The Naira showed signs of strength in the official market, appreciating to ₦1,517.93 per dollar on Friday, March 14, 2025, up from ₦1,547.81 recorded the previous day. This uptick, reported by the Central Bank of Nigeria (CBN), highlights ongoing efforts to stabilize the currency. However, the parallel market tells a different story, with the dollar still exchanging as high as ₦1,582, reflecting continued volatility despite the CBN’s unification of forex windows.
The CBN’s June 14, 2023, directive officially merged all foreign exchange segments into the Investors and Exporters (I&E) window, ensuring all transactions—ranging from medicals to business travel allowances—flow through deposit money banks. The “Willing Buyer, Willing Seller” model was also reinstated, allowing forex rates to be determined by market forces within this structured framework. Additional measures, such as the abolition of trading limits on oversold FX positions and the reintroduction of an order book, were designed to enhance transparency.
With these changes, Nigeria has effectively shifted to a free-floating exchange rate, allowing the Naira’s value to be driven purely by market forces. While this move is expected to improve liquidity and attract foreign investment, short-term fluctuations remain a challenge. The disparity between official rates and the black market suggests that deeper structural adjustments may still be needed to achieve true currency stability.