Emmanuel OchayiThe naira started 2025 with a stable performance in the Nigerian Foreign Exchange Market (NFEM). Data from the Central Bank of Nigeria (CBN) revealed that the currency opened at N1,538.50 to the dollar on Thursday, marking only a slight adjustment from the N1,535 recorded on Tuesday, the final trading day of 2024.
Authorised dealers quoted the dollar at a peak of N1,545 on Thursday, showing an improvement from the N1,550 recorded earlier. This marginal strengthening of the naira at the upper end of dealer transactions reflected a positive opening trend.
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In the parallel market, also known as the black market, the naira maintained stability, trading at N1,665 per dollar. This steady performance contrasted with the fluctuations seen in the official and dealer markets.
READ ALSO: Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today, January 2nd, 2025
Traders noted that this consistency in the parallel market provided some confidence for businesses and individuals relying on informal exchange rates.
Depreciation Observed in FX Market Trends
Despite the stable opening, the overall FX market recorded a depreciation of 1.2 percent, equivalent to N18. Dealers quoted the naira at N1,538 on Thursday, a weaker rate compared to the N1,520 recorded on Tuesday in the official market.
Market analysts interpreted this drop as a notable shift in the currency’s trajectory, though the changes remained mild and within expected ranges for the new year.
Stocks and Their Influence on Naira Stability
The performance of key Nigerian stocks is closely tied to the naira’s strength. As of Thursday, leading stocks in the Nigerian Stock Exchange showed the following movements:
- MTN Nigeria Communications: N200/share
- Dangote Cement: N280/share
- Guaranty Trust Holding Company: N33/share
- Access Holdings: N15/share
- Nestle Nigeria: N1,200/share
Stable stock performances often contribute to a steady FX market, providing a more predictable environment for the naira.
Analysts Watch Naira Trends Closely
As 2025 begins, analysts are keeping a close eye on the naira’s movements. The combination of minor rate adjustments in the official market and stability in the parallel market suggests a cautiously optimistic outlook for Nigeria’s currency.
However, experts caution that broader economic factors, such as inflation rates and government monetary policies, will play a significant role in shaping the naira’s performance in the months ahead.
This mixed start to the year signals that while the naira has maintained relative stability, ongoing monitoring is necessary to assess its long-term trajectory and impact on the Nigerian economy.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
