The dollar traded higher against the naira on Monday, December 1, 2025, as year-end demand for foreign currency pushed parallel-market rates upward while the official Nigerian Foreign Exchange Market (NFEM) held relatively steady.
At the NFEM window — the Central Bank of Nigeria’s (CBN) volume-weighted average price and official benchmark — the naira traded within the ₦1,440–₦1,446 range to the dollar, according to market data aggregators and figures published by the CBN.
In the parallel market, however, bureaux-de-change operators across Lagos, Abuja and Port Harcourt quoted the dollar at ₦1,455 for buying and ₦1,465 for selling, reflecting a slight increase from last week as importers and holiday travelers intensified demand.
Analysts attributed the mixed performance to limited FX liquidity in official channels, which continues to divert some transactions to the parallel market, while the CBN maintains a cautious monetary stance after recent policy adjustments aimed at curbing inflation. Market participants say the bank’s reluctance to implement aggressive rate cuts has helped stabilise the official trading band, even as informal rates respond to seasonal pressures.
Impact on consumers and businesses
For import-dependent firms and individuals sourcing FX from the parallel market, the marginal rise translates to slightly higher costs. However, remittance recipients and small traders able to access dollars through the official window may find some relief from its relative stability.
Market analysts note that the naira’s short-term direction will be shaped by upcoming CBN interventions, inflows from oil exports, and December’s expected increase in diaspora remittances.
