Nigeria’s foreign exchange market continues to experience volatility as the naira struggles against the dollar. According to FMDQ data, the official exchange rate opened at ₦1,503.14 per dollar on February 5, 2025, and closed slightly lower at ₦1,500.65 per dollar on February 6. However, on the parallel market, the naira is trading as high as ₦1,552 per dollar, highlighting a growing gap between official and street rates despite CBN’s unification of the FX market.
The Central Bank of Nigeria had previously collapsed all FX market segments into the Investors & Exporters (I&E) window, allowing a “willing buyer, willing seller” approach to forex transactions. Despite these reforms, liquidity challenges persist, forcing many businesses and individuals to turn to the black market for foreign exchange. The CBN continues to monitor the situation, but the pressure on the naira reflects deeper structural issues in the economy that require urgent attention.
As Nigeria navigates this complex FX landscape, the need for sustainable policies that boost dollar inflows, enhance investor confidence, and stabilize the naira has never been more critical. Without decisive action, the widening gap between the official and parallel markets could fuel further economic uncertainty.