Naira Appreciates to ₦1,560 per Dollar in Parallel Market Amid Renewed Forex Inflows

The Nigerian naira has recorded a modest gain in the parallel market, appreciating to ₦1,560 per US dollar, up from the previous rate of ₦1,565. The strengthening of the currency comes amid improved dollar liquidity and a gradual reduction in foreign exchange demand pressures, especially from importers and informal traders.

Currency traders in major markets across Lagos, Abuja, and Kano confirmed the appreciation, attributing the shift to better availability of foreign exchange in the open market. The naira’s gain in the parallel segment also coincides with a tightening gap between official and unofficial rates.

In the Nigerian Foreign Exchange Market (NFEM), the naira, however, experienced a slight depreciation, closing at ₦1,530.5 to the dollar—down from ₦1,529.5 recorded in the previous session. This brings the differential between the official and parallel rates to approximately ₦29.5, compared to ₦35.5 a few days earlier.

Market analysts say the improved sentiment in the parallel market may be linked to rising remittance inflows and the Central Bank of Nigeria’s (CBN) continued efforts to stabilise the foreign exchange environment. There are also indications that more Nigerians are returning to naira-based transactions due to declining import activity and growing confidence in the local currency’s short-term outlook.

“The narrowing gap between the official and parallel market is encouraging,” one Lagos-based forex trader noted. “It’s a sign that supply is gradually catching up with demand, and this reduces the speculative pressure that usually drives up rates.”

Despite the moderate appreciation, economic observers warn that the naira remains vulnerable to fluctuations, especially as external debt service obligations and foreign investor sentiment continue to exert pressure on the forex market.

The CBN has not issued a fresh statement regarding the current exchange rate movements, but insiders suggest the apex bank is closely monitoring both official and parallel segments for volatility triggers. Some analysts have also called for more transparency in forex allocations and greater support for non-oil dollar inflows such as remittances, exports, and foreign direct investment.

In recent months, the naira has shown signs of stabilisation following policy shifts including the unification of exchange rates and the gradual lifting of restrictions on forex access.

However, sustaining the current trend will depend heavily on long-term improvements in Nigeria’s foreign reserves, trade balance, and investor confidence.

For now, the naira’s appreciation in the parallel market offers a momentary relief for businesses and individuals, especially those dependent on the black-market for sourcing foreign exchange. But with economic fundamentals still under pressure, currency watchers expect further movements—either direction—to hinge on the consistency of forex supply and broader macroeconomic reforms.