The Nigerian naira traded cautiously against the US dollar on Thursday, December 18, 2025, as activity in both the official and parallel markets reflected strong year-end demand for foreign exchange.
At the official Nigerian Foreign Exchange Market (NFEM), the naira opened around ₦1,453.25 to the dollar, improving slightly from Wednesday’s closing rate of ₦1,458.02. Early trading showed mild volatility, with the currency moving between a high of ₦1,460.75 and a low of ₦1,453.07. Analysts say this reflects increased demand from businesses and importers rushing to settle accounts before the end of the year.
Market watchers noted that the Central Bank of Nigeria has continued to support the market through liquidity injections, helping to stabilise the naira despite the usual festive-season pressure.
In the parallel market, however, the naira traded weaker. Bureau De Change operators in cities such as Lagos, Abuja and Kano exchanged the dollar between ₦1,720 and ₦1,735, highlighting a widening gap between official and street rates. The disparity is being driven largely by retail demand for travel allowances and holiday-related imports.
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Several factors are shaping current exchange-rate movements. Increased import activity ahead of the holidays is keeping dollar demand high, while recent CBN interventions have helped soften pressure on the official market. At the same time, relatively stable global oil prices have supported Nigeria’s foreign reserves, giving the apex bank more room to manage volatility.
As the week draws to a close, analysts expect the naira to remain within the ₦1,450 to ₦1,465 range at the official window. In contrast, the parallel market could see further slight weakening if retail demand for dollars continues to outstrip supply.
