The naira held steady at around ₦1,400 per dollar in the parallel market on Friday, despite heavy demand for dollars from importers, manufacturers and individuals making international payments.
Bureau De Change operators in Lagos and Abuja quoted the dollar at ₦1,400 for buying and between ₦1,410 and ₦1,425 for selling, largely unchanged from previous trading sessions.
At the official Nigerian Foreign Exchange Market (NFEM), the naira closed at ₦1,348.74 per dollar on Thursday, November 5, a slight depreciation of ₦0.94 from ₦1,347.79 recorded on Wednesday.
The gap between the official and parallel market rates remained at about ₦51, reflecting continued demand for foreign exchange outside the formal banking system.
Market analysts attributed the pressure to import-related payments, corporate obligations, school fees abroad and profit-taking by foreign portfolio investors. Turnover at the official window fell to $82.16 million on Thursday, down from $100.93 million a day earlier.
Despite the pressure, traders said improved global risk sentiment after the US midterm elections and steady interventions by the Central Bank of Nigeria (CBN) helped prevent a sharper fall.
Nigeria’s gross external reserves stood at $55.149 billion, slightly down from a recent peak of $55.264 billion, but still providing the CBN with enough firepower to manage volatility.
Analysts expect the naira to trade within ₦1,330 to ₦1,370 at the official window in the near term, provided oil prices remain stable and dollar supply improves.