The naira gained ground in the parallel market on Friday, appreciating to ₦1,560 per dollar from ₦1,580 the previous day, in a modest sign of renewed confidence among street-level currency traders.
However, the official story told a different tale.
At the Nigerian Foreign Exchange Market (NFEM), the currency edged slightly lower, slipping to ₦1,528.5 per dollar, down from ₦1,527.5 on Thursday—marking a ₦1 depreciation, according to data from the Central Bank of Nigeria (CBN).
The divergence highlights Nigeria’s ongoing FX volatility, with the margin between the two markets narrowing to ₦32.5 per dollar, compared to ₦42.5 the day before.
Analysts say the tighter spread suggests interventions by the CBN may be exerting some stabilising pressure, but the continued depreciation at the official window reflects unresolved demand-side pressures and lingering uncertainty in the formal market.
Market watchers will be looking closely at policy moves in the coming days, especially as Nigeria navigates the twin challenges of liquidity constraints and import demand.
