Di Naira don see small appreciation against di dollar for di official foreign exchange market on Thursday, but di market no record any deal for dat day. According to data from di Nigerian Foreign Exchange Market (NFEM), di local currency gain some ground, but zero turnover dey worry analysts.
For di parallel market, wey dem dey call black market, di Naira hold steady at N1,400 per dollar, same rate wey e don be since last week. Dis one make di gap between official and parallel market rates to increase to N26 per dollar, from N21 wey dem record on Wednesday.
Market activity bin weak sharply, with NFEM recording zero deals on Thursday, down from 393 deals on Wednesday. Analysts dey talk say di Naira appreciation under dis thin trading condition no mean say di market strong, but na because of limited transactions wey dey influence pricing for an environment wey no get plenty liquidity.
Meanwhile, Nigeria financial market dey undergo structural shift with di introduction of di Nigerian Overnight Financing Rate (NOFR), wey be benchmark wey dem design to improve transparency, strengthen pricing, and align di system with global standards. According to analysts at di Financial Markets Dealers Association (FMDA), benchmark rate dey serve as foundation wey other interest rates dey build on top.
Like fuel prices wey dey affect transport and food costs, movements for benchmark rates dey affect loan pricing, asset valuation, and funding costs across di financial system. For dis context, NOFR dey provide reference point wey dey help reduce uncertainty and enhance market transparency. However, di Central Bank of Nigeria clarify say NOFR no determine loan margins or total borrowing costs, as dem dey depend on factors like credit risk, tenor, and contractual terms.
While NOFR dey offer reliable starting point, di final pricing of transactions go continue to reflect di specific risk profile and structure of each deal. Di Naira open di new month with slight fluctuations against di US Dollar across both official and informal currency markets. As of early hours of Friday, May 1, 2026, data from NFEM and various parallel market points for Lagos and Abuja indicate continued effort by di local currency to find stable floor.
Dis one follow period of marginal volatility wey dem observe during di final trading sessions of April. Market analysts note say supply of liquidity from di Central Bank remain pivotal factor for maintaining di current band, as di closing rate on di previous day settle near di 1,375 mark. Di official window continue to see steady demand for trade-related transactions, though di spread between high and low points of di morning session remain narrow, reflecting cautious start to di month.
For di parallel market, di Dollar dey exchange at rates wey dey close to official figures, with Bureau De Change (BDC) operators quoting rates between 1,374 and 1,376 per Dollar. Di convergence between official and parallel rates remain significant highlight for di economy, as e reduce di incentive for round-tripping and speculative hoarding. Despite di relative stability, some local traders don report slight increase for demand of British Pound and Canadian Dollar, wey dey trade at respective parallel market rates of approximately 1,735 and 1,010.
Di stability of di exchange rate as of May 1 dey attributed to consistent interventions and monitoring of foreign capital inflows. However, stakeholders dey keep close eye on global oil prices and domestic inflation figures, wey often dictate di long-term trajectory of di Naira. For many Nigerians, di narrowing gap between NFEM and parallel market rates dey provide clearer picture for planning, though di high cost of imports continue to put pressure on prices of consumer goods and electronics across di country.
Di Naira sustain appreciation against di dollar at di foreign exchange market on Thursday ahead of di May 1st holiday. Thursday appreciation be di second consecutive gain wey di local currency achieve dis week. Meanwhile for di black market, di Naira remain flat at N1,395 per dollar on Thursday, same exchange rate wey dem record di previous day. Recall say di Nigerian government declare Monday, May 1st, as public holiday to mark dis year Workers’ Day.
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