The Nigerian naira has shown signs of resilience at the official foreign exchange market, even as currency traders in the parallel market adjusted their rates at the start of the week. This movement reflects the ongoing volatility in the retail segment despite recent interventions by the Central Bank of Nigeria (CBN).
Official and Parallel Market Rates Diverge
Checks on Monday, December 23, 2025, revealed that the U.S. dollar was being sold by black market traders at approximately ₦1,478 to ₦1,485. This represents a slight adjustment from previous rates. Meanwhile, other major currencies followed suit, with the British pound trading around ₦2,204.40, the euro at about ₦1,754, and the Canadian dollar at ₦1,093.
In contrast, at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official window, the naira appreciated against the dollar. It gained ₦7.93, or 0.54%, to close at ₦1,456.56 per dollar on Monday, up from ₦1,464.49 at the end of the previous week. The local currency also strengthened against the euro, settling at ₦1,710.59. However, it saw a marginal dip against the pound sterling, closing at ₦1,957.33.
CBN Interventions and BDC Regulatory Shake-up
Market operators attribute the naira's relative stability at the official window partly to CBN intervention sales. The apex bank recently sold about $150 million to authorised dealers and banks in a bid to ease dollar shortages and curb speculative demand. Analysts note that while this has provided some relief, it has not fully resolved the underlying demand-supply imbalances, especially with persistent seasonal pressures.
The retail forex landscape is undergoing significant changes due to the CBN's revised rules for Bureau De Change (BDC) operators. So far, only 82 BDC operators have been granted final approval under the new regulatory framework. The CBN has explicitly warned the public to transact only with these approved entities, whose status can be verified on its official website.
Findings indicate a period of uncertainty, particularly at hubs like the Murtala Muhammed International Airport (MMIA) in Lagos, where some active traders are not on the approved list. The Association of Bureau De Change Operators of Nigeria (ABCON) has clarified that the 82 licenses represent just the first batch, with more approvals expected as operators complete the stringent new capital requirements. These now stand at ₦2 billion for Tier 1 and ₦500 million for Tier 2 licenses.
Broader Policy Directives for Market Stability
In related efforts to streamline the financial ecosystem, the CBN has issued a directive for banks and payment service providers to reconfigure all Automated Teller Machines (ATMs), Point-of-Sale (PoS) terminals, and virtual platforms to accept foreign-issued payment cards seamlessly. This move, detailed in a circular signed by Director Rita Sike, aims to ensure efficient transactions for international card users within Nigeria.
The overall picture suggests a cautious stability in the forex market as the year winds down. The CBN's dual approach of direct intervention and rigorous regulatory sanitization of the BDC sector is aimed at supporting exchange rate stability. However, the gap between the official and parallel market rates, alongside the limited number of licensed BDCs, highlights the challenges that remain in achieving a unified and liquid foreign exchange market in Nigeria.
