(DDM) – Nigeria’s naira closed stronger at the official foreign exchange window on Friday, offering temporary relief amid persistent volatility.
Diaspora Digital Media (DDM) gathered that the local currency appreciated by N7.60 against the U.S. dollar, closing at N1,480.65/$1 at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
However, the optimism faded at the parallel market, where the naira weakened by N5 to settle at N1,505/$1, reflecting persistent liquidity pressures outside official channels.
The naira also slipped against major global currencies, including the Euro and British Pound, while holding steady against the Canadian dollar.
Currency analysts explained that the divergence between official and parallel rates signals unresolved structural weaknesses in Nigeria’s forex supply chain.
They said the Central Bank of Nigeria (CBN)’s interventions have stabilized the official window but failed to tame speculative demand.
Economist Dr. Anthony Ogbechie told DDM that Friday’s gain was “marginal and unsustainable without stronger inflows from exports, remittances, and foreign investment.”
He noted that reliance on temporary CBN interventions without tackling low oil revenue, declining investor confidence, and high import dependence would keep the naira vulnerable.
Traders also pointed out that dollar scarcity remains acute in commercial banks, forcing businesses to rely heavily on black-market operators.
This dual exchange reality has kept inflationary pressures high, especially for imported goods.
A Lagos-based financial expert, Maryam Akinola, stressed that unless Nigeria improves productivity and eases barriers to dollar inflows, the gains recorded at NAFEM will remain “short-lived headline victories.”
She warned that the continued gap between official and parallel rates could fuel arbitrage opportunities, hurting small businesses and deepening economic uncertainty.
The CBN recently introduced several policy measures, including tightening monetary policy, restricting speculative forex trades, and courting diaspora remittances through formal channels.
While these efforts have steadied the official window, analysts caution that broader reforms are required to anchor confidence.
Experts recommend structural changes such as boosting oil output, diversifying exports, cutting import bills, and attracting long-term foreign capital as lasting solutions.
For now, Nigerians remain caught between fluctuating rates, rising inflation, and fears that another round of sharp depreciation could undermine fragile economic recovery.
The post Naira rebounds at official market but black market bleeds
DDM News
first appeared on Diaspora Digital Media DDM.
