The Nigerian currency strengthened across both official and parallel markets on Wednesday, posting notable gains against the United States dollar despite a widening spread between the two segments.
At the parallel market, the naira appreciated to N1,392 per dollar, improving from N1,396 recorded on Tuesday, reflecting sustained demand management and improved market sentiment.
Similarly, at the Nigerian Foreign Exchange Market (NFEM), the currency strengthened to N1,369 per dollar.
Data released by the Central Bank of Nigeria showed that the indicative exchange rate fell from N1,389 per dollar on Tuesday to N1,369, indicating a N20 appreciation for the local currency at the official window.
However, despite the gains recorded across both markets, the gap between the parallel and official exchange rates widened significantly to N23 per dollar, compared to N5 recorded the previous day.
Analysts say the widening spread may reflect underlying liquidity pressures and persistent segmentation in the foreign exchange market, even as recent policy measures continue to support relative stability in the naira.
The development underscores the complex dynamics shaping Nigeria’s foreign exchange market, where short-term currency gains often coexist with structural imbalances between official and informal trading segments.
