Naira Ends 2025 on Mixed Note: Strong Appreciation in Official Market, Stability in Parallel Segment

Clarion Newschannel – January 2, 2026


The Nigerian naira closed 2025 with divergent performances across foreign exchange markets, marking its first annual appreciation in over a decade in the official segment while maintaining relative stability in the parallel market.
According to data from the Central Bank of Nigeria (CBN), the naira strengthened significantly in the Nigerian Foreign Exchange Market (NFEM), ending the year at approximately ₦1,429 to ₦1,435 per US dollar on December 31, 2025. This represents a notable gain of about 7.4% from the ₦1,535/$1 rate recorded at the close of 2024. Analysts attribute this turnaround to sustained CBN reforms, tighter monetary policies, improved foreign exchange inflows from oil revenues and diaspora remittances, and a sharp reduction in speculative activity. The narrowed gap between official and parallel rates—now below 5%—has further supported price stability through genuine supply-and-demand dynamics.
In the parallel market, commonly known as the black market, the naira exhibited resilience amid seasonal factors. Bureau de Change operators in major hubs like Lagos and Abuja quoted rates between ₦1,460 and ₦1,495 per dollar toward year-end, with closing figures around ₦1,480/$. This reflects minimal volatility compared to earlier periods, bolstered by festive remittances during “Detty December” and reduced corporate demand as businesses wound down for the holidays.
Experts highlight that 2025’s performance signifies a major shift, with the naira posting its first yearly gain since 2012. As Nigeria enters 2026, ongoing CBN initiatives—such as the revised FX manual and the Nigerian Foreign Exchange Code—are expected to deepen market transparency and sustain this momentum, provided oil production and global inflows remain supportive.
Market watchers advise caution, noting that while the outlook is positive, external factors like global oil prices could influence future stability. The naira’s year-end performance offers optimism for economic recovery heading into the new year.