CBN Data Shows Marginal Appreciation as Naira Trades at ₦1,528.88/$1
The Nigerian Naira recorded a slight appreciation against the United States dollar at the official foreign exchange market on Tuesday, July 22, ahead of the new trading day on Wednesday, July 23, 2025.
According to official data released by the Central Bank of Nigeria (CBN), the Naira closed at ₦1,528.88 per US dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), compared to ₦1,529.99/$1 on Monday.
TJ News Nigeria gathered that this represents a marginal gain of ₦1.11 or 0.07 percent in a 24-hour period, marking the second consecutive day of moderate strengthening in the spot market.
Black Market Rates Remain Volatile
Meanwhile, the parallel market—often referred to as the black market—continued to show a significant disparity, with the dollar selling for between ₦1,580 and ₦1,600 depending on location and volume.
Street traders in Lagos and Abuja quoted buying rates at ₦1,570/$1 and selling at ₦1,595/$1 on Wednesday morning, indicating persistent pressure on retail forex demand.
Summary of Key Rates (July 23, 2025)
| Market Segment | Exchange Rate (₦/US$) | Change |
|---|---|---|
| CBN Official (NAFEM) | ₦1,528.88 | +₦1.11 (↑) |
| Parallel/Black Market | ₦1,580 – ₦1,600 | Stable |
| Bureau De Change | Not available | N/A |
TJ News Nigeria can authoritatively report that, despite official rate gains, the gap between the regulated and informal markets continues to raise concerns among manufacturers, SMEs, and international investors.
Market Reactions and Economic Outlook
The slight appreciation of the naira comes amid a backdrop of tighter monetary policy by the CBN, which retained the benchmark interest rate at 27.50% during its last Monetary Policy Committee (MPC) meeting.
Analysts suggest that the apex bank’s stance—aimed at curbing inflation and stabilizing the currency—is beginning to show modest results in the forex space.
However, traders and economists warn that the appreciation trend may be short-lived unless Nigeria boosts forex supply through increased oil exports, diaspora remittances, and non-oil revenue.
What Is Driving the Naira’s Movement?
Several factors are currently influencing naira-dollar fluctuations:
- Tight monetary policy: Sustained high interest rates continue to restrict naira liquidity.
- Low FX inflows: Nigeria’s crude oil production has yet to hit projected benchmarks.
- Import demand: Persistent demand for dollars to fund imports pressures reserves.
- Speculation: Parallel market activity remains volatile and affects sentiment.
According to a Lagos-based financial analyst quoted by TJ News Nigeria, “Until the structural issues within the forex market are resolved, any short-term gains should be viewed with caution.”
CBN’s Response and FX Reforms
The Central Bank has maintained its policy of allowing market forces to determine exchange rates under the NAFEM window, although it continues to intervene occasionally to stabilize supply-demand imbalances.
The bank has also warned against hoarding or speculating in foreign currencies, stating that such actions contribute to exchange rate volatility and undermine monetary stability.
Outlook for the Week
- Exchange rates are expected to remain within the ₦1,520–₦1,540 band at the official window if current trends persist.
- Black market premiums are likely to remain high unless there is a significant liquidity injection into the formal forex segment.
- More corporate and retail users are turning to official channels to avoid compliance risks associated with parallel market transactions.
