The Nigerian naira held steady against the United States dollar on Wednesday, December 3, 2025, with the official and parallel markets showing a tight convergence that analysts say reflects the Central Bank of Nigeria’s (CBN) recent reforms and improved foreign‑exchange liquidity.
Data from the FMDQ Securities Exchange showed the naira opening at *₦1,448.43 per $1* on the Nigerian Foreign Exchange Market (NFEM). Throughout the week the rate has hovered around the ₦1,450 level, a modest improvement from the previous
The stability follows a series of liquidity injections and transparency measures introduced by the CBN earlier in the year. Governor Olayemi Cardoso has repeatedly stressed that the current level represents the “true market value” of the currency and that the apex bank will intervene only to smooth out short‑term volatility.
Parallel Market
In the informal market, often referred to as the “black market,” the naira traded in a narrow band of *₦1,455 – ₦1,460 per $1* in Lagos and Abuja. This gap of less than ₦15 between the official and parallel rates marks a significant narrowing of the arbitrage window that previously plagued the forex ecosystem.
Traders at the popular Wuse Zone 4 market in Abuja reported normalised demand, noting that the tighter spread has reduced the incentive for speculative buying and selling.
Economic Drivers
Several macro‑economic fundamentals underpin the naira’s resilience:
– *Foreign‑exchange reserves:* Nigeria’s reserves have risen to about *$44.56 billion* as of late November 2025, the highest level in over five years. The buffer gives the CBN ample firepower to defend the currency and clear backlog obligations.
– *Inflation:* The National Bureau of Statistics reported headline inflation at *16.05 % year‑on‑year* in October 2025, a three‑and‑a‑half‑year low. A harvest‑driven surge in food supply and the stabilising exchange rate have helped cool price pressures, boosting real returns on naira‑denominated assets and attracting foreign portfolio inflows.
– *Monetary policy:* The Monetary Policy Committee (MPC) kept the benchmark interest rate at *27.00 %*, reiterating its commitment to price stability.
CBN Stance
Governor Cardoso, speaking at a stakeholders’ forum, said the current exchange rate reflects market forces and that the bank will continue to intervene only to dampen excessive volatility rather than attempt to fix the rate. The “willing buyer, willing seller” policy introduced earlier in the year appears to be gaining traction, as evidenced by the reduced premium in the parallel market.
Analysts at major investment banks expect the naira to trade within a *₦1,445 – ₦1,465 per $1* band for the remainder of the festive season. Favorable conditions—moderating Eurobond yields, steady oil production, and continued foreign‑exchange inflows—support a positive outlook heading into 2026.
Current Exchange Rates (December 3, 2025)
Market Rate (Buy) Rate (Sell)
NFEM (Official) Open ₦1,448.43/$1 —
NFEM (Official) Projected Close — ₦1,450.00/$1
Parallel (Buy) ₦1,452/$1 —
Parallel (Sell) — ₦1,460/$1
GBP (Black Market) ₦1,925/£1 —
EUR (Black Market) ₦1,680/€1 —
The naira’s steadiness on December 3 underscores the impact of the CBN’s reforms and the broader improvement in Nigeria’s external position. While challenges remain—particularly in sustaining inflation control and managing external debt—the current environment offers a more predictable horizon for businesses and investors alike.
