NAIRA HOLDS STEADY AGAINST DOLLAR DESPITE PARALLEL MARKET PRESSURE

The Nigerian naira remained relatively stable against the US dollar this week, even as pressure continues to build in the foreign exchange market.

Data from the Central Bank of Nigeria and market trackers show the local currency closed at ₦1,366.73 per dollar on the official Nigerian Foreign Exchange Market, NFEM, on Thursday. This was a marginal decline of just ₦0.02 from the previous day.

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On the parallel market, also known as the black market, the naira traded at around ₦1,418 per dollar on Thursday. That represents a ₦3 drop from ₦1,415 recorded on Wednesday. The gap between the official and street rates now stands at roughly ₦52 per dollar.

CBN INTERVENTION KEEPING THINGS CALM

Analysts say the relative calm is largely due to consistent dollar sales by the Central Bank of Nigeria.

Reuters reported that Nigeria’s naira is expected to hold steady, buoyed by central bank dollar sales. One trader quoted by Reuters said: "I expect the naira to be stable, particularly given the Central Bank of Nigeria's presence in the market to ease demand pressure."

Business Day also noted that the combination of stronger foreign exchange turnover, healthy external reserves and improved liquidity has enabled the naira to withstand the pressure from a strengthening US dollar.

Nigeria’s external reserves stood at $51.92 billion as of July 29, 2026.

WE NO SEE BIG JUMP LIKE BEFORE - MARKET REACTION

While the official rate looks stable, ordinary Nigerians are still feeling the pinch at the street level.

A BDC operator in Lagos Island told Zpothub News, "Demand is still there but CBN dey intervene small. That’s why you no see the dollar jump to 1500 like last year. But ₦1,420 is still not cheap for importers."

A foodstuff trader at Mile 12 Market also told Zpothub News, "The dollar is stable on paper, but rice and oil prices have not come down. If dollar was really stable, my customers for don feel am for market."

A civil servant in Abuja who spoke with Zpothub News added, "At least my salary no dey lose value every week again. Last year, by Friday dollar don go up. Now it’s moving by ₦2, ₦3. That one is better."

WHAT’S CAUSING THE PRESSURE

Despite the stability, experts warn that challenges remain. The naira recorded three consecutive days of losses last week at the official window.

Analysts point to falling oil revenues and capital outflows as key factors weighing on the currency. Market watchers expect the pressure to persist amid global economic uncertainties and domestic fiscal pressures.

Another report noted that FX inflows reached $970 million in one week, which helped bolster the naira’s resilience.

WHAT THIS MEANS FOR NIGERIANS

For now, the naira’s stability is good news for businesses that rely on official FX windows. Importers, airlines, and manufacturers can plan better without fearing a sudden spike.

But for the average Nigerian buying fuel, food, or paying school fees in dollars, the parallel market rate of ₦1,410 to ₦1,425 is what matters most.

We gathered reactions from social media and market conversations across Lagos and Abuja, and the general sentiment is cautious relief.

OUTLOOK

For next week, Reuters noted a mixed outlook for African currencies. Kenya, Nigeria and Ghana are expected to be broadly stable.

With CBN still active in the market, most analysts believe the naira will continue to hold within the ₦1,360 to ₦1,370 band officially. But unless dollar supply improves, the street rate may remain above ₦1,400.

As one Lagos trader Name withheld told Zpothub News, "Stable is good. But we want affordable. Make dollar come down to 1000, then we go celebrate."

By Solomon Emmanuel| ZpotHub News