DThe Naira showed steady strength against the US Dollar in early trading on Thursday, December 4, 2025, as both the official and parallel markets maintained a relatively narrow gap heading into the final month of the year.
Official Market (NFEM):
At the Nigerian Foreign Exchange Market (NFEM), the Naira traded at about ₦1,445.54/$1 this morning. It moved within a tight band — reaching a high of ₦1,448.20 and a low of ₦1,444.90. This stability reflects the Central Bank of Nigeria’s ongoing efforts to unify exchange rates and boost market liquidity through the Electronic Foreign Exchange Management System (EFEMS).
Parallel Market:
In the unofficial market, the Naira averaged ₦1,468/$1, staying close to the ₦1,470 level seen earlier in the week. Traders report moderate demand, with rates holding stable and the gap between the official and parallel markets remaining much tighter than in past years.
Economic Background:
The Naira’s current stability comes as Nigeria records gradual improvements in broader economic indicators. A year after the EFEMS framework took full effect, the currency has bounced back significantly from the lows experienced in 2024.
Inflation Trend:
According to the National Bureau of Statistics (NBS), headline inflation eased to 16.05% in October 2025, marking the seventh month in a row of declining inflation. This steady slowdown has played an important role in boosting confidence in the currency.
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Monetary Policy:
To sustain these gains, the CBN’s Monetary Policy Committee (MPC) voted on November 25 to keep the Monetary Policy Rate at 27%. After September’s slight rate cut, holding the rate signals the bank’s focus on controlling inflation while supporting the exchange rate.
Outlook and New Policies:
Foreign portfolio inflows have stabilised, helping push external reserves to about $44.66 billion. Meanwhile, businesses and citizens are preparing for the CBN’s new cash management rules. Starting January 1, 2026, stricter cash withdrawal limits will take effect to reduce money laundering risks and cut the costs associated with handling cash.
These changes are expected to encourage more electronic transactions and further support the long-term strength of the Naira.
