By Ayo Kehinde
The Nigerian naira maintained relative stability against the United States dollar on Monday, May 25, 2026, trading within a narrow band across both the official and parallel foreign exchange markets amid sustained pressure on retail forex demand.
Data from the Nigerian Foreign Exchange Market (NFEM) showed the local currency exchanging at about ₦1,375 to the dollar, closely aligning with the last official closing rate of ₦1,375.46/$ recorded on Friday, May 22.
In the parallel market, however, the naira traded at slightly weaker levels as Bureau De Change operators in Lagos and Abuja quoted the greenback at around ₦1,385 for buying and between ₦1,395 and ₦1,400 for selling.
Currency monitoring platforms tracking retail foreign exchange transactions also indicated that the naira exchanged at approximately ₦1,397/$ in street trading on Monday morning, highlighting the persistent disparity between official and unofficial market rates.
At the official market, the NFEM rate remains the benchmark exchange rate recognised by the CBN and is determined through a volume-weighted average mechanism designed to improve transparency and price discovery in the foreign exchange market
The continued gap between the NFEM benchmark and black-market rates reflects lingering demand pressure in the informal retail forex segment despite a series of monetary reforms and interventions introduced by the Central Bank of Nigeria (CBN).
Financial analysts attributed the naira’s recent stability to improved foreign exchange liquidity in the banking system, tighter monetary conditions, and ongoing CBN efforts to stabilize the market through policy adjustments and strategic dollar supply interventions.
They warned, however, that sustained import demand, external economic volatility, and speculative pressures remain significant threats to the currency’s medium-term outlook.
Market observers also noted that the parallel market continues to attract retail and small-scale forex users unable to access adequate dollar supply through official banking channels, thereby sustaining pressure on street-market exchange rates.
