Official CBN (NFEM) Rate:
N1,400.66 / USD
Black-Market Rate: N1,480 – N1,485 / USD (range)
Drivers: Enhanced transparency and liquidity from the new Electronic Foreign Exchange Matching System (EFEMS); Nigeria’s external reserves exceeding $46 billion, providing a strong buffer; Sustained market confidence in CBN monetary policy.
Top Tools: CBN Fx, Aboki Fx
The Naira achieved a significant milestone on Wednesday, strengthening to the N1,400/$1 level in the official market. This sustained appreciation is largely credited to structural improvements like the EFEMS and robust external reserves, though the parallel market premium persists.
FAQ
What’s the gap between CBN & black-market rates? The premium remains, currently between N79.34 and N84.34. This highlights a key divergence: while the official market is rapidly appreciating due to policy-driven efficiency, the parallel market is reacting more slowly, indicating different supply-demand dynamics in the informal sector.
Will the naira strengthen further? The achievement of the ₦1,400/$1 milestone aligns with expert projections for 2026. Continued strengthening is possible, especially in the official market, if the current drivers—high reserves and efficient systems like EFEMS—are maintained. However, full convergence with the parallel market rate may take longer.
How do oil prices affect rates? Oil revenue is a foundational element supporting the record-high external reserves (over $46bn). These reserves are the bedrock that allows the CBN to implement stabilizing systems like the EFEMS with confidence. Therefore, while the direct driver of this specific gain is market efficiency, the underlying capacity to foster that efficiency stems from strong oil-backed reserves.