conditions will remain closely watched.