The Nigerian Naira showed mixed movements across the foreign exchange market on Wednesday, December 17, 2025, reflecting sustained pressure as the year approaches its final weeks. Activity in both the official and parallel markets points to cautious trading, driven largely by seasonal demand and ongoing efforts to manage volatility.
At the official Nigerian Foreign Exchange Market (NFEM) window, the Naira opened slightly weaker compared to the previous session. Current trading data places the average exchange rate at ₦1,453.67 per US Dollar, after touching an intraday high of ₦1,454.97 earlier in the morning. Analysts link this movement to increased dollar demand from businesses rushing to settle import bills and end-of-year financial obligations before the holiday slowdown.
In the parallel market, commonly referred to as the black market, the Dollar continues to trade above official levels. Dealers in key commercial centres such as Lagos, Abuja, and Kano are buying the Dollar at around ₦1,475 and selling at approximately ₦1,485. Although the spread has remained relatively stable compared to last week, the persistent premium continues to affect small importers and Nigerians planning overseas travel.
The Central Bank of Nigeria (CBN) has reiterated its commitment to supporting liquidity in the official market to reduce sharp currency swings. Market watchers say recent interventions have helped steady the Naira, even as fluctuations in global oil prices continue to influence Nigeria’s foreign exchange earnings and external reserves.
Meanwhile, other major currencies are also reflecting mild pressure. The British Pound is trading at about ₦1,943 in the official market, while the Euro stands near ₦1,707. In the parallel market, rates are higher, with the Pound edging close to the ₦2,000 mark in some areas, underscoring ongoing demand pressures across the foreign exchange landscape.
source: vanguard