The Nigerian naira traded on a relatively steady note against the U.S. dollar in the informal foreign exchange market on Monday, December 29, 2025, supported by sustained end-of-year diaspora remittance inflows that offset moderate holiday-related demand for foreign currency.
Checks across major trading centres—including Lagos, Abuja, Port Harcourt, and Kano—showed the dollar exchanging at ₦1,465 to buy and ₦1,475 to sell at the parallel (black) market, based on verified quotations from Bureau De Change (BDC) operators.
Year-End Market Conditions
The final week of the year typically brings a shift in forex dynamics. While travel and holiday spending remain active, much of December’s dollar demand has already been met. At the same time, steady inflows from Nigerians abroad sending funds home for New Year celebrations have improved market liquidity, keeping prices within a narrow band.
Recent Rate Movement
Compared with Friday, December 26, when the dollar traded at ₦1,460/₦1,470, the naira recorded a marginal ₦5 depreciation on both the buying and selling sides. Market participants noted that most transactions on Monday clustered near the selling rate, as individuals and businesses settled final overseas payments ahead of the New Year.
What’s Driving the Current Stability
Market operators attribute the stable pricing to a combination of factors:
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Strong remittance inflows from the United States, United Kingdom, Canada, and Europe, boosting supply.
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Reduced wholesale demand, as many importers have completed major payments for 2025.
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Lower speculative activity, leading to more balanced buyer–seller interactions.
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Supportive oil prices, with global crude trading above $85 per barrel, underpinning Nigeria’s external earnings outlook.
Implications for Households and Businesses
For households, the current rate provides some relief for late-year foreign currency needs, as improved supply reduces the risk of abrupt price spikes. However, businesses reliant on imported inputs continue to face elevated costs, and broader inflation risks remain if exchange-rate stability weakens in early 2026.
Outlook
Analysts expect the naira to trade within a tight range through the final days of 2025, supported by holiday remittances and subdued business activity. Near-term projections place the market between ₦1,460 and ₦1,480 per dollar.
Key variables to monitor include:
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The strength of New Year remittance flows
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The resumption of import demand in January
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Oil price movements
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Any foreign exchange interventions by the Central Bank of Nigeria (CBN)
For now, the balance between seasonal demand and remittance inflows continues to keep the naira relatively stable in the parallel market.
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