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.

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The naira remained stable on Wednesday, November 5, 2025, with the U.S. dollar trading between ₦1,430 and ₦1,445 at the official Nigerian Foreign Exchange Market (NFEM).

At the parallel (black) market, traders bought the dollar at around ₦1,435 and sold between ₦1,450 and ₦1,459, showing only a slight difference from official rates.

Market analysts attributed the stability to improved liquidity, steady inflows from foreign investors and exporters, and sustained intervention by the Central Bank of Nigeria (CBN).

They also linked the calm market to recent monetary policy adjustments, including the September interest rate cut, which helped ease inflationary pressure and boost investor confidence.

According to currency dealers, dollar supply has improved compared to previous weeks, while demand has become more predictable.

“There’s more balance now. People are not hoarding dollars as much as before,” one trader said.

Economists noted that the CBN’s efforts to clear foreign exchange backlogs have strengthened transparency and restored confidence in the market.

However, they warned that external factors — such as declining oil revenues, global inflation, and potential capital outflows — could still pose risks to the naira in the months ahead.

They urged the federal government to sustain fiscal discipline, promote non-oil exports, and boost local production to reduce pressure on the currency and support long-term stability.

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