The Naira rose to ₦1,394 per US dollar, marking its strongest level since May 2024.
According to the Central Bank of Nigeria (CBN), the official FX market drove this movement.
Naira Hits High
After weeks of volatility, traders and businesses welcomed the gain, which brought cautious optimism.
Moreover, analysts Research showed that the Naira climbed from Tuesday’s ₦1,409.5 per dollar to Wednesday’s level.
Consequently, this rise represents the best official-market performance since May 29, 2024, when it reached ₦1,329.65.
Previously, the Naira had fluctuated sharply, but it now demonstrates brief stability.
Furthermore, liquidity improvements and reforms in the official market supported the Naira’s appreciation.
Parallel Market Gap
However, analysts note that structural challenges in Nigeria’s foreign exchange system continue to weigh on the currency.
Meanwhile, the parallel market tells a different story, reflecting persistent pressure on the Naira.
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On Wednesday, traders exchanged the Naira at ₦1,490 per dollar in the parallel market.
Although this was slightly firmer than Tuesday’s ₦1,491, the gap continues to widen.
As a result, the ₦96 difference between official and parallel rates became the largest since February 2025.
This divergence highlights ongoing distortions and unmet FX demand outside official channels.
Cautious Optimism
Therefore, traders remain cautious, monitoring whether official-market stability can last beyond short-term gains.
For businesses, the stronger Naira at the official window provides temporary relief but does not resolve broader risks.
Overall, the trend shows a tentative recovery, yet the parallel market signals ongoing uncertainty in FX flows.
Market participants hope that reforms and liquidity injections maintain stability, but caution remains high.
Ultimately, the Naira’s journey illustrates both progress and fragility, as gains coexist with unresolved challenges in Nigeria.
